The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-05-27
Secretary WilIcutt's Opinion OF
the Market. Street
System.
WORTH ONLY FIVE MILLIONS.
Not Worth More Than Four Millions
When Bonds for Seventeen and
a Half Were Issued.

There was 8 sensation early IN the morn
ing Yesterday in the preliminary examina-
ton of Assessor Siebe. Secretary Willcutt
of the Market-street Railway system had
lust resumed the stand, with four big red
wood boxes of books and pile of ledgers,
when Mr.. Freidenrich announced that the
Assessor had been arrested on warrant
issued by Judge Campbell, charging him
with perjury in having assessed Judge Wal
Iace's real and personal property below its
actual cash value. The complaint had
been sworn to by ]. w. Darragh, and Mr..
Siebe at that moment was engaged in get
ting bonds.
81 think that some of those proceedings
are farce" said Mr.. Clunie, land 1 move
that his bonds be declared forfeited"
Judge Wallace remarked that he would
wait for Mr.. Siebe, and in a few moments
that gentleman came in.
Mr.. Willcutt was on the stand for the
greater part of the day, and he furnished
the second sensation by "going dead lame
on the track" In other words, he seemed
to have lost the power of speech when it
came his turn TO reply to Mr.. Clunie's
questions as to the property OF the Market
street Railway system. He finally said
that the cash value of the system was not
more than 81 600, 900 when he as a director
voted to issue bonds upon the property of
the road for ST., 500, 900.
Mr.. Willcutt proceeded to read the reso-
luton under which the different railway
systems consolidated with the Market
street Railway Company, that corpora
ton assuming all debts and obligations of
the old companies and being vested with
Ill
and personal property.
Freidenrich objected to the Introduction
of the minutes of the consolidation on the
grounds that they were irrelevant and did
not bear upon the matter at issue, but
Judge Wallace promptly overruled the
objection and Mr.. Willcutt replied that the
officers of the Market-street Railway did
not make any investigation into the values
OF the roads and their bonded indebted
ness.
do l understand you to say" inquired
Mr.. Clunie, 1'that your company accepted
a bonded Indebtedness of more than
100000 without any investigation what
ever into the values?''
Mr.. WilIcutt replied that no inyestiga-
ton was made because the officers of the
company were conversant with the values
of the roads about to be taken into the
consolidation. He then proceeded to read
a statement OF the earnings OF the various
companies constituting the consolidation.
Among these were the Omnibus Railroad
Company, which, starting with a profit of
$55.561 Oh in 1888 and $117, 206 09 in 1890 81,
dwindled TO $751; AS go in 1928. Also
the North Beach and Mission Railway
Company, with a profit in 1898 of
$7S,249 So, reached a loss of $16O6 81 in
189O-91, of S8338 SO in 1892 and of
$40, 1882 OF in 1929 The Market-street
Railway Company started with profit in
1890 of $247. 281, in 1891 of 1924, S01, in 1892
of 1894, 729 and in 1898 of $155, IA.
Mr.. Willcutt then read a long list of
suits begun against the company for
damages for injuries and deaths on the
street railway system. Appended to most
of these was the note: SCOT off the car
while in motion"
These were all the memoranda that he
had.
Now, Mr.. Willcutt," asked Mr.. Clunie.
"did you. as director of the Market
street Railway Company, after the cor
solldation, vote for the issuance of $17, 500,
600 of bonds on this road and was that
resolution adopted?"
The Assessors attorneys objected to the
question. He commended that it was not
fair to go into the history of the railroad
company, and that the proper mode of
procedure was to. introduce the assess
ment roll and to take up each piece of
property OF the company asse ssed on the
roll and ascertain whether or not it had
been under-assessed
Mr.. Clunie explained that he wanted to
show that Mr.. Willcutt was an expert as to
the value of the property of the company.
and Mr.. Freidenrich admitted that the
witness knew the value of the property.
Judge Wallace remarked that the CHARGE
against the Assessor was not that he had
made mistake, but that he had delibe-
rately violated his oath by deliberately
understanding the property of the corpo-
ration.
The witness explained that the resolu-
ton authorizing the issuance of the bonds
was adopted, and that in pursuance thereof
meeting of stockholders was held on
June %, 1894, at which meeting a resolu-
ton was adopted confirming the action OF
the board OF directors and authorizing the