The San Francisco call., 1908-04-08
OFFER TO SELL OUT
SPRING VALLEY co.
W. B. Bourn Joins Captain Pay.
son in Urging Purchase
of Water System
Supervisors Asked TO Raise
Rates or Pay $27,400,OO0
for the Property

spring Valley water company and
pleaded before the special committee
~ the board Of supervisors for an In
crease Of rates. Captain A H Pay
soa. president Of the company, was
also present and in behalf OF the COR
Soratton placed two propositions be-
1ors the board one that the schedule
sc2 charges be advanced with the IN
derWts tsnding that the company aug
nnent its supply. and the other that
TIE city purchase the plant outright
Supervisor AIcAllfster offered a sug-
Eestion that the Spring Valley bring
.tH supply up 70 Ice. 900 gallons g
cay and that the municipality grsdu-
: ally take over the property. After
Two hours discussion the meeting ad-
5orrned without definite action.
The committee OF the supervisors
viii meet again n the near future
when. Il is understood. the rates Of
1so2. which the company maintains
ere not satisfactory, viii Be adopted.
BoURN EVADEs QUESTIONS
Bcurn had returned from Grass VAL
ley 10 attend the meeting and his
presence gave rise TO q rumor that he
had some new proposal TO submit
6e urged cooperation between the
city and the company. but ns6e no
specific. suggestions as to a method
q procedure BoUrn would neither
purchased control OF the water com
pany.
1T IS 3 private natter he said.
which 1 cannot discuss"
Tt is true, is Il not, that you have
secured control OF the company? hs
vas asked
The stock holders OF the company
are entirely hzruonious.- he replied,
sTssively. and the matter is purely
= personal one
But you VIII admit. viii you not.
rhzr you have recently made very
heavy. purchases OF Spring Valley
stockT'
That I must also decline 10 dis
cues" he answered
Supervisor Johnston presided ct the
meeting OF the special water commit
. tee end most OF the members OF the
hoard were "a attendance. Engineers
6chussler and Dockweiler. City Attor-
'ney Long and Fire Commissioner Rolis
'. Watt were also present.
PAEsoN SAYS PURCHASE
Captain Pzyson was called upon for
6 statement and responded that the
simplest solution OF the problem was
the purchase OF the plant by the city.
de offered the system for s97, 400. 900,
which excepted the Lake Merced lands
and $500 900 IN other real estate He
expressed s. willingness TO izcluds the
S600.0oo worth Of realty II the city de-
sired il. AS al alternative ne stated
that i the board would increase the
Tate, allowing & s5 hydrant charge. an
additional Is per csnt in the charge TO
consumers and an allowance for de-
probation the company would imme-
disteIy expend s2Oo, ,00o. thereby in
Cressing the present supply By 5000
2 coo gallons day TO total Of 10000,
coo, and would further agree 70 pay
the stock holders no more than per
cent and create a reserve fund 10 be
used with the amount allowed for de-
probation in future development work
Supervisor Murphy questioned Pay
son closely upon the borrowing power
Of the company. the latter maintaining
that the credit OF the corporation had
been destroyed Murphy took the view
, thst the company could raise funds If
ft desired
ABLE TO MEET NEEDS
While discussing Supervisor Meal
listers proposal PayEon stated that
The coupany'5 properties could be de-
~elope6 70 yield 13e, ,Oo0, 900 or lac, ,e00.-
, coo gallons e day. sufficient 20 meet
: the demands OF san Francisco for q
great many years 70 come
Through reduction in the rates. -
Essd PaTsOn, the Spring Valley is not
n e condition 70 undertake the work
Necessary 10 keep the city supplied
with water While the facilities are
euch that proper development viii
treble and even Quadruple its supply,
Shfs work can only be undertaken II
our securities are made attractive TO
the public BY such rates as would give
90 the stock holders q return on their
money. We are now able to deliver
ss,ooo.ooe gallons day and the city
IS using between 1.Oss. 900 and 30 ,0O0.-
too. The coming OF summer VIII bring
= serious problem"
BY the expenditure Of 5000, 900 on the
sp4pe line and pumps at Ocean View we
Gan increase our supply 20 10000, ,oe0,
hut we viii then be encrosching or the
supply IN our reservoirs. II will cost
million OF dollars 10 further develop
: The supply. The simplest solution Is 10
ssrsnsfer the property to the city. but
we DO not mean TO sacrifice It We viii
not put Il on the bargain counter. We
Ere satisfied as 70 our constitutional
rights and VIII fight TO the bitter end .
At this point Supervisor Gianinnl
asked II the plant could be purchased
complete or IN parts.
Complete" answered Payson: there
s. 10 way IN which it could be taken
ever IN parts"
W 3 Bourn followed Payson in a
rEa-ll4EL ne urged city
sSzd tie company cooperate
VALUES PLANT AT ssz.OoO.ooo
7 an not going TO enter into details
as 70 why I an here" he said. The
city OF San Francisco must either buy
the property or you must work out a
scheme OF cooperation We may not
he able 70 reach q legal agreement be-
tween the board and Spring Valley. but
We may be able TO come 70 come under
standing. It may be that we can
change the charter. We want 10 agree
ca some plan OF cooperation We Will
20. 10 the limit OF Details TO meet you.
IN the informal discussion which fol-
lowed PavsOn said that the company
valued the plant at s32. .0e0. GOO. but
deducted $4,000. 0e0 for the Lake AIerced
lands This property. when purchased
80 years ago. he said, cost the com
pzng $4,000 OF $500. 600.
RoIis Y Watt was called upon and
said that IL was imperative that some
thing be done 70 safeguard the city. He
stated that as soon as adequate water
protection was afforded insurance rates
would decline.