California Street Cable Railroad Company

CAL. ST. CABLE R-R-CO.

Letter of L. B. Benchley Genl Manager Pacific Rolling Mill Co., dated July 2d and Copy of Secretary's Reply dated July 3d, 1889

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.

2.

There is a disposition on the part of anyone injured, whether by his own carelessness or not, to make a claim against the Co. and the fear that we cannot obtain justice before the average jury as well as the expense for counsel, makes it necessary to make a settlement in cases where if we were sure of exact justice, we would obtain a verdict in our favor.

In November 1888, your Directors applied to the authorities for a branch or cross-town line, running from the intersection of Mc Allister, Market and Jones Streets, northerly, on Jones Street to Bush, to Hyde and thence to North Beach. On May 3d, this was granted and we are now taking measures to speedily construct the same. To provide funds for the cost, the Stockholders will be asked at a special meeting to be called for that purpose, on the 20th of September next, for authority to issue Bonds in an amount sufficient for that purpose.

The completion of the branches of the Powell Street system to Golden Gate Park and the Cliff House has been of benefit to us thus far and gives promise of a steady increase in the future.

Between August 1888 and January 1st of this year, there was unearthed a system of stealing from our receipts, which by the written acknowledgment of the parties (conductors and receivers) who had hitherto had our confidence, had extended back for a number of years.

3.

We found treachery where we least expected it and I think since that time your treasury has received all earnings of the road. This part of the business requires untiring vigilence and very careful watching.

In conclusion, I will say that the affairs of the Company are in the best possible condition, with a surplus in the Treasury, and on the Completion of the branch now under way the future looks promising. The employees are faithful and attentive to their duties and under the able and faithful control of Supt. Harris, I believe this will continue as heretofore, to be the model Cable Road of San Francisco.

Respectfully A M Borel Vice President

July 10 - 1889

Whereas a new corporation to be named the California Street Cable Railroad Company, with a capital stock of One Million Dollars, to be divided into Ten thousand shares of the par value of One hundred Dollars each is about to be formed under the laws of this State for the purpose of carrying on the business of the road now operated by this Company, and of such extensions thereof as may be hereafter made.

And whereas it is desired by the stockholders of this corporation that all the property, assets and franchises of this corporation which it now owns or may hereafter obtain, be granted, conveyed and assigned to such new corporation for the consideration of Five hundred thousand Dollars, which shall be paid by the issuance to the stockholders of this corporation, in exchange for the stock of this corporation, of certificates for the stock of such new corporation at the rate of two shares of such new stock for one share of the stock of this corporation, which certificates shall bear upon their face the statement that $50. has been paid on each share of such new stock on account of its par value.

Now, therefore, be it resolved that when such new corporation shall have been