16 DEVELOPMENT OF THE NATIONAL PARKS. 



hotels in the park, particularly on the floor of the valley. No indi- 

 vidual or corporation could be interested in the park, and its future 

 at the opening of the exposition season was dark indeed. Then D. 

 J. Desmond, of San Francisco, general commissary contractor op- 

 erating in all sections of the State, a young man already successful 

 in business, a man of vision and immense energy, had the situation 

 in the Yosemite brought to his attention. He saw its opportunities, 

 and applied for a comprehensive concession covering the operation 

 of hotel, camps, transportation service, stores, garages, etc. 



This application was not granted to him at that time, but he was 

 permitted to install and operate a new camp during the 1916 season 

 with the understanding that if he rendered good service in his camp 

 he would have a long-time concession. He built and operated the 

 Yosemite Falls Camp and gave his guests service of a high order. 

 He more than met the conditions. Accordingly the department en- 

 tered into contracts with the Desmond Park Service Co., of which 

 Mr. Desmond is president, covering the following : The erection of a 

 hotel on the floor of the valley to cost not less than $150,000; and 

 another hotel at Glacier Point to cost approximately $35,000 ; camps 

 on the floor of the valley ; lodges at various points in the higher parts 

 of the park and along the Tioga Road, which crosses the park at 

 some distance from the rim of the gorge ; the installation and opera- 

 tion of automobile transportation on all the roads of the park open 

 to motor travel; the operation of trail transportation, and the con- 

 struction and operation of stores, garages, etc. 



The privileges granted in these contracts by their terms are to be 

 exercised for a period of 20 years, and the department in considera- 

 tion of granting these concessions receives annually during the first 

 two years of the life of the contract 25 per cent of the net profits of 

 the enterprise, and thereafter 50 per cent of the net profit. The net 

 profit of the company is determined by deducting from the gross 

 income 6 per cent on money invested in the enterprise, depreciation 

 of equipment, buildings, etc., and expenses of operation such as sala- 

 ries, advertising, and insurance. It is provided, however, that, if 

 this profit-sharing clause operates to the disadvantage of the depart- 

 ment, it may elect at the end of two years to take 4 per cent of the 

 gross income of the company instead of a share of the net profits. 



Under this contract the Desmond Park Service Co. erected, prior to 

 the opening of the 1916 season, two camps on the floor of the valley, 

 the Yosemite Falls Camp and the El Capitan Camp, and operated 

 them during the season ; also the Glacier Point hotel camp, and three 

 new lodges at Lake Tenaya, Tuolumne Meadows, and Lake Merced ; 

 all of which proved popular because of the excellent accommodations 

 and service rendered. New automobile stage service was established 



