The San Francisco call., 1909-02-26
BOURN PASSES
OUT ULT|MATUM
THEN WEAkENS
Turns Mental SOmerSault Be-
fore Supervisors and Intimates
Spring Valley Will Sell
Offers Six Alternatives and
Says Indirectly Company Is
Ready to Treat With City
Declares Local Water Supply
Could Be Increased to 5O,-
OOO,OOO Gallons a Day


After delivering an ultimatum to the
board of supervisors last night, Presi-
dent W. B. Bourn of the Spring Valley
water company experienced a sudden
change of attitude and announced that
he was prepared to treat with the city.
was interpreted as an expression of his
willingness to open negotiations for
the sale of the plant. Taking a memo
randum from his pocket Bourn said
that he had laid down a policy before
his board of directors bearing upon the
city. He then read the memorandum,
which contained the following six al
ternatives:
"A price for an immediate sale;
"A price under different degrees of
development;
plus actual cost of development under
option for fixed period;
Price for sale of distributing plant
in San Francisco;
Contract for sale Of water;
Temporary partnership"
MAYOR DECLINES INVITATION
few moments before he submit
ted these propositions, he said that he
believed the city had make great
mistake in not purchasing Spring Val
ley for $4,000 900. Bourn added that
he believed 1T would never have the
chance again. He declined to name
his present price, but argued that bet
ter relations should at once be estab-
lished. He said he had asked Mayor
Taylor to preside at the meetings OF
the company's directors, but that his
invitation had not been accepted.
I'VE are expecting nothing" said
Bourn, referring to the rates for the
coming fiscal year, and we Will not
wait to be invited to rely on our con-
stitutional rights. We are prepared to
do that now. But" he continued, I'VE
are willing TO meet you more than half
way. There is no necessity for passing
laws to condemn this property When
we are satisfied that we will be met in
good faith and when you are satisfied
that you will be met In good faith
and the proper foundations can be laid
| don't believe we will have any trou-
BILE in arbitrating the valuation. If my
power and influence can turn the COM
pany over to the people 1t Will be done
We are going to pursue the policy of
making this a public trust. 1t should
be the easiest thing In the world to
agree upon price 1t could be done
either by arbitration or condemnation,
but better than all would be a general
basis of mutual understanding"
Bourn said that the city would some
day be thankful that 1T had not been
given the Sierra rights by congress.
BOOTH SPRINGS PUN
You will never get the Spring VAL
ley water company with a club he
continued. IF 1 owned the company
I might be willing to give it to you,
but you will never get 1t with a club.
1 have heard it said that the supervis-
ors wanted Hetch Hetchy as club to
get Spring Valley
You are the people who have the
club" interjected Supervisor Booth.
who occupied the chair
What club have we?" asked Bourn
in surprise.
1.-THE Sierra club" replied Booth
The company made request for
depreciation allowance in the sum of
s300,O 900. 1t also brought forward It's
fourth valuation of the season in the
sum of 37,921,3 ,332.O5. Bourn supple
mented these figures with the sugges-
ton that dividends might be fixed by
agreement. He fgufed 1928 acres of
real estate at an average of $500 an
acre and told how the Lake Merced
lands could be turned into beautiful
villas with boulevard and trolley
line skirting the hills.
Bourn said that the company pro-
posed to build the Calaveras dam this
year and to sell water in Oakland. He
stated that the supply in San Francisco
could be increased to 50000,000 gallons
a day by cutting down the safety sup
ply in the reservoirs and bringing
greater quantities from the Sunol and
Pleasanton watersheds. He announced
that if given the rates he wanted "a 25
per cent increase over the 1902 rates
with s5 hydrant allowance) he would
guarantee to bring in 40,000.00O gal
Ions a day.
REBATING IMMORAL
Supervisor Johnston called Bourn's
attention to the fact that the charitable
institutions had been denied the half
rates they formerly enjoyed and that
theNSpring Valley had refused to con-