Water Works Transfer at San Jose
An order has been issued by the State Railroad Commission of California, authorizing the San Jose Water Company to transfer its property and franchises to a new corporation to be known as the Jose Water Works. The San Jose Water Company has supplied water in San Jose, Los Gatos and other portions of Santa Clara Valley continuously since 1866. Its charter expires in November of the present year, and in order that the distribution of water may continue the transfer approved by the commission was determined upon. The purchase price to be paid by the San Jose Water Works for the property is $1,500,000 in capital stock, $25,000 in cash, and the assumption of all liabilities of the San Jose Water Company. These liabilities for the most part consist of promissory notes, of which the San Jose Water Company has $210,000 outstanding. The San Jose Water Company is operating under constitutional franchises in the cities of San Jose and Los Gatos, and under a county franchise granted by the Board of Supervisors of Santa Clara in 1868. These franchises will be acquired by the San Jose Water Works. The commission’s order provides that the San Jose Water Works shall file a stipulation with the Railroad Commission, agreeing that it will never claim any value for these franchises in any proceedings before any court, commission or public authority, these franchises having been originally acquired by the San Jose Water Company without cost.