The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-10
How Some Pay a Percentage
on the Gross Re-
ceipts.
AND SOME OTHERS DO NOT.
The Art Of Escaping Payment-The
Latest Market-Street Acquire
ment Does Not Require 1t.
Let us talk about 2 per cent.

per cent on their gross earnings VI upon
the gross earnings of portions OF their
lines built under the provisions OF more
recent franchises or extensions-as they
are called in these more recent years.
They are the Metropolitan franchise OF
December 26. 1S90). the California-street
franchise of March 8, 1889, and the San
Francisco and San Mateo.
OF these, the California-street Company
has paid for four years, since 1892, SILL
500 II, as follows: For 1892, $3o16 05; 1893,
$3O4s 60; 1884, $3155 %; August 8, 1895,
$2779 "a.
The Metropolitan Company for the year
preceding October 81, 1894. $2576 II.
The San Francisco and San Mateo paid
for the year preceding December 81, 1898,
$2356 81. Since that the road has gone into
the hands of a receiver and is in arrears.
This makes altogether the magnificent
revenue of 17,135 So which the City has
received in five years from its network OF
street railroads.
1t became the fashion about 1Ss9-90 to
tack this 2 per cent clause TO small and
unprotected railroads. BY unprotected is
meant unprotected by those large lawyers
and that dominating influence which is as
much q part of a big corporation as the
dividends themselves
Since that time this per cent has cut an
odd figure in municipal legislation and
street railway affairs.
In 1889 the Omnibus Cable Company was
granted q franchise with the provision that
five years after and annually thereafter a
sworn statement was to be filed showing
the gross receipts on which per cent was
to be paid the City
This was an easy one for the railway, as
will be seen. Five years after completion
of the franchise" is interpreted to mean just
that no doubt Any high-salaried railroad
lawyer would scarcely think 1t dignifed to
wink the other eye as he read it over to his
client. He would lean back in his uphol-
stored chair, glance up at the chandelier
and say:
'Let me see-is it absolutely necessary
to complete this franchiseP'
And then the Market-street Railway
Company would grasp the situation with
out looking at the chandelier, for the
Market-street Railway Company is both
very quick and very busy and as rule
does not look at chandeliers.
The Market.street Railway Company has
absorbed the Omnibus line; six years has
elapsed since the franchise was granted;
the consolidation facilitates all things and,
two portions of the franchise have been
wholly abandoned-the portion on Leaven-
worth street from Post to Jefferson and
on Jackson street from Montgomery to
Stockton. That settles that then - the
franchise will never be completed, and
many per cent will be saved-by the
big company.
A Ferries and Cliff House Railway fran
chise was granted to Moffatt, Reinstein &
Eisner on December %, $780, the terms of
which were that at expiration of one year
from date of operation statement OF gross
receipts under any and all privileges,
whether heretofore or herein granted, to
be filed, verified by the expert of the
Finance Committee and per cent to be
paid thereon to the City.
This road has long been sin operation"
in the ordinary sense of the term, but 2
per cent clause is very binding and the
ordinary sense does not apply-it "don't
60" so to speak. The road was embraced
in the consolidation, and at the Office of
the Market-street Company it is said in
the politest possible fashion that the road
is mot completed" That is to say there
is little strip of four blocks on Bay street,
from the seawall to Powell street. which is
not completed. The time limit on this
will run out in August, 1896. 1t is not con-
sidered important. 1t will not be COM
pleted before it is required to be. Possibly
before August, 1896, the.kind-hearted Su-
pervisors will allow the company to aban-
don it. Then que stion of law will stand
Now here is a more peculiar thing in 2
per cents than any OF the foregoing, bnt
not the most peculiar of all
franchise was granted to the North
Beach and Mission Railway Company
August 2, 1885, Terms:
One year from date of operation of any
portion of the railroad provided for a
statement to be flied showing gross re-
ceipts under any and all privileges
whether heretofore or herein granted.
On these the company shall pay 2 per
cent over and above the gross receipts
of 1888.
On July 26, 1889, this railroad company
nled q statement showing the gross
receipts for 1883 to have been $3O6, 180 10.
Since that time the railroad has passed
into the control of the Market-street Com
pany. That company declared to CALL
man at its Office yesterday that the re-
ceipts have never since reached those of
1885,
That was by way of explaining why no
per cent had ever been paid for that line.
Other lines had been built since and the
competitors had taken the nickels. 1t was
awful the way the business had been cut
into.
1t was suggested that since the rehabili-
tation of the line-electric cars on Kearny
street running all the way to the beach
business would pick up materially, with a
possible hope of some time reaching the
standard of 1883.
No, not much hope, they said, for the
competing lines-which all belong to the
Market-street Company, mind you-were
still doing their deadly work. And be-
sides, the franchise of the Omnibus Com
pany now covered something of Kearny
street and the electric line was being
operated under that franchise.
Yes, there was not much profit to be
sure. The Omnibus franchise provides for
per cent five years after completion"
you will remember. And it Is not yet
completed.
Now the most peculiar thing in per
cents is this, that with all these examples
OF possible revenue to the City, and actual
iugglery and evasions before, the present
Board Of Supervisors-that is the Solid
Eight-had advertised franchise to be
awarded to the Market-street Railway
Company, covering about seven miles Of
streets where there is no mention of 2 per
cent at all. The Market-street Railway
Company is giant corporation with sim
mense resources" as an official OF the
company stated yesterday. 1t is In no
need OF being encouraged" 1t only seeks
those things that are valuable to it one
way or another. The time has passed
when the people are eager to give up the
streets for no other consideration than see
ing railroad built. That time had passed