The San Francisco call., 1910-07-08
Spring VALLEY
PLEADS "MERCY"
Attorneys Claim That Water
Rate Injunction Entails a
Big Loss

The attorneys for the Spring Valley
water company yesterday appeared
before Superior Judge Conley to argue
that the preliminary injunction OBJ
tainej by A. ]. Minaker, enjoining the
corporation from shutting off the water
supply of citizens willing to pay the re-
duced rates fixed by the board of super
visors June Is last, should be dissolved.
The chief point made was that the
company would lose between $4,000
and $4,000 a month If 1t were forced ~
furnish water for the rates fixed by the
city.
Judge Conley said that in his opinion
a prima facie showing had been made
by the corporation why the preliminary
injunction he had signed. should be dis
solved, unless the plaintiff, Minaker,
were prepared to put up bond to pro-
tect the Spring Valley from loss in the
sum of $4,000 month in the event the
suit were finally determined in favor of
the corporation. However, as it ap-
peared the corporation would not begin
to collect its July bills until August,
the Judge gave Attorney Daniel OCon-
nell one week in which to prepare and
present counter affidavits to those in
trojuced by Spring Valley. Thomas
Haven, from the city attorneys office.
represented the city. but did not take a
leading part in the proceedings.
Attorney Charles Page of Page. Nc
Cutchen & Knight, presented the ar
guments in behalf of the corporation
He read affidavits by Herman Schussler,
John E. Behan and J. S. Wallace, man
ager of the water sales department of
the company The affidavit of Wallace
stated that the amount that would be
collected for the year under the rates
as fixed by the supervisors last month
would not exceed $2,423,271. In order
to meet the necessary expenses of the
corporation it would be necessary, ac-
cording to Wallace, to provide for the
following payments for the year 1910
1911: Operating expenses, $S99,4S3;
taxes, S4O5,223; depreciation, obsoles-
cence and extraordinary casualties,
$500, 000-making a total of $1,604,706.
This, he said, would leave a net return
to the company of $81S.565, but no de-
duction, he pointed out, was made for
the repayment to Spring Valley of any
of the moneys expended in replacing
portions Of its plant destroyed in the
earthquake of 1905.
In order to afford an adequate and
just return to the corporation upon its
investments, Wallace also stated, it
would be necessary for the company to
collect rates sufficient to yield sum in
excess of 100000 over and above the
$2,423,271.
Page next read the restraining order
signed last week by Federal Judge Van
Fleet in the case instituted by Spring
Valley to enjoin the city from enforcing
the lower rates fixed by the board.
1T seems to me that that is the most
sensible Injunction I ever heard read"
commented Judge Conley. "It amply
protects all consumers of water A fund
is created into which all excess collec-
tions are paid by the corporation, from
which the excess will be ultimately re-
turned to consumers If Spring Valley is
defeated in the litigation. Also. the
company puts up a bond of 100000 to
protect consumers from damage. 1t
seems to me that the plaintiff In the
case now before me should dismiss his
action and join in the circuit court ac-
tion."
"But no federal question is involved
in this matter" argued Attorney O'Con
nell.
Il will leave the supreme court of the
United States to determine that point"
answered Judge Conley.
1t was pointed out to the Judge by
Page that the trial of the suit in the
federal court would begin August
next, and Judge Conley said it would he
in the interests of economy, time and
everything else that Minakers action
should be dismissed.
In giving O'Connell until next Thurs
day to present answering affijavits
from engineers and others Judge Con-
ley announced that on the day follow
ing he would dispose of the matter.