The San Francisco call., 1908-04-05

Continued from Page 20. Column
President A. II. Paysou Of the water
corporation assumes new interest at
this time. In concluding his message
10 the stockholders, Payson said;
The law and physical conditions
have forced the city and the water
company into partnership, whose pur-
pose Is the safety and sufflcieney OF
our water supply. and this partnership
viii fail IN its purpose unless II can
be placed upon the basis OF an eqult-
able agreement between the members
In summing up the-conditions which
Psvson believed essential to the relief
Of the company from its present condi-
tion OF financial paralysis, he Included
the following
Agreement between the city and the
company as TO future work and pos
sibie representation OF the city in the
companys board Of directors
While Mayor Taylor has declined at
this time TO make a complete state
ment or his views on The matter. il is
known that AT the dinner recently
rendered Supervisor Sachs by llis fellow
members Of the board the city eXecu-
tive spoke strongly in favor Of the
purchase by the city OF the entire
Spring VALLEY plant. Taylor cited fig
ures 10 support his contention that the
Spring Valley had latent possibilities
which. il properly developed would be
ample 10 supply the city for several
wears to come He advocated the pur
chase not only OF The reservoirs and
distributing system. but the Merced
lands as well In its tenders TO the
city the company has exempted the
Merced property
All these facts have come to light
simultaneously with tise announcements
of Bourn's commanding position ip the
affairs OF tne corporation Bourn has
extensive holdings in the Pacific gas
and electric company and is inter
ested in Other local enterprises in
large proportions. II is admitted thai
he is not alone in his operations. and
rumor has il that the Heslmsns are
associated with him in his latest coup.
Bourn and the HellmaBs for long
time have been IN possession Of a large
block or Spring Valley shares. After
the stock fell to 20 Bourn began 70
buy He mas purchased steadily from
$50 to s22. During the last few days
the street has become aware Of the
large operst tions IN Spring Valley on
the part Of BoUrn and the stock has
taken q squirt TO s2t. II is not known
just how many OF tie 9So.ooo shares OF
the companys stock Bourn possesses in
his own name. bat the holdings Of
himself and associates are ample 20
insure his control.
The supervisors have taken up the
water question in quiet manner and
hsve scted lsGer The leadership of
Mayor Taylor rhe mayor believes
tnat the most important question be-
fore tie municipality is the acqHisi-
tion OF an adequate water system. and
he is hopeful of finding some solution
or t:.e problem during his adminisira-
ton
Several ofdinanees bearing on the
water situation l2ve been brought be-
for the supervisors but no definite ac-
ti0u has res been taken. The board
Is engaged at the present tilae ia nYtn 3
the rates and. 10 assist in this work
has employed numher or engineering
experts. furthermore the members Of
the board haze MADE trips 20 the
Spring Vsllev reserxoirs Lor. the.-pur-
pose Of personal inspections. Another
excursion has been arranged for todsy.
and before long nearly every member
Of the board VIII have completed an
inspection or The system.
DEEPER OBJECT INVOLVED
While all this is being done for the
purpose Of fixing rates a deeper OBJ
ject is also involved. and that is the
arrsng cement by which TIE city and the
company can solve tie water problem.
A recent resolution introduced by
Supervisor RiNfold provided for q bond
issue Of sie.e9e.oe0 10 purchase the
peninsula system Of the water COM
pany. the money to- be used by the
company 10 .constract the Cslaveras
dam. by which il is stated the supply
would be nearly doubled. Some objec-
ton has been nIssde TO this plan. and it
is not known tlfstN is part OF the gen
eral arra ase nIent mapped cut by the
board.
Mayor Taylor pointed out to the
supervisors al the Sachs dinner th..
necessity OF adding to tire present sup
ply. He said that the city at the pres
ent time used S3000.0oe gallons OF
water a day and that the Spgiug Valley
supply amounted 10 35.0o0.0eo gallons
a day This. he declared. was q dam
gerous state Of affairs. as the growing
population Of the city demanded an
expansion OF its water sources FIe
said that the city and Spring Valley
had come 70 deadlock. that the com
pany was unwilling to go forward with
development work, and chat the city
was limited in what il could do for
the company.
The supervisors. accepting the figures
presented to them. have placed value
F-1--ytfyyt
property. The suggestions that the
company be allowed a per cent income
on this amount has not proved salts
factory TO the corporation and the dead
lock between the company and the mu-
nicipslity has followed,
In its figures for the year just passed
the company reported q deficit OF
s73.156-25. Complaint was made that
the dividends had ceased and the stock
had gradually fallen TO $40 The dis
solution OF the Heilmsn syndicate
formed for the purpose OF underwrit-
ing bonds Of the company, was also .
heavy blow to the company al the frs,
Of the present year.
In view Of these facts President Pay.
son proposed the sale OF the plant tc
the city. The other members Of th,
board OF directors N. QUAY. Homer
s. King. ]. u. Henmaa Jr. ". b
Bourn. J. Henry Meyer and Frank 3
Anderson-coincided with this view
Persistent efforts hare siIce been mad,
either to secure a higher water rat,
from the city or 10 sell the plant {,
the municipality
Appearing. as IL does. that neither o
xheee condftioi3s can oH brought about