The San Francisco call., 1904-06-02
WATER RATES
IN THE. COURT
Spring Valley and the
Contra Costa Corporation
Complain of Oppression
SAY CUT Is TOO SEVERE
San Francisco Body Says
That It's Plant Is Worth
at Least Forty Millions

The Spring Valley Water Company
and the Contra Costa Water Company
fled bills of complaint yesterday in the
United States Circuit Court against
the Board of Supervisors Of San Fran
cisco and the City Council Of Oakland,
respectively, complaining that the
water rates as fixed by those munich
palities are unjust, unreasonable and
oppressive, and asking that the water
ordinances fixing rates for the fiscal
year ending June 80. 1905, be declared
null and void.
Judge Morrow in each case declined
to issue a restraining order, and set
next Monday at 10 o'clock as the
time for hearing the cases.
The Spring Valley Water Company's s
complaint alleges that the rates as
fixed by the ordinance of 1902 have been
cut per cent by the Supervisors; that
the hydrant rate, which should be So
per month for each hydrant, has been
cut from 50 TO 81. and that the ordin-
ance does not allow the company suffi-
cient by Sl04. 900 on its taxes. 1t is COM
planned also that the ordinance does not
allow for the taxes on s.. S95, ,233. the as
sessed valuation of the franchise. The
complaint alleges further that the City
Engineers estimate of the value Of the
plant at $26, ,173, ,212 is too small, and that
the actual value exceeds $40, 600, 600.
Rates which will pay operating ex-
penses, taxes, wear and tear and Z per
cent income on the value of the plant
are asked for.
The Contra Costa Water Company's
complaint asks that the ordinance
passed by the Oakland City Council
last Tuesday be declared void. The
court is asked to enjoin the City Coun-
ell from reducing the general fund of
the city Of Oakland for other purposes
than water. 1t is alleged that the
rates fixed are unreasonable, oppressive
and confscatOry. The company asks
for a : per cent net income.
Service Of summonses was begun on
the City Councilmen of Oakland imme-
diately after the order of court was
made and the necessary papers pre-
pared. Concerning the action of the
Contra Costa Water Company, George
W. Dornin. president Of the City Coun-
ell Of Oakland. said last night:
That the City Council will defend its action
in reducing the water rate there is doubt.
Officially have Yet 10 be advised; but, of
course. 1 know from report that the company
has fled petition for injunction against the
enforcement OF the rates. on the ground that
they are confscatory.
The proper place 10 reply to this is in court
once to see that the city council is properly
represented IN court and that due resistance
be made TO the water companys application.
It :s more than likely that a special meeting
OF the City Council viii be called for Friday
night that the situation may be canvassed
and decision to action be reached.
SO far the rates concerned. l do not
feel that there is anything 10 be said at this
time other than that the City Council adopted
them in the belief that they fair TO the
company and just 70 the consumers. The City
Council used its best endeaVors 20 reach such
a result. I can say that many days and nights
Of arduous effort were exhausted in the work
! Of preparing this new schedule.
II is based mathematical calculations
alcng scientific lines. and I feel convinced that
/ the hgures can be sustained in court OF law