The morning call., 1893-08-31
1t Is Used to Knife the
New Railroad.
CALUrlNY THE FOES POLICY
Efforts rlade by Southern Pacific
EmissarieS to Retard the
Valley Line.

and President Barry Baldwin, Robert
Watt and Traffic Manager Leeds have
been appointed a committee to devise
some definite programme and report at the
next meeting.
The executive committee by its action
recognized competition as the proper
method to employ to secure desired con-
dtions, and that forward steps shall be
taken as early as possible aud practicable.
1t was pointed out that competition has
already saved the State of California, since
it was Instituted through the agency Of
the Traffic Association, from $4,000. 900 10
S5,000,000. taking different estimates. and
that the people of the State already have
this money in pocket, as the result of en-
terprise on their part 1t was also pointed
out that the work of the Traffic AssOcia-
UiOn, 10 date, has resulted in the accom-
plishment OF mora than appeared possible
at the outset. The TranscoDtinental As
sociatlon has been crushed. The subsidy
to the Pacific Mail. given for the purpose
of corking up the Golden Gate. has not only
been done away with, but, in addition, a
competitive through line has been substi-
tuted for the Pacific Mail on both sides Of
the lsthmus. 1t was also said that the
work has only fairly begun.
Meanwhile enemies Of the Traffic AsSo-
citation are busy. They are circulating a
story to the effect that The North American
Navigation Company will soon 60 out Of
existence, although the best authorities are
unanimous in the statement that the
organization Is in the best possible condi-
tion and that its future is bright with
promise.
Following closely in the same channel
with the intent of the foregoing absurd
report comes an article in a weekly publi-
TX Z to 4
the big office at the corner of Fourth and
Townsend streets. is so nearly in line with
the opinions of the powers that be" in
that building as to give plausibility TO the
thought that it received inspiration from
that source.
lowing, which looks very friendly upon its
face. but in reality is a covert thrust at
the proposed new railroad:
The merchants of this city have accomplished
great deal of late in the way OF cheapening
transportation TO and from the East. Rates by
rail- have fallen as the clipper lines have ln-
creased and The business of The North Ameri-
eau Navigation Company has DrOSpered. Man
ager Leeds, President Baldwin and the members
OF the irafnc Association now seek new worlds
10 conquer and look toward the fertile San
Joaquin Valley as the Sceue OF future combat
for cheap freiehts. They believe railroad is
the only feasible plan. o raise the necessary
finds 10 construct an opposition road will be
no light task, particularly with foreign bond
holders prejudced in advance against the
scheme ana at such an uDfayOrable time, flaD-
ciaily. as the present.
With so many obstacles In the way 1t Is evil
dent that II will be some years before the line
lief can be given To a part of that valley and to
great part OF the Sacramento Valley that Will
be immediate and effective.
Discussing that particular part of the
foregoing relative to the attitude of for
eign bondholders, Traffic Manager Leeds
m u hn cd
his after tion to the matter:
80 far as the bonds are concerned there
ought 10 be enough interest manifested in
the enterprise in this city and the country
through which 1t is proposed to extend the
road TO cause the absorption of the bonds
when they are issued without an appeal
for foreign aid. We can certainly demon
strate the fact that we can put on the
market a better piece of paper than has
ever been issued by anv road in Cali
forDia, because it will represent some
thing like the intrinsic value of property.
Il don't believe foreign bondhOlders are
pTeJudiced. Legitimate enterprises are
not usually prejudiced by foreign capital
lists any moro than by those at home.
Such stories are circulated for the purpose
of intimidating the incorporators who are
carer home.
Investors as a rule make up their minds
as to the value of a security when il is
DO know nothing about the value OF San
Joaquin Valley railroad bonds, for the
simple reason that they have not been
offered for SALE"
The prophecy of years of delay Is simply
thrown in AS another stab at the proposed
road; IN fact the entire tenor Of the article,
while appearing on its face TO be friendly
to the proposition, is calculated to diseoar-
age those who are already in the move
meut and deter those who may contem-
plate entering.
The portion of the article devO ed to the
advocacy of river transportation also con-
talns drive at the Traffic Association:
To the rival steamboat lines on the San Joa.
guin, between Stockton and this port, Manager
Leeds has called atteliion by espousing Inc
cause I OF tne new conner against The old line: the
maintained in the State against The railroads.
That and nothing more.
Inls refers to the action OF the associa-
tion in regard TO the landings. Mr.. Leeds
sald that the same action would. have been
taken by the association had iJ been pro-
posed 10 remove the old line instead of the
new: Ihe statement furthermore, Mr..
Leeds said, confirms the position that the
railroads nave made as much use of the
waterways already nayigable as anybody
else, and which he speaks of further along.
The article referred to is in the main de-
voted to an attempt TO prove the pre-emi-
hVhe uoo'i aollies VI DpculnR uD new wafer
ways and improving those at present
navisabls at the expense of any projected
railroad enterprises. As TO the river
transportation side Of the question Mr..
Leeds had this to say:
I'VE have now a river naviga BILE the year
round from here TO Sacramento and the
BAY OF San Francisco Is also open for the
greater portion OF that time to outlying
territory. The San Joaquin river is also
to he taken into consideration. As it Is.
the people of California have not made use
of the facilities we already have, with the
exception of the existing competition be-
tween here and Stockton. If We extend
river improvements what assurance have
we that they would be used? A competi-
live railroad would necessarily be operated.
Ii we study the experience of other coup-
tries where competing roads have been
built we will find that development almost
invariably resulted. 80 far as transporta
ton affected ii.
However, the San Joaquin Railroad
will not Interfere with river and harbor
improvements. Ii the Government can be