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compelling it to seek a berth elsewhere. As the said steamer makes a round trip daily, it seemed absolutely necessary that the same landing used one day sbould be secure to it the next.

The lessee is allowed to collect tolls on merchandise carried upon his boat, and obliged to keep the frontage leased in good repair, and perform all dredging required at his own expense.

Before accepting the bid and making said lease, the Board had ascertained the value of said frontage to the State, by controlling the same and collecting the revenues therefrom for a period of several months, and bad ascertained that the amount offered was equal to the net revenues that could otherwise be obtained.

FOLSOM STREET WHARF.

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On or about the first of October, eighteen hundred and sixty-four, the the premises occupied and owned by the Pacific Mail Steamship Company, and known as Folsom Street Wharf, became the property of the State by the expiration of the lease made by the Common Council of the City of San Francisco ten years previous. This wharf, although known as Foslom Street Wharf, does not project into the bay from the foot of Folsom street, as do other wharves wbich receive their names from tbe streets of which they are a continuation, but embraces about two hundred and seventy-five feet of East street, northerly from Folsom street, and the width of Folsom street on the outer line of East street, making that frontage about three hundred and forty-five feet in length, or sufficient for one first class vessel. It also includes the south side of Folsom street, between East and Stewart streets, about two hundred feet, or sufficient for a medium-sized vessel; also a portion of Stewart street, sufficient for one medium-sized vessel. This wharf had been occupied by the Pacific Mail Steamship Company for several years, and was mostly covered with sheds to protect the freight of the company. Several months prior to the above date, the agent of said company expressed a willingness to surrender the property to the State on the termination of their franchise, and desired to lease the same for a period of three years thereafter.

Accordingly, in due time the same was advertised according to law, and the only bid received was made by the agent aforesaid, and was for the amount of two thousand dollars per month, the company to make their own repairs and perform all the dredging necessary for their business.

The bid was accepted and a lease executed, they being confined by the terms of said lease exclusively to their own business, being allowed to use the same only as a landing place for their steamships and coal vessels.

Before passing from this wharf, and to avoid the necessity of referring to it again, I will here state that said lease expired October first, eighteen hundred and sixty-seven; that before its expiration the Pacific Mail Steamship Company, baving no further use for it, assigned their lease, (with the consent of the Board,) to the California, Oregon, and Mexico Steamship Company, and the property was subsequently advertised and leased to the said California, Oregon, and Mexico Steamship Company, they being the only bidders therefor, at one thousand seven hundred and fifty dollars per month, for the term of three years, they making all repairs, dredging, etc., as in the former lease. "It will be noticed that the last lease in its terms gives to the State two hundred and fifty dollars per month less than the first.

In consideration for this two hundred and fifty dollars per month, the

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company agree to build the outer half of Stewart street for the distance of two hundred and seventy feet south of the original structure, at an expenditure of say about sixteen thousand dollars, and surrender the same at the expiration of the lease. It will be seen, therefore, that making all due allowance for wear and tear, the terms of the second lease are as good or better for the State than the first.

DRY DOCK.

On or about the first of October, eighteen bundred and sixty-five, the Board, being moved thereto by the demands of commerce and by a petition of responsible parties, set apart by resolution that portion of the water front bounded by Beale and Brannan streets for the purpose of a dry dock. In considering the propriety of making a lease of a portion of the water front for such a purpose, and the rental to be received for the same, the Board were unanimous in their opinion that as there was but one dry dock on the Pacific coast, and that belonging to the Government of the United States and located more than thirty miles distant from this port, and the use of which could not be procured at all times when wanted, and only in cases of great and urgent necessity, and at beavy expense for towing to and from and transportation of men and material, in addition to loss of time, that a privilege should be granted to any responsible parties willing to invest the amount necessary to carry out successfully such an enterprise; and that the accommodations afforded to the commerce of this port would be an equivalent, without exacting of expecting any considerable sum in the way of rent for such privilege.

This Board was not unmindful of the fact that all previous attempts to organize a company with sufficient capital to carry out such an enterprise, or to obtain from the Legislature a franchise for such a purpose, by reason of the want of assurance that such capital could be obtained, had failed. It was, therefore, determined that in view of the necessities apparent to every one that a dry dock should be built as speedily as possible, that the opportunity to procure the building of such a dock by responsible parties, from whom abundant security for constructing the same could be obtained, should not be rejected.

