The San Francisco call., 1910-01-12
Statement Discusses Price

,Idtement discusses HrlCe
The citizens water committee devote
tseff yesterday to consideration of tn
rice fixed by Spring Valley. Letter
he day a statement was authorize
covering this point. 1t deals specificail
With the difference between rate fixin
and valuations for purchas'
The statement follows:
To the Voters of San Francisco:
Some confusion has arisen in the
public mind because of the differ
ence between the city's official
valuation of $24,404,1 139 for the
Spring Valley properties when hx-
ing the water rates last February,
and the 10000 600 at which they
are now offered for sale. The diff
ference is due to two facts:
First-The city's appraisement
does not include s4.645,444 of prop
critics owned by the company but
not now in use for supplying water,
but needed for future development.
The offer of sale does include these.
Second-Valuation for rate fixing
purposes is based on the invest
ment. The stock holders are en-
titled, in law and justice, only to
reasonable interest on the money
they have invested in the plant
no more, no less. When asked to
sell they are entitled to its worth
in the market. IN the 45 years
since the company began its in
vestments some of the property has
largely increased in value. On the
citys appraisement the value of
the property without these in
creases is S29,050,1S3. Expert ap-
praisers hold that the advance of
property values in the city and on
the peninsula. in the period since
these properties were purchased
has been sufficient to cover the
s5,949,S17 difference between the
. official appraisement for the rate
fixing inquiry and the price fixed
for sale.
Third-There is no. absolute
standard of value for property. No
two appraisers will agree on the
value of a lot in Market street.
Still less will they agree on the
value of a complicated property
like the Spring Valley with $4,000
acres of land and many structural
works. Colonel w. II. Heuer,
L. S. A, after careful study. gives
his opinion that any price between
s30.000.000 and $36,000,000 is rea-
sonable.
Fourth-Some of the properties
of the Spring Valley company are
essential to the safety of a city
water system. Notably is this
true of the Crystal Springs reser-
voir and Lake Merced. These can
be got only by buying the whole
plant If the city refuses to buy
at the fixed price of $S5 100000 and.
elects to buy under condemnation
proceedings it is in for a battle for
many years. AS the law stands
the city must have money ready
to pay the condemnation price in
side of 80 days after judgment is
entered. This is an utter impossi-
bility under any system OF bond
issues Therefore such fight
must begin by getting the legis-
lature to amend the law and then
the city must fight the Spring
Valley through all the courts of
the state and the United States.
Such delay and litigation mean
heavy costs to San Francisco.
Fifth-The value of the landed
property of the Spring Valley
company will advance with the. in
crease of population. Real estate
experts estimate that in 10 years
the increase in the value of the
2S36 acres of Lake Merced lands
alone will be S6.00O.0 600. This will
cover any possible difference of
opinion on price. Probably on con-
demnation proceedings the city
would be forced to pay that addi-
tional price. Increases in value
should go to the people and not to
the corporation.
Sixth-San Francisco is suffering
from a scarcity of water. Spring
Valley refuses TO supply the peo-
pie in the outlying districts or to
provide enough to meet the wants
of manufacturing plants. There is
no way to compel it to spend the
money needed San Francisco is,
therefore, hampered in growth by
the unprogressive policy of a pri-
vate corporation. 1t will continue
to be hampered as long as the
supply of this necessity is in pri-
vate ownership.
Seyenth-The Spring Valley COM
pany has for 40 years reused the
hostility of the people. You are
told that because of it's past deeds
you should vote against buying its
properties now. Yet vote
against the bonds is a vote to keep
this great necessity under the con-
troll of the corporation for an in
definite period. The only way to
obtain public ownership of the
water supply within 10 years is by
this purchase.
Eighth-The only way to better
the water service is to secure
municipal ownership - immediate
and complete.
Therefore vote for BOTH propo-
sitions Nos. and and get
BY Mol pure and abundant
supply from the Sierras to beaded
to the present supply, an addition
that's it will take 10 years to Sc
cure; and
BY No. 2-Immediate municipal
ownership of the present supply.
an increase of 5000 900 gallons per
day in delivery, and extension of
mains to the parts of San Fran