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mud which would be retained in rear of the wall would serve as filling, for which purpose they were of opinion it would well answer. It appeared, also, that this lower strata of mud was of a tough character, and that the superincumbent filling would gradually compress the same into a substance of sufficient solidity to exclude all danger arising from the seaping of fluids through its pores, and to support firmly the superincumbent filling, and all additional weight that the wants of commerce and the uses for which it is designed, would require to be placed thereon.

The work of constructing the sea wall is being vigorously prosecuted by A. H. Houston, the contractor, under the supervision of Colonel W. J. Lewis, the Civil Engineer, who is the author of the plan adopted by the Board. The Commissioners deemed it prudent to secure the services of Colonel Lewis to supervise the work projected and planned by himself, and your Committee entirely concur in the opinion that his supervision is necessary to secure to the State the proper completion of an undertaking of such magnitude. The statutes of the State make no provision for compensating Colonel Lewis for his services in this respect, and he has already, under the understanding that the Commissioners would bring this matter to the attention of your honorable bodies, performed valuable service to the State without any compensation whatever.

Your Committee further show, that they have bad under consideration the question of the propriety and necessity of increasing the present number of the members of the Board, and that from a careful investigation of the duties of the office, as derived from information within the reach of your Committee, they are of opinion that there is no public necessity for such increase.

Your Committee find, that although it is requisite that the Board should be constituted as at present, in order to preserve the checks necessary upon the action of individnal members of the Board, that the duties of the Board could well be performed by a less number, and that the actual labor of the office is by no means onerous.

Your Committee further show, that the duties of the office of Secretary of said Board are quite onerous, and that the labor attending the discharge of the same is greater than can be performed by one individual; that the position of Secretary is one of great responsibility, and that your Committee believe that it is necessary to the proper conduct of his office that he be allowed the services of an assistant.

And your Committee further show, that the rooms now occupied by the Commissioners as the office of the Board are unsuitable for that purpose; that they are situated in the third story of a building at the corner of Pine and Montgomery streets; that the archives of the office are in danger of destruction by fire, and your Committee are of opinion that other accommodations should be provided, and especially they deem it absolutely necessary that there should be furnished a fire-proof vault for the preservation of the books and records of the office.

Your Committee have sought information upon the subject of the propriety of reducing the rates of charges now being collected as dockage upon vessels lying at the wharves of the port of San Francisco, and the rates of wharfage and tolls on merchandise passing over the said wharves. Dockage is the charge made daily against a vessel according to her tonnage, for the privilege of lying at the wharf while discharging and receiving cargo. Full rates are charged whilst the vessel is discharging, and only half rates wbilst she is receiving cargo. Wharfage is the amount charged on any incoming merchandise lying upon the wbarf beyond a certain number of days. Outgoing merchandise is never charged wharfage, and toll is the amount charged the driver of the vehicle carrying said merchandise upon or from the wharf.

Your Committee have been unable to procure reliable data upon which to compare these charges at the port of San Francisco with similar charges in Eastern ports, but your Committee learn tbat dockage is charged in the port of San Francisco only from the time a vessel commences discharging cargo, and not from the time she makes fast to the wbarf. Dockage bere is greatly in excess of that charged in the port of Boston, but whilst this is the case, the wharfage at the port of Boston, (which term includes that charge which is here denominated tolls,) greatly exceeds, and perhaps quadruples the aggregate of the wharfage and tolls cbarged at the port of San Francisco. The schedule of wbarfage at the post of Boston particularly expresses the kinds of merchandise upon which the charges are made; wbetber it be boxes, bales, bundles, bags, barrels, crates, cases, or mats, and tbeir contents, at so much per package. Here, if the merchandise is not allowed to remain upon the wharf beyond a certain number of days, it is not subject to any charge whatever save for tolls. These tolls, as before stated, are simply a charge against the vehicle carrying the merchandise upon and from said wharves. Under the operation of the existing law, it is difficult to determine, with any degree of certainty, the rate of tolls per ton that is now being collected; but your Committee learn that drivers of large drays and trucks, carrying from five to seven tons, and drawn by three or more borses, are in the habit of detaching, at or near the gate of the wharf, so many of their animals as are not necessary to the propulsion of their loads, and that frequently these large amounts of merchandise pay only tolls as upon a vehicle drawn by a single borse.

