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Sierra Club Bulletin 



concessions ; second, increased Federal appropriations for improvement 

 and protection of the park ; third, removal of restrictions on motor travel. 



For many years the department unsuccessfully endeavored to induce 

 parties with capital to undertake the construction of new hotels in the 

 park, particularly on the floor of the valley. No individual or corpora- 

 tion 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 Fran- 

 cisco, general commissary contractor operating 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 atten- 

 tion. He saw its opportunities, and applied for a comprehensive con- 

 cession covering the operation of hotel, camps, transportation service, 

 stores, garages, etc. 



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

 mitted 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 entered into contracts with 

 the Desmond Park Service Company, of which Mr. Desmond is presi- 

 dent, 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 operation of automobile transportation 

 on all the roads of the park open to motor travel ; the operation of trail 

 transportation, and the construction and operation of stores, garages, etc. 



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

 ercised for a period of twenty 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 en- 

 terprise, 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 salaries, advertising, 

 and insurance. It is provided, however, that, if this profit-sharing clause 

 operates to the disadvantage of the department, it may elect at the end 

 of two years to take 4 per cent of the gross income of the company in- 

 stead of a share of the net profits. 



Under this contract the Desmond Park Service Company 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 during 



