The San Francisco call., 1909-11-13

CATION IS now pending between the municipality and
the company, in which the value of the property is an
important issue to be decided In view OF the differ
ences of opinion on this subject it seems quite
probable that negotiation looking to agreement
upon price which the municipality afford to pay.
and at which the company afford to SELL carried
in the utmost good faith would a consider
able period Transactions of such magnitude not,
in the nature OF things, be speedily determined. The
highest value placed by the board of supervisors
upon the property and the highest value fixed by
the city engineer Is far below the price which the
company would for the properly On the other
hand you have given us to understand that the value
placed upon the property by the company and by the
companys engineers is in of the price at which
you would recommend its purchase by the city and
county 1t has, however, been stated by individual
members of your board that the board would recon-
mend the electors the purchase of the property at
its reasonable value and the company has several
times stated that it would sell for what the property
is reasonably worth. Under the circumstances it
does not reasonable that the company should be
asked to make offer of its property which you may
arbitrarily reject upon which you may fail to take
any action whatsoever. you do really desire
acquire the propertyand you have indicated by
any action of your board that you do desire acquire
itand will take up the subject of the purchase and
cndeavor to agree upon price, and if can, in
private discussion with all, designated number of
your members, agree upon figure at which you will
make you formal offer
If this suggestion does commend itself to you
then willing to agree that the value for any
and all purposes shall be fixed by arbtrators. We
will sell price be fixed by board of arbitration
consisting of II members to be composed as follows
The chief justice of the supreme of California
Two to be appointed by the president of the United
States.
Two to be appointed by the governor of the state
of California, or, at option, the last be
appointed as follows: One by Hon. w. W. Morrow
circuit judge OF the United States and the other by
Hon. Erskine NJ. Ross, circuit judge of the United
States.
Three by the board of supervisors of the city and
county of San Francisco.
Three by the Spring Valley water company
Of the three TO be appointed by the board of super
fvsors, at least shall be hydraulic engineer of
the three to be appointed by the Spring Valley water
company, at least shall be hydraulic engineer.
No who has been witness, or who has made
affidavit in any litigation pending between the
city and the company, between the city and the
Spring Valley water works, or who has been or is an
officer of the city the company, who has ever
appeared representative advocate of the city or
company in any matter affecting the acquisition of
water supply by the city shall be appointed as an
arbitrator
The company will agree sell its property to the
city at the award made by majority of the arbtra-
tors the sale to be made at any time within six
months after the award is made, and the board of
supervisors its part shall agree that, upon the
coming in of the award, it will recommend to the
electors the purchase OF the property at the of
the award, and will take all of the necessary steps to
submit the proposition to the electors.
If this form of arbitration does not meet with your
approval we will agree to any other mode of arbra
tion that is calculated result in the selection of fair
and unbiased
There may be doubt of your power to agree
to arbitration. Nevertheless, the company is will
ing to submit TO arbitration and to be bound by
the award which the arbitrators may make.
We assume that 80 days will afford you ample time
TO determine whether you wish to accept either of
these offers and each of them will remain open for
80 days.
At special meeting of the board of directors held
this day this letter unanimously approved by the
board and ordered spread upon the minutes of the
company Respectfully,
SPRING VALLEY WATER COMPANY,
By w. B. Bourn, President