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 hundred 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 heavy 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, that 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

wharf, had a large warehouse upon the property, with a frontage of one hundred and thirty-seven and one half 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 wharf 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 which add the sum of two thousand four hundred dollars as salary of the Wharfinger 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 hun 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 wharf was advertised, together with the other wharves 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 the 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 the 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 had 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. portion of Lombard and a portion of Battery streets; the second a The first comprises the right to the front of 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 half 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 revenues 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 hundred 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, monthly in advance, and good and sufficient bonds have 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

3

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.}

SS.

S. S. Tilton, being first duly sworn, says he has 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.

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

"EXHIBIT J."

Chairman.

}

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 pos sible, 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

package, ranging from three cents per bale of cotton bats weighing fifty pounds, to thirty cents per bale of domestic rags weighing two thousand pounds; and for boxes from two cents to thirty cents each, according to weight or measurement. The schedule specifies about three hundred and fifty different articles of merchandise, from anchors at fifty cents each, to wheelbarrows at four cents each.

From a thorough examination of the above schecule, I believe the amount of wharfage collected in the port of Boston upon the different articles enumerated therein is more than quadruple the amount collected as tolls upon the same classes of merchandise in the port of San Francisco, and upon which no wharfage is ever collected.

In order to a full understanding of the distinction between dockage, wharfage, and tolls, as applied to the vessel and merchandise, I will here state that dockage is the charge made against the vessel for the privilege of lying at the wharf while discharging and receiving cargo. Wharfage is the amount charged on any merchandise lying upon the wharves beyond a certain number of days; and toll is the amount charged the driver of the vehicle carrying said merchandise upon or from the wharf. Dockage is charged by the day, and according to the tonnage of the vessel. Wharfage is seldom charged, and never on outward cargo. It is only collected upon merchandise left upon the wharf beyond a certain number of days, and then only when it prevents other vessels from the use of the wharf during a press of business when other berths cannot be furnished, and the amount is in the aggregate very small. For the list of charges as made by this Board, I respectfully refer your honorable Committee to the pamphlet which has been furnished you containing the

same.

The rates of dockage as now fixed and collected may seem, and they really are, very high, as compared with the port of Boston. But they were fixed by revision of the rates charged before the organization of this Board, and were slightly reduced by such revision and were applicable to vessels under the old measurement.

By a recent Act of Congress a new measurement was required of all vessels carrying the United States flag. Under that Act the tonnage of all vessels was reduced from ten to thirty per cent., thereby reducing the dockage charges in that amount below what they were two years ago. Since the new measurement was completed, this Board has carefully compiled from the Customhouse Register the tonnage of all vessels doing business with this port, and the charge is made upon the tonnage of the vessel under the new measurement. Under our rates of tolls, a vehicle with one horse is charged twenty-five cents; with two horses, fifty cents.

It will be inferred that a load for one horse would be about three thousand pounds, while a load for two horses would be about six thousand pounds; whereas, the custom is where a one-horse vehicle is used, a lead horse is used to draw the load through the streets and is unhitched before going upon the wharf with the load of from four to five tons, paying only the toll of a one-horse vehicle, viz: twenty-five cents, thereby reducing the toll to five or six and one-quarter cents per ton; while the two-horse vehicle often has a pair of lead horses, with a load of seven tons, and the same process is repeated; paying as tolls fifty cents, or about seven cents per ton.

It will be seen, therefore, from the above facts, that the charges are really not so great as appears to the casual observer, and are not so much above-including dockage and tolls-Eastern ports. It must be borne