The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-12-15
GROSS RECEIPTS.
Failure of Railroads to
Pay Up.
FRANCHISES ARE VIOLATED.
Expert Williams Finds That
Thousands Are Due.
NO STATEMENTS EVER FILED
Only One Road Has Fulfilled It's OBJ
legations to the City by Pay
ing the Percentage.

Mayor Ellert recently sent c0mmuni-
cation to the Board of Supervisors in
which he called attention to the fact that
the railroad companies having obtained
franchises during recent years are required
by the terms of the grant TO donate to the
city treasury per cent of the gross re-
ceipts, and that they had failed to remem-
Der any Of the obligations assumed.
Mayor Ebert advised the Supervisors TO
look into the matter, as il was apparent
that the city was not getting its just dues.
After receiving the communication the
Supervisors referred the matter to the
Finance Committee for investigation. The
committee saw a chance of obtaining
windfall to reduce the annual deficit. and
at once directed Expert Cyril Williams to
look into the matter and make report.
The expert at once went to work and has
about concluded his report, which will be
presented 10 the Finance Committee to-
morrow.
According to Mr.. Williams there are
over $4,000 owing the city as the per-
centage due on the land and franchise.
According to the terms of the franchises
the companies which obtained privileges
ever since 1889 are compelled to file a
sworn statement of their gross receipts so
that the proper authorities could collect
the amount due the city. There has been
a failure on the part of the railroad COM
panies to comply with their franchises
and obligations.
Since the passage of the order in 1889
compelling street-railroad companies OBJ
tanning new franchises TO pay per cent
OF the gross receipts many companies have
obtained new grants and privileges in the
form of extensions and new lines; for
instance. the San Francisco and San Mateo
electric line, the franchise of which was
granted in 1890, and in which is the fol-
lowing:
That at the expiration of one year from the
date OF the passage OF this order, each and every
year thereafter, during the continuance OF this
franchise, tile grantees herein named, their
soclates or assigns, shall make ana file a sworn
statement with the Board of Supervisors, duly
verified, showing the gross receipts of said
grantees, their associates or assigns, under the
privileges herein granted during the preceding
year, ana on the approval OF SAID report by the
Board of Supervisors, the said grantees, their
associates or assigns, shall pay into the treas
ury of this city and county. TO the credit OF The
Street Department. fund, the sum OF 2 per
cent of the gross receipts each and every
year thereafter otherwise this franchise,
on failure of the grantees, their associates or
assigns, TO comply with the conditions herein
Imposed, shall cease and become null and void.
The coming year will make three years
dues, yet the San Francisco and San Mateo
Railroad Company has not even ever filed
sworn statement, and has never payed a
cent into the city treasury according to Its
agreement.
The Metropolitan Electric Railroad.Com
Dany. whose franchise contained a similar
provision passed in 1890, has likewise
never paid a cent into the city treasury.
These are the two principal entire sys-
TENS which have failed to comply with the
law. The Omnibus Railroad Company's
franchise has the rather uncertain provi-
sion that the per cent Of the gross re-
ceipts will be paid five years after the
completion of the system"
The most curious evasion in all the fran
chlses is that of the North Beach and
Mission Company, granted in 1889, in
which the company agrees to give 2 per
| cent Of the gross receipts whenever the
annual income lis over and above the
gross receipts Of the year 1885," 1t is
needless to say the company has always
claimed that the receipts have never
reached or exceeded the income of the
! famous year 1888. So Expert Williams
was told when he called for figures at the
company's office.
The Market-street system has paid
| nothing on all the extensions obtained
| since 1889, nor has the Ferries and Cliff
House. nor the Union-street line
The only company that has obeyed the
| law and acted in good faith with the city
has been the Hyde and O'Farrell street
| branch of the California-street railroad.
| This company has since 1890 filed an
| annual statement. During the present
| year the amount coming to the city
amounted TO 5000, but the Supervisors al
Lowed rebate on the ground that the line
haa to give transfers. which lessened its