The San Francisco call., 1904-02-25
BIG INCREASE
IN VALUATION
Property of Spring Valley Com
pany Is Estimated at Up
ward of Fifty-TwO Millions
BRAUNHART'S IRE ROUSED
Mayors Veto Of Bills Presented
Is Referred Back to Board
Without Recommendation

The Board of Supervisors met yester-
day afternoon to consider, as a COM
mittee of the whole, the fixing of water
rates. An elaborate verified statement
was handed in by the Spring Valley
Water Works, which placed the total
valuation of the plant at $52,964, 700.
This aroused the ire of Supervisor
Braunhart, who characterized such
statement as ridiculous. Excitedly
waving the typewriter sheets contain
ing the statement in the air, he ex-
claimed: This is what 1 call trifiing
with most serious matter. This COM
mittee is here to consider the fixing OF
water rates on fair valuation, and
preposterous figure like this is handed
US This valuation is simply impossi-
ble as only last year Mr.. Schussler es-
timated the value of the plant at about
$40, ,000 900, and there is nothing to show
that it has increased in value to such
an enormous extent in the meanwhile"
In reply, Attorney Kellogg. repre-
senting the corporation, replied that he
did not think Mr.. Braunharts remarks
were fair, as he had condemned the en-
the sum total He said that all the
property owned by the company was
listed in the report submitted and the
valuation was reasonable. In response
to an interrogation from Supervisor
Braunhart, he asked tartly, DO you
expect us to agree with the valuation
made by your engineer" City Engi-
neer Grunsky had placed valuation
of $24, $4,000 on the plant.
WAGES ARE HIGHER.
Mr.. Kellogg explained further that
the valuation of the plant has been in
creased during the year owing to the
increase in the cost of labor. both for
operating and for construction work,
which latter, he said, is being carried
on all the time, and the cost of this has
increased so per cent during the year.
In view of this fact he said it was but
natural that a building erected by
workmen at a salary of 81 a day would
be rated higher than a similar one
where the laborers were paid but. 81
day. The cost of building material and
pipes also has advanced greatly, and.
on the whole, he did not think a mod
est jump of s12, 200. 900 at all exorbitant.
inclining rather to the belief that the
water company is dealing very gener-
ously with the people.
The first witness called yesterday
afternoon was c. w. Williams. an en-
gineer employed by the water company.
He was questioned as to the relative
expense of pumping 100000 or 100000
gallons of water. In reply he stated
that the expense for labor was the
same, but more fuel might be required.
When interrogated specifically regard
ing the vast difference in the figures of
the last year and preceding years at the
Belmont station he accounted for the
increase by stating that $500 had been
expended in repairing an engine and
this amount was charged to operating
expenses. He could not tell why the
cost of pumping was greater in 1902
than in 1903 or than the amount esti-
mated for 19O4-5.
LITIGATION INCLUDED.
Chairman D'Ancona then stated that
the object of the inquiry was to de-
tern1ine what portions of the statement
should be charged to operating ex-
penses, what to construction and finally
the actual value OF the plant BGdnuen-
stein called attention to the fact that
the expenses of litigation in the Clough
contest were included in operating ex-
penses and contended that the rate
payers should not be taxed to carry on
a suit to quiet title. Mr.. Kellogg re-
piled that the Clough suit was to de-
termine the right of the company to
lands purchased in 1875 and of which
the company has had undisputed pos
session until recently. He considered
it but just that this be brought under
the head of operating expenses.
We'll. it is simply suit to quiet
title, nevertheless, retorted Branden-
stein, and has no more right under the
head of operating expenses than the
acquisition of new property would have.
It is unjust to expect the ratepayers of
San Francisco to be taxed for any such
litigation"
Inquiry was made regarding the
amount of taxes paid by the Spring
Valley Company in San MateO County,
but its representa- tives were hopelessly
ignorant on that subject. Mr.. Kellogg
made a rough guess, but In answer to
a direct question was unable to say