The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-05-29
AT LAST.

From the day when the Central Pacific
Company defeated the purpose of Congress
TO establish a competing transcontineBtal
line by constructing the Southern Pacific
Itself and making it part of its own system,
there never has been time when the Cali
fOrnia people have not clam0red for a line
which would really compete; but until now
there never has been a time when the
cIamCr promised 10 lead to practical re-
suits. Now it rests on a substantial f0unda-
ton Of fact. The men who are at he head
of the new enterprise are men Of means and
men who usually mean what they say
They have not been in the habit Of allow
ing their names to be used to float visionary
schemes. When Trey say that they think
they can see their way TO build a road from
San Francisco to Salt Lake City they are
entitled 20 be believed.
The I'VE trustees who have been chosen
for tie first year are Alvinza Hayward. E.
l. 6. Steele, Daniel Meyer William Bah
cock and E. F. Preston. Behind these il is
an open secret that thirty persons Of wealth
have agreed 10 stand, ana it has been
roughly estimated that their aggregate
means-chielly invested in land and city
real estate-amounts to not less than $780,
100000 They argue that the opening Of a
new competing line TO the East would add
at least 10 per cent to the value of their
property; thus they can afford to build the
road even though every dollar they put in
il were sunk.
The construction account Of the Southern
Pacific Company furnishes no clew to the
probable cost of parallel road Tie Gen.
trail Pacific was built at a time when prices
were inflated. For material the subsidized
company paid probably three times as much
as anew road would have to pay. It's peculiar
financial methods shrouded its expenditures
in impenetrable mystery. The directors of
the railroad contracted with themselves as
a finance and construction company to do
the building, and it has been generally be-
lieved that for every dollar actually ex-
pended in construction the railr0sd COM
pany paid two or three dollars IN bonds
and threw in the stock as bonus. Hence
the reports of the cost Of the road are value
less as data upon which new corporations
could be based.
1t has been roughly estimated that new
line from the bay Of San Francisco to Salt
Lake could be built for about $4,000 a mile.
In the mountains the track would eost more.
but in the valleys and on the plateau be-
tween The bay and the Sierra, and on the
other side Of the grand divide it would cost
less, so that the average might prove TO be
not over the sum named, The advantage
of a competing line is so obvious that the
new company would probably not be heavily
mulcted for right Of way. By the Central
Pacific the distance from the bay to Ogden
is 833 miles. Since the surveys Of 1662-G4
were made, surveyors have gone over the
ground more carefully than their predeces-
n ard ic halipWad that linz
can be traced between these points which
would be less than 800 miles long Calling
it 500 miles long, aDd assumingthat it would
cost $50, eco a mile, the whole enterprise
could lie completed for Sl60OO,O0O. which,
assuming the bonded issue to be SIS, 900, eco,
would leave $4,000. 600 for equipment and
betterments.
Some Of the promoters advocate that tie
whole OF the money required should be
raised on this coast. There would be an ad-
vantage in having the ownership here; but
if it we're not found easy to raise the sum
needed on this side of the range, there
would be no difficulty in raising two-thirds
Of the money 10 the East, if the other third
were subscribed here. A per cent bond,
limited to $4,000 a mile, on a road which
was a reality, and had a good prospect of
business, would be popular investment.
The Nanderbiits or the Rock Island people
or the Burlington people would take the
issue, for the purpose Of establishing close
connections with the road. 1t might be
a happy thought for the promoters Of the
new enterprise TO appeal to men Of small
means by opening popular subscription TO
$50 bonds. There is a vast amount Of
money in savings banks which is drawing
less than per cent. This money is owned
by people whose success in life has been re-
tarded by the rapacity of the Southern
Pacific. 1t is quite possible that if an ap-
zeal were made 10 them by men Of character
and standing. who gave proof Of their faith
in the enterprise by liberal personal sub
scriDtions, it might draw out small contrbu-
tions which in the aggregate would build a
good many miles of road.