Your Committee further learn, that when a sbipper is sending or a consignee is receiving any considerable quantity of merchandise on these wbarves, that no charge is made upon any fraction of a ton less than one-fourth; they further learn, that the whaling fleet are charged only half rates of dockage and tolls, and that these vessels are now charged wharfage, their cargoes of oil being usually transhipped across the wharves into Eastern bound vessels.

The schedule of rates of dockage, wbarfage, and tolls, now being charged is hereto annexed, and marked "Exbibit I.” Your Committee are of opinion that these rates are necessary to be preserved in order that the work of constructing the sea wall may be prosecuted to completion; that from the best information within their reach, they believe that the said work cannot be completed under the existing law in a period of less than ten years, and that if the said rates are materially reduced that it will be requisite to provide other funds for 'carrying on that work.

Your Committee, in this connection, respectfully refer your honorable bodies to the statement of S. S. Tilton, President of the Board of Harbor Commissioners, herewith filed, and marked - Exbibit J.”

Your Committee are further of the opinion, that it is for the best interests of the State that all of said wharves and water front should be retained by the Commissioners, and the affairs thereof be by them administered, except only such wharves and so much of said front as may be necessary for the accommodation of the ferries, steamship, and other permanent lines.

In conclusion, your Committee respectfully submit that the Board of State Harbor Commissioners have faithfully, intelligently, and prudently

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discharged all the duties of their said office; that the plan adopted by the said Commissioners for the construction of said sea wall is safe, and the best and cheapest that could, under the circumstances, be adopted; that the work on said wall is being faithfully prosecuted and performed according to the specifications accompanying the plan and contract; that the material of wbich the same is being constructed is durable and well calculated for the work designed.

Your Committee therefore respectfully recommend that the said plan and specifications be in no wise changed or altered. That the number of members of the Board of Harbor Commissioners be not increased. That the rates of dockage, tolls, and wharfage now established by law be not decreased. That the Board of Harbor Commissioners be furnished with other and more convenient offices, and particularly that they be provided with a fire-proof vault for the safe keeping of the archives of the office. That the Secretary of the Board be provided with an assistant, and that provision be made for the payment of the Civil Engineer superintending the work of constructing the said sea wall. All which is respectfully submitted.

CURTIS,
LEWIS.
CONLY

Of the Senate.

BROWN, of Tulare,
MOORE,
SCUDDER,
ROLLINS,

of the Assembly.

" EXHIBIT F."

OFFICE BOARD OF STATE HARBOR COMMISSIONERS,

868.}

San Francisco, January 21st, 1868. Hon. N. GREENE CURTIS,

Chairman of Investigating Committee : DEAR SIR :-During my examination as a member of the Board of State Harbor Commissioners, you requested me to give in writing a narrative in detail, setting forth the reasons governing the Board in making the leases which have been executed to various parties during the existence of said Board, covering a period of more than four years.

In complying with your request, I shall proceed to take up said leases in detail, commencing with those first executed by the Board, embracing that portion of the water front along the outer line of East street, from the southerly line of Market street to a line two hundred and seventyfive feet north of the northerly line of Folsom street, a distance of about thirteen hundred and seventy-five feet. This portion of the water front is exclusively occupied by persons engaged in the lumber business, and is divided into lots of forty-five feet ten inches by one hundred and thirtyseven and one half feet, and is a portion of the property known as water front property, each lot baving a frontage of forty-five feet ten inches on

Stewart street and the same on East street; depth, one hundred and thirty-seven and one half feet.

A great number of these lots are owned by the parties in occupation, the others by lessees of the owners; and all of the improvements upon the property, as well as upon East street, were made by the owners or lessees, and had been occupied for several years and had never paid any revenue to the city or State.

In advertising said water front, the Commissioners, being desirous of giving the parties owning and occupying the lots an opportunity to secure the frontage to the same for the accommodation of their business, adver tised to receive bids for each lot separately for the term of three years. The bids received in response to the first advertisement being only twenty-five dollars per month, were considered by the Board as too low and were rejected; and as it was impossible to control the frontage, the streets not being built and no access thereto being possible except across private property, it was determined to re-advertise, and the bids made in response to the second advertisement being fifty dollars per month, were accepted and leases made accordingly to the parties making said bids, each lease covering the number of lots bid for, and owned or occupied by the bidders, respectively. By making said leases, the State received a revenue of about one dollar and ten cents per lineal foot per month, where no revenue could bave been obtained in any other way without a large outlay of money, which at the time the Board were unable to make. All of those leases having expired, the frontage bas been again advertised and bids received for two years, which are now under consideration by the Board.

