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To the Stockholders of the California Street Cable Railroad Co:

I have the honor to present to you at this, the Annual
Meeting, a brief statement of the affairs of the Company during
the year ending July 1st, 1889.

The passenger receipts as compared with previous years,
show a small decrease over the previous year and when we consider
that a rival road has been put in operation during the last year,
it shows that there is a steady increase of population on the line
of our road and with good prospects of continuing.

The usual dividend of fifty cents per share has been
paid each month during the last year, and I see no reason why it
will not be continued the coming twelve months.

Two law suits have been settled and the cases dismissed
during the last year, viz: Kilbride vs. the Cal. St. Railroad Co.
and Mc Duff vs. same, besides several small claims paid in order
to avoid a suit against the Company. There is only one case
remaining unsettled -- the case of Hall vs. The Cal. St. Railroad Co.
-- which damage was caused by the carelessness of the Powell St.
Co. at the crossing of California and Powell Streets. No effort
has been made to settle this case, as we expect to show at the
trial that we were in no way responsible for the damage.