The San Francisco call., 1908-12-24
Judge Van Fleet of the United
States Circuit Court Sus-
7ends Supervisors Ruling
Jurist UphOIdS Contentious of
Lighting Corporation in Prac-
ticaIIy Every Particular
Oral Decision Grants Temporary
Injunction, but Orders Excess
Charges Impounded

In an oral decision rendered yester-
day Judge Van Fleet Of the United
states circuit court granted a tempo
rary injunction to the San Francisco
gas and electric company suspending
the IS cent rate which the board of su-
pervisors had adopted for the fiscal
year Is0S-lsOs. The decision is a re-
msrkable one in that it upholds the
contentious Of the corporation in practi-
caIly every particular. Even in minute
details which the court itself stated
that it regarded as irrelevant, it has
digressed 10 strengthen the hands of
the company. 10 limit IS placed upon
the rate that the company may impose
save that the court indicated that it
would take notice Of any attempt to
enforce an "unconscionable" tariff
The company viii continue to collect
under the 81 rate.
CITY's EXPERTS IGNORED
A strange feature of the opinion lies
in the fact that il rejects offhand the
valuation placed on the plant by the
citys experts and accepts without
question the figures of the company.
although there is a difference of $16,-
100000 in the estimates. Equally
strange is the process of reasoning
which regards as a possible estimate Of
value the price at which shares Of
stock were transferred TO the Pacific
gas and electric, the parent company,
controlled by the same men.
The court also found that the eff
cheney Of the gas plant was impaired
but little by the earthquake. although
il appeared that the damage amounted
10 more than s4.O0O,O0O
Judge Van Fleet regarded as unim-
portant the fact developed by Assistant
city Attorney Thomas E. Haven that
the company had sold gas as low as So
cents and had retailed its product for
an average price of 81 cents.
The company viii be called upon to
impound with the court such sums as
It collects in excess of the s5 cent rate,
pending the final determination Of the
issue. The company also must file a
bond in the sum Of sl5OO0O. The pre-
cedent for the impounding of the money
was set by Judge Harrington in the
Spring Valley case.
SUBSTANCE OF DECISION
Judge van Fleets decision was given
from the bench in the presence Of the
representative of the gas company and
Assistant City Attorney Haven. The
opinion was, in substance, as follows:
There is only one question at issue
in this hearing and that is whether
there is a reasonable probability that
the company will be able TO establish
its contentious on final hearing. The
complaint says that the value OF the
plant is S2O.O0O.000. The officers of the
company appeared before the board Of
supervisors and showed that the value
in round numbers was s1S.00O,000. 1t
also appears from the complaint that
the market value of the stock prior to
the earthquake was SIS share. 1t
appears also that three months before
the earthquake a sale was made at
practically SEQ a share from the San
Francisco gas and electric company to
the Pacific gas and electric company.
payable partly in cash and partly in
bonds.
1T also appears in the complaint that
the outstanding Indebtedness amounts
10 $14.500,0 900.
1T further appears that the super
visors in fixing the value acted on the
sppra isement Of A NJ. Hunt, who fixed
the value at ss.750,00o 1t appears also
that the committee Of the supervisors
in fixing the appraisement said that 1t
was liberal.
DEPRECIATION Is DOUBLED
II am unable to find any such depre-
citation or shrinkage from the value
named by the officers of the company
as is indicated in Mr.. Hunts appraise-
ment. II is true that the earthquake
destroyed physical values between
$4,000. 600 and S4.50O.O00, but even with
this deducted there is an ostensible
value between sl3.OoO.OoO and s14.-
000 600.
1T appears also that potentially the
plant was practically the same after
the earthquake as before because its
efficiency in producing gas was i'm
paired but little. ] have been abso-
iutely unable to find any such shrink
age as to account for the estimate of
Mr.. Hunt.
1T has been contended by the city
attorney that as Mr.. Britton, the presi-
dent OF the company. offered before the
supervisors 10 assume a valuation of
$4,000. 600 for the purposes of argu-
ment this should be taken into ac-
count By the court This valuation,
however. was only assumed for the
purposes Of a 81 rate and did not bind
the company before the court
CoMPANY,s MEN UPHELD
1T appears that Mr. Hunts statement
before the board Of supervisors was not
sworn to. but Mr.. Hunt reaffirn1s the
statement ia an affidavit in which he
is substantiated by Mr.. w. S. Dole, an
other engineer. In the nature Of the
case. however. neither Mr. Hunt nor
Mr.. Dole could be as familiar with the
value OF the plant as Mr.. Jones, the
chief engineer. and Mr.. Britton, the
president These men are thoroughly
acquainted with the plant and their
statements are opposed only by the es-
Inmates of Mr.. Hunt and Mr.. Dole.
1T would appear to the court that
Tho gas company could establish on
final hearing a much greater value for
the plant than was fixed by the board
Of supervisors.
Now. as TO the rate of income: The
city attorney declares that as an S5
cent rate has prevailed for two years,
II should prevail now. This is not true.
There are many matters TO he taken