It was also deemed necessary by the Board that the holders of such a privilege should be the owners, as in this case, of the property in front of which the dock was to be moored, tbat they might be enabled to erect thereon the necessary workshops and furnish such other accommodations so essentially requisite to the carrying out successfully so great an enterprise. This Board, therefore, in view of all the facts above presented, concluded to make the lease.

For further information in regard to the terms and conditions of said lease, and the bonds obtained for the faithful compliance with such terms, I beg respectfully to refer you to the biennial report of this Board, made to the Governor of the State, November third, eighteen hundred and sixty-seven.

SANSOM AND CHESTNUT STREETS-TO I. FRIEDLANDER.

This portion of the water front as heretofore controlled by this Board was a portion of Sansom street, extending from Lombard to Chestnut street, and known as North Point Dock. Its length is about two hundred and seventy-five feet, and about sixty feet in width. Friedlander, Peters, and others, the owners of the property on the west of this wbarf, had a large warehouse upon the property, with a frontage of one bundred and thirty-seven and one balf feet, or equal to about one half the length of the wharf. They also owned the other fifty-vara lot on the north, which they commenced to improve by filling in during the latter part of last summer. About the time the wharf was advertised, the pressure of the filling upon the lot crowded the wbarf out of line, rendering the outer or north end for over one hundred feet unsafe, and after the bid was received, and while the Board had the same under consideration, that portion fell into the bay. Under the circumstances, the Board deemed it best to accept the bid of five hundred and forty dollars per month, including the right to the frontage of Chestnut street, upon which there were no improvements, and which was of no value to the State as a source of revenue until improvements were made.

By reference to our biennial report, it will be seen that the gross revenue from North Point Wharf for the two years ending November third, eighteen hundred and sixty-seven, was sixteen thousand two hundred and fifty-three dollars and fifteen cents; and that the disbursements were, for dredging, three thousand five hundred and eighty-four dollars; urgent repairs, seven hundred and eighty-seven dollars and twenty cents; to wbich add the sum of two thousand four hundred dollars as salary of the W barfinger for the same period, and we have a total of six thousand seven hundred and seventy-one dollars and twenty cents; which, deducted from the gross earnings as above, leaves a balance of nine thousand four hundred and eighty-one dollars and ninety-five cents net, or an average of about three hundred and ninety-five dollars per month.

From the above figures it is shown that a monthly rental of five bun. dred and forty dollars per month exceeds the average net earnings of the two last years by one hundred and forty-five dollars per month, or five thousand two hundred and twenty dollars for three years from October, eighteen hundred and sixty-seven, the term of the lease.

The lessees also constructed anew, at their own expense, that portion thrown down, at a probable cost of five thousand dollars more.

According to the terms of the lease, the lessees are obliged to keep the structure in good repair, perform all dredging required at their own expense, and surrender the structure, at the end of the term in good repair, with all improvements which they make thereon. My opinion is that in making this lease a very good bargain was made for the State.

BROADWAY WHARF-TO CALIFORNIA STEAM NAVIGATION COMPANY.

As the result of a suit long pending, and which was finally determined in the Supreme Court about one year ago, this wharf became the property of the State on the first of February, eighteen hundred and sixtyseven. It has been occupied for many years by the California Navigation Company exclusively for the use of their steamers. When it was surrendered to the State, the agent of said company made the request that it might be advertised immediately in order that they might obtain a lease. The wbarf was advertised, together with the other wbarves which came into our possession about the same time, and an arrangement made with the said agent that they might continue in possession during the thirty days required to advertise, the Board agreeing to accept for the use of said wharf for the month, the highest amount that should be bid therefor if said bid was satisfactory and for an amount sufficient to warrant the granting of a lease for the term of three years. At tbe time above referred to, viz; February first, eighteen hundred and sixty-seven, when the wharf was surrendered, it was in very bad condition for want of repairs, only slight repairs having been made during the pending of the suit, covering a period of nearly three years. Only one bid was received for the lease of the wharf, and that was made by the agent of the California Steam Navigation Company, at two thousand dollars per month, the said company agreeing to make all repairs, perform all dredging at their own expense, and to surrender tbe wharf in good condition at the expiration of the lease. The offer of two thousand dollars per month net revenue, without any expenditure on the part of the State, considering the amount of repairs immediately necessary to be made, and the dredging also immediately necessary, as their river steamers were often detained by reason of a want of a sufficient depth of water to float them at low tide, was deemed to be a fair one and all that we bad a right to expect; the bid was therefore accepted, and a lease executed, taking effect from date of surrender, February first, eighteen hundred and sixty-seven, and for the term of three years. The conditions of the lease are that the wharf is to be used exclusively for the boats of the California Steam Navigation Company.

