The San Francisco call. [volume], July 20, 1907, Page 2, Image 2

About The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913

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2
Spring Valley's Impudent and Insincere Plea for City Coin and Surrender in Rate Case
*T*HE Spring Valley water company has asked;
1 the city to confess judgment in the water
rate suits now pending in the' United States
court, but Assistant City Attorney Baggett
declares he will not consider such a proposition
until he is instructed to do so by the mayor and
the board of supervisors. /t/ t
to do people who would feel an assess-
I Hit .of 75 cents a share much less
an the stock holders of the Fireman's
nd insurance company felt an asseSs
>nt of $300 a share for instance; or
in the stock holders of the Pacific gas
d electric company felt an assess
•nt of $10 a share, just laid: or than
c stock liolders of the California in
rance company wherf tlte* were
lied upon to pay an assessment of
) per cent oh their stock.
While the Spring Valley waver com
,...ny is appealing to the city to put up
all the coin needed to help it out of a
hole, regardless of the financial mis
fortunes that have fallen upon the
municipality and not caring if the en
lire burden that belongs to itself is
shifted upon the rate payers and tax
payers, it is fair to inquire whether the
company is itself moved by generosity
in its dealings with the public.
COMPANY CLAIMS IXTEREST
•r- Annually it is set up in the United
. States circuit court in this city, in the
proceedings brought to prevent the city
from putting into effect its water rate
ordinances that the company is entitled
to interest on the property, taxes and
an income to the stockholders. The
amount of money that must have come
from water" rates in payment of inter
est, if the water company has its own
way. must depeud upon the valuation
of the property. On January 1. 1903,
ih* company, taking its own figures,
estimated the actual cost of the works
at $36,256,235.70. These are the figures
contained in the bill filed by the com
pany in the United States circuit court.
This cost was provided for according" to
the following schedule: Sale of stocks
and invested earnings. $22,281,235.20;
sale of bonds. $13,975,000; total, $3G,-
Th«- bonded indebtedness was then,
according to the company's showing,
$13.!«75,000: the capital stock was $14,- j
000,000. Since then the company, to j
tnpei a new bond issue, has doubled the j
<:apital stock and distributed the new |
stock among its I.SOO stock holders. It
was necessary to double the stock, it
• Is explained, to comply with the Call- 1
fornia law, which provides that the j
stock issue shall be equal to the issue j
of bonds. But no new value 'was I
created by doubling the stock while
twice the old amount of shares come
into existence to call for earnings
whenever a showing was made in court
.^regarding the reasonableness of water
rates fixed by the board of supervisors.
COMPAXV'S ESTIMATE;
The company's estimate of the worth
of all its properties, as set up.in court
In ISO 3, was vaguely expressed as
"greatly in excess of $40,000,000J\ The
company has acquired no very large
• properties since 190s. Nevertheless it
was set up in the suit of ISO", filed a
few . months ago, as a basis of its j
claims to interest through the medium
of water rates, that the actual cost of
the water works 'had been, more than
553.599.450.72. It was also declared
that the sales of stocks had amounted
' to $55.b9?.450.72, and the sales of bonds
$17,859,000. Here Is a jump in the
company's figures in the cost of the
works in four years from $36,2116,235.70
to a cum $17,502,225.02 greater. Per
haps these figures will carry their own
. argument in determining the good
faith of the company with the public
\ when water rales an} to be established.
. > b far back as 1903 United States
Circuit Judge Morrow, rendering an
opinion in the first of the series of
federal injunction suits on the water
• rates, said:
"Tlie court Is of t!ip opinion that the
complainant (Spring Valley, water com
pany) is entitled to receive at least 5
p«=r cent as the net compensation on
thf> value of its property. With theEe
estimates determined the following re
sult was reached:
"Value of property, at least $26.7^2,
500; rate of income, 5 per cent as net
compensation for year, $1,337,625; op
orating expenses, 1506.000; taxes, $236,
000; total expenses. $792,390; gross In
come should be for the year, $2,130,015."
The value fixed by Judge Morrow
was Just about half the value fixed
by the company less than two years
'after the jrreat fire and earthquake as
"the actual cost of the water works."
As a matter of fact, it is said by
directors of the Spring Valley water
company that the properties could be
boug-ht at this tinr 1 for the stock, esti
mated at $14,000,000, and the bonds al
ready issued. The outstanding- bonded
debt is $1 7,800.000. This would make a
total of $31,800,000. excluding properties
j that are not used in producing the San
Francisco water supply. All the non
producing properties have been turned
In for years as part of the basis of the
claim for intf rest*- The city, having in
vestigated the values of the Spring
Valley- properties, has estimated the :
total at J24.000.000 in round numbers.
or $29,000,000 less than the company's
estimate for 1907.
COMPANY'S PLANS
The Spring Valley water company
wißhes to clear the way for getting
$200,000 from the city budget by having
the city confess Judgment In the United
States circuit court in the suit on the
water ordinance of 1907. Should this
be done the company, would continue
to charge and collect rates on the basis
of the water ordinance of 1902, Just as
It has been doing for a series of years,
ulnce it first tied up the city with an
injunction suit in 1903-04. and as It has
done annually ever since -with the ex-
ception of ISO 6. when unusual circum-
stances prevented. If Judgment should
be confessed the company would try to
get $200,000 from the new mayor and
board of supervisors.
The proceedings are not viewed with
entire complaisance by Attorney W. T.
Baggett, who has charge of the city's
side of the case In the United States
court. Baggett in an interview yes
terday reviewed the situation and made
a number of significant statements. He
said:
"The suit filed by the Spring Valley
water company in 1907 was: practically
the same in tenor as those filed against
the city by the water company in 1903,
1904 and 1905. except in relation to the
valuations placed on the: properties of
the company. The old suits" were set
for hearing July 1, but Attorney Kel
logg of the water company got exten
sions of time to prepare briefs in the
cases. The ordinance fixing water rates
In 1902 'was not attacked by the water
company. . .
