The San Francisco call., 1908-09-09
SHOWS IS CENTS
ENOUGH FOR GAS
Affidavit of A. M. Hunt, Engi-
neer, Shows COmpany's
Claims ExOrbitant
Hearing on Injunction Suit Is
Postponed to Allow Time
for Answer


San Francisco gas and electric COM
pany by surprise yesterday and bonn
barded 1t with a volley of affidavits that
contradioted the assertions on which
the company based its action in raising
the rates in defiance of the ordinance
of the board OF supervisors from IS
cents to 81.
The most important affidavit was that
of A M. Hunt, the well known expert.
Hunt charged that the company had
grossly exaggerated the value of Its
plant, that it could make money on so
cent gas. that the company demanded
an exorbitant sum as an allowance for
distribution, that the leakage was out
OF all proportion to the amount of gas
sold and that the mains of the company
were In a dilapidated condition.
Because the corporations attorneys
were not prepared to proceed with the
case Judge W. c. Van Fleet of the
United States circuit court granted a
continuance until September 2S.
Counsel for the city appeared in court
yesterday with affidayits made by prom
inent engineers by which it was shown
the corporation could realize a falr
profit on IS cent gas.
mADEL ON6
A temporary injunction was granted
by Judge Van Fleet on July restrain
ing the board of supervisors from en-
forcing the ordinance placing the gas
rate at IS cents per 1000 cubic feet
This order was made returnable July
49, but at that time was continued until
yesterday because counsel for the city
had not had time to prepare their an
swer to the complaint In the mean
time the gas company had arbitrarily
raised the rate to 81
Yesterday morning City Attorney
Percy c. Long and his assistant, Thorn
as z. Haven, appeared for the munich
pality, while Attorney Joseph Mayer
represented the company.
AS soon as the case was called Mayer
asked for a continuance because of the
absence Of Garret McEnerney, chief
counsel for the corporation, and on the
further ground that the affidavits Sc
cured by counsel for the city were not
served until late Saturday After a
spirited argument, Long cOntending
that the case should be disposed of at
once. the court granted a continuance.
The affidavits introduced by the city
attorney were based on a mass of data
secured from the records of the inde-
pendent companies which sold their
plants to the corporation in control at
present. comparisons were also mace
with conditions obtaining in other cities.
VALUE Is DISPUTED
The corporation places a book value
of $17,S94,l7S-27 on its plant, but in
the complaint on which the temporary
restraining order was granted Z. c.
Jones, engineer for the company, said
that the plant could be duplicated for
$1l,OO0,OO0.
A NJ Hunt, formerly general man
ager of the Independent electric light
and power company, which sold to the
present company, after an exhaustive
investigation placed valuation of
ss.775,0Se on the plant and reported
that sos cents per thousand cubic feet
would be a fair price for the gas.
HUNT MAKES COMPARISONS
In his affidavit, which is one of
those filed by the city attorney, Hunt
shows:
% The valuation placed on the local
plant as compared with others
throughout the country was enormous,
the value allowed by the affiant also
being far in excess of the usual cost of
such plants.
Cd The amount allowed the company
for cost of distribution under the S5
cent rate was almost one-third in ex-
cess of the amount allowed in other
places.
(3) The taxes paid by the local COM
pany are approximately one-third of
what the Massachusetts companies
have TO pay, proportionately.
(4) The amount allowed under the IS
cent rate for administration expenses
exceeds by one-half the amount al
lowed in Massachusetts.
(5) The leakage claimed by the
local company indicates that its mains
are in very bad condition. The aver
age leakage per annum per mile of
main is about 100000 cubic feet, while
the local company is losing 2,045,295
90 The San Francisco company sold
more gas per mile of main than any of
those with which it was compared. and
also more per consumer. Both of these
facts should contribute to a lower rate.
DENIES CoMPANY,S CLAIMS
In summarizing his affidavit Hunt
contended that the company had no
right TO charge the public for the ex-
cessive leakage; that the amount lost
by reason of machinery becoming OBJ
sOlete was not as much as alleged:
that an item of 2 cents per thousand
claimed by the company because of a
contract with the welsbach COM
pany was not proper charge; and
that the company should not be allowed
10 AldhC du dQQlIlOn Oh mills Der
thousand for extra expenses caused
by increased sales.
It was also shown by Hunt that the
Los Angeles gas and electric company
voluntarily reduced its rate from 90
cents per 1000 TO so cents. This was
done although conditions there. in the
opinion of the expert were not any
more advantageous to the light com
pany than they are in this city.
DOLE SUPPORTS HUNT
w. S. Dole formerly superintendent ot
the Independent company's plant and
since prominently connected with large
plants in the principal cities of the
country, also submitted an affidavit
He fully concurred with Hunt on ali
essential points contained in the lat
ter's affidavit.
Other affidavits pertaining to the tes-
timony taken before 1he board of su
pervisors when the matter of the new
ordinance was under discussion were
submitted by J. B. Beehan Sworn state
ments by Frank Harold in regard to
the cost of the old plant and by c. d
Stuart in regard to rates We're submit
ted.
The question which will be decided
by the court when the matter comes UT
on September % is whether the tenn
porary Injunction restraining the board
Of supervisors from enforcing the Sc
cent rate will be made permanent OF