The morning call., 1893-09-08
WHAT IS CALIFORNIA; NEED :?
Local Competing RaiIroads--The San Joaquin Pro-
ject--A Genuine and Safe Enterprise.

for permanent sta bility and Advancement?
put the question to j. 5. Leeds OF the
Traffic Association-the man who has
shown San Francisco the way out Of the
wood In which she has so long wandered
Without hesitation, but placing due en-
pbasis on permanent as distinguished from
casual wants, such as overcoming financial
distrust he declared that local railroads on
a genuine competitive basis are essentials of
progress desirable above all else.
"Let California have local railroads and
open seaports and she has command of the
whole transportation problem against all
the overland railroads If the con tinent.
They can no longer dictate, but will them
selves be controlled
Well, the sea routes are free. The boom
which was stretched across San Francisco
harbor by the Southern Pacific has been
broken. Freight by Panama now enters
without obeyng The restrictions of the
Trauscontnental Association. The Pa
cifc Mail subsidy is no longer paid. The
clipper service round the Horn is reality.
Goods are brought from the East OF Europe
at moderate rates, and California has
some advantages in return trade. But in
ternal distribution from the coast to the
valleys Of California, and from those val
Ieys to the coast, as well as distribution
over the States and Territories which are
legitimately associated with California as
their base, has yet to come comparatively.
The com pletiOn of this link in the chain of
commercial communication which the
Traffic Association has undertaken to es-
tablIsh is the one thing which every one
should keep in view who desires to see this
state get out OF its backwardness in pOpu-
latlOn, pToductiveneSS and thrift.
What stands in the WaV? Simply. aS
an initiative step, the subscription of
$3.50, ,000 on which sum the lncorpora ton
of the San Joaquin Valley Railroad may
be made an accomplished fact, and work
on the road actually commenced.
With that mite of capital-abouta dollar
per head Of the population of San Fran
ciscO-twenty-tive miles of the road could
be built aud equipped, aud the earnings OF
year might give the engineers further
work. That community which must
profit so much from the enterprise should
not already have The contractors busy is
passing strange, but there are reasons.
The road will be built, but the financial
cloud which has hung SO long over busI-
ness is only lifting. and the Traffic ASso-
clatOn is rightly determined TO he sure of
its ground before proceeding. Meanwhile
the Southern Pacific, which fears this pro-
3ect beyond any ever mOOted having. in
1aCt, no positive aversion to any over
capitalized overland road manipulated Ike
itself ana sWaddled in bon1s-Is pTactlcing
ali the arts which make for defeat. 1t IS
doing its best TO divide men, knowing that
disunion Is weakness. Ii has a cohOrt Of
touts, spies and hangers on lnsldlOusly
plotting and trailing red herrlDgs across
the commOn-sense path Of action. 1t has
venal press to preach sedition, pr0phesy
failure and manufacture sneers.
1t has long acquired skill In the pressure
IF coercion and has a full sack for emer-
gencies OF persuasion. But thus far its
sinister efforts are vain. II has not nrok en-
up the Traffic ssociatiOn nor its creation,
the American Navigation Company, and
the revolt Of the people of Oakland shows
that the masses are not pawns on a chess
board. though some of their representa-
tives may be captive knights.
Mir. Leeds put the matter very simply
for the San Joaquin Valley Railroad as an
investment returning fair interest upon
capital and continuing frst-class
property
Here he remarked. "are the gross
earnings of the SOut ern Pacific ayStem
for the Pacific Coast in 1892 S35, ,474. 124 30.
That's 1t precisely-just about $50, ,000. 600.
In 1891 the gross earnings on 349S miles on
this coast, including the Central Pacific
but emitting Oregon and Arizona. were
S31, ,555. ZIG, being S9021 per mile. We are,
therefore, in the position of contributing
for transportation in this State $50 for
each man, woman ana child. The railroad
nary. The Capitalization of those 3498
miles OF road in bonds and capital
stock is 500, $3.50 90 per mile, or
1924 926, ,4S0. Ii you leave the Southern
Pacific out. the capitalization of 2138 miles
is S7S. .543 IS per mile. or "A total of S167,-
926. $50. What sort of fair play IS it to take
$4,000 per mile TO paw interest on railroads
overcapitaiZed at this mOnstrous rate
When we make our road in the San Joa-
quin Valley for less than $4,000 per mile
we shall pay our way on very modest
traffic return"
''Y ou are not yet in a position 10 CON-
mence operations"
There probably is difference of opiu-
ion on the part of the inhabitan is Of San
Francisco as to the situation. The South
ern Pacific has striven 10 produce cou-
fusion and is irving 10 divide u.s. We
must not allow ourselves to be set back.
/ am endeayoring to keep our people on
certain lines. In the report which have
drawn up under the instructions of a COM
mittee appointed the other day, | showed
that competition is the winning plan upon
which to work, and Is the most vulnerable
point of attack upon the monopoly. Keep
ing competition in view, this association
has broken uD the Transcontiu nta!
Association, and has ended the sub
sidy to the Pacific Mail Company.
which was paid by the transcontinental
railroads 10 keep the Panama route closed
as a competitor. In addition 10 this we
got line of clipper ships round the Horn.
and traffic by that route has been entirely
successful, bringing goods TO our mer-
chants at a very material reduction.
These are great results. The Pacific Mail
is entirely ousted on the Atlantic side. and
the new line of the North American Navl-
cation Company is running on the Pacific
side. A saving has taken place in over
land rates amounting to several million
dollars. We have demonstrated the value
of competition in overland traffic; the ef-
feet has indeed exceeded the most sanguine
expectations. But we also know that
competition will accomplish much
greater results when brought to bear
on local traffic. and we are now ready to
proceed with our railroad project as soon
as the support we receive will justify our
beginning. This, we hope, will be at an
early date. Another matter dwelt upon in
that report is that tho Railroad Commits
sioners are now nothing more than off,
cials meeting and adjourning to kee D up
the record and draw their salaries. But
the point we make in the present situation
is that vigorous competition is necessary
in the local traffic of this State. That is
absolutely necessary to secure the proper
in efn ont of hAf xuh i0i