The San Francisco call., 1908-11-14
SPRING VALLEY TO
RESORT TO COURTS
Water Company Plans Litigation
to Block Hetch Hetchy
Bond Issue
Supervisors Intend to Make
Corporation Fair Offer
for System

The Spring Valley water company
was In a state of utter demoraHzatloh
yesterday as result of its defeat at
the polls. President William 3. bourh
held informal conferences at the cor
poration's offices in Sutter street with
members of the board of directors ana
held a brief consultation with his at
torney, E. J. McCutchen. Although the
company refused to make an announce
ment OF policy it was learned thdI ~
Will begin a systematic campaign 70
harass the city by means of lnVoIVeo
litigation. The first step Will De an
attack upon the validity of the bonds
and this viii be followed by a Vlsor-
Gus effort to block the project
The city now stands ready to receive
tender of sale from the corporation
1t Is the intention of the Spring Nalley
directors to postpone any negotiations
as long as possible and in the mean
time TO fight through all the courts
every forward movement toward the
development of the Hetch Hetchy prof.
ect When the issue finally comes 10
a head the corporation will endeaVor
to force an adjudication of the Vallle
of its plant through the federal courts.
This process will require number or
years, but the corporation Will utlnze
every opportunity to prolong It's lie.
The board of supervisors. 1t is un-
derstood intends to meet the Spring
Valley company in a spirit free OF all
bitterness, despite the disgraceful tao
ties which the company has employed
to defeat the city's representatives IN
their cherished aims. 1t is stated that
the corporation will be encouraged 10
submit a bona fide offer, with the as
surance that it will be given. full and
careful consideration. 1t is said that
the figure adopted by Judge Earring
ton, which placed the value OF the
plant at S27500,000, is regarded as
suitable basis for negotiations
TO ENLARGE SYSTEM
While the board of supervisors Will
press forward with the preliminary
! steps for the development of the Hetch
Hetchy and Lake Eleanor sources, it
has at the same time recognized the
necessity for immediate action to make
the Spring Valley adequate until the
Sierra supply can be made available.
In this connection the city engineer
has made plans by which the Spring
valley supply can be increased, il
necessary, by S,000.0 gallons day.
This may tide over the interim be-
tween the present and such time as the
Tuolumne water can be brought to the
city.
gineering force and, while crying aloft
that it has water in abundance in its
undeveloped hills, has abandoned all
effort to increase its supply and has
| left the city to it's own devices. Re
| fusing TO sell and at the same time
! insisting that the city shall not buy,
| the Spring Valley company witnesses
| complacently the decrease to the dan
| ger point of its own supply, declaring
noisily the while its doctrine that the
people must pay what it chooses to
! demand, that its swollen millions may
! breed new millions.
The supervisors will begin at once
| to draft bill to present to congress
confirming in perpetuity the Hetch
Hetchy-Lake Eleanor grant. The pub
| lie utilities committee expects before
Monday to review the terms of the
Garfield grant, now made effective by
! the peoples acceptance. and will prob
| ably ask congress, in making its legis-
lative grant, to amend minor features
| of the agreement
PRIOR DEVELOPMENT
The prior development of the Lake
! Eleanor source, required by the Gar
field grant. is the only stipulation of
Importance which the board members
| believe might be altered with advdn-
| tage to the city. Ine development OIL
either or both reservoir sites in such
order as the city may designate is the
right which the supervisors hope 10
secure by congressional action. 1t may
| be advanta geous to develop Hetch
Hetchy first and to hold the lake in
reserve, and freedom to do this will
be sought by the board.
! Supervisors Giannini, Murphy and
/ McLeran of the public utilities COM
! mittee took a brief breathing spell
yesterday after their week of strenU-
Gus campaigning for the bond issue.
All the members of the board meeting
at the hall yesterday were profoundly
| gratified by the overwhelming approval
given by the people, and are prepared
to go ahead with the further plans.
Supervisor Murphy called attention
| to the press dispatches announcing
that the city of Vienna was threat
ened with water famine affecting its
100000 of people, because of the de-
lays in developing it's supply system
from the Alps.
oipc Ia,V I, ir1 II fnr