Spring Valley Water Company

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Spring Valley Water Company

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Spring Valley Water Company

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Spring Valley Water Company and its predecessor companies, San Francisco City Water Works and Spring Valley Water Works, were organized in California for the purpose of supplying water to San Francisco. They actively acquired properties and riparian rights throughout the counties of San Francisco, San Mateo, Santa Clara, and Alameda, and since 1858 supplied nearly all the water used in San Francisco.

Around 1903, Spring Valley Water Company acquired Spring Valley Water Works (which had previously consolidated with San Francisco City Water Works) and all its properties, rights and improvements. Discussions concerning possible sale of the company to the City of San Francisco began in 1875, and the purchase was finally realized in 1930. During that time, the activities of the company focused on the continued acquisition and management of its real property and rights.

Chronology

1857 Aug. 6 San Francisco City Water Works organized. 1858 June 19 Spring Valley Water Works founded. 1861 May 18 Spring Valley Water Works capital increases from $60,000 to $3 million. 1864 May 27 Spring Valley Water Works initiates study of consolidation with San Francisco City Water Works. 1865 Jan. 1 San Francisco City Water Works unites with Spring Valley Water Works. 1866 June 6 San Francisco City Water Works closes and settles affairs. 1868 Sept. 1 Spring Valley Water Works negotiates to buy Clear Lake Water Company and Lake Merced Water Company for $150,000. 1875 Aug. 2 Board discusses possible sale of Spring Valley Water Works to City of San Francisco. 1877 March 14 Board ratifies offer to sell property to City of San Francisco for $10 million. 1877 June 20 Shareholders authorize introduction of water meters to do away with "arbitrary rates." 1877 Dec. 1 Board authorizes president to sell all property of company previously offered to San Francisco for $12.5 million. 1883 Oct. 3 Board authorizes purchase of San Mateo Water Works for $395,000. 1892 April 7 Board agrees that "the Company would not engage in the business of furnishing water to citizens outside of the City and County of San Francisco." 1898 Dec. 29 Board instructs Chief Engineer to investigate advisability of building a tunnel across the Bay from Dumbarton Point to Ravenswood. 1900 May 24 Board responds to resolution of San Francisco Board of Supervisors requiring Company to submit offer for sale of its works to the City, concluding that the solicitation and consideration of offer is premature and unauthorized. 1901 Nov. 18 Board agrees "we are ready and willing to submit an offer for the sale of our works." 1902 Jan. 8 Shareholders authorize Board to offer to sell to the City the entire plant of the corporation at a price set by the Board. 1903 Jan. 14 Board proposes recapitalization of company at annual shareholders and proposes to sell all property to the new company, Spring Valley Water Company, with capital stock of $28 million. 1903 April 28 Board of Directors of Spring Valley Water Company holds its first meeting. 1903 June 15 Spring Valley Water Company offers to purchase Spring Valley Water Works for $11.48 million. Offer is withdrawn four days later. 1903 July 13 Spring Valley Water Company makes new offer to purchase Spring Valley Water Works for $12.6 million. [It appears that this offer was accepted, but the minutes do not indicate when.] 1906 April 18 19 San Francisco is struck by a strong earthquake in the early morning hours. Board cancels their regular meeting on the 19th because of dangerous fires burning throughout the City. 1907 Nov. 7 Spring Valley Water Company Board elects William Bowers Bourn as Director. 1908 Jan. 8 Announcement is made at annual shareholders meeting that San Francisco is planning an independent water supply from the Sierras. 1908 June Spring Valley Water Works ceases its corporate existence. 1908 July 31 W. B. Bourn elected to succeed A. H. Payson as President of Spring Valley Water Company. 1908 Sept. 11 San Francisco Board of Supervisors passes resolution #505 soliciting offer to buy any existing public utility. City indicates that Hetch Hetchy would be a desirable water source. 1909 Nov. 12 Spring Valley Water Company offers sale of all distribution systems within the City plus 500 acres of Merced Ranch for $19.42 million. Also indicates willingness to sell entire company at a price to be set by a panel of 11 Board members. 1909 Nov. 29 At a special meeting with Mayor Taylor and the Board, Bourn indicates he estimates value of the Company is in excess of $45 million. Bourn is willing to sell Company for $35 million, or for $31.5 million - excluding property not needed for City water supply. 1910 April 13 San Francisco voters fail to give 2/3 majority approval to purchase company. 1910 Oct. 17 Board discusses San Francisco Board of Supervisors' Resolution #6577 requesting Spring Valley Water Company to meet with the Public Utilities Commission to negotiate sale of all or part of the Company to San Francisco. 1911 March 15 Board authorizes appraisal of Company for possible sale. 1911 April 12 Plan to proceed with construction of Calaveras Dam is announced at annual shareholders meeting. 1912 March 15 Board authorizes auditor to credit "stock assessment account" for $611,000, actual cost of rehabilitation of work from 1906 earthquake and fire. 1912 Aug. 15 City of San Francisco offers $35 million for Company. 1912 Sept. 11 Board declines City's bid, but offers to sell for $38.5 million if the Company can keep 2300 acres at Lake Merced. 1913 Jan. 24 Engineering Report submitted to the Board states properties of Company are worth $65 million. 1913 May 23 Board authorizes Executive Committee to approve plans and direct construction of Calaveras Dam, and hire William Mulholland as a consultant. 1914 July 30 Board votes to accept City's offer of $34.5 million which excludes certain real estate. 1916 May 15 Board decides Company will proceed with metering flat rate customers. 1918 May 15 Board reviews reports on collapse of Calaveras Dam, and two months later authorizes partial reconstruction of Calaveras Dam. 1920 Sept. 15 Board reviews letter from M. M. O'Shaughnessy urging immediate resumption of construction at Calaveras. 1920 Dec. 8 California Railroad Commission estimates $37 million as a fair price for the Company. 1920 Dec. 20 Board calls special meeting of shareholders to approve sale of Company for $37 million. 1921 Jan. 10 Shareholders approve sale of Company and authorize Board to proceed. 1921 Aug. 18 Board reviews Railroad Commission decision granting 20% rate increase. Commission urges Company to sell all property not included in sale to City. 1923 Jan. 26 Bylaws amended to create position of Chairman. W. B. Bourn is elected Chairman and Samuel P. Eastman is elected President. 1924 Feb. 15 Board sets aside $5000 as a fire insurance fund, and $25,000 to establish nucleus of employees' pension fund. 1925 Sept. 15 Board pays tribute to Willis Polk for design of the water temple. 1927 April 8 Board authorizes offer to sell plant and property to City of San Francisco for $39,667,617. 1929 April 10 San Francisco voters approve purchase of Company by 4 to 1. 1930 Feb. 17 Board approves deeding property to City of San Francisco. Par value of stock is reduced from $28 million to $5.6 million. Company applies to Compensation Commission to pay $77 dividend. 1930 March 3 Sale of Spring Valley Water Company to City of San Francisco is completed. 1930 April 9 Sale of property to City, special dividend, and value of remaining properties is discussed at annual shareholders meeting. Company changes its name to Spring Valley Company, Ltd., and elects seven directors, not including Bourn. 1932 Jan. 15 Company converts from a liquidating business to an investment company. From the guide to the Spring Valley Water Company records, 1856-1952, (The Bancroft Library)

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