The San Francisco call., 1908-10-09
SPRING VALLEY TO
INCREASE ITS RATES

Continued from Page 1, Column
responsibility for its own loss. but to
a large extent the responsibility for
the losses suffered in San Francisco
from the fire.
WAS AWARE OF DANGER
This is a strong indictment of the
company" said Long, and certainly II
passes up to Spring Valley the respon-
sibility for the vast part of the San
Francisco fire loss. At one time Her
mann Schussler, chief engineer of the
company, stated that Spring Valley had
two distinct lines from its reservoirs,
one over the marshes and the other
over the hill. 1t appears, however, that
only one line was in operation, and
that over the swamps. Schussler was
aware of the danger and notified the
company, but 1t did absolutely nothing
to remedy that condition. When the
earthquake struck the marshes 1t
broke the pipe. and left the city without
water"
Although the decision covered so
pages of type written matter, 1t left
one or two points unclear. 1t failed to
specify what rates the municipality
should pay, although Long is inclined
TO believe that the allowance of a 15
per cent excess was meant to include
the city as one of the consumers. The
question then arises whether the city
will pay the Is per cent excess or, un-
der Longs Interpretation, refuse to pay
above the schedule fixed by the super
visors 10 per cent increase will add
between $4,000 and $4,000 to the city s
water bill, but Long was not prepared
yesterday to say whether he would rec
ommend the payment or propose re-
sistance. The city attorney feels, how
ever. that every right will be safe
guarded pending the final hearing OF
depositing the excess with the court.
The city attorney will now turn his
attention to the big water case begun
in 1903 which is at present before the
court for final hearing and on which
the entire issue depends. Assistant
City Attorney Thomas E. Haven. who
had charge OF the litigation which
brought one of the biggest victories the
city has yet won. is busy preparing 1or
the final tussle. The city's brief will be
ready in December and a decision may
be expected early next year.
The Spring Valley companuy VIII ME
its 100000 bond in a few days and thus
give official notice that it will accept
the terms of the court order.
WILL NOT MODIFY PLANS
"of course we will file our bond and
accept the terms Of the order" said
W. B. Bourn, president Of the COM
pany. THE decision is step in the
right direction. The city and the COM
pany must get together and this is
stepping stone. 1t lays the founda-
tion for the future. The decision will
in no way modify our plans as to sell
ing to the city. We have made an
offer. This has not been regarded as
satisfactory and all we can now do is
to hold awhile.
The decision shows that the Judge
had gone into the matter very thor
oughly. As to the valuation he places
upon the property, that is minimum
sum, as he states. In effect this de-
cision is temporary, but 1t is a step
forward to be welcomed. Our directors
met today and discussed the decision,
but took no action as to matters of
policy. We shall keep on trying to
give the city good supply"
City Attorney Long repeated yester-
day that he regarded the decision as
a very great victory for the city.
ut sustains almost every conten-
ton of the city" said Long, and
clears the way to large extent for
the future. There are several graft
flying features that do not appear on
pany claimed that 1t should be allowed
real estate values for its watersheds.
while we contended that they should
be valued merely as watersheds. In
this we are sustained by Judge Far
rington.
1T is my understanding that the
Judge recognized that the court had
not the power to fix a rate. The court
can set aside one rate, but it can not
establish a new one. The rate making
power is vested with the supervisors.
According to the constitution of the
state, if the company should depart
from the rates adopted by the super
visors it would forfeit it's franchise.
Judge Harrington has protected the
company in its franchise rights, but
has not gone far beyond that. Hav-
ing set aside the schedule of the board
of supervisors, he does not give the
company a free hand, but places a
limit on what it may collect, fixing
that at 10 per cent above the rates
adopted by the supervisors Then, rec
ognizing that the court can not fix
rates, he says in article 10 of his order:
Nothing herein contained shall be
so construed as to require any Gus
toner or purchaser of water to pay
charges for water which may be made
by said company, or to pay any bills
rendered in excess of the rates fixed in
said ordinance provided that If any
customer or customers pay a higher
rate, the difference between the amount
so paid and the amount which would be
paid if said ordinance remained in full
force and effect shall be impounded as
hereinbefore provided
Long contends that under the Ian
guage no consumer need pay the excess
unless he Desires
The city attorney regards the decision
as beneficial to the city in the gas case
Two points in this decision will help
us in the gas litigation continued
Long. In the first place, the court has
ordered that all money collected above
the rate adopted by the board of super
visors be deposited with the court This
is one of the things which We are
fighting for in the gas case. In the
second place. the court fixes per cent
as an adequate return for public
service corporation" The gas company
has demanded 10 per cent.
Attorneys E. ]. McCutchen and z. S.
Heller for the Spring Valley company
prepared a resume Of he.decision as
they interpreted it. The attorneys hold
that the general terms of the injunc-
ton. restraining consumers from suing
to prevent the company from charging
above the rates fixed by the super
vic0rc dfue fha corporoffo, 4ho ,r;rL+