The morning call., 1892-10-19
STATE OWNERSHIP OF RAILROADS.

STATE owNERsHIP OF RAILROADS.
THE CALL published an editorial re-
Gently, in which opinions were expressed
relative to the ownership of railroads in the
United States. We urged the feasibility OF
San Francisco protecting her interests, IL
such were the determination of our citizens,
in spite of the opposition of the managers
of the Central and Southern Pacific Railroad
Com panies. We brought forward propo-
sitiOn which has been frequently Droacueo
during the last few years. namely, 10 nave
the General Government take contrOi Vi TUG
large avenues of communication between
the different States, at leastso lar as 10 own
and control the roadbeds, permitting eoni-
panies or individuals TO run trains over
them as transportation companies NO" uo'
or as canals are utilized THE CALL has no
objections to United States ownership Oh
railroads under proper regulations, and In
deed change in the management Of rail-
roads must take place, for an independent
people will not submit for much length Of
time to such corruptions and exactiOns as
the inhabitants Of this city and State have
endured The objection to the national
ownership and management of railroads at
present arises from the fact that time will
No ESqulicQ lOI iut iHsNNHtAS
to act The General Government may have
to do something ultimately. but the large
corporations will place so many impede
ments in the way that the residents Of the
different States will probably be compelled
to take affairs into their own hands. In
California, for instance. where people have
contributed large amounts of bonds, lands
and money, and are still being taxed to an
undue extent for freight and fares, they
may have to act without waiting for the
slow movements of Congress, which is full
of the creatures of railroads. In this city
and State we doubt not the people are will
ing and anxious TO protect themselves.
How can this be done should the efforts
fail to organize on proper basis railroads
by private individuals? 1t must be by the
city and State. Indeed, we do not
see why San Francisco and the State
of California should not furnish the
means TO certain extent to conduct
a few lines Of railroads. Other cities and
States have protected their interests by
such means. Why should not San Fran
cisco? individuals who embark in railroad
building are DESTROYS of making too much
of an income from their investment. and
besides, railroad constructed on private
credit labors under the disadvantage Of
having to pay too high rate OF interest on
its bonds; whereas city or State can pro-
cure means as low as 4 per cent per annum.
In the construction of railroads by private
individuals syndicates are applied 10 for
money, and the parties interested in the
syndicates demand excessYerates of inter-
est upon their investments Again, usually.
private companies must have donations for
the right of way, as well as for stations,
etc. They also generally secure subsidies
| from towns. counties and individuals. San
| Francisco could easily raise $40, 600, 600
| from individual subscriptions il its wealthy
| citizens were willing to subscribe for stock.
| but the question arises whether they would
| do so. But would il not be more for the
! advantage of San Francisco If the city were
| to raise say 100000 of 4-per-cent bonds
| for such purpose? In the issue of bonds
! all property would have to contribute its
| proportion of taxes for the annually accru-
! ing interest. The interest on $40, 600 coo Of
/ bonds at 4 peT cent would be but $500, 600
annually. We urge that such an amount
contributed by the city would at once give
| an impulse to all branches of business in
| San Francisco. Property would rise in
! value at once and San Francisco would be
relieved from Outrages which she has been
| laboTing under ever since Stanford, Hunt
ington & Co. have had their hands on our
Threats. trying to choke US to death. If to
the amount raised by San Francisco was
added SO 100000 more by the State we
should be independent of cutthroats for
ever, for we could secure a railroad ND the
! San Joaquin aud the Sacramento valleys
and to Salt Lake. THE CALL believes in
case we fail In obtaining independent rail-
roads through private parties that we could
| make change in the State constitution and
in the laws SO as to enable US to obtain relief
from the parties who have turned railroads
| and steamship lines against US in order to
enrich themselves. In five years time, could
the inhabitants Of San francisco and the
| State take railroad matters into their own
! hands, We should experience prosperity IN
1 exampled such as we have never witnessed
I'D to The present time San Francisco in
| stead Of having vacant houses, would fill up
with a prosperous people; manufactures
would be established aud our population
would number 100000 In ten years the
city would contain 100000 and be one OF the
| most prosperous towns on the continent
| Our products would be taken to market a
reasonable rates and our supplies would
come by sea and by land at such freight
charges as would be satisfactory. After
all, what is twenty millions of dollars FOL
the city and State to expend in works of in
ternal improvements? Ii San francisco
should expend such sum it would not b(
any more in proportion than ST. Louis citl
and county expended upon her Macdougal
roads With such a system Of railroads
devised the value OF property in the city and
State would at once advance. In San Fran
cisco the increased population would bring
increased wealth on which to levy taxes
There is no doubt whatever that the add
tional population and the wealth it would
bring would pay for our railroads. 1t may
be said that Stanford and Huntington
stand in the way Of improvements, and 81
they do, but with convention of tht
people called together representing ever
interest in California, with the manifest
ton OF a determination to take care o
themselves, these men would not block tn
way Of progress for much length Of time
They would step aside and transfer their in
terests to the representatives of the new
order of things. who would reduce freigh
and fares speedily. Neither San Francisc
nor the State of California Is ia debt, henc'
there opens such an opportunity for enter
prise as would speedily make this one o
great cities of the Union, and California
would not be pointed to as one of the natu
rally rich States by nature, whose oppor
tunities had been neglected by its inhabi
tants.