The San Francisco call., 1907-06-02
WATER SUPPLY FOR
CITY OF SAN FRANCISCO
Spring Valley Water Com
pany Sends Open Letter
to Water Committee


H. Heuer, U. s. A, chairman, and the
committee appointed in the matter of
water supply for San Francisco:
Gentlemen: At an appearance be-
fore your committee, made at its re-
quest, l presented fully the financial
and physical conditions of the Spring
valley water company. In this con-
nection I stated that the work which
we were now fastening to the extent
of our power for an increase in con-
duit capacity from the peninsuiar res
ervoirs and an additional pumping
plant for the high level distribution Of
this water, would take care of the
reasonable demands of this city for the
coming year, but that in order to
meet these absolutely essential ex-
penditures of approximately s450,000,
the company would have to be given
an income which would Justify this in
crease IN its present Indebtedness, In
response to inquiry from your COM
mittee, 1 suggested that while 1t
would probably be impossible, under
existing conditions, to raise the rates
for private consumers, 1t would be
possible to meet the expected deficit in
the companys revenue by a return to
the rates originally paid by the munich
pality and proper appropriations for
this purpose. /, furthermore, stated
in behalf of the company that If this
could be done it would assume the
task Of raising the additional funds
required for the work already in prog
ress and absolutely necessary for the
citys protection during the coming
year In line with this suggestion I
also wrote as follows to the finance
committee of the board of supervisors
while the budget was under consider
alton:
san Francisco, Cal, May %, 1907
To the finance committee Of the board
of supervisors of the city and county
of San Francisco:
Gentlemen: This company's esti-
mate covering operating expenses.
taxes and interest on bonded debt for
the fiscal year 1907-0s is approximately
bers, $1,9e0,o0o for the year.
Under the 1902-o3 rate our income
from rated and meter bills, contractors
and shipping, may be estimated at
S1,62s.0oO for the same period, leaving
q deficit of s272. 1000, which can only be
made up to the company by the money
received for the city bills.
Under the 1902 rate the appropri-
ations made for the city's water bills,
including hydrants, amounted to s67,-
500, so that the same appropriations
would still leave us with deficit of,
practically, 100000. We, therefore.
respectfully suggest the following ap-
propriations for the city bills for the
coming year:
Schools ..;;;.-....-.-.... sl5. .o0o.o0
Public buildings. 2Q,VO0-00
St Farns ,,;ni.i;,s - ooo.oo 3aooo oo
Total $o9,0OV.0o
: We also ask that the hydrant rate be
put at IS per month, OF $50 for the
year, as it stood from 1895 to 1901. AT
this figure the 5000 hydrants allowed
for (though more are now in use),
with the above mentioned appropria-
tions for other public purposes. would
anticipated deficit. This would simply
enable the company to pay its way
without any return to the stock
holders, for which they would still
have to depend on the growth in the
company's income. Cue to the increase
in private consumption. In this con-
nection II should be remembered that
since the first Of July, 1904. the re-
turns of the company TO its stock
holders in dividends have been prac-
tically equaled by the assessment
lately paid IN, so that they have re-
ceived no interest on their investment
during that period
If the rates adopted by the board Of
supervisors In February last can be en-
forced, the company's income will fall
short by over 100000 of the amount
actually required to meet operating ex-
penses, taxes and interest on the pres
ent bonded debt.
The company will be glad to per-
nit your committee to satisfy itself by
the examination of our books and the
testimony of our officers as to the sub
stantial correctness of the estimates
herein contained. Very truly yours,
"A II. PAYSON.
President"
No answer has been had to this letter
other than that carried by the budget
itself, which appropriates $4,000 for
hydrants land other municipal pur-
poses"-presumably street sprinkling.
Besides this the company is to receive
$4,000 for public buildings and such
sums for parks and schools as may be
granted by the commissions which dis
burse these appropriations. In other
words, this budget denies the company
for the coming year even what It
would be entitled to under the ordi-
nance of February 1ast-an ordinance
which. II fully enforced, means confis-
cation, and so brings the company and
the city again into costly litigation
While the city authorities are willing
TO expend s720.0o0 this year out of the
revenue for an experiment under pres
ent conditions in the municipal con-
struction and ownership of a street
railway, it can only afford, In the judg-
ment OF the supervisors, to pay $4,000
year for the water used as its pro-
lection against fire. for the flushing of
its sewers and the sprinkling of its
streets.
After the most serious consideration
of all the facts the directors have re-
luctantly decided that unless additional
appropriations can be secured from
the city they will be compelled to sus-
pend the work now in progress and alb
solutely essential for properly meeting
the changed conditions in this city
during the coming year. This would
mean that the Western Addition would
not be adequately supplied during the
season Of heaviest consumption and
that ii would be impossible for the
company to maintain a continuous and
proper supply of water in its high level
reservoirs, which are the only protec-