The San Francisco call., 1908-05-19
WaterRate W7HNot Be Changed
NEW PHONE BILL
FAILS TO CARRY
Supervisor Murphy Quickly
Changes Vote and Will Ask
for Reconsideration

The ordinance drafted by Supervisors
Murphy. Giannini and Bancroft to regu-
late the rate TO be collected by the
telephone company during the next
fiscal year was considered by the board
yesterday. After amendment in sew
eral minor particulars the bill failed
to pass to print by a vote of to Z.
Murphy Immediately changed his vote
from aye TO no and gave notice that
he would call for a reconsideration Of
the ordinance at the next regular meet
ing Of the board.
When the ordinance was taken up
for consideration Murphy explained its
provisions He said that the committee
Mad figured 10 allow the company 6
per cent interest on an investment
Of S6.52S,792, which valuation included
SS50,0O0 TO be expended in new con-
struction. Inasmuch as some objection
had been raised TO the section which
provides that the company must within
20 days install telephone service
wherever ordered, Murphy moved to
amend by extending the time to so
days. The amendment carried.
What gross reduction in the yearly
revenue viii the proposed rates make?"
asked Pollok.
Two hundred and five thousand thir-
teen dollars and four cents" replied
Murphy.
Attorney E. S PiIlsbury, represent
ing the telephone corporation, was
granted the floor to explain why some
OF the reductions made by the commit
tee in the valuation of the cOmpany's
holdings should not be allowed to
stand. He objected to the estimate of
S55o,0O0 for new construction. Pills
bury said that the company would ex-
pend $l,000,000 in improvements before
July 1, 1909 If allowed a fair toll rate.
he said that improvements aggregating
s6AO,497 would be made by the COM
pany before the end of the year.
COMPANY CRIES EXPENSE
Your committee has figured on the
installation Of 1000 new phones during
the coming fiscal year. said PiIlsbury
The manager of the company informs
me that 10000 or perhaps 1900 viii be
installed"
All of which means more revenue
for the company" remarked Murphy
Pillsbury did not figure results that
way as the cost of installment, he
said, would eat up the profits. He also
found fault with the provisions grant
ing subscribers the right TO employ
their own help for private exchanges
and the publication Of four instead Of
three directories each year. In con-
clusion he argued that the proposed
rates would not allow the company
per cent on its investment instead of
6 per cent. as estimated by the COM
mittee. He also insisted that at least
S45Q,000 be included in the estimate
as the value of the companys fran
chise.
The courts Of this state" said Muir
ply, do not recognize franchise values
when fixing rates"
But the federal courts do said
Pnlsbury.
We are working. under the state
court decisions replied Murphy, and
the federal court decisions have no
bearing on US"
Professor Corey replied to Pillsbury
and said that his estimates had been
reached after careful study and inves-
tigation.
MUCH VOTING NECESSARY
Pollok moved that the committees
reductions be cut in two; that the so
day clause for the installation of
phones be stricken out, together with
the one regarding the employment of
help for private exchanges by sub
scribers.
The motion to cut in half the COM
mittees reductions of the company
estimate of values was declared lost
by Mayor Taylor, the vote standing:
yes-Broderick, Center, Comte,
Hooks. MurdOck, Pollok, Rixford-7.
Noes-Bancroft, Giannini, Jennings,
McAllister, McLeran, Murphy, John
ston-7
The motion to strike out the so day
clause concerning phone installation
carried by the following vote:
Ayes-Broderick, Center, Comte,
Hooks. Jennings, Johnston, McLeran,
Pollok. Rixford-9.
Noes-Bancroft. Giannini McAllister,
Murphy Rixford-5.
An amendment TO strike out the
clause compelling the company to pub
lish four instead OF three directories
each year carried. Vote:
Ayes-Broderick, Center, Comte,
Murdock, Pollok-9.
Noes-Bancroft. Giannini McAllister.
Murphy. Rexford-5.
The motion to strike out the proyi-
sion authorizing subscribers to employ
was also carried by the following vote:
Jennings, McAllister, Murdock, Pollok.
RixfOrd-S
Noes-Bancroft, Center. Giannini.
Johnston, McLeran. Murphy-6
Murphy then moved 10 pass the ordi
nance to print. The motion was de-
fested by the following vote:
Ayes-BancrOft, Broderick Giannini.
Jennings, Johnston, McAllister, Muir
phy-7
Noes-Center. Comte, Hooks. Nc
Leran, Murdock. Pollok, Rixford-7.
Murphy changed his vote before the
result was announced. Murdock and
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Just Think!