"In. 1903 suit was begun to enjoin the
city from collecting water,- ratesi-under
the ordinance. ' of 1903. : This: w§.s*' re
peated in 1904 and 1905. The catas
trophe of 1906 prevented the filing of a
suit in that year. \u25a0
"The company, therefore, is collect
ing water rates under the provisions
of jthe ordinance of 1902.: In -1907". the
company alleged the same sort of thing
set up.in the preceding salts, namely.
that it would, not be able to pay any
income to the share holders. under, the
rates after paying' taxes and interest,
but would actually fall behind * In- its
operating expenses. The company has
laid" one assessment on the stock since
the fire which, at $3 a share, amounted
to $840,000. The company sets up the
claim that no .other assesment'ean .be
laid en the stock and v that a new. pipe
line must be constructed and that there
\u2666* no way to get money except -by ask
ing: the city, to put up $200,000 in the
budget on behalf of the corporation. -;'.
SCHEME IS DENOUNCED
"Soon after the federated water com
mittee was organized it was proposed :
to pass c. resolution asking the super
visors to put the sum in the budget,
but I showed the committee that this
would not be effective for the, reason!
thai the water rate ordinance of 1907 i
had provided for the revenue of th<»
company from the city and that neither
the city auditor nor the, treasurer
would approve the bill for any appro
priation of that sort to any private
corporation. Why, the . same sort. of'
aid could just as well, be invoked forj
any one of a thousand Individuals ln v
financial trouble and ' with as much i
color of law. The only way* for the
company to proceed then was to have
judgment confessed In. the United!
States circuit court by the city. It has. 1
been suggested that the city attorney !
should confess judgment. I may say
right here that I shall never take any
such action until I am instructed to
do so by the mayor and board of super
visors. The matter is strictly up to
the mayor and supervisors. Nothing
can be got out of the treasury by the
water company through the budget j
while the ordinance of 1907 is in force.
"The supervisors cannot repeal ] the
I ordinance. A stipulation has been pro-
I posed which shall admit nothing eon
| eeming the values of the Spring Val
j ley properties to have been establlshe.l
and that" shall not affect any of the
old, suits when confession of judgment
in the suit of 1907 against the city; Is
considered. \ I will take .no " action in
that regard, as I. have said, -unless the
1 mayor and supervisors so instruct.
-This office has said that it has serious
doubts regarding; the statement that
the Spring Valley, under the water rate
'ordinance of 1907, , will not earn any
: thing for. the stock v holders after the
fixed .charges and operating expenses
are paid. The. ordinance. will. give reve
nues that were not expected. If there
were to be any confession of judgment
and any .agreement to-let the- Spring
: Valley water company have the $200
000 that it seeks through the budget,
it should be. stipulated in behalf of the
city that a. strict . accounting should
be kept of theroperations of the Spring
Valley during the fiscal year and* that
the city shall be in constant touch and
acquainted fully . with all the trans
actions so that, when tha- end of the
year /jhall, arrive, if the company has
any sum Jeffc. after paying the operat
ing expenses and fixta charges the city
shall be -repaid. «rv
earnincs
MILL MAKE IP DIFFERENCE
" 'Pcjrhapsi* it has been" said ,to me,
"The Spring Valley company will not
accept sutiV a proposition.! ,
i'.'V'Thert,' I said, 'that will be proof
that they are lying.' S ;\u25a0•\u2666•; \u25a0!:
"The new revenues, which I have
mentioned as \u25a0 unexpected, .will more
than make up any difference in the
receipts of the company. Very large
building operations are going on in the
city. The water ordinance of 1907 pro
vides that the Spring Valley- may
charge and collect 13 cents for every
barrel of lime or cement that -is used
in construction. Also that the com
pany may collect 9 cents on every 1,000
bricks that go ihto construction. The
lime, bricks and cement .%p be used in
construction In 1907-08 have been care
fully ' estimated and 1 the new , revenue
from that source alone ought ,to be
1500,000." .^V^X^v
the good
. "How has the Spring Valley so
greatly .'lncreased its estimate of the
values of its properties?" was asked.
"No large physical properties involv
ing large values have been added since
the original suit of 1903 was filed by
the Spring Valley company. But the
company has secured witnesses to
testify that the L<ake Merced property
is worth $14,000,000. This property
furnishes a small part of the water
supply of San Francisco, but the com
pany sets up that its chief value con
sists "in what It would bring if laid off
in lots and blocks for building uses.
The Calaveras water shed lands were
bought at $60 an acre. The water com
pany;now values this at from $600
to $1,500 an acre 4 It can.be seen r how
the company can make up a large
showing \ot values. \u25a0•! .
n.vrEs i.v otfirEn cities
"'"We have secured "comparative fig
ures relating to water rates from 25
cities. The average cost per consumer
of water in these 25 cities is found to
ebs2.so a year. The average cost in
San Francisco on the basis of the or
dinance ;of 1902, which appears to be
satisfactory to the water company, as
it has not attacked it, is $5.20 to the
consumer. " The actual cost of the water
company's 'properties, as taken from
the company's books, has been tound to
be about $24,000,000 up to this'tlme.
The apparent cost, as made, up byUhe
company; is \u25a0 what the stocks and bonds
have brougtit when Sold.
s 'The Spring Valley water company
practically confessed bankruptcy when
it said that It could' not provide for the
construction' of the works which it, was
organized to .construct and maintain.
