The San Francisco call., 1904-06-03
Chief Executive VIII As
sist at the Defense of
the New Rates Schedule
in United States Court
FIRST STEP' WILL
BE FOR A DELAY
Time VIII Be Required in
Which to Cat Atfidavits
ON order TO Show Cause
oakland Office. san francisco Call,
1915 Brosadw ay. June ?.

1915 Broadw ay, June :.
Mayor Warren Olney has decided to
sppesr before the United States Cir
cult Court one Of the counsel for the
eay'in the water rates litigation The
Mayor viii make personal answer IN
the suit, and besides, he purposes TO
actively assist in the defense Of the
city Council This decision was reached
to-day after his Honor had read the
bill OF complaint that has been filed by
the Contra Costa Water Company,
The Mayor explained that he be-
lieved il to be his duty TO assist in the
litigation as he felt that he was famil-
lar with many details of the wafer sit
uation in Oakland that would be OF
value to the city in meeting the claims
- the water company. Mayor Olney
ALSO said that the service he should
lender in the. case would involve no
cost for fees upon the city, as he would
be acting as the official representative
of-the city Of oakland which. with the
city Council. is a named defendant
After consultation with City Attorney
NcEIroy a decision viii be made as 10
what the city shall do on Monday, the
time set for the hearing in court on
the order TO show cause why an in
junction should not be issued TO pre-
vent enforcement OF the new rates. The
city will ask for a continuance Of the
hearing that sufficient time may be
granted in which 10 prepare the affi-
davits in response TO the order 10 show
cause The drafting Of these affidaVits
ayflI necessarily consume some days
Two CAUSES,
The action brought by the water
company involves two proceedings. The
first APPLIES To the injunction applica-
ton and the other goes to the main
cause-whether the new rates are un-
just and mean a conascation Of the
water coEpany's property.
Concerning the case. Mayor Olney
said to-day:
In view Of mf position as Mayor I feel that
I sfrsld sr,uesr -as counsel in the litigation.
Z shsIi- fle an AFFIDAVIT n my own behalf and
shall render all assistance possible IN the
c1se Fseelirg satisfied that the City Cornell
has acted fairly and justly. ] am ready 20 JOIN
with the City Attorney In this suit
His Honor also pointed out that
charges had been made against him in
the. complaint. touching his attitude
toward the camDaign for municipal
owpership Of water plant. These al
legations point out that tire market
value Of the Contra Costa. Water Com
pany's stock fell from an average of
S75 a share during the three and a half
years ended December. 1S03 10 s35 a
share during April and May Of this
year. IN its complaint the water com
r,-uv Ia fnfc rouuapffGn rarffoG-
That during the year 1868 certain politicians
cotnmenced an agitation in said city Of Oakland
in favor of municipal ownership Of watel
works. and lnGustriously and vigorously mis-
represented % the inhabitants Of the said city
81 Oakland. and particularly 10 the voters IL
the safd cfrv the true and actual value anC
condition Of the property and water rieht be
longing 20 and used by complainant IN sup
plying said city and its inhabitants with water
and the present Mayor and Council all pledged
themselves before the election in putli,
speeches and otherwise TO reduce the rates
And complainant Is informed and be
leVes that sale Mayor anc majority OF tn
members Of the said Council have threatened
which may be charged by said complainant
during the fiscal year, and 70 make the rste
- unreasonaby low that the value Of com
uiainantE property VIII thereby be greati,
lessened. 20 the end that the said city o
Oakland may purchase and acquire the sam,
~ price faF below It's real true value. am
that afiant IS informed and believes that sal,
resolution was adopted and passed by sah
Council for the purpose Of carrying out tl
Aforesaid design and threats
VALUATION RAISED.
The water company has raised it.
valuation s1.50O.OO0 over the s. 900. .Ooi
allowed by Judge Hart in his decision
four years ago II now demands
Per cent net ON a gross valuation Of
$500, 600. Including ain allowance fol
Operating expenses and taxes, a gross
income Of ss50,O0O plus So. 900 for de.
probation Of a grand total Of 1892 600 il
demanded. On the basis that seven.