The San Francisco call., 1904-06-09
HEARS REQUEST
FOR INJUNCTION
Contra Costa Water Com
pany's Suit to Restrain
Oakland Council Begins

The legal battle between the Contra
Costa Water Company and the city of
Oakland began yesterday before Unit
ed States Circuit Judge Gilbert and
gives promise of being long fight.
The company asks for an injunction to
restrain the city from putting into ef-
feet on July l the rates established by
the City Council May 81. Under the
contract with the company the city
sets the rates to be collected from con-
sumers of water and in fixing those
rates the valuation of the plant is
taken as a basis. The Council set the
valuation this year at $4,7oO,OOO but
the company CONTENDS thelr plailt Is
worth $500, 900. The company wants
that amount taken as the basis for
fixing the rates, hence the application
for an injunction.
When the case was called the COM
pany secured an order from the court
to compel the defendant TO furnish to
the plaintiff all the data that was used
10 arrive at the rates fixed by the
Council in May. In the afternoon il
gained another point by securing the
admission of affidavits supplementary
TO the bill of complaint.
HENEY OPENS CASE.
Attorney Francis ]. Heney opened
the case for the company by explaining
to the court the nature of the action.
His contention was that the rates the
city proposes to put into effect on July
l will not give the company more than
per cent on its investment and that
amount would leave the company in
debt to the amount of $4,000 at the end
Of each year the rates are in effect.
I The actull value of the plant, accord
ing to the company's figures. is $780,
00O and the additional value of the
franchise is s1.OOO,O0o. The COM
pany has a bonded indebtedness Of
SO. 20. .O0O upon which it has to pay in
terest at the rate of 5 per cent Ter
annum, but this will be an impossible
ity if the rates fixed by the Council
are allowed to stand.
In order to establish his contention
Attorney Heney offered an affidavit
signed by Arthur L. Adams, an expert
engineer. and former manager of the
company. Heney started to read the
document, but Mayor Warren Olney Of
Oakland, who is the leading counsel
for the city, objected that under the
rules of the court affidavits were not
admissible. He argued that the case
before the court was one involving
the rights of every municipality in the
State and that unless the court up
Of all legislative bodies would be in
jeopardy.
RIGHTS INVOLVED.
Olney claimed that the suit was
brought in reality to take away the
power Of the city to regulate water
rates and that the company simply
wanted to put the affidavits into the
case to strengthen its position.
Heney reDlied saving the sole 0ueS-
tion before the court was not whether
the plaintiff had established a case,
but whether a temporary Injunction
should be granted TO prevent the de-
PENDANTS from putting arbitrary rates
into effect The admission of supple
mentary affidavits would simply pro-
vide additional information to aid the
court to determine the question Of de-
nying or granting the injunction
prayed for. Under the law the rates
should have been fixed in February,
but they were not fixed until May 81
and then arbitrarily. The affidavits
would show those facts and should be
admitted.
Garret W. McEnerney, who is asso-
ciated with Heney and John CARRIER,
took exception to the statement made
by Mayor Olney regarding the under
standing about the filing of aff1davits.
He said it had been understood that
the city Of Oakland through its attor-
neys intended to file aff1davits and as
the attorneys for plaintiffs could not
anticipate the nature Of those docu-
ments the affidavits offered by the
company could not be served on the
defendants at the time the complaint
was filed.
WHAT OAKLAND WANTS.
Heney said there was no reason why
the affidavits should not be admitted
unless Oakland expected to win on
technicalities. Furthermore, it was i'm
possible to gather tie data contained
in the af1idavits in time to furnish the
defendants a copy, but that copies
would be furnished by this morning.
The matter was argued for over an
hour, but at the finish Judge Gilbert
said he would allow the afidavits to be
admitted owing to the serious nature
Of the suit and the great questions in
Volved. Attorney Heney proceeded
with the reading of Adams affidavit
and then offered additional ones from
George T. Lafiesche. William AIvord.
@. w. Kline. /. w. Hellman, George A.
Moore. Jacob Birth. P. NICK. Duperu
and Henry S. Gore.
The case will be called again this
morning at 10 O'clock. Oakland is rep
resented by Mayor Warren Olney. City
Attorney John E. McElroy, r. NJ. Fitz-
gerald and W. r. Davis.