The San Francisco call., 1909-02-25
I'VE ARE DOWN
TO BRASS TACKS"
Epigrammatical Jones of Gas
Company Drops Theories
for BluntnesS
Concern at Supervisors Meet
ing Asks City for Big Sum
for Depreciation

President John A Britton of the San
peared before the board of supervisors
last night with claim of s61S,6SS as
depreciation allowance for the COM
ing fiscal year. In another moment he
asked the city to pay the years inter-
est of sS3 1880 on the company's float
ing debt. Finally he asked that the
company be allowed a return of per
cent on a plapt valuation of $13. 1854.
These figures were the center of argu-
ment during the rate fixing hearing.
No decision was reached. Britton an
nounced that the company would be
satisfied with 81 rate, but the board
of supervisors appears disposed to re-
enact the S5 cent figure.
Supervisors Murphy and Connolly
questioned Britton closely and rebelled
against his system Of charging for de-
probation They called attention to
the fact that although he claimed
depreciation allowance for his company.
he had failed, in estimating the value
of his plant, to figure that it had de-
.preclated in any particular. Super
visor Murphy quoted the recent Knox
Vile decision to support his contention
that certain sum should be charged
off the value of the plant each year
and the residue should be accepted as
basis for rate fixing purposes.
LEAVES POINT IN DOUBT
1t would appear that the company
itself was somewhat undecided on this
point, for in a summary presented to
the board Britton said:
Actual replacement of gas proper
ties for year 1908, 1922, 1922. This
year, however, is no criterion, since
1906 the plant has been placed in prac-
,tically new condition and depreciation
VIII not be operative for some time.
Reserve, however. must be allowed to
take care of the future"
Britton then refers to a supreme
court decision bearing on the subject.
notwithstanding the statement that
depreciation would not be operative for
some time, Britton has presented his
modest claim for S61S,63S. He arrived
at this figure by charging 5.56 per cent
on s11, ,126,153. which ne declared to be
the value of the plant exclusive of the
real estate. The $50 per cent was
taken as an average estimate of de-
probation
Members of the board also questioned
the right of the company to ask the
city to pay interest on the corporations
floating debt.
When it is necessary for us to bor-
row money to conduct our business we
feel that the city should pay back to
US the sum that we must expend to
get that money" replied Britton. He
added that the city was not asked to
pay interest on the bonded debt.
Britton testified that the leakage
which had been "a per cent in 1907 and
lS per cent last year, had now been
reduced to 10 and 2 per cent, which
he considered normal
The company, said Britton. valued
the electrical plant al s9,O10,93O. He
said that although the legal rate was
ga the company was in some cases
selling electricity at one-third that
figure
EPIGRAMS BY JONES
E. C. Jones, the engineer of the com.
pany, was an epigrammatic witness
When Supervisor Connolly objected to
the term obsolescence. Jones replied:
One doesn't have to take pepsin to
digest the word obsolescence." In an
other moment Jones was discussing
deterioration and .explaii<3d: "Deterio-
ration is a process that goes on among
people and physical properties. 1t is
most. noticeable among people because
they don't receive the occasional coat
of paint"
To support his plea for an 'amorti-
zation' charge, he pleaded: 'tAmortfza-
ton goes on until we finally die and
have no money with which to bury
ourselves"
When theorizing and explaining
proved unavailing Jones declared blunt
ly:"W are right down to brass tacks
and we've. got to protect ourselves