The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1893-03-02
FAILURE OF THE SALT LAKE
RAILROAD SCHEME.

A number of wealthy citizens conceived
the idea some months ago of building a
railroad from San Francisco to Salt Lake
City to establish new and competing
transcontinental line. In theprosecution
of the enterprise, as the surveys pro-
crossed, it became necessary to incorpor-
ate the company for the line to Stock ton
in order to secure certain rights of way.
1t became also necessary to incorporate
for the construction of certain subsidiary
lines essential to the vitality of the trunk
or main line and to form distinct corpora
tons for the State of Nevada and the Ter
Titory of Utah, as the line must pass
through one and into the other.
1t then became apparent that in order
TO go into the financial market and secure
money with which to carry on construc-
ton and equip the line these several COM
panies should be consolidated under one
control, and that without it the security
capital needed.
1t was resolved, therefore, to CONSOLE
date under the laws of California, when it
was discovered that the State statutes for
bid such consolidation. In this strait the
projectors appealed to the Legislature to
so amend the laws as to permit of such
consolidation of home and foreign cor
porations, all being organized for COM
mon purpose.
Assuming that the Legislature would
consent to this essentially necessary
change in the law, contract was entered
into between the projectors representing
the subdivisions of the scheme, under
which they would be so mutually and
generally bound, that the whole line OF
the road and all its feeder lines both in
and out of the State could be offered as
security for the needed loans, and to that
end Board of Trustees was created to
represent the enterprise proposed to be
consolidated.
The bill necessary to the scheme, and
which would permit it to go into the
market for loan of S20,O0O,OO0, was intro
duced into the houses of the Legislature
it being assumed that it would pass mem
con. But at this juncture the San Fran,
cisco Traffic Association thought it dis
covered in the bill a joker, and charged
that the measure emanated from the
Southern Pacific Railroad Company, il
order to enable it to consolidate its Ari
iona and California lines, and thus tax,
the California road from State jurisdiction
and control.
Though it was soon shown that no ex
listing railroad had procured the introduc
tion of the bill, or knew anything abou
It. the Traffic Association continued Il
assail it. Legal advice of the first orde
was given that the bill could not have tn
effect which the Traffic Association as
aside and the opposition to the bill re
newed, and the measure so obstructe'
and endangered that the projectors of th
new road, after expanding $4,000, con
tributed by forty-three signers, in sur
veys and counsel fees, have abandonec
the whole scheme; the Executive Com
mittee has adjourned sine die, the record
of the company been bundled up AM
packed away, and the Secretary of tn
CORPORATION with an expression of bite
disgust is about to depart for the Yves
indies on visit, declaring that the en-
terprise has been killed by its repute
friends. For all which we have the au
thority of san Francisco morning paper
1t is no more than was anticipated whe
the Traffic Association assumed an att
tude of antagonism towards the propose
measure. The building of the competin
road we have repeatedly said was mo:
desirable for the people OF the State, an
the capitalists of San Francisco wei
urped by this journal to invest in th
scheme and carry it forward. At ii
same time the fear was expressed tn;
+he very men in San Francisco who ha
an much boosted of the energy of ii
merchants of the metropolis, and OF the
tsr-seeing and enterprise. would ia