The San Francisco call., 1909-02-10

President ". B. Bourn of the Spring
Valley water company lectured. moral
lied and scolded for the space of three
hours last night before the board Of
supervisors Bourn appeared to enjoy
The experience and his auditors kent
him on his mettle with lively thrust
and parry. Primarily he had been
summoned 10 furnish facts for rate
fixing purposes. but the hearing ranged
far afield and brought within its ample
scope the water courses Of the Hetch
Hetchy. the lobby at Washington and
the prospective sale TO the city Of the
c0mpanys plant.
incidentally Bourn laid stress upon
the fact that the corporation was go
ing in for the higher things in life and
VIII soon begin to disseminate literature
Incidentally, also. he says the city shall
pay for it. He listed the item as com
plalnt and publicity bureau and he fig
ured its cost at $4,000 a year
We are going TO start a campaign
OF education" he said, so that every
voter won't be kicker against Spring
Valley. You know" he continued con-
fdentiany, Justly or unjustly, Spring
Valley has been accused of being q very
arbitrary concern. Now we propose TO
educate the people to see what a good
water system we have. We expect
through this bureau TO reach the voters,
10 reach the public"
terrTpted Supervisor Murphy, a tone Of
suspicion in his voice. you said to
reach the voters
We intend TO start a publicity bu-
reau." replied Bourn. "These men will
court complaints, not try to shut them
OF. They viii circulate literature.
They will tell the people all about their
water supply"
WON'T SPEND MONEY
Don't you think it would be better
to devote that money TO laying mains?"
asked Murphy.
.As long as the situation continues to
exist as il is now between the Spring
Valley and the city administration.
declared Bourn with some emphasis,
we DO not intend to increase our in
vestment. The trouble is that you are
trying to run our business, trying to
limit MS TO the lowest possible rate of
interest"
The discussion then ran to the ques-
tiOn OF depreciation, when Supervisor
Connolly asked: What valuation do
you place on your plant today?"
That is the widest -" began
Bourn. Then he laughed and said. Il
don't know" His listed figure showed
s47 100000.
Bourn then proposed that the city
and the company should get together.
but he added that he believed that il
could be done only through the ap-
pointment by the city of some uninter-
ested person who should confer with
the corporation as 10 price, with full
power 10 act
The company has been misunder-
stood" said Bourn. In the recent
Hetch Hetchy election go per cent OF the
people voted as they did because they
wanted TO take a kick al the company"
And why did they want TO do that?"
inquired Connolly in voice that indi-
Gated that he knew the reason.
Because" answered Bourn, If
may use the words of President Roose-
Welt. because the policy toward the
company has been one Of minimum
efficiency and maximum insult" Then
he added: If you want to acquire
water system I could go out and get
II for you while you are talking and
wasting the city's money. The trouble
Is the water question has been po-
litical issue"
we would get our system if you'd
stop fighting it," interposed Super
visor Murphy. He then asked Bourn
whether he would favor the Hetch
Hetchy system IL he We're not inter
ested in Spring Valley. Bourn replied
that he would wait until certain facts
had been determined. but added that
he believed in an auxiliary Sierra sys-
tenn as an abstract proposition.
WOULD SOON MAKE TERMS
Supervisor Murdock asked Bourn IL
he could suggest a way by which the
city and the company could come to
terms on a purchase price.
1T could be done very easily" re-
piled Bourn. If L We're running the
city.
1t developed that the company, in
asking that II be allowed rates p per
eenr in excess of the 1902 schedule with
s. hydrant fee, had figured out an
operating expense for the approaching
year far and away ahead of anything
ii had previously presented. This item.
which puzzled Supervisor Johnston in
particular. had been placed at s796.739,
an Increase Of nearly 100000 over the
sum named last year. Then followed
the chameleonIike charge which mas
ouerades under the aliases of "depreci-
alton" "obsolescence" and -amortiza-
lion" II was set down for an even
s90O 0OO This item was waived aside
bv Bourn with the statement that 1t
was based on authorities with which
the supervisors could faniliarize them
selves at their leisure. Tackled on to
this was the tax account of $4,000,
making a grand total OF $l,466,739
The company estimated its revenues
on the rates proposed at $3.011. 0Oo
leaving balance Of sl.54s.26L. This
Fsolrn figured would represent A 5 per
cert allowance on valuation or s3l.-
000. 600. or approximately per cent on
s25.00O.000.
Bourn stated that he believed that
Judge Morrow's decision would afford
> bssis for a determination Of the value
Of the plant. He announced that the
company would be reorganized during