The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1908-04-17
HIGHER RATE FOR
WATER IS ASKED

The Spring Valley water company,
through its attorney, E. j. McCutchen.
appealed once more to the supervisors
last night, asking for an increase of
rates to an amount which would allow
a per cent return on the corporation's
estimate of the value of the plant. Nc
Cutchen's appeal was made to the spe-
cial water committee. of which Super
visor Johnston is chairman.
The discussion turned upon two
points which the company urged in It's
own behalf. McCutchen argued, first,
that the valuation of the Alameda
county portion OF the system, fixed by
former City Engineer C. e. Grunsky.
should be Increased $5.000.O00 Nc
Cutchen based his contention on the
fact that the Alameda county section
of the property was now producing as
much water as the peninsula part of
the plant, and that its valuation should
accord with its producing power. He
stated that 100000 gallons a day
were being drawn from the sources
acros the bay.
that the city should make good to the
company the $4,000 it was required
to spend to repair damages occasioned
by the earthquake and fire of 1906.
Supervisor Murphy. supported at
times by Supervisor Johnston. resisted
these demands. Murphy claimed that
the increased valuation could not be
allowed for the Alameda county prop
critics. on the ground that the company
was engaged In litigation over its
holdings there, and that its right to
the subterranean waters was in dis
pute. Murphy held, also, that the COM
pany could not in justice ask the city
to reimburse it fer the damage caused
by the big disaster
ACTION Is DELAYED
After a long session the committee,
with ]. II. Dockweiler, consulting en-
gineer Of the city attorneys office, went
into executive session and decided to
delay action until the company should
make tender of it's property to the
city in legal form. This has not been
done.
A heated argument arose over the
suggestion that the Spring Valley be
compelled to show its minutes to the
city engineers. Dockweiler stated
that this was necessary for a full con-
sideration of the question. McCutch-
en- replied that he would advise the
company to refuse to do SO. He Of
fered, however. to supply any other
books that the supervisors might de-
sire to inspect. Dockweiler also raised
the point that 1T would be necessary
for the Spring Valley to explain in
detail the affairs of the Suburban wa
ter company. a subsidiary organization
used as a trustee in purchasing land.
Sometimes we see in the books an
item of Spring Valley debtor to the
Suburban company for 100000 and
we naturally want to know what it is
all about"
McCutchen answered that he knew
little about the Suburban company. but
was convinced there was nothing
which the company desired to conceal.
PROBES HELLMAN RELEASE
Murphy stated that he would partic-
ularly like to see that portion of the
minutes which released I. w. Hellman
from his agreement to underwrite the
company's bonds.
I'VE wouldn't sell our bonds now II
we could" responded McCutchen.
I'VE will not go into the market under
present conditions for money"
McCutchen complained that the city
had broken a promise to give the com
pany $4,000 to build a pipe line, but
the members of the board denied
knowledge of any such pledge.
During the discussion McCutchen
offered the city representation on the
directorate of the company
Upon receipt of the report that Sec
rotary Garfield had refused to grant
the city the Hetch Hetchy rights as
requested by City Engineer Marsden
Manson, Mayor Taylor telegraphed to
President Roosevelt yesterday calling
his attention to the fact that the board
of supervisors had passed resolutions
asking for the rights in question.