The San Francisco call., 1906-06-11
BIC WATER DEAL
IS IN PROGRESS
Realty Syndicate May
Purchase the Contra
Costa System.
Transfer Is About to Be
Made After Long
Negotiations.

OAKLAND, June 10-Negotiations
are now in progress that are expected
to result in the purchase of lne Contra
Costa Water Company's plant by the
Realty Syndicate. They Were begun
some months ago shortly after the two
great corporations clashed over water
shed rights on San Pablo Creek in Con-
ira Costa County, and which clash was
followed by the fling of numerous law
suits in the Superior Court of that
county. When the big deal will be
consummated those Interested are not
yet prepared to say, but Ii Is known
that proceedings have reached that
stage where the transfer is regarded as
almost certain TO be made.
The Contra Costa Company owns and
controls the sources of the water sup
piled in Oakland, Alameda and Berke-
ley and the smaller suburban towns.
The main source of the company's s
water supply is Lake Chabot, located
in the hills north of san Leandro. The
company also owns valuable artesian
wells at AlVarado. Several years ago
when the noted water rate suit was
dragging its lengths through the
courts of this county, Superior Judge
E. c. Hart of Sacramento. who sat in
the case, decided the valuation of the
Contra Costa Company's plant to be
s., ,000,000.
w USl IL appeared some months dSO
that the Realty Syndicate was buying
up water shed territory in Contra Cos
ia County and preparing to construct
reservoirs there to supply water plants
to be installed in Berkeley, Oakland and
Alameda, the Contra Costa Company
Immediately locked horns with its rival
and the courts of Contra Costa County
were swamped with litigation. 1t was
during this contest that the heads and
managers of the Realty Syndicate and
the Contra Costa Company inaugurated
the transactions that will in all likeli-
hood end in the latter corporation be-
ing taken over by the former
William j. Dingee, president of the
Contra Costa Company, is now heavily
interested in cement manufacturing,
which promises to figure as one of the
most important factors in the rebuild
ing of San Francisco and which is like
wise expected to be an industry in
which millions will be made AS be-
tween being a water magnate and a
cement magnate, Dingee prefers TO be
the latter. it is said and is ready and
willing to dispose of his interest in
the Contra Costa Company il he can
obtain suitable price
The Realty Syndicate is one of the
largest corporations in Alameda County
and its officers and directors are local
residents. F. NJ Smith, the "Borax
King is president of the syndicate,
and Frank C. Haven is vice president.
The corporation is allied with the San
Francisco, Oakland and San Jose Rail-
way. which operates the Key Route
ferry line and with the Oakland Traci
tion Consolidated, which owns all
the street car systems in the cities on
the east side of San Francisco bay The
syndicate has large handed interests In
Alameda and Contra Costa counties
Before the transfer OF the Contra
Costa Company to the Realty Syndicate
can be accomplished, the litigation
pending in Contra Costa County will
have to be adjusted. 1t is expected that
the sale of the Contra Costa Company
TO the Realty Syndicate will also re-
suit in a settlement of the water rate
case now pending in the State Supreme
Court and the injunction actions pend
ing in the United States Circuit Court
over water rates.