The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-08-06

SCHEME TO ROB
PEOP[EEXPOSFD
City Attorneys Office Uncoyers
Bold Plot to ExtOrt S5z8,0OO
Yearly From Users
Gross Discrimination in Favor
of Large Consumers Shown
by Temporary Rate

nc NAeS dbboi hey ) ONCE exposed yes
terday new and particularly bold at
tempt on the part of the San Francisco
gas and electric company to hold up the
city for $52s,oOO during the year. At
the same time it was disclosed that the
company is using the 81 rate allowed
if temporarily by the court to discrimi-
nate against the small house holders.
The large establishments down town
are not required to pay more than so
TO 15 cents for their gas. but the small
consumers are compelled to pay 81 for
the same service. The average rate
collected at present is SS.s21 cents per
1000 feet. City Attorney Percy V. Long
and Thomas E. Haven, his chief dep
utyc contend that this is ample proof
of the fairness of the S5 cent rate.
The rate of 81 was suggested by the
company itself and was allowed tempo
rarily,' said Haven. Now we see tnat
the company is on this basis collecting
at an average of eighty-six and frac-
tion cents. 1t gives low price in the
competitive district where the large
establishments are located, but it wants
the 81 rate for the small consumers
whom it counts on to make up what it
sacrifices to give the competitive rate"
The peculiar operations of the gas
| company were laid bare yesterday dur
ing the hearing before Commissioner
Heacock. The action is based on the
80 cent ordinance which the supervis-
ors have adopted for the present fiscal
year. The company has obtained tenn
porary injunction, but Assistant City
Attorney Haven declared at the outset
that there were certain features OF the
company's business into which he de-
sired to make immediate inquiry. This
Investigation was begun yesterday and
il required but the single session. to
bring forth surprising Developments.
j. d. Butler. the auditor of the gas
company, was the only witness called.
1t was brought out that under the IS
cent rate the company collected only
an average of S2.72S cents Under the
81 allowance it assessed the consumers
an average of S6.s21 cents. This is
taken as proof that under the com
pany's own system of figuring it would
find the S5 cent rate profitable if eoui-
tably applied.
Haven made inquiry as to the com
pany's expense account and was sur
prised to find therein charge against
the city of $4So,Oe0 for depreciation"
II is the first time the gas company
has made such charge Haven's sur
prise was the greater when he learned
that the account had been maintained
throughout the year at $4,000 but
that 100000 actually expended in re-
placements had been deducted and mt
in a separate account The city attor-
ney's Office contends that depreciation
must be actual and not imaginary.
Figures Prove Startling
1t appears that the company has in
augurated a system by which it de-
mands of the city 100000 a year for
depreciation. Actual replacement is
deducted, but it appears again in re-
placement account and the city is
asked to make this sum good also
1T is certainly a startling system
of accounting" was Haven's comment.
IF you figure such depreciation .
asked Haven of the witness, why
don't you deduct it from the value of
your plant?"
Because we constantly renew" was
the answer. BY replacement we keep
the plant to full value.
Then the amount of depreciation is
the amount of replacement if you fig-
ure that way" commented Haven.
NO. replied the witness; I'VE have
unavoidable depreciation
Butler sprang another surprise a
few moments later when he announced
that the company had opened casualty
insurance reserve account to the
amount of $4,000 year which it ex-
pected the city to provide for
| Just before adjournment Butler pro-
duced another new special Insurance
account to the amount of $4,000 a
year, which the company insists the
city must pay. This account, as ex-
planned by Butler covers such insur-
ance as the company regards as too ex-
pensive TO place with regular com
panies.