LOMBARD AND BATTERY STREETS-TO GREEN & MCCABE; AND GREENWICH

AND FRONT STREETS-TO EDWARDS & SAGE.

These two leases were given under circumstances precisely alike and for the same reasons. The first comprises the right to the front of a portion of Lombard and a portion of Battery streets; the second a portion of Front and a portion of Greenwich streets; all of the wharf improvements in each case are upon private property, and not under the control of the State, being inside of the line of jurisdiction given this Board by the Act under which it was created.

The owners of this property claim that the Act of eighteen hundred and sixty-four, extending the width of the streets bordering upon the water front to a uniform width of one hundred and fifty feet, and placing the outer balf under the control of this Board, with the right to build and maintain the same for dockage and wharfage purposes, is unconstitutional, as it violates vested rights which have grown up since the Act of eighteen hundred and fifty-one, defining the water-front line, was passed. Under those circumstances, when the right to the use of the frontage has been advertised from time to time, they have declined to bid for it until in this instance. The Board, governed by their own judgment, as well as by advice of their attorney, deemed it best to accept the bids made in response to the last advertisement, though the amount is small, in order that a recognition of the right of the State to control the frontage, could never be hereafter disputed by the parties to the lease. If such an arrangement could have been made three or four years ago, several thousand dollars might have been added to the revepues of the State. These leases have three years to run from October first, eighteen hundred and sixty-seven, at a monthly rental of one hundred and fifty dollars for the former, and one bundred and forty dollars for the latter.

In all leases executed by this Board, as detailed above, it is expressly stipulated that the rent is payable in gold coin, montbly in advance, and good and sufficient bonds bave been taken in each case.

I believe this statement covers all of the leases made by this Board, (with the exception of the last lease made to the Pacific Mail Steamship Company, which was made under authority of a special Act of the Legislature passed in eighteen hundred and sixty-six,) since its organization.

Hoping this narrative may be satisfactory to yourself and to your Committee, I subscribe myself, Respectfully, your obedient servant,

S. S. TILTON,

President Board of Harbor Commissioners. STATE OF CALIFORNIA, City and County of San Francisco.

S. S. Tilton, being first duly sworn, says he bas heard read the annexed and foregoing statement by him signed, and knows the contents thereof; that the same is true of his own knowledge, except as to the matters therein stated on information and belief, and as to those matters he believes it to be true.

S. S. TILTON.

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SS.

Subscribed and sworn before me this twenty-second January, eighteen hundred and sixty-eight.

N. GREENE CURTIS,

Chairman.

" EXHIBIT J."

OFFICE BOARD OF STATE HARBOR COMMISSIONERS,

San Francisco, January 22d, 1868.} To the Hon. Investigating Committee appointed by the Legislature to inquire into

the affairs of the Board of State Harbor Commissioners :

GENTLEMEN :- I have been requested by your honorable Committee to present my views in writing as to the necessity and propriety of the passage of a law by the Legislature now in session, for the purpose of materially reducing the rates of charges now being collected as dockage, wharfage, and tolls upon vessels and merchandise lying at and passing over the wharves in the port of San Francisco, and to present, if possible, a comparative statement of the expenses of this port, and the ports of New York and Boston.

I am unable, for the want of the proper data, to comply with your request in the last particular in a manner that would do justice to the subject or afford your Committee such information as you desire. This Board has not been able, since its organization, to obtain the regulations from any of the Eastern ports, with the exception of the port of Boston, which were compiled in the year eighteen hundred and fifty-five. By referring to those regulations, I perceive that there are only two classes of charges made at the wharves in that port—the one denominated dockage, and the other wharfage. The charges for dockage, as compared with San Francisco are, on the average, only about ten per cent. of the amount, while the charges for wharfage are much greater. Dockage is charged, as in this port, upon vessels lying at the wharves, while wharfage includes the cartage upon and from the same. The schedule of wharfage particularly expresses the different kinds of merchandise upon which the charges are made, whether it be boxes, bales, bundles, bags, barrels, crates, cases, or mats, and their contents, at so much per

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