The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1892-08-04
ANOTHER OF THEN.


1t is observed that another company has
been organized for the purpose Of building
railway from San Francisco esgitward,
Denver 10 be tho eastern terminus of the
line. It is San Francisco corporation,
and considerable sum, it is said, has al
ready been subscribed. The next announce
ment will probably be that engineers are
in the field. This win be followed
by periodical statements OF the progress Of
the undertaking. and year hence, If the
scheme has not passed entirely from the
memory of the people, the few who recoi-
lect il will wonder what has become of the
enterprise.
The HERALD is frank to say that 1t does
not believe there will be a second line of
railway between this city and San Fran
cisco within q decade, and also that the
companies organized for building such
road are paper affairs and nothing more.
We might as well LOOK at matters intelli-
gently, and not try to blind our eyes TO the
true status Of things. Years ago there was
q mania for building railroads. A good
talker, with q very few facts to support
him. found little difficulty in enlisting cap
ital in railroad building, the result being
that not a few American railways
are today being operated by receivers ap-
pointed by the courts, while many others
are barely paying running expenses. Out
side of g comparatively few lines, railroad
property is by no means inviting as an in
yestment Today it requires something
more substantial than talk to induce the
capitalist to put money into a railway en-
terprlse. The man wants to make reason
ably certain that the road when completed
viii be remunerative. He wants to
know that the country traversed
will develop freight and passenger
business sufficient TO pay interest
on his investments. He doesn't take
the word OF the irresponsible boomer or
the enthusiastic promoter, but either goes
himself, or sends persons in whom he has
confidence, over the proposed line to
learn jast what are the resources
and prospects of the country. There is
no lack of money with which to build
roads. There has never been a time when
there was more idle cash in the country, or
when men OF wealth were more eager for
~ % N@-4OAto- al eACS W1AS - ~ 10 SGeAo-
fed that their money will be reasonably
safe. II is just this satisfaction which we
don't believe can be given as regards
railroad between Salt Lake and San Fran
cisco, hence our disbelief in any Of the pro
iects for building such a road. We all
know that the existing line is anything but
profitable, notwithstanding it has all the
business and charges rates against which
all along the line ana at either end vigor-
ously protest. Indeed it is the eKorbitant
charges by the Central Pacific which give
birth to so many Of the schemes for
competing lines. If the Central Pacific,
with all the business. is not a paying insti-
tuition, as it certainly is not. how could two
roads make money by dividing the trsfficl
The promoters say that is none Of our con-
Germ, IL the competing road shall be built,
Gnd that may be true, but the trouble is,
capitalists understand the situation quite
as well as do the boomers, and are not
building the road.
We regard the latest San Francisco cor
poration as meaning no more than its many
predecessors have meant, which is nothing.