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absolutely required to meet the necessities of the city, and to secure its permanent welfare.

The most careful revision of the ordinances regulating licences is respectfully recommended. The great increase of the business of the city and the extension of business among the vessels in the harbor, which in many instances are used as places of storage, from which goods are sold, wholesale and retail, render it, in my opinion, but just and equitable that, as they enjoy the same privileges and receive protection by the same laws, they should pay the same licenses as those who are engaged in similar pursuits upon the land. Each branch of business should be relieved of as much of the burden under which it now labors as would be consistent with the public interests with the privileges enjoyed. And after a careful estimate of the necessary and indispensible expenses of the government for the current year, a tax should be imposed upon real estate and personal property sufficient for all needful appropriations to meet such expenses, and to liquidate every just demand against the municipality.

Another subject for your consideration is that of affording the shipping in the harbor the greatest possible facilities for discharging their cargoes. There is not an individual in the community, who, in this particular, is not more or less interested. Indeed, the prosperity of the city and of the entire state, depending upon its commercial transactions, every measure that may tend to facilitate these, must prove a general benefit to the country and of immense advantage to San Francisco. We have suffered much from the present difficulties attending the landing of goods from vessels. Besides the slow and tedious process of lightering, by . which a ship is detained for weeks and even months, that with proper means could be discharged in a few days, the actual expense of mere lighterage, sometimes equals the entire amount of freight from the Atlantic ports to our harbor. This difficulty may be removed by the completion of the public wharves, at which vessels of any tonnage may haul up and discharge their cargoes as speedily as in other commercial towns. To meet the expense that would thus be incurred, the instalments due upon the water lots already sold might be collected and appropriated, and the lots still unsold be disposed of and the proceeds employed.

The want of a supply of pure water, even for the ordinary purposes of life, is severely felt in this city, and when to this the

fact is added, that there is not a single well or pump upon any public street or square, and that scarcely a gallon of water can be procured for the supply of fire engines, it will readily be perceived that an imperious necessity exists for the establishment of wells, pumps and cisterns upon the public streets and squares of the city. The circumstances attending the calamitous fires of the 4th instant and the 24th of December last, clearly prove, that could a reasonable supply of water have been obtained, when the fires were first discovered, they would have been extinguished, even without the use of engines, before any material damage had occurred. I therefore earnestly recommend the immediate establishment of wells and pumps upon the public squares and streets of the city, and of large and sufficient vats or cisterns upon the shores of the bay at or near the termination of the streets running perpendicular thereto, which would be filled at the flowing of the tide and remain so during its ebbing. This would at all times secure an ample supply of water for the lower part of the city, in' the event of fire in that quarter. The pumps and cisterns could be constructed at the intersections of the different streets, to be paid for by a tax imposed upon the property in their vicinity; and they should be put under such management as to ensure their usefulness in case of fire.

Whilst we are making provision to meet the necessities of the citizens, we should also, as far as possible, endeavor to add to their sources of enjoyment. To this end, it is recommended that Portsmouth Square be so improved that it will be made a favorite place of resort as well as an ornament to the city. It should be enclosed with a neat fence, and the ground so laid out as to form convenient walks, within which grass plats and ornamental trees should be kept at all seasons in a flourishing condition. In the centre an artesian well might be so constructed as to add greatly to its value, comfort and beauty. By boring the earth to a sufficient depth, a fountain of pure, fresh water would be let loose and everlastingly flow to meet the wants and delight the view of visitors. The square, thus improved, instead of presenting a desolate and dreary spot, would become an oasis in the heart of our sity, where the weary could find refreshment, and all classes; of the people obtain healthy recreation, pastime and amusement. Moreover, the construction of a well, as above proposed, with a fountain and pool as its necessary adjuncts, might be made one

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of the most useful objects in the city, as well as a neat and handsome ornament. A building might be erected on each side of the pool, cach sufficient for the accommodation of a fire engine and its apparatus, which would always be at hand in the hour of need to convey the means of safety to property in every portion of the town. Should the experiment of an artesian well be successful in Portsmouth Square, similar constructions might be effected in other parts of the city, which for utility and beauty would excel almost any other improvement that could be accomplished.

That no means be left untried by which the city can be effectually watered, the City Engineer should be directed to make an experimental survey of the grounds between the city and Mission Creek and such other sources of water as may be found in the neighborhood, and to report at an early day the practicability of watering the city therefrom, and giving an estimate of the

cost.

