The San Francisco call., 1910-01-14
REVENUE FROM SYSTEM
WOULD REPAY THE CITY

SIS it good policy to act on prejudice
or shall we say, we will buy out this
company even though there may be
some difference to the value of the
system? The city can pay $35.O0O,0Ot
for Spring Valley and 81 100000 or ST.
100000 for development, can supply the
needs of the city for 10 years from this
property, and with the revenues can
pay the interest on the bonds, the Oper-
ating expenses, and will have left
surplus sufficient to pay nearly all thu
interest on the Lake Eleanor bOnds.e--
Statement of City Attorney Percy "
Long at Builders Exchange meeting.
City Attorney Percy V. Long ad-
dressed a meeting of the Builders as.
ISOLATION at its headquarters Vat Pine
and kearny streets yesterday after
noon in support of both water projects
Long declared that the Spring Valley
formed a natural complement to tht
Sierra system. He urged that the city
acquire both. He said in part:
Spring Valley has offered to sell
its plant to the city for $35,000,o0o.
1t is not easy to estimate exactly
exactly the value of the property.
Ny office has contended in court for
a valuation of s25,000,000, although
the company has put in S2S, 900 900.
have contended that for rate fix
ing purposes the company should
be allowed interest solely on the
actual investment of property in
use. If the company invested $1,000
Il in any particular piece of property,
/ have contended that it should re-
ceive an allowance only on $1,000
even though that property may
have advancedEin value to $4,000
The company has much property
not now in use, but which will be
of great service in the future de-
yelopment of a water supply.
am not here to urge you people
to vote for either of these systems.
/ hold the opinion that the city
should own its own water supply.
am here merely to enlightei, you
on this question as far as / can.
The city has been slapped in the
face time and again by. Spring
Valley. 1t refuses to extend its sys-
tenn and 1t can't be compelled to
do so.
Is it good policy to act on pref
buy out this company even though
there may be some difference as to
the value of the system?" The city
can pay s35.000.o00 fol. Spring Val
development. can supply the needs
of the city for 10 years from this
property, and with the revenues
can pay the interest on the bonds,
the operating expenses, and VIII
have left surplus sufficient 70 pay
nearly all the interest on the Lake
Eleanor bonds.
1t has no doubt been called to
tion of a new system would entail
the tearing up of the streets of the
city and the expenditure OF nearly
S1000,000 by the citizens for new
service connections. You men are
deeply concerned in this matter. IL
this bond issue fails the blow will
be particularly heavy upon the out
lying sections.
The company will not extend.
You can not under the law compel
it to extend. You can compel
nm u ftc
can not compel it to lay out money
for betterments.
The city officials who have
studied this matter believe it good
business policy to purchase Spring
Valley. The matter rests with the
people tomorrow. I doubt If ever
any more important matter. has
been submitted to the voters. We
must divest our minds of prejudice.
The engineers tell us that ~the
property can be developed to make
1t meet the needs of the city for
several years to come | leave these
facts with you.