The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1908-06-23
SPRING VALLEY
BOOSTS PRICE
S2O,OOO,OOO
Withdraws Offer to Sell and
Seeks Injunction to NuIlify
New Rates
Cancels S3z,OO0,O0O Tender and
Places Value of Plant at
S52,5OO,OO0
Asks Court for More Than
Double Income Allowed
by Supervisors

Valley water company boosted its
own valuation of its plant yesterday
by more than $2o,ooo,Ooo.
The trick was turned overnight.
Sunday the offer to sell the system
to the city for S52,ooo,OOo was still in
effect. Yesterday it was withdrawn
and new valuation in the sum OF
S5z, SOC, 900 announced. Nothing was
added to the plant; no changes were
made. What prompted the sudden
imitation of what has been generally
considered an already inflated value
remains unexplained, unless an answer
may be found in the simple proposition
that Spring Valley wants the money
The change Of front on the part OF
the water corporation was renecleo IN
two separate and simultaneous move
ments The company sent written no
tice TO the supervisors yesterday that
il withdrew its tentative offer to sell
the plant for s32.0OO.OoO. At the same
time II applied TO the circuit court OF
the United States for an injunction TO
prevent the enforcement Of the rates
Just established, and in so doing set
the value Of the plant at $52,5oo,00o and
asked for SO, 500. .O00 more than the su-
pervisors had allowed in their rate
fixing.
PAYSON GIVES NOTICE
The notice of Withdrawal of the ss2,-
O0O.Ooe came in the following terse let
Ter from Captain A. II. Payson, presi-
dent Of the company.
~Tu letter addressed TO the spe-
81, 0f
pervisors on water supply, under
date of April 13, 190S, / stated that
the directors of the Spring Valley
water company would recommend
TO the stock holders of the COM
pany the sale TO the city and county
of san Francisco of the property
cot the company for the face value
of its outstanding bonds and the
outstanding stock.
ssNO response has been made to
my letter. You have fixed rates
on basis of valuation very much
below the figure named, and have
resolved in favor Of the acquisition
of another water supply.
sTbe offer made 10 recommend TO
the stock holders sale on the
terms stated is, therefore, hereby
withdrawn
Although the face value Of the stocks
sum OF So. .O0o, 600. their present mar
ket value is in the neighborhood OF
s22, 600. II was with Some surprise
therefore. that the members of the
board of supervisors learned of the
new valuation fixed in the injunction
suit It is higher than the Spring
Valley people have ventured for some
time and the figures were regarded by
some members Of the board as too
ridiculous 10 justify comment. Others
stated that they believed the new move
was intended in some manner as z
measure TO combat the Hetch Hetchy
project
EoLUMINoUs COMPLAINT
The complaint asking for the injunc-
ton is directed against the munich
pality and the members of the board
Of supervisors. 1t comprises 35 pages
Of closely written matter. and. bound
between covers, would make book OF
moderate dimensions. Tt contains 2
detailed recital Of the history of the
company. paralleling iH this regard the
former Injunction suits filed by ths
company. It asks that the 1908 rate
be declared null and void on the ground
that IL is unreasonable. A straneF
feature of this contention lies in the
fact that the 1908 rate gives the COM
pany a greater revenue than the 1907
rate, and that all former injunctions
Of the company have been sought tc
perpetuate the 1902 figures. The com
psny apparently is not even satisfied
with more than it wanted.
The company reaches the pith of its
remarkable claims in the following
paragraph:
Your orator further prays that
your honors may decree that COM
plainant is entitled to have rates
for supplying pure, fresh water
70 said city and county and its in
haoitants for the fiscal year com
lnencing July ]. 1908. and ending
June 30. 1903. so fixed that they
VIII IN the aggregate afford a just,
Ialr and reasonable compensation
ior the services rendered. and based
upon the value OF the property used
therefor and OF property purchased
therefor TO be used in the reason
ably immediate future and that
VIII ylelo suf1lcient annual in
come TO complainant to paw its
operating expenses and taxes and
an annual sum for depreciation OF
piant, and 10 provide for the re-
placement of portions of its plant
destroyed by extraordinary casll-
atty, and 10 realize in addition the
rate OF 4 per cent per annum upon
Its property IN actual use in so
supplying said city and county and
It's inhabitants, and that such value
OF such property is at least the sum
OF $4,000. 900 for property in actual
use and s7.50O. 600 for properly mr.
chased for reasonably immediate
use.
Analysis Of this modest request gives
interesting results. A per cent in
come on the $52. 100000 valuation would
yield S3.675.OOO. The company aslrs
however, that the city pay in addition
its operating expenses. taxes. deprecia
tion and loss by earthquake, which
would bring the total that the city is
requested to contribute up to the COM
Portable sum of about S5.750,0o0
COMPANY DEMANDS INCREASE
The income Of the company for the
fsQhl year just closing will amount TO
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