The San Francisco call., 1909-12-19
PLEADS FOR BOTH PROJECTS

Doctor Giannini pointed out that
within a few years the Merced and
Calaveras properties would be made
quate to supply the needs of the city;
that this forced the community to look
to the Sierra for a permanent supply,
and that the people of the city had ex-
pressed themselves positively on this
subject.
He went over the history of the at
tempts to secure the Sierra supply, and
the investigation of various other
sources found to be inadequate because
Of limited catchment area, impurities
in the water or similar reasons.
The Spring Valley system is abso-
lutely necessary in conjunction with
the Sierra system" said Doctor Clan
mini. The Spring Valley company has
storage reservoirs the like of which do
not exist in other localities, and these
are essential to the carrying out of the
project because of their adaptability.
PRICE THE REAL QUESTION
"A small expenditure at this time on
the Spring Valley plant and properties
will give us a good supply of water
for the next 6, or 10 years while we
are developing the Sierra system and
bringing it into the city. Then the good
parts of the Spring Valley system may
be utilized in conjunction with the
Sierra system, while the other parts
may be dispensed with or put to other
uses.
The real question before us at this
time is whether the value placed on the
Spring Valley plant is excessive and
whether it will pay to purchase it at
the price offered. 1t is not hard to
demonstrate that even If The valuation
is a little high it would be hard to Sc
cure any other valuation, and a the
. IL I, \
the price asked"
WOULD DIsARM OPPOSITION
Doctor Giannini said that in 1877 the
Spring Valley plant had been offered
to the city for 100000. and the offer
was rejected on the ground that "it
would not pay" Figures proved that
il that offer had ben accepted the city
would have paid off the principal and
interest in 80 years and would have
now possessed a plant worth twice that
amount at least.
The most vigorous opposition to the
acquisition of the Sierra supply had
come from the Spring Valley company.
said Doctor Giannini, and the difficult
ties in the way of securing the Sierra
supply would continue as long as
Spring Valley remained antagonistic.
1t would be worth a great deal, he
insisted. to do away with that antag-
onism. which, he suggested, was really
behind the opposition of the nature
lovers A definite appraisement of
the valuation of the Spring Valley plant
would be impossible. and it would
therefore be foolish to quarrel over a
comparatively small difference.
METHOD OF VALUATION
Thomas f. Haven devoted his talk
to the question of whether or not the
Spring Valley offer should be consid-
cred excessive. In this connection he
explained clearly why s35,000.ooO should
be considered a reasonable purchase
price despite the fact that the city
has been contendinG in the courts that
s25,000,000 was a fair valuation on
which TO base water rates
THE court rulings" said Haven.
have prescribed a method of fixing
values on which to base water rates.
That method provides only for the val
nation of properties and plant actually
in use or necessary to the maintenance
Of the supply and eliminates all prop
erty not used or not necessary to this
particular purpose. This limits the