The San Francisco call., 1908-10-09
Governor George C. pardee upper) Frank Short owe
lion may start afresh the controversy
between the company and the city. City
Attorney Long has stated that as he un-

tf0n may start afresh the controversy
between the company and the city. City
Attorney Long has stated that as he un-
derstood the opinion of Judge Earring
ton the consumers were not compelled
to pay the excess. The directors of
Spring Valley hold otherwise and threat
en- to shut off the water OF those con-
sumers who refuse to pay the increase.
The issue may be settled by supple
mentary ruling from Judge harrington
on a suit instituted by some rate payer.
The attorneys for the company claim
that under the general terms of the in
junction they are at liberty to charge
any rates they desire up to Is per cent
above those fixed by the supervisors.
City Attorney Long will not force the
issue, but he places stress upon one of
the articles In the courts order which
states that nothing in the decision shall
be interpreted as compelling the con-
sumer to pay moro than the rates
adopted by the board of supervisors.
President William B. Bourn presided
at the meeting of the directors and
after adjournment stated that he re-
garded the court decision as "a step in
the right direction toward bringing the
city and the company together" He
added, however, that the valuation of
s27,553, 900 fixed by Judge harrington
would neither modify the plans of the
company nor elicit fresh offer at this
time.
One of the most significant features
of the ruling was that portion censur-
ing the company for the destruction OF
its pipe line by the earthquake On
this point Judge Harrington said
COMPANY Is CENsURED
Since 1908 a large sum of money
raised by assessment and the sale of
bonds has been expended on improve
ments, but how much of this expendi-
ture was in the purchase of property
for future use or for repIacements or
how much was made necessary by the
earthquake and fire does not clearly ap-
pear. Neither has 1T been shown that
complainant was entirely free from
fault in permitting its feeder pipes in
the lower part of the city to remain in
swampy and loosely filled ground. 1t
was in and on such ground the earth
quake wrought its greatest havoc.
There is unexplained and unanswered
testimony tending to show not only
main feed pipes on a solid foundation.
but that the chief engineer of the COM
pany, realizing the danger years before
the disaster. urged the construction of
a system on proper ground.
.It is difficult to understand why the
consequences of such an i'll advised To-
cation should be visited on the public
and not on the company There is Ia
ways a certain amount of loss by acct
dent which seems tnseparabIe from the
conduct of many kinds of business.
1t usually can be counted on in ad-
vance. and no amount of care or pre-
caution will entirely eliminate 1T; it is
incident to the business. Such losses
are considered by the Interstate COM
merce commission in fixing rates. but
the rule is never applied in favor of a
carrier who has suffered loss by reason
of defective appliances and facilities
which he has knowingly used or pro-
vided."
This is the first time that the court
has passed upon this point, and In the
opinion of City Attorney Long it tends
not only to cast upon the company full