The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-12-03

The death Of Jay Gould will greatly per-
turb American railroad securities. not only
on every exchange in America itself but
abroad. The reason is the personality
which is imported into American railroad
management People talk of Vanderbilrs
lines. or Gould's lines. Russell Sage's lines
and Huntington's lines. A hundred dol
lars of stock in addition to one-half gives
these men what is termed control of the
railways. They appoint their own man
ayers and superintend cuts; they receive
the reports first hand which should 90 to
every investor who has dollar in the ven
ture, but which do not; they declare tie
dividends and manipulate sales in the stock
market; they make the bargains with other
railroads; and, generally speaking they act
vigorously for the minority Of sharehold-
ers. Neither the State government nor the
Federal power has much control over a 90
ahead railroad. So the power of the cap
italist. the operator, like Jay Gould, is felt
from end to end OF the country, and the
mutterings and threatenings of the Govern
ment are not needed. We shall reform
these things some day.
Curiously in contrast with the personality
OF American railroad management is the Eng
lish system of strong Government control
Several other European nations are strin-
gent. Thirty pounds Of rye can be carried
in Germany for one cent, against 40 cents
in California. The explanation is that the
state does not allow people WHO obtain
franchises at the public expense TO do as
they please. They are checked and kept in
subordination, however exalted or pure
their intentions. A large number Of the
railroads In Germany, France, Belgium and
Holland are owned by the state, and the
regulation of traffic is well worked for the
public benefit. In England there is no
state ownership. but there is a very effect
i've state control. No company can exceed
its powers as granted by at of Parliament
1t cannot get beyond its authorized capital;
Ii cannot buy land or privileges which il is
not authorized to buy; IL cannot concoet
accounts; it must publish accounts in stp-
ulated form every half year; its meetings
Of stockholders must be public, and the
directors are subject to questions.
When the chairman of an English COM
pany dies there is no upheaval Of invest
ments. He is much less OF a factor than a
general manager OF traffic or a locomotive
superintendent. Generally speaking a chair
man has only moderate interest In his
railroad. He has certainly not a predom-
inant interest. His salary is only moderate
His railroad passes would hardly influence
man of honor. His elevation in station
as chairman OF great railroad interest
probably does stimulate his ambition. Blu,
that II all. The accounting in the English
railroad system is such that at the present
day no board OF directors can stray out
OF the strict path OF Tectitude. There is
less dependence upon the stock exchange
than upon the honest earnings of the rail-
road itself The chairman of the London
and North western, which has a capital of
over one hundred millions sterling, Is not 50
very much more important than the share
holder who holds thousand pounds of
stock. Officers Of all kinds are permanent
during good behavior. under the English
system. ana the notion OF a Jay Gould
shaking the railroad fabric is impossible
1t would have been an interesting lesson
IN municipal economy had every taxpayer
yesterday taken promenade along Kearny
street 1t was one Of the prettiest sights
in municipal mismanagement ever seen in
civilized city. A sewer broke down at the
crossing from Bush street and all traffic was
interrupted. People laughed as they looked
on at the wreck and passed expletive COM
pliments about the Board OF Supervisors.
the Street Superintendent, contractors and
every body who could have lad a hand i'm
the job that ended in this way. But else
where along keaIny street matters were
not much better. The Inequalities of pave
ment are beyond description. Pools OF
water lie 10 ruts measured by the yard. To
cross the street requires care, and much Of
IL. Rubber-ciad pedestrians may swim
through the mess successfully, but what n
And so with many other streets The
Street Superintendent deyotes himself TO
new streets. He never gives a moments
attention TO old streets Ia need of repair or
cleaning. All this Is as it should not be.
The expert railroad thief is making ad-
yances. lie has sufficient distinction al
ready, but he no doubt hopes 10 make his
name still better known. The latest device
is to break the seal of bank packets and to
substitute brown paper for the precious
notes abstracted. This trick has been per-
formed In two Instances In the East, and
Tor large amounts too. Ingenuity will have
20 devise some means Of oyerreaching this
knayery. Seals and envelopes will have to
De suppianted Dy something more rronclad
II Is difficult even TO give hint as to what
should be done. But the time is at hand
when more men must be employed In the
transportation business. Want of security
ID rulnous to the transportation, and that is
what now affiicts all transcon tine tai trans.