This city is not supposed to be in the
business; of 'setting private enter
prises on their feet. The company
says that It cannot supply the pipe
line to bring In 30 inches of water and
cannot avoid bankruptcy under the
provisions of the water ordinance of
1907. Only one thing Is left to do. and
that Is, as I have said to the federated
water committee, to deal with the com
pany for the purchase of the property,
but at no more than a reasonable
price — not any fancy, price. One thou
sand bankrupt . citizens would \ have : the
Bame right to ask the city. ;to • help
them that 'the Sprftig Valley water
company has."-- :
Pressure 'has been brought by the
Spring Valley water company upon the
city, through -arguments addressed to
the , federated-.. water committee, repre
sentative of "San Francisco's commer
cial bodies, to cause the city attorney
to confess Judgment. This campaign
to get $200,000, which has since been
coupled with the, attempt to have the
water rates .of 1907 turned down
through a confession of, judgment on
the, part of the city, was begun when
President A. H. , Payson addressed -a
communication to Colonel Heuer;
chairman of the federated water . com
mittee.appointed to conslderthe water
supply, in which it was set forth that
the water company's estimate covering
operating 'expenses, . taxes and Interest
on '; the : company's bonded debt for the
fiscal year 1907.-08 '.was- in round num
bers $1,900,000; that under the 1902-03
rate the' lncome might be estimated at
$1,628,000. leaving, a deficit of $272,000
to -be made up out of; the money re
ceived, for the city's bills; also recom
mending an \u25a0 appropriation of $59,000
for the current year for^ schools, pub
lic-buildings, parks 'and s street sprink
ling, and alFo a hydrant rate of $5 !a
month, altogether making up the deficit
0f : 5239,000 that; was anticipated for
the year. . : .
CALAMITY. THREATENED
. This communication , was sent as an
open letter to the federated t water com
mitteeon the same- day; that:, the: suit
was filed for. an injunction 1 against' th'e
city.' -• That * was •- on 1 ' June " 1 last.*-, Since
then the city was - threatened r with a
THE company claims it has already levied.
an assessment of $3 a share*and cannot levy
another to make up a deficit of $800,000,
asking upon this ground that the city make,
good the amount in order to prevent a water";
famine and the wholesale cancellation of fire
Insurance policies.
serious shortage of. water after "July 1,
In the event'of noncompllance 'with the
company's wishes,' although the j suit
for :an injunctiop: -contained
words: ' ;;i ' - / -I
"THE COMPLAINANT SAYS THAT
IT WILL ENTER UPON 'THE YEAR
COMMENCING JULY 1. 1907. WITH A
SUPPLY OF OVER . TWENTY THOU
SAND MI LLION G A LLONS \u25a0ON H AND
IN ITS RESERVOIRS, AS *IT HAS ON
HAND., TODAY | IN THE RESERVOIRS
OVER TWENTY-SEVEN -THOUSAND
MILLION GALLONS,: AND ALSO HAS
AN INFLOW OR : SUPPLY-^ OF OVEK
FIFTEEN . MILLION GALLONS PER
DAY ADDITIONAL FROM ITS ALA
MEDA CREEK SYSTEM." " ,
The members, of the" cornmerclal or
ganizations were told that the water
supply would fall off greatly about
July 1 and were- urged: to act at once,
because there was great; danger of a
wholesale canceling of ,: insurance on
business arid residence properties.^ This
plea for action ..was reinforced by.con
tlnual pressure. ', 'arid the..; federated
water committee,*has,sin ; ,vlew of what
was made to appear a great emergency,
stood fast with those whom it repre
sented^ for whatrit believed to be the
welfare of the city.. The, trouble was
that It believed too much in. Spring
Valley. •
: At an early. meetlng»of thefederated
water committee,': according .to W. '.T. ;
Baggett. an attempt: was made to have
a resolution adopted requesting : the
supervisors to make provision In
budget for an appropriation asked' for,
by the Spring Valley water company. .
. "I showed the committee," said Bag
gett, "that the : - proposition 'was of %no
avail and that neither? the auditor nor
the treasurer : of San' Francisco t would
approve any bills that might ;;: be
brought' in by the water company to
cover such appropriation .whileT";, the
supervisors had provided' for the com
pensation of thekepmpany through:: the
water rate, ordinance.'.' -
Then the 'movement .was started- to
have the water rate brdiriance quashed
by the simple process of having, judg
ment confessed by the city. Haste. to
comply with Spring Valley's move was
entirely unnecessary, as appearedfrqm
the following statement in the official
report made by President' "AY H. Pay
son.,of the Spring 'Valley 'water com-:
pany to J the stockholders In January,
1907: '/>._ -. -\u25a0 . •" V .
"there were in the peninsu
lar reservoirs after the dis
aster nineteen billion'!' six
hundred and eightmillionsof
gallons of water, which. in
connection with the amount
of fifteen millions of gal
lons daily that we draw .from
our sources on the other : side
of the bay would have sup
plied \u25a0 san -francisco for
nearly four ye ars. ] there arf,
now in the /reservoirs over
sixteen billion gallons/which,
with the above mentioned
sources across the bay, means
a supply for san francisco,
without /further rainfall,
for fully one thousand datb."
Captain Payson has explained to the]
stock holders of the Spring Valley, over
his signature, what damage "the 'com
pany sustained by the disaster of
April 18, 1906. This .consisted of the
complete destruction of the Pilarcltos
pipe llne, : extensive breaks ' in ;the Crys-^
tal springs; 44 inch:conduiti : a" break-in:
the 44 inch San Andreas: conduit,^dam-;
ages to the city \u25a0 distributing ,sy_stem' In!
numerous "breaks where .the pipe's
crossed filled ground and the loss of
service connections .throughout 'the
burned district.
OTHER ItESERYOIRS IXTACT
"As an offset to this," wrote Cap-!
tain Payson, , "you are to be congratu
lated upon the fact that the other;dis
tributing reservoirs In San Francisco,
the great main reservoirs upon the pe
ninsula, the' submarine pipes, the .miles
of tunnels on both sides of the bay. and
the costly* pumping stations > Wero
practically uninjured." - .. .:'.-;'
Concerning the revenues -.Captain
Payson also reported [to the stock hold
ers at the annual meeting of the Spring
Valley company as follows: %•..-\u25a0 7 .