The Board are now making estimates of the cost of building the outer half of East Street, for the purpose of determining whether it will not be more to the interest of the State to build than to lease, and if, in the opinion of the Board, the revenue can be increased sufficiently to warrant the expenditure, the work will be performed and no further leases granted. In the meantime the parties are paying as wbarfage the same amount as heretofore paid for rent.

In all the leases referred to above, the lessees are obligated to make all repairs at their own expense, and turn over to the State all improrements upon the State's property at the end of the term.

MAIN STREET-RISDON & PLUMMER.

Next in order in our report to the Governor, comes the lease of the outer half of Bryant street, to Risdon & Plummer, made for a period of three years, at a rental of two hundred and fifty dollars per month.

The circumstances under which this lease was made, are as follows: The lessees, as owners of the property bordering upon the water front as above described, bad piled and capped a portion of said property, and in doing so bad projected the improvement beyond the outer line ef Bryant street, contrary to law and without the consent of this Board. the same being discovered, the Board ordered a survey to be made, which showed the structure to be about twenty-seven feet at one corner and a few feet at the other, as near as I can recollect, beyond the line, and the parties were ordered to remove so much thereof as extended beyond said line. After notice, the parties requested a lease of the front and desired that the structure might stand as built, as a vessel could lay at the front as it then was, being built to correspoud with the current, better than if it were removed. The Board declined to accede to their request or make

Upon any terms with them until they had removed so much of their structure as they were ordered to remove, which was, after some delay, accomplished.

The Board was then requested by them to advertise the frontage, in order that they might obtain a lease and be secure in the enjoyment of the improvements there made and contemplated.

In discussing with them the value of the frontage, one member declined to accept any bid for a less sum than two hundred and fifty dollars per month, and as the law required the unanimous consent of the Board to make the lease valid, the parties were compelled to bid that amount or lose the use of their improvements. The lessees protested against what they called an arbitrary proceeding, and that the amount was entirely in excess of the value of the frontage to them, but as they were trespassers upon the rights of the State they concluded they could not help themselves, they made their bid and obtained their lease, they being the only bidders therefor, the frontage having been previously advertised according to law.

If they had not built beyond the line of their private property they would not bave been obliged to recognise this Board at all

, and it could not have deprived them of the use of the front without a heavy outlay, wbich the small amount of business in that locality would not warrant. In the above lease the lessees agree to make all repairs and turn over to the State all improvements upon the property of the State at the expi. ration thereof.

SPEAR AND BRYANT STREETS-TO BAKER &

HATHAWAY.

Next in order comes the lease to Hathaway & Baker of a portion of the outer half of Spear street, between Harrison and Bryant streets, and the outer balf of Bryant street, between Spear and Main streets, at a rental of one bundred and fifty dollars per month for the term of three years, after duly advertising according to law, only one bid being received.

At the time the above lease was made, only a small portion of Spear street was built upon, with no improvements upon Bryant street.

The above named lessees are the owners of the property fronting upon the streets above named, and bad built the improvements alluded to as a part of Spear street, and been occupying the same for several years.

Before advertising tbe above, the Board came to the conclusion that no large amount of revenue, over and above the cost of repairs and collecting the same, could be obtained, and when the bid was received it was accopted and the lease made.

VALLEJO STREET, BETWEEN

FRONT AND DAVIS STREETS.

1

Next in order is the outer half of Vallejo street, between Front and Davis streets, to Charles Minturn, for three years, at three hundred dollars per month, as a landing place for his steamer Petaluma, running between this port and Petaluma. This lease was made after advertising according to law, only one bid being received, the lessee being confined to the use of said landing place as a berth for said steamer, and for no other purpose wbatever.

The object in making this lease was to give a particular berth for said steamer, where it could come and go at any time without finding the same occupied by another vessel when it returned from Petaluma, and

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