The experience of the past year clearly proves the necessity for the immediate establishment of a pernament grade of the streets, and that the most prompt and efficient measures be adopted to regulate them before the beginning of the rainy season. This suggestion applies especially to some of the principal streets, which during the past season were almost impassable, and are at this time in but little better condition, except that they now are dry. The work of grading, planking, or MeAdamizing the streets, erecting public buildings, supplying the city with water, and for all other purposes, should be let by contract to the lowest bidder who could give approved security for the faithful performance of his contract. By giving timely notice, inviting competition, adopting the contract system, and conforming rigidly thereto, no doubt can be entertained of the most favorable results to the public interests.

The embarrassed condition of the finances of the city, will render inexpedient for the present, the erection of such buildings as are desirable for the use of the courts and the judicial and other public authorities. With but little expense, those already provided may be made for the time being, to answer every needful purpose. A proper place for securing criminals in safe custody is indispensible for the welfare of the city; and this object may be successfully accomplished by slight alterations and inprovements upon the prison-brig "Euphemia."

Commodious and well arranged market-houses are greatly needed; and it is desirable that at least two establishments of this character should forthwith be constructed in the most convenient and central localities. Judiciously erected, these markets, instead of being an expense to the corporation, may be rendered a source of considerable income. The money derived from the rent of stalls would justify whatever investment might be made, and thus a two-fold advantage would be attained. The citizens would be better supplied with much less difficulty and cost than at present, with the necessary articles for domestic consumption, and the interest of the city in a pecuniary point of view, be materially promoted.

In some parts of the city an offensive effluvia is constantly arising from the offal thrown from slaughter houses, the carcasses of animals, and collections of various descriptions of decomposing substances; and as these are nuisances alike prejudicial to the comfort and health of the citizens, it is trusted you will take early steps for their removal, and for a proper supervision of the streets generally.

The great danger that occurred from the frequent explosions of powder and fire-arms during the late disastrous fires, is sufficient to warn us that there should be no unnecessary delay in providing safe depositories for the former. If, however, any citizens should provide themselves with buildings perfectly fire-proof in the less populous parts of the city, it might be proper to licence them for the sale of that article, and to prohibit the keeping of it in other places, by a heavy penalty.

During the last nine months an expense of eighty thousand dollars has been incurred for the support of the sick and destitute, who have been thrown penniless upon our shores, and found friendless and houseless in our streets, and for the burial of those who have died without sufficient means to defray the expenses of their interment. If these enormous expenditures are continued, (and it is evident from the rapid growth of the population, that they must seriously increase, unless some new system be adopted,) it will readily be perceived that a very large portion of the revenue of the city will be absorbed in defraying the expenses of the hospital department alone. Something, therefore, must speedily be done to remedy this great drain upon the public purse. And I would advise the appointment from your body of a special com

mittee, whose duty it shall be to take this subject under consideration, and suggest the best and most economical mode of providing for the needy and afflicted who are or may be dependent upon the public for support.

In view of the fluctuating character of a great portion of our population; the constant changes that are occurring in business operations; the frequent transfers of property; the endless improvements being effected; and the empty state of the treasury, I would recommend to you the propriety of instructing the City Assessors to make quarterly assessments of all taxable property within the limits of the corporation.

You will not neglect to pay especial attention to the organiza tion of such a police force as the peace and good order of the city demand. Men of correct morals and sound integrity should carefully be selected to perform the duties of this department. Under the guardianship of such men only can our citizens repose in confidence or reasonably expect security. For the more perfect accomplishment of these ends a night watch will be found of indispensible importance; and I would therefore recommend its appointment.

For the comfort, convenience and safety of the inhabitants, I would also recommend that the city be lighted at night by means of lamps distributed at proper intervals along the most frequented thoroughfares.

The reports of the Treasurer and Comptroller were received at a very late hour, and are herewith submitted. The financial condition of the city is as follows:

Amount on second instalment of sales of water

lots, due April 3rd, 1850,

Amount on third instalment due July 3rd, 1850,
Amount on fourth instalment due October 3rd,

$ 28,049 00

107,602 00

1850,

107,602 00

$238,253 00

The report of the Comptroller up to May 8th, 1850, shows the present liabilities of the city, including the purchase of the city hall, to be

199,174 19

Excess over liabilities,

$ 39,078 81

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