"THE INCREASE IN INCOME SINCE
THE FIRE HAS BEEN BETTER THAN
EXPECTED. THE NUMBER OF SER
VICES FOR THE MONTH OF, OCTO
BER WAS THE GREATEST IN I THE
HISTORY OF THE COMPANY- FOR A
SINGLE MONTH. THE TOTAL NUM
BER OF..NEW. SERVICES -FOR THE
YEAR WAS 4,550 AND- FOR THE
PERIOD SINCE APRIL 18, 1906, : WAS
3.708. , IT IS TO BE .REMEMBERED
IN THIS CONNECTION THAT '.THESE
SERVICES ARE LARGELY ' FOR THE
NUMEROUS SMALL .'' BUILDINGS
WHICH ARE BEING ERECTED A.LL
OVER THE CITY, AND THE
CREASE OF' INCOME RESULTING
FROM : THEM IS NOT ,-.. COMMENSU
RATE WITH THEIR NUMBER." i :.f
Nothlng.has' happened to hinder- an
increase in the number of ;rate payers
since Captain Payson '; . wrote \ these
cheering,.. words. .; On the I, .contrary, fa
large number of ; buildings has been
erected, . all haying water; service, and
the" work 'of constructing -buildings
that demand , .water j : from /-. the : San
Francisco monopoly Is continuing. .The
year v 1906, which might reasonably have
been supposed 'to be 1 ; aV bad one ': t or
Spring* Valley, resulted r.ln " leaving'a
cash balance In the hands c of.thefcom
pany; as . shown by/. a; financial report
submitted to the stock holders \u25a0 by 'J.'il.'
Duke, the company's'" Secretary.:- The
income In : 1906, -notwithstanding ,- the
interruption, -amounted, to, $2,843,616.44."
The water sales i^were 1 $1,535,782.65.
• An assessment, which is ! significantly,
marked "No. 1" iri: the financial account,'
which shows that; the company, dli not
then think it impossible, -.to placeman
other assessment •on i the ; stock,"
$840,171. . The operating, expenses
amounted to $486,775.60 ;: permanent lm-"
provements;to $262, 645.76 ;'\u25a0> taxe5,, $279,
994.17; dividends, $189,321.63; interest
and c0up0n5, '5943,07 5.71'.-: : :.
'At.thecndof/theiyearithe sum de
posited with a trust company'amount
ed to ; $438,08 1.62. cash: balance .'with
which the Spring .,. Valley "began the
1 present year. The;- surplus; and ; the
1 amount of I the, dividends : paW rfmake up
; a" total. of $627,403.25 to^offset. the ?840,-"
171 .which it V was,^necessary"-; to ;faiSft
by assessment : In, anf emergency.
sum asked; from ;the city .t budgets was
$200,000. The difference.^ between^ the
total of the cash 'ibalande^'onV January
: 1.-. l3o7,, and 'the i dividend ipaldi* In ! 1906
and the amount -"of ithe-assessmentilevi
led on the stock was; $212,767.75.2 12,767.75. 4 These
figures are all In! the: painphlet'sent": out
by^ the: directors of "the/company '\u25a0\u25a0\u25a0 to
the 'stockholders't to,:: Informs them; of
their;, financial fcondltlonp as * ; related -to
•the'blg;watercorporatipn/rv.;' : ::•;\u25a0;;
•;\u25a0; A; flnar quotations from; Captain; Pay
son's annual report <is;as, interesting; in
this connection c as "iare|6thers * already
used : 'v "It ; Is /dlfflcult,Y4wrote \* Captain
Payson, ; "to I say.i now.4what • our; present
income : is •' ;( January^ 9? ; 1907 )ti It' changes
from7day^tb>dayr^buti $130,000] a'; month
is ;'\u25a0;; probably *' ar? conservative vestimatei
The > operating Veicpenses.l' increased^ a3
they, have ,been;by I ;theje3cperiditures ;u n^
der. the replacement' account,- have'beeh
heavy ; and "twilll continue^ so if or* some
time:HoVcome. ii '>?rExistlng|'condltions;aa
regards labor, have also Increased these
expenses:: 11 ' To sum up,' we are still short
THE SA^tFRAISTGISCQIC^LI;^ SATUKJJAY, JJUi^Y 20, ,1907;
NEW sources of : revenue, alleges the 1 city
;\u25a0 attorney,** will more'Tthah^ make up any dif
ference in the receipts of - the company.
The* Spring r Valley \u25a0"may^collect under a new
ordinance 13 cents on every 'barrel of lime; and
cement, and 9 cents on every 1,000 bricks-used
in construction, t aggregating "about • $500,000.
EVIDENCE CONCLUSIVE
HAWLEY TELLS JURYMEN
Senior \ Gourisel for State
• Opens . -'Argument' in
•\u25a0v* /Boise Trial
FAITHv IN! ORCHARD
Declares Confession of the
Murderer ; Is Nothing
• > But the Truth
Oscar King Davis
;.; BOISE. Idaho, . July 19.— / he final
argument in the 'Haywood trial began
this "Afternoon,; when James H. Hawley,
senior ~ counsel -for the ' prosecution,
opened the discussion of the case on
behalf of .; the ••state. 1 - Previous to that
Judge ..Wood^hadf read his decision on
the materiality of the points 'of the tes
timony of; bothsidds on which, he heard
arguments . Judge Wood
held tliat;a portion of the testimony- of
thVdefehse regarding the labor .troubles
In". Colorado f; was .'^inadmissible, as it
neither] pointed nor; tended to' point to
theprocurement'of the crimes to which
Orchard confessed iby any other 1 per
sons than the. "ones Implicated by the
testimony /of , the' Btate. C -':.. '
\u25a0 "Senator, Borali'; having admitted the
.state's' failure^ tofcbnnect up ..the-' part.
of i rOrcha r rd's i 8t6ry, about Steve Adams,
the , court .ordered that Jt shouldttbe
withdrawn." ;.. This "action of vthe.' court
..will'' greatly limit the. argument: to Hhe
jury." It^very.Vmu'ch circumscribes* the
range, over. '.which. Darrow and -Richard-'
Bon.'may; travel. It j lilt a Darrow -hard-.
jest..; for; it deprives him of the : right to
york.hisy sympathy }mt|l." He, has put
in" a .' lot ; -, of ~ time and'.derjved,', much
pleasure. from;the work in jgetting;out
the 'story, of the hardships of .tho bunion
meni and :, tolbe, forbidden ..now _to l talk
About .it "in ,his! argument- Is almost as
£ad/as«bejng departed himself. .. ,
AttbrneyJHawley.came, into court this
morning;loqk.ing f ar'.f rom ; . well and his
firs£" words-to" the jury-, VweVe- in: >x
planatlpn of., his condition* -and ..in
apology,, for, the., eff6ct;v,onr. his speech
which ihe; saidvthat < itr would-, cause.
