The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1908-10-30
PLEADS 81 GAS IN
FORMIDABLE WORDS
Corporations Attorney Asks
That Company Be Paid for
Amortization"
Surprises Court With Strange
Term Which He Explains as
Death of the Plants

Observation-Disclosures OF a gas plant
''0bsOIesceacer-Use condition OF
gas plant by reason of change pro-
cesses.-FrOm home made dictionary OF
e. c. Jones, chief engineer of the gas
company.
These were the two formidable
epithets which the gas company pro-
duced yesterday to substantiate its
claim for dollar gas. They were flung
dramatically into the midst of a prosaio
I hearing by L. G Jones. the corpora
TONS chief engineer. Commissioner
Heacock looked somewhat bewildered
Assistant City Attorney Thomas E. Ha-
ven was taken b. surprise. He had
heard the public service corporations
clamor for depreciation, replacement
maintenance and there had been ru-
mors Of obsolescence, but the real SEN
sation lay in the mysterious "amorti-
zation." Jones smiled at the dismay
he had spread. Finally. Haven con-
fessed his amazement and Jones pro-
ceeded to explain that by amortiza-
ton" was meant the death Of the plant
You want to be paid for the death
of the plant?" inquired Haven
Certainly" replied Jones.
oh. death. where is thy sting?" muir
INJURED one of the spectators.
AS Jones explained it the plan of
the gas company was simple. The
company had proposed that the city
provide for the sinking fund TO pay
for the old plant and now it simply
demanded that the city provide an
amortization" fund to buy a new plant
for the company. Jones didn't put
it just that way, but that is the way
IL looked to Haven.
Jones had figured that Z per cent was
about the right amount for "amortiza-
ton" and obsolescence. Haven asked
him how long it would take by CAPT
talizing this fund to obtain sufficient
money TO buy an entirely new plant
The engineer did not like the question
but hazarded the opinion that 1t might
take % years.
ing that the existing plant represented
a value of more than 81, 100000. Ha-
ven eliminated $4,000 as the value
/ Of property not in use. Then the as
sistant city attorney turned to the
question of the cost of gas. Jones had
submitted an affidavit placing the fig
ure at 60 cents. but he raised il 10 cents
because, he said, the oil was not as pro-
ductive of gas as before. Even at
rs cents Jones was low man of the
corporation. John Britton had figured it
at So cents and ]. D. Butler, auditor OF
the company, had gone as high as si.23.
Haven then endeavored to make the
point that as the gas company had
bought out many of its competitors and
that much of its plant was duplicated,
but Jones maintained that there was
no unnecessary duplication. He de-
clared that il was found advantageous
to maintain three parallel pipes on
some streets.
The discussion of the leakage came
near the conclusion Of the hearing.
Jones said the leakage last year had
been 81 per cent, but that this had
been reduced to 20 per cent.
we have done very effective work
with the money we have had" he
said.
But you didn't have much money"
commented Haven.
No" replied Jones
And why didn't you have the mon
ey?" asked Attorney Joseph Mayer of
the gas company
Because the supervisors didn't give
US the dollar rate" chorused both
Haven and Mayer, anticipating the re-
ply.