The San Francisco call., 1908-04-09
GOES TO SEEK
HFTCH HFTCHY
WATER RIGHTS
Marsden Manson Speeding to
Washington as City's
Commissioner
Fear of Spring Valley Lobby in
Holding Up of the Prom
ised Grant
Refusal of Company to Come to
Terms Causes Demand for
Sierra Supply


supervisors and the officials of the
Spring Valley water company were
struggling in vain Tuesday night to
reach an agreement as to the future
supply for San Francisco. City En-
gineer Marsden Manson, acting as the
special commissioner of the munich
pality, was hurrying to Washington
on secret mission to secure the rights
to the Hetch Hetchy system. Every
effort was made to keep Msnson's
departure a secret. He was granted
leave OF absence quietly and left
Tuesday morning vested with full au-
thority TO act for the city in the ne
gotiations in Washington.
The decision to send Manson 10 the
national capital was reached when it
became apparent that the Spring VAL
ley water company would do nothing
10 augment its supply, which under
present conditions is barely sufficient
to meet the needs of the city. There
had been some expectation that the To-
cal corporation would reduce the price
of it's plant to a sum which the city
could consider. but when no cut was
made in the figures first submitted at
tention was again diverted to the Sier-
ra sources.
ACTIVE AT THE CAPITAL
Mansons trip was hastened by re-
ports that Spring Valley agents were
active once more at the capital. When
Senator Garfield of the Interior depart
ment was in California last July he
stated that San Francisco could have
the Hetch Hetchy water rights at any
made application, but as yet no de-
cision. has been rendered by Garfield.
Fear has been aroused that a Spring
Valley lobby has been at work with
counter arguments. A decision from
Garfield is anticipated soon after the
arrival OF Manson in Washington. AS
soon as full power TO acquire the wa.
ter rights of the Hetch Hetchy have
been granted to the municipality by the
national government the city will be in
a position to offer to the people their
choice between the Spring Valley and
the. Sierra supply.
SEVEN MILLIONS APART
There was general disappointment
pervisors yesterday that the Spring
Valley water company had not come
forward with some new proposition.
Many members of the board believed
that the corporation had decided TO
scale its price to sum within $1,000
600 or s2,oo0,Ooo of the valuation fixed
by the city experts. AS it is, the city
and company are some 100000 apart
with little prospect of modification of
the estimates on either side
There is feeling among the super
visors that the public would not con-
slider proposition which would re-
auire the payment of a sum vastly in
excess of the market value Of the secu-
rites. The Spring Valley proposes to
sell it's stock and bonds at their face
value. when they are now selling at a
big discount in the open market. 1t
was pointed out that the city, IL 1t had
the power of an individual could have
gone into the market and purchased
Spring Valley at $40 and s2I a share.
as did w B. Bourn. The company asks
the city to pay $50 share.
In this connection, reference was
made yesterday to the advantageous
position Of Bourn. 1t is no longer
secret that he has secured control of
the property. He is credited with hav-
ing bought some $4,000 shares of the
stock at an average price of $40 and
s21. By selling this to the municipal
ity on the basis of 500 a share Bourn
would realize a profit of $50 a share,
or s1.5oo.ooo. on his holdings acquired
since the fire.
BoURN GAINS CONTROL
Bourn began to buy Spring Valley in
1906, when he discovered that the stoclx