The San Francisco call., 1910-01-16
ELECTION WILL
RENEW BATTLE
WITH COMP ANY
Sounds Signal for Renewal of
HOStiIities With Spring
Valley
Corporation Expected to Bitter
ly Contest Hetch Hetchy
Project


Fridays election. which gave TO san
Francisco the Hetch Hetchy. sounded
AT the same time the signal for the re-
newal of hostlities between Spring
Valley and the city. This is the opin-
son expressed in administration circles.
ii is also the view OF the company.
we viii mandamus Spring Valley
and make il supply water where we
want it, says Mayor Mccarthy.
we have made our offer 10 the city.
The city has declined il. The city will
go lis WY aud tho company viii go its
way" says Spring Valley, and the voice
that speaks for the corporation talks
with authority
That the company viii fight the
Hetch Hetchy project there is no doubt.
That Tile preliminary work on the new
system VIII be done in the courts would
appear TO be equally certain.
President ". Is. Bourn viii await a
meeting OF his directors before he
authorizes any announcement Of policy.
'.At tie present time prefer to make
Bourn yesterday. i have called a dt
rectors meeting for Monday. Until
Then I must be excused from any
statement"
COMPANY WILL FIGHT
At the same time the attitude of the
company is pretty well understood. It
feels that ii afforded the people an op-
portunity 10 settle the veXed question
Tor All time upon satisfactory basis !
The loss of that opportunity it ascribes
10 the people. 1t feels that its position
Is stronger than at any time in the
past ID points TO the fact that it in /
Icrposcd TO obstacle to the Hetch 4
Hetchy campaign. 1t quotes the cleo /
tiou returns to prove that it voted for /
lHetch Hetchy. It claims a voting /
strength Of 5000, as evidenced by the !
anti-Hetch Hetchy poll of one year /
ago. n points TO Fridays opposition /
OF I 500 and contends that no part of it /
emanated from Spring Valley. Now, !
say those i'm the confidence Of the COM /
pany. IL proposes TO invoke whatever
rights the law can give.
Thus is presented 2 not altogether I
unclou6ed prospect. The future looms !
large with legal processes. -Four dis
tinct suits remain 10 be fought. They /
are:
T. The MADEIRA case This is
test action now pending IN the
United States district court in Los
Angeles II involves the principle
Of the right of a California munich
pslity to enter into the water busi-
ness in opposition TO an existing
private system The proceedings
were brought by the MADEIRA water
works against the city Of MADEIRA
The Spring Valley interviewed on
behalf of the MADEIRA water works.
The city of san Fra nclsco Joined
with MADEIRA. This suit awaits de-
cision. II viii then wend its way
TO The United States supreme court.
cas- 4
on the injunction sought by Henry
Root, IS tax payer, to enJoin the
sale of the hrst issue Of Hetch
Hetchy bonds. The preliminary re-
straining order was dissolved and
the trial is now to be set on the
application for 2 permanent in1unc-
tion. In this suit il is contended
that the city had no right 10 pro-
cecd on the permit Of the secretary
Of the interior
litigation involving the rates for
1903. 13ot 1905, 1907, 1908 and 1909.
Spring Valley has been given until
March 10 TO file its final brief
IT was understood that these
suits were all 20 be discontinued in
case the city purchased the plant.
g. Suit to invsltdate Fridays
election. Spring Valley viii bring
an action TO prevent the sale Of
any part Of the Sf5-00O,OOO bond is
sue. One Of the grounds for con
test viii be the arrangement of the
two propositions on the ballot It
viii be cOnIenGeC tnaI many people !
voted for proposition No ] tthe
Hetch Hetchy). not with the idea
Of authorizing the S45.o0O.ooO bond
issue. but merely $4,000. 600. voting
sfirmatively at the same time on
proposition No. ?.
FACES MUCH LITIGATION
The city's litigation viii not end
with Spring Valley It must condemn
the Ham Hall lands at Lake Eleanor.
Mayor Mccarthy undertakes much,
therefore. when he guarantees Hetch
Hetchy water in five years.
At the same time the city attorneys
Office and the city engineer are ready
10 20 forward and clear the way for
IIetch Hetchy. They believe that they
can sweep aside the company's con
tentions just as they have in the past.
The people have declared for Hetch
Hetchy and no local agency is to be
permitted TO use veto.
In some quarters il was urged that
the Spring Valley proposition be re-
submitted. This proposal was mega
tived by those who have championed
the dual scheme They believed such
2 course highly impolitic. They deemed
IL the part of wisdom TO abide by the
decision Of Friday and to permit the
situation TO adjust itself. Then if at
some future date 1t should appear ad-
visable Spring Valley could be given
another chance
The companys stock showed no vio-
lent fuctuation as the result of the
election. The outcome had been fairly
we'll discounted. From Fridays close
at $3.50 the stock fell abruptly to
$3.50, but regained part OF its loss,
closing at $3.50. drop Of two points
The bonds fell from $9o.50 10 sss.37h
Suit by Power Company
Some speculation has arisen, over a
suit filed Thursday in Alameda county
by the Sierra and San Francisco power
compan for a right of way over
the lands of the Spring Valley water
company near Sunol-
The Sierra and San Francisco power
company is the corporate name OF the
concern. formerly known as the Stani-
slaus power company, that will bring
in the electricity to run the cars of the
United Railroads.
The power line crosses the Spring
Valley property, but the parties were
unable TO agree as to the proper COM
pensation, and therefore the suit was
instituted.
The proceedings were directed against