.Then he .started: la :tp demonstrate that
he.was.fairly.flfcafter all; by; making an,
'interesting -and- foroefuK argument.' The'
courtropmrwas crowded: by: a throng of
Boise.,people,. who- braved, the;discom
forts ;of the -.hot,-. stickyj.day .to hear
Hawley. spealcv ;;::.-;.'*:\u25a0
'•• "' ! .;'• DEMANDS' ONLY JUSTICE
, "We simply desire that simple and
direct 'justice be'done," said the prose
cutor • In - beginning \u25a0 his •address. "We
are" not- hereto* urge the conviction of
a 'man-youv believe or think f can be
innoce~nt.'* ' * • .'\u25a0 4 \u25a0 \u25a0 \u25a0 \u25a0"- "•-* '.-\u25a0-\u25a0 '-_ '\u25a0•'\u25a0 \u25a0'\u25a0 '- -
- From his polite and^conventlonal pre
liminaries-Hawley: launched/Irito a .dis
cussion" of ; Orchard and his f 8tory.- He
\u25a0said'^th'at^ this > was an ''extraordinary
case.'one iofithe'imost" important JnHhe*
criminal, history >ef rthe*country,-Textra
grflinary, in ; i particular because,; of , Its
principal :; Harry 'Orchard. He
declared Uhat Orchard's: calm, i cool,; dls
passionate'mannerjon'the \u25a0witness stand
.was in. itself . a-. demonstration ? of \ the
truth-of hiat-story. "Generally,'.', he. con
tinued, '.. "we tell :the<story:,bf 'an inform
er; with -much allowance."; We «f*el that
boastfulness of Xearvwlll; influence him.
But>.that is F not the r- case, i here.' His
manner., his. bparlng, .his actions during
the v. two : i days,- of examination and
throughout-, the: six ; days, of: strenuous
oross examination,; unparalleled In its
fierceness, compelj the*. conviction -that
he was speaking;;the;slmple -truth.
*, "Orchard's- evidence Vwill. -be attacked
and; that. Is .tproper. 1 h I \ am^ not * a be
liever,^ in deathbed Kconversionifbut , no
man, can Hsten^tQ-his story,' without be
ing convinced that; thA awakening of
his -conscience ? was ;8inoere -and thor
ough. v .It s was.-. the!- saving: ; power "- of
divine grace that impelled him to make
the confession to bring to -the"; bar." of
Justice the. worst set., of, conspirators
.ever known in this
- . TAKES iV UP TfiftTIMONY \
: Hawley went into in explanation of
4 the law., of conspiracy,', following that
with a dlsc.us3l6n.;6fii4w"regardlng ; ac
cessories before. the fact ?who. In Idaho
are^held; responsible'^as^prlnqlpals.. He
'explained^ the position' of Cthe .acebnt'
plice. In ; . view of the -Idaho 'law, v and
having' thus" cleared .the path of .-its
legal 'TntricaCIes -Tie' took^up .the .evi
dence and began. tQ ; ,follow, its course,
from the opening of. the state's * case; In
the Coeurd'Alene** on .through th« story
of ithe,* conspiracy.", \u25a0 H jl' dldl not ; confine
himself ; to " the .evidence Introduced' by
the- prosecution, but =.«on8|dered It I to
gether with what "the 1 defense ; had ot
fered to. controvert It." Cf^^'. .
-\u25a0* Hawley,; warmedVup as » he began to
speak ; of , '/Big Bill'litDavls.i. ; VI don't
blame '; a\ man^who 'commits ' perjury \u25a0 to
save ; : himself;';;^ said 1 Hawley,; "but this
man . tells " an' absolutely : "unnecessary
falsehood, when- he » says ; that he^was
not in i.Wardner on - the day of the riot.
No ; act i of 1 violence :• could :'have 1 been
committed there \u25a0 without V his i.'b'eing
present.-. "He Is not the kind. that stands
back while Qthers^ go to the front, and
his denial ; that he ;was present is a
ridiculous;; untruth.- .His.; whole
mony was simply j Intended to ; Impress
oni your^ minds :;the; notions- that :: the
unions Iwere,; not .responsible (for the
violence there." ' ; ": . , }
.Prom ,the ..': Coeur d'Alenes t Hawley
went, down 'to Colorado -and: took', up
the attempts that had been made In the
Vindicator * mine, : culminating 'In \ the
explosion -in the A shafts that •\u25a0killed
Burke j and \ McCprmick; J-He : went 'i over,
jOrchard's stpry, of -the 'discovery \u25a0 of, the
powder -lnlthe^elghthUevelUnd of Uhft
effort Ho^{ set it ; off. -an v effort .which
falledi beeause \u25a0'\u25a0 the s^imlne*~ had?-;.beeh
started ",\ip. again i \n k the ".intervariand
the- powder.l replaced Uh*the; ; magazine.
-v ; \u25a0\u25a0'-*\u25a0
. vThat -brought. him- toUhelstory, of the
bomb^thatiOrchardT&nd'xOwney.tBarnea
made/; and Ha.wl«y told \the* Jury, how In
aH ; the. : work .{that' the < prosecution had
.done ln ; the preparation of the evidence
in i income i of ,' the - amount * necessary! 1 to
pay Ataxes.'J interest ' and;operating:ex
penses,": BUT, THK-! GRATIFYING. IN
CREASE \u25a0 > DURING I THE i PASTi SFE W
MONTHS » " JUSTIFIES iV» THE HOPI3
THATS DURING ITHE ? COMINa^YBAU
OUR > COLLECTIONS ?-T?ILLt RE ACH 'A
FIGURE * iTHAT jIWILL^GIVE USLA
SAFE > MARGIN;* IN * ; THIB .RESPECT.".
