The San Francisco call., 1910-08-30

i
! This commission is empowered to in
vestigate any and all water supplies
which may be used by San Francisco
and report their findings to the secre-
tary of the interior.
AGREEMENT WITH GOVERNMENT
The city and county of San Fran
I cisco has the right to call upon the gov
ernment for any maps, papers or other
information from any and all sources
| dealing with a water supply for San
Francisco, and is in turn compelled by
/ the ruling of the secretary of the In
terror to give to the commission at
any time said commission may make
| demand all information the city au-
thorities may have regarding this ques-
tion. it being understood that the city
acquires no further rights in the dis
trict until the commission reports
In view OF the foregoing, l would
recommend that every effort be put
| forth TO demonstrate to the satisfac-
tion of this commission that the future
OF this great city demands an abun-
dance of pure water and that Hetch
Hetchy is the best, the only and the
most natural location within the reach
of the people of this city from which
TO secure such water supply. Now
is the time TO insure the future of this
great city OF ours against that which
is taking place in many other cities
in this and other countries, that is.
scarcity and absolute inability of the
water supply to meet with the needs
of the people; and in this connection
and in line with the platform on which
the members of my party and myself
stood at the last election, l beg leave
to submit and recommend for the con-
sideration of your honorable board the
following:
A vast majority of our pepole be
lieve, and have expressed that belief
at the polls, that while Hetch Hetchy
is an ideal source of supply and one
that our city must possess for future
needs, the municipal ownership ana
control of the property Of the Spring
Valley water company is also neces-
sity for the present and future welfare
of the citizens of the city and county
of San Francisco.
SPRING VALLEY PROPERTIES
In consonance with this thought the
people Of the city and county OF San
Francisco elected us to office upon our
platform, which, among other tnlngs,
contains the following provision:
I'VE strongly advocate and pledge
our nominees to the early acquisition
and development of the Hetch Hetchy
water supply. and we further believe
tnaI the ever lnCI6dSlu6 bCNdS - NAA0
greater San Francisco, destined to en-
brace the lower peninsula and bay
cities. demand not only the operation or
this great source of pure water, but
the purchase upon a reasonable basis
Of the Spring Valley water system
/ have given the matter of the prr-
chase of the Spring Valley water COM
pany's properties a very careful in
vestigation much thought and atten-
tion.
In order to place the matter before
your honorable body and the people OF
our city, it becomes necessary to go
back some years and to consider the
capitalization of the Spring Valley
water works, the predecessor of the
Spring Valley water company, for the
purpose of arriving at an intelligent
Idea of the cost and value of said
properties TO the stock and bond hold
ers of the Spring Valley water COM
pany.
WATER COMPANY'S FINANCES
In the year 1903 I am informed that
the Spring Valley water works, in or
der to increase its bonded Indebtedness
under the laws of our state, increased
its capitalization from s14,000,O00 to
SIS, 5000, 900 in the following manner:
The original Incorporation consisted of
| 100000 shares of the par value of 500
each, or s14,000,0O0.
To circumvent a statute which pro-
| hibited bonded Indebtedness greater
than the capital stock of the company,
/ the stock issue of the company was in
| creased from 10000 shares to 100000
shares of the par value of 800. The
! company also changed its name to that
/ of the Spring Valley water company,
! instead of the Spring Valley water
works, and the holders of the old stock
surrendered the same, and received two
| shares of the new stock for one share
| of the old. Therefore, while the par
value of the stock is shown in the
articles of incorporation and books of
the company as s1OO per share, the ac-
! tuaI value of all stock is $50, instead
/ of 500 per share. The Spring Valley
water company carries a bonded in
/ debtedness of about $4,000, 600. This.
/ added TO the par value of the stock
hereinbefore mentioned at $4,000, 600,
/ aggregates the sum of $4,000. 900, the
! total corporate liability of the company
! for stocks and bonds-and represents
/ its investment.
THE PROPOSED PURCHASE
/ When the question was presented to
! the electors of the city and county OF
! San Francisco for the purchase of
! Spring Valley in the sum of S35, 600, 600.
! / opposed the purchase upon Severa !
different grounds, among which was
/ that the purchase Of Spring Valley in
! conjunction with Hetch Hetchy. which
! involved a bond issue of S5S,000,0 900, ex-
! eeeded the limitation fixed by section
| 8 of article XII of the charter. which
! in the opinion Of some of our leading
attorneys would have defeated the bond
! issue for Hetch Hetchy, and through
the courts given us Spring Valley, that
/ being then an existing public utility
4 with n