The San Francisco call., 1908-03-10
WATER RATES KEPT
AT PRESENT LEVEL
Supervisors Readopt Schedule
of 1902 for the Coming
Fiscal Year
Minority Report, Increasing the
Price, Rejected by Majority
Vote of the Board

The Spring Valley water company
| will, during the coming fiscal year,
continue to collect the rates now
being charged consumers. The super
visors, after a lengthy discussion yes
terday, Were unable to agree on either
the majority or minority report pre-
sented by the water committee last
week, and as a compromise measure
passed to print the 1902 schedule un-
der which the company has been coll
! lecting since 1909 when it appealed
from the rates fixed that year and car
ried the case into the courts. This
| litigation is still pending. The 1908
| rates provided for per cent reduc-
| tion from the tariff charged in 1902.
When the water rates question came
up before the board yesterday. John
ston, chairman of the water commit
/ tee, moved that the majority report,
which provided for per cent reduc-
ton to consumers from the 1902 rates,
100000 for hydrants and $4,000 for
the service in public buildings and
parks, be adopted. Murphy, also of the
committee. seconded the motion.
Comte said that in all fairness to
1 the Spring Valley company he believed
the 1902 rates should be re-enacted and
offered that schedule as a substitute
for both reports. He moved that 1902
be substituted for 1903 wherever 1t
occurred in the regulating ordinance.
Giannini seconded the Comte mo-
tion.
Johnston urged the supervisors to
act with caution and said he feared
that the substitution of the figures
1902 for 1903, as recommended by
Comte. would leave the ordinance in a
chaotic state.
Il then move as a substitute" re-
piled Comte, that the clerk of the
board be instructed to prepare a bill
based on the 1902 rates"
! McAllister, who fathered the minor
ity report, which provided for the
1902 rates plus 10 per cent increase
to private consumers and house hold
ers, $4,000 for water supplied the
city and the other rates unchanged.
urged that his bill be adopted.
1T is much more fair in it's treat
ment of the company than the ma
jority BILL, said he in conclusion. 1T
will allow a fair rate of interest on
! the investment"
Captain Payson, president of the
| Spring Valley company. was granted
| the courtesy of the floor. He said that
he objected to the majority report, as
| IL underestimated the operating ex-
penses of the corporation and overesti-
mated the increase in business during
the next fiscal year. He claimed that
than per cent, while the committee
had figured on a 15 per cent basis
IF the majority report is adopted"
| said Payson in conclusion, lit will
mean a renewal of the costly litiga-
tion between the Spring Valley COM
pany and the city
A long discussion followed as to
whether the company should be al
lowed a rate sufficient to provide for
depreciation in its plant. Murphy
| stated that the supreme court of the
| state had decided that the question of
depreciation should not be considered
by the rate fixing power when an al
lowance is made to cover the operat-
ing expenses. We are not here" said
he with warmth, Ito fix rates that are
| satisfactory to the company. We must
give rates that will be fair to the
consumer as we'll as to the corpora
tion."
McAllister urged the adoption of his
minority report, it would only mean
cent day more to the private con-
sumer He thought that the private
consumer instead of the city should
pay any increase required to enable
the water corporation to earn a fair
rate of interest on its investment.
Comte reduced his motion, with an
amendment, to writing. 1t provided
that the 1902 rates to private consum-
OF the tariff bill be amended so as to
incorporate the sections Of the majority
report providing for 100000 for the
hydrant service and $4,000 for water
supplied parks and public buildings.
I McAllister again asked that a vote
be taken on his minority report before
acting on the substitute for both re-
ports. A call of the roll resulted:
Ayes-Broderick, McAllister Pollok,
Sachs.
Noes-Bancroft, Booth, Comte, Clan
mini, Hooks. Jennings, Johnston, Nc
Laren, Murdock, Murphy. Payot Rix-
ford, Stafford-13.
Absent-Center.
The minority report was declared
lost.
There was discussion about the tan
gled state of the water question, which
was ended when Comte suggested an
| amendment to his motion fixing the
/ rates at those made in 1902.
The motion was then put and carried
| by the following vote:
Ayes - Broderick, Comte. Giannini,
Jennings, Murdoch, Payot, Pollok, Rix-
ford, Sachs. Stafford-10.
Noes-Bancroft, Booth, Hooks, John
| ston. McAllister, McLaren, Murphy.
Absent-Center.
The ordinance now goes to print and
will come up for final passage next
Monday.
The artificial lights committee was
rot prepared to present report on
! lighting rates.
The telephone rate inquiry will be
resumed this evening.
/ A communication from the school
board requesting that $4,000 be allowed
| for the construction of a temporary
school building on Precita heights was
referred to the building committee.
! Hooks announced that the license
committee would meet Thursday at 2
/ D. m. in the chambers of the super
visors to consider the liquor ordinances
introduced several weeks ago by MUIR
dock.
The rules were suspended and a
resolution was adopted thanking the
MiIlin- -Griffth company for the dona-
ton to the city of park site at Harri-