. YOSEMITE ' VAliliEif
Is<now reached by theYosenilte Valley
railroad. No ..wearisome and dusty stag
**}&.-$ Spends your ;' vacation 5 amonff.the
cliffs,icrags;aTidUov>ly~waterfanß,inow
at ..their *best-^only ."a <\u25a0 few: hours ; from
San FrandecoA? Sixty omilesibf the wild
Merced '? ( Cal . ) g river* 1 canyon 5, «n * route.
l, l ß.6ojrorJthe,round«trlp;lr(Kn: Merced.
CaL S rlte J°- w « L«hxner, • trafllo man-
.-.•fTp.HE increase in income since the fire has,
I been better, than expected. The number
\u25a0'.'« of services for October v/as; the greatest
in the history of the company ,f or a single:
: month. The total number of newsservices, for,
the year was 4,55(5 ."—-Report of President Pay
son" to Spring : - Valley company.
CAPTAIN MOONEY WILL
KNOW HIS FATE SOON
Trial for Violating Rules
of the Is
Concluded
DECISION TUESDAY
Makes a General Denial of
'"\u25a0! Statements Charged
Against Him ;
Captain of : Police" John Mooney,
Charged with violating the rules of
the department by " making unfavor
abl6:commentß;tregarding , the, police
commissioners ] arid I' the chief "of police,
wiir'khow'hls ;fat« y on Tuesday. '/\u25a0 The
case for; the ; prosecution- was closed on
Thursday ? and ;the -defense was heard
yesterday > afternoon.- .
P Captain Mooney ? gave a general de
nial -t; to the published statements at
tributed 'to^ him fin.- the of
April 15. /He said : that he was told " on
the -evening ;of ; April \i' that, 1 ; Chief
Dlnan;\wa3.; to "prefer^- charges .against
him* and that h& had: replied that if the
chief 'did *so \u25a0he .would r. prefer : charges
against; the; chief :". f Mooney said he. had
received a protest from/property-owne
rs '.against vPratt &'' ; Tlerney's saloon
In /Ellis 'street,- and , he'Jhad rtold the
policemeh'! ln' 'the*.- assembly, room- that
if ithe.i statements'" in the protest" were
true V they had J.been .derelict' in > their
duty. ."He denied that he had said. that
half of : the men; in his command were
corrupt.^. .He, adrhi tted /that ; the'state
ments v attfjbut^d'to him: in. .The Call
.were substantially /correct and claimed
that the Examiner' article' was gener
ally Jncorrect- ; .The only comment he
made about^the': commissioners 'was in
regard:; to J,their l.decision lln the Rocca
case/ : which* -he' thought -should have
beenv the other "way.-' , He contradicted
the r testimony :bf .Detective. Sergeant
Fanning .and complained: that .Fanning
had-',iiot* saluted. him in Van" Ness ave
nue. la"st-..Tuesday.l ;. ... :','.\ '.".
'\u25a0^ln^ the -Cross /examination of Mooney
.by. the; commissioners .he said '. that he
had-sentva-yreport to' : Chief Dlnan that
he .was not.r esponsible for the sen
\u25a0satlorial - statements- in j the "Examiner.
He Jdld -not ask. for, r a. retraction j as" he
considered jit \u25a0useless, and was. not; con
cerned or not these' statements
were detrimental to the standard of dis
cipline Irtthe department. He said that
{he- did 'not \u25ba know ot any corruption in
-the -department except a ; case.'of ex
tortion- whichswas being investigated
by.- the.- grand, jujy. : y^SX"
.-..Captain&l. O. Anderson testified that
he -had. always found Captain' Mooney
a good officer and attentive to his duties.
-Dieutenant .W..J. ; Mullender> corrobo
rated. Mooney. as to what he said to
. the,v policemen regarding the-, protest
against; Pratt & -Tlerney's saloon iahd
. it was :agreed that Lle.uteriknt McManus
arid "several policeirienlwould" testify to
: the?eame>*efrect.^ f This"- closed 'the' case
and -President 'Hagerty that
the board would render Its decision on
Tuesday.' s : v
Speculation -Is rife ~as to; Mooney's
fate. : There are four courses ppen to
the r board,' to^dlsmls«,fine^ reprimand
or, acquit? I There is no provision in the
charter for dlsratement.
lllf DPSillUTlir
v ANB SLAY JAPANESE
Contl uned :f: f rom" Page I, Column 5
Ito to, the ' effect - that he regretted that
his ' Ignoran t\ subjects ; had caused vio
lent *commqtionT' He: therefore .relied
upon ltd -to take measures necessary
to further itrouble. '-i<^V
Japanese 'troops i have been offered
for - 1 the ? safeguarding- lot i foreign con
sulates .In i Seoul.' .:> wX tV .S /\u25a0-:\u25a0'" ± - >-'- \u25a0•-'••' \u25a0\u25a0~'h';'r
. 'SEOUL., 7 July 19.-7-A. crowd of 6,000
Koreans was-rbeatch back from 'the
palace;- gates. c - During ; the . emperor's
audience -with ;the,*cabinet ; -laßt night,
when he acquiesced, to the. demand for
abdication; a -number of -students 1 at
tempted' to. present a. petition ,to iMmi
but the. police \u25a0\u25a0them." from
doing,. so, ,x., x . driving ;them«backv east of
the palace,- where'; they .remained all
night- makihg r speeches.
'\u25a0:'{\u25a0 The -elaborate /ceremony -of trans-!
f erring .thfe 'lmperial seal ;to the crown
prince, was In progress this, forenoon.
