The San Francisco call., 1910-07-07
TEVIS' REPLY DOES
NOT SUIT COUNCIL
Alameda Officials Declare That
the Water Magnate's Letter
Eyades Vital issues

liam s. Tevis of the Bay Cities Watt
company has. in accordance with
promise he made to Mayor w. II. Nc
and the members of the public uti
ities committee OF the city council at
conference held in the city hall las
week, reduced to writing and forwarde
to the mayor answers to requests the
made TO the water magnate that Gel
tain changes be made in the form {
contracts being circulated here. Mayo
Noy and Councilman William Hammon
Jr.. chairman of the public utilitie
committee. have jointly replied TO Pres
ident Tevis. Both communications al
here given;
San Francisco, July 1, 1910
Hon. William IL Noy, Mayor or
Alameda, Cal.-Sir- referring 10
the several matters 10 which you
have directed attention in connec-
tion with the water contract now
being presented to the citizens OF
Alameda by our solicitors, we neg
to say that you are no doubt tully
aware Of the impossibility of so
framing q document as 10 forestau
suggestions of notifications. Also
that no matter how complete II Is
thought TO be when adopted, eXpe-
minor points at least wherein 1t
might have been made more eN-
plicit
DEMANDS UNIFIED FORM
On the contrary and especially in
connection with such efforts as we
are now putting forth, it is funda-
mental prerequisite that all with
whom we enter into contractual
relations should stand upon identi-
cally the same ground. 1t, there
fore, follows that the form of con-
tract once adopted and used must
stand 10 the end. However, this
condition does not in any way re-
strict US from defining our under
standing Of the true intent and
meaning. both of the spirit and the
letter of the document itself, and
such definition by US, we are ad-
ViSed. is quite as obligatory upon
us as is the document itself.
It has never occurred to US that
any one would entertain doubt re-
garding our intention, in the event
that iuStihable amount of busi-
ness was pledged, to provide Ala
media and other communities from
which we are soliciting, with sup
ply of water procured from sources
entirely separate and apart from
all sources from which present
water supplies are obtained. We
have advertised this feature re-
peatedly and certainly will stand
sQuarely by our representations In
other words we regard all of our
contracts, whether with the citi-
zens OF Alameda, Oakland or
Berkeley, or other east bay shore
communities, as If they contained
clauses specifically defining our po-
siuon in this respect And. if il
were practicable, we would be en-
tirely willing TO specifically amend
every contract made by inserting
therein a clause, as suggested by
your honor, and reading about as
"It is contemplated that the
waters herein provided for shall be
procured from a source or sources
of supply other than those from
which the existing water supply
Of the city Of Alameda Cor other
town in which contracts are being
tsken) is now obtained Otherwise
this contract may be rescinded and
declared null and void by the party
of the second part"
But for reasons given. it is en-
tirely impracticable to amend any
one contract without similarly
amending all, and to do this is
quite impossible.
RATE CLAUSE DEFINED
Regarding the clause In the con-
tract that refers to rates. we beg
to explain that the maximum
charge only is fixed thereby. such
maximum charge being governed
by the legally established rate.
e
furnishing II, 600, 600 gallons of
water per day under the contracts,
they would preclude greater
charge than 29 cents per 1000 gal
Ions. But If at the same time the
legally established rate was only
q cents per 1000 gallons, then, ac-
cording 10 the language of the
contracts, such legal rate would
control.
The contract was drawn with the
express purpose Of compelling the
delivery of water TO colstract Gus
toners at the legally established
rates regardless of the rate for the
time being applicable as provided
by the contract. For instance,
Alameda has now esta blished
legal rate Of 30 cents per 1000 gal
Ions, which rate viii certainly con-
troll maximum prices charged to
customers under contract, until
either e lower legal rate is fixed or
until the quantity supplied to con-
tract customers automatically
brings z lower rate into effect
We hope we have made ourselves
entirely clear in the foregoing and
we assure YOU and through you,
not only the citizens Of Alameda
but all who have entered into con-
tract with Us, that we feel our
selves as firmly bound by what is
here stated as If it were framed in
the most formal legal language and
embodied in all of the contracts
I have the honor to be, sir, most
WILLIAM s. TEvIs.
CITY OFFICIALS REPLY
Alameda. Cal. July 5. 1910.
William s. Tevis, President Bay
cities Water Company, San Fran
Dear sir-Your favor of the first
inst dealing directly with form
Of contract, together with eXplana-
rc = 90 dr-7-~ . l..
Our idea was that, the subject Of
option would be satisfactorily an
sWered.
We expected definite agreement
that the company would sell to the
city the distributing plant, at any
time within 10 years of installa-
tion. for the cost price thereof plus
interest; also an agreement that
water would be sold to the city
thereupon at rate TO be deter
mined by arbitration. These de-
tails were not in any way referred
to. and we are at a loss to deter
mine whether you have withdrawn
them entirely or whether you pro-
pose to submit them in some other
form.
We might explain our position
by stating that these two questions
interest US far more than does
y6ur form Of contract. Our citi->
zens expect us 10 take such steps as
are in our power to make such con-
LIdClt OT dLLd-4B tIICuIS dS may De
beneficial to our city in the future.
We would therefore request that
these matters be given immediate
attention by yourself and board of
directors. Yours very truly
WILLIAM r. NOY,
Mayor of Alameda.
WILLIAM HAMMOND JR..
Chairman Of Public Utilities Com
nlittee.
DECREE CLEARS TITLE
TO BROADWAY PROPERT