The San Francisco call., 1908-07-02
JUDGE TO INSPECT
WATER PROPERTIES
Will Go With Attorneys to
Study Parts of Spring
Valley System

After devoting a large part of his
testimony in the Spring Valley water
company injunction suit to adverse
criticism of the Hetch Hetchy pro-
ject, Arthur l.. Adams, the expert for
the company, admitted yesterday that
he had never. Investigated the system
which the city is now considering as
municipal water supply. Adams was
on the stand all day in the United
States circuit court. where Judge e. s.
harrington is hearing the suit brought
by the corporation to restrain the city
from the collection of the 1903 water
rates which were to have gone into
effect yesterday. Adams made many
estimates comparing the proposed
system to the Spring Valley, but on
cross examination by Assistant City
Attorney Thomas E. Haven admitted
his superficial knowledge of the Sierra
project.
Judge Harrington frequently pune
tuated the examination by asking
pertinent questions Of the witness.
That the court may J. have a better
knowledge of the physical properties OF
the Spring Valley company, the value Of
which is the main element in the
pending suit, he will be taken
on tour of inspection of the
peninsular branch OF the system
next Saturday. Attorney E. j. Mo-
Cutchen, representing the corporations;
Assistant City Attorney Havens,
and J. H. Dockweiler, the city's ex-
pert in the litigation, will be in the
party. The Alameda property viii be
visited later.
TEN SIDED ESTIMATE
Adams was in the witness chair all
day. His testimony YVES concluded at
the time for adjournment. This
morning the attorneys for the water
company will read some afidavits and
testimony into the records of the case.
Then the city win begin the presen-
tation Of it's side of the controversy.
1t was not determined last evening
whether or not ]. II. Dockweiler, the
consulting engineer for the city, would
be put on the stand to testify in per-
son.
ADAMS SAYS s42,5oO,0O0
Adams took up his testimony yester-
day morning where he left off on Tues
day. He stated that the peninsular sys-
tenn of the Spring Valley company could
be developed. to supply 99.7O0,00 gallons
day and the Alameda property of the
company could be developed to supply
that the Spring Valley system afforded
the nearest and best water supply
available to the city.
The witness stated that he arrived
at his estimated valuation of the Sprin {.
Valley plant. which he placed between
$40,0e0,000 and s45,O00,000, by looking
at the system from 10 different points
of view. One Of those he called the
"substitutional cost" He said that 1t
would cost S5o,O00,0oo to substitute a
new water system for the Spring Val
/ ley's. Taking the value of the Spring
Valleys plant, exclusive of real estate
at $S5,000,00O, he. struck a mean be-
tween that and the $4,000, 900 cost of a
new system, arriving at the satisfying
valuation of the Spring Valley company
property of S42,500,000. That was but
one of the 10 methods used by Adams
Adams averred that he did not be-
lieve that franchise had a value to be
considered in fixing the water rates
but asserted that the fact that the
company was in business gave it a
going business" valuation of s5,671OOO
The witness referred to the Bay Cities
water company as a paper water COM
pany."