The ; Korean Official Gazette is * circu
lating:;irt. the ; , streets ,• the,: first ; official
announcement .of the abdication,* .which
was , signed by '.the emperor ' and , seven
ministers ; in' favor of the crown prince.
for the trial It '; had never • been able . to
locate ,thaf bomb, andr"in. fact did; not
know ; that [i the = man : who ; agreed i.with 7
Orchard ; to ;throw, it in to ithe .Vindicator
coal ,bunkers "; had ! k«pt \ his 'i word liintll
young.; Ramsey } testified \u25a0' here \u25a0 the '\u25a0 other
day and told of ; Its being, found in -the
coal. * : ; Then came ; the^ chief explosion
and^the killlng/of ,;the,.two men. '
uVi'The" clever^ attorneys f f or the . de-r
f ense". realized ,the" force of , that • story ,"~
he >said,S "they S knewj: that ;-,they \ could
not T meets It;* and;, they .understood the
necessity of .bringing a" .witness here] to
show. that it might have been'all 'acci
dent/ * My ; shrewd friends then Jooked
up |Thomaß; "Wood-V,: I # will . admit; that
Wood' impressed me ; at- first , as", telling
' the; truth*/- 1 ; could ; riot believe that \ he
wasiabsolutelylylng until I heardifrom
theiothenwitnesses.''; : .: \"-'-'2f3SKB
,;l;WlthUhat;Hawley;went over; Wood's
story, aridf showed how it had ;beerj cpn
tradlCted;;; not i, only ;. t>y ; ; Holmahi^ and
Ramsey;'' but- '^ by;\ the '-_'.,' photographs,
which* .v he'*; declared, "could - not \u25a0 -lie
about it." ; \u0084:"-,•.- I'\u25a0 -\u25a0:\u25a0\u25a0'\u25a0" \u25a0 ' \u25a0.-, '\u25a0'«':. >,/.'.' \u25a0\u25a0;'
.\u25a0^'AllUhlß: testimony on .the. theory, of
accident UnHhe -.Vindicator ;- explosion,"
coritiriuedt ! >Hawley, i: : f'was Introduced
simply/ to enable; counser;t& .^build; up
\u25a0omethlngitolbefogftha^issue'andfdlft-*
tract -yourj attention' from- the real acts.'
The fact l is- ttha i To"mf t "Wobdi absolutely
told % an 1 'untruth f and % told 'fit ,1 for I the
purpo3e,!of;'iTnpresslng.i:upon< this" jury
avlbelleftihltheitruth(of;falsa v lbelleftihltheitruth(of;fals« i ;theoryA'/
.rl Hawley'a ,' closing v remarks r, were _ . in
the ;natUreTofJ;aJ > direct^jft.ppealito j . the
Jufyirien>'th*ernselveß;ahd^lnimaking:;it
heXused 4 langruagß >,which caused V many
of .{the^ audience * to % fairly ' hold ' ; their
breath,^ for Ut^was-T an; admission Jwhich
contained i; appeal i; andi* warnings; and
menace] all' together/v; His closing sen
tehee": was : \ [\u25a0•[ VTlie \ man * who 1 would not
convict^ on : this ; alone,' without ; going
further^ is i simply^ looking jfor,| a s reasqn
f orreyaditter,' an '.unpleasant 'duty: 'and i not
trylrigitp|do"; hislduty i to.! his * state" and
hls?countryj as ' ; an f. honest '\u25a0 juryman." '"
Jv- Hawley \wlll continue his • argument
tomorrbw\ morning/ '-'
fSl^/E hay» secured comparative.. figures. r _e-.
W latir.g to water rates prevailing . in 25
other cities. The average cost per
capita in the 2\ cities is $2.50 a year. The
average ; cost to\ the consumer in " San Fran
cisco is $5.20."— Statement made by Assistant
City Attorney Bajjgett.
% A;" Hale Dying After
an Operation for
Appendicitis
0. A. HALR. THfc WFXL KNOWN MER
CHANT. wnO IS DYING AT THE HAHNE
MANX HOSPITAL.
from the bedside of O. A. Hale
at a late hour last night was to the
effect that the well known merchant
was. very -low. and that his .physicians
held out little hope for his ultimate
recovery. - ,
-Since the operation for appendicitis
last "Thursday • at, the Hahnemann hos
pital.: California and - Maple streets.
Hale has gradually, lost in his struggle
for life. On account "of the. peculiar
character, of his malady the' operation
which was performed was more than
ordinarily critical. It would be fully
48 hours -. after the surgeons finished
their work before they could state
what the probable result would be, and
even" after 48 hours there would still
remain grave danger from . blood
poisoning, they said.
..The merchant was enjoying a vaca
tion at Monterey when he was sudden
ly taken 111. He was out salmon fish
ing. Dr. W. H. Ward of this city was
summoned at once and had the sick
man" brought -to San Francisco a3
quickly as possible in a desperate ef
fort.to save his live by an operation.
: As member of the firm of Hale Broth
ers, O. A. Hale had been prominently
connected with the commercial life of
three 'cities, San Francisco, San Jose
and Sacramento, In all of which places
his firm enjoys extended patronage and
prosperity. When- the committee .was
named to superintend the- reconstruc
tion of Agnews asylum Hale was made
chairman and was active in the com
mittee up to the time he was taken 11.
REBELS TRY TO KILL
ECUADOR'S PRESIDENT
GUAYAQUIL^ ECquadof,' July 19.^-The
four, military/" barracks : in " this ' city
were attacked simultaneously' just be
fore, daybreak , this , morning by groups
of . armed ; revolutionists who" called
themselves independents. Tl\e fighting
lasted for one hour. The Independents
were finally defeated, several of their
number being killed^ or. wounded.
The local residence of President Al
faro also was attacked. The revolu
tionaries purposed' to kill the presi
dent, but he succeeded in coming out
of the conflict uninjured.
; Guayaquil- has been placed under
martial law. • <
-•Order was not -restored during the
day.' There is great alarm. All busi
ness Is suspended.
It was the, intention of the conspir
ators to assassinate President Alf aro,
but he- was . notified.. of this Intention
before his residence .was attacked and
verified a report, that a part of the po
lice'regiment was working, in con
junction with the revolutionists. When
the independents attacked the police a
fight took place in the barracks among
the policemen, r • . V -
- -President Alfaro' 3 .residence was at
tacked on both, sides. - The .president
was seen' personally at- the head iota
body of. troops resisting the attack. ,
"..The police lost 18 . men 'and^hlne
were -wounded:' '\u25a0 - .. '*\u25a0
The leaders of. the conspiracy have
been arrested. A large ;quantity^ of
rifles and: machetes were found in the
houses of conspirators. The troops re
mained loyai. BSSSSSSSBRIBi
JAPANESE STATESMAN *.
r WILL INVESTIGATE HERE
Corning to United \u25a0 States to Inquire
Into Treatment Accorded to
His * Countrymen
TOKYO, July . 20.--M.lshi, director
of s the 'commercial bureau 'of the for
eign ; office.' .will start today for America
to. Investigate the treatment of Japan
ese and the. labor question.
It Is reported that" should the cor
respondence; which " was "exchanged be
tween. Washington and on the
San" Francisco -Incidents -be published.
Japan's "lndl gnatlon would be Increased.
The ; report, \u25a0 however, Is " authoritatively
discredited. : / t ' 7
: :It is expected . that M. Ishi.'s visit
will serve to> dispel- the v last cloud of
doubt in the friendly relations of both
nations. ." . * " ,
.; BANKKXTPT CLlßK— William ,R. Tblrken.
clerk, Sacrdßaento," fll*d 'a :p«UUon in. 111201-
T*ncy - jestftda y. ; rHe owes $1,31S and . baa .. no
a***ts. \u25a0. \u25a0 - \u25a0 - : '^lOffitlTOllflfiwfflTiiniiTMißriiMn
B&. 'RBftv *fiHHfe \u25a0• .^^^tok.
*ii^*"^^ l' r~^^ Wtrr^ it^TJ^hs f^*i^ &~^&h* J«L
gWHCRE •ENT OR FOLDED HAVE «OiUE Of^THE INTERUNINO CUT AWAY.S
,0^ THIS PREVENTS CRACKING AND GIVES GREATER FLEXI3ILITY.
!?l^a >°° sttlcs in quartch sizes ; i 3« each: a ran tso. f^^
*ref _^^^_^ CLUETT. FEABOOY A CO. V;iJ>j
MfIYQraLOR FORMING
111 OF SUPERVISORS
Continued from fng-e 1. Column 1
"servants of .the people" are near at an
end.
Former Police Chief ' Wittman was
busy yesterday among his friends in or
ganizing a movement to regain his old
position at the head of the force. He
believes that h« will have the baokins
of the members of the old board of su
pervisors who have consented. to go oa
the new board. \
District. Attorney Langclon said yes
terday that he had received no word
from Mayor Taylor tn regard to the
resignations of thr- boodling member?*
of the board of supervisors.. These
members, however, will withdraw. -as
soon as the district attorney requests
them to do so.
Dr. 'Taylor received many additional
congratulatory messages yesterday oa
his appointment as mayor, among the
greetings being one froii Charles War
ren Stoddard. as follows-.
"Monterey. Cal., July IS, 1907. — Dear
Poet: With'all my h*?art I congratulate
you. the city of San rrancisco and tho
state of California on your appoint
ment as mayor.
"The right man in the right place at
the right time. God bless you. Ever
your friend." •
j Herman Scheffauer. the poet, sent In
the following letter:
"Dear Mr. Taylor: The heartiest" con
gratulations to you (and to our city)
upon your, appointment. I can con
celve of no man worthier of this civic
dignity than yourself. The prestige
of your name and personality will once
more exalt our stricken city to the
proud place she should occupy as the
western metropolis.'*
Dr. Taylor received the following
from the Bar association:
"Whereas, our friend, associate and
past president. t Dr. Edward Robeson
Taylor, has been chosen mayor of the
city and county of San Francisco; and
"Whereas, we recognize in Dr. Tay
lor the highest and best type of .the
American citizen, be it
"Resolted. that we hereby e.-fpress. to
him our profound esteem and devotion.
we tender to him our unlimited support
and we trust that his will be the key
of municipal administration."
CONTRA GOSTA ASSESSOR
ACCUSED OF GRAFTING
Continued from Page 1, Column S
pany is assessed for but, $202.600, while
It was sold to the Guggenheim trust
last year for $6,000,000 and has been
improved to a vast extent since.
The Henry Cowell lime and cement
company is assessed for a small sum.
but the 'company; refused recently to
sell its quarry near Concord; for $1.00*.-.
00<hi*: I T_he-*pTop«rty -and" Improvements
of the 'Martinez winery* at Hookston
are assessed for only:$17.000. while ttte
supervisors claim that'the winery could
not be purchased for 1200.000.
Another question that is being pro
pounded for Assessor Jones to answer
is. ""Why has he failed to stamp on
the rolls each year 'property- sold to
the state.' and why was it that he did
not observe the law in this regard until
last January, and then only under
threats of a t suit to force the perform
ance of this' work?"
"For a long time Jones has been un
popular with the majority of the people
of Contra Costa county, but b,y somo
weans has always managed to hold on
to this office. He is one of those who
has been in the courthouse for the
past 20 years and was a close frfend
of the late county treasurer, George A.
Wiley, /who committed suicide when
It was about to be discovered that he
had embezzled $17,230.50 of the county's
money.
Orders for Officers
of Army and Navy
Washington; July 10.— a mi y
ordrrmt
-Second LJentenant T. MlHrr.
Seventh cavalry, aid de camp, -
will report In p«mon to the com
manding general, department of
California, for duty, pending; fur
ther orders. rl .
Captain E. Haldlman P. Yonng,
qnartermastcr. Is relieved from
: duty m assistant - qnartermas- -
tee' at Philadelphia and will*
proceed to San Francisco and sail '
for Manila aad report to the com- \u25a0
mandins .general of the Phillp
. pines for duty.
Major General McK. William- .
•on, qnarterma.ttrr, -will proceed .
to San' Francisco and report to. the -
adjutant general for further or
ders. : '
.Navy^ orders! The follow las
cable was from commanding: chief
of Pacific fleet. Cheroot Com
mander B. \V. ' Hodge* la detached
\u25a0 from command of the RainboTv to
\u25a0 command the Galveston.