The morning call., 1893-09-08

NIL ptcSlu6Db VI lu0 dSSOCld-
ton, also remarked on this point: "Of
course there has been a very slight drop
ping off through firms going out of busi-
ness or deaths. but these have been quite
fully made up. The Withdrawals have
only been from that cause, and they do
not number more than four or five"
"1here have been no cases of sedition
or defection?"
Mr.. Leeds-We have had no Withdrawals,
absolutely none in the sense of falling
down. We have kept our mem bership and
hope to increase it.
How DO your funds keep MP? Presume
yon are not rolling in wealth."
Mr.. Leeds-If we had more funds we could
strike ahead in larger operations, but still
we are In good standing and there is not
the slightest ground for apprehension that
we are going 10 dissolve or die by inani-
ton.
"What about the North American Nav-
cation Company and its contract with the
Panama Railroad COmpany?"
Whatever happens, do not believe that
it is possible ever TO put the Panama route
back into the hands If the Pacific Mail
Company. In fact l have reason to
know that the Panama Company will
never DO that. What our relations will be
after the contract expires has never been
discussed. The contract will expire next
Nav"
is there any intention to withdraw the
service?"
The Panama Railroad Company has
fully made up its mind to see that a COM
pettive line is maintained by the isthmus
route for California business. 1t will
never return to the old style of doing
business. General Newton, the president,
Will never be party to a contract which
makes the Panama Railroad a subsidized
line committed 20 one interest"
Robert Watt. first vice-president of the
min ffn.A lie .NN,
ances on this vital matter. The difficulty
is that nobody can quite speak for another
commercial corporation. '1f," said Mr..
Watt. "the contract nf the North American
Navigation Company is not renewed. then
think the Panama Railroad Company
would make other arrangements 10 con-
tiDue competition. | think it would oper-
ate line of steamers itself as a compelI-
tor for traffic. The company already
has the steamers of the Colon line, and all
it would need to do would be to take up
the charters of the steamers now running
on this side"
Suppose we 60 back to the San JOAQUIN
Valley Railroad and its prospects. You
want S350.000 as a minimum fund with
which TO commence in earnest. viii you
start construction with that amount?"
Mr.. Lpeds-With that amount the rail
road company would oe Incorporated.
We, as the Traffic Association, cannot
W nbilN TIE pOilCy Oh lu6 rail-
road company after Ii has been incor-
Dorated. As soon as that event takes place
the Traffic Association. s an organization,
ceases to be the director of the policy. The
own organization carries for
ward the policy, but there is no doubt that
the policy of the Traffic Association would
be the animating principle of the company.
Yes, think we would break ground with
S350,OO0 in hand. Why. that amount of
money would build twenty-five miles of
road without running in debt for any
thing"
How do you think the San Josqnin Val
ley will help you?"
II should think the right of way Is ab-
solutely secure. We have had every en-
to believe shat we shall have
gifts of the right of way to a considerable
extent or course. you cannot build go
miles Of railroad without finding some
parties disposed to obtain all they can.
We have not encountered any opposition
from the Southern Pacific in acquiring
rights. The project has not gone far
enough to develop that sort of dog-in-the
mang-r policy"
what amount in promises IF subscrip-
tions have you got from the San Joaquin
Valley?"
Their promises have been general
They say. in fact. We will do our share
We have had that assurance repeatedly
from various portions of he valley, but
they say it depends first of all
upon San Francisco to demonstrate its de-
sire for the road. We must in this city
take he initiative"
''DO you propose to raise all the s350,0OO
here?"
81 think we can get some share of that
amount in the valley, and for that reason.
The people of the valley would like to
have some share. because it is desirable
they should have proper representation in
the Inanapnmpnf Of altar in
corporation. The first subscribers will
name the board of directors and trustees,
aud in fact complete the organization, so
til at it would be to their interest to sub
scribe portion Of the money on which or
ganiZatiNn is effected"
IF you are successful and get this valley
road opened for traffic what are your In
tentiOns as to the rest OF California q"
IF We once had the San Joaquin Valley
Railroad completed there is no doubt in
nv mind that the construction of other
local roads in the State wauld follow
aye, rapidly follow. Ny judgment is that
this would inaugurate "A big programme of
railroad construction by the people of this
State. L know the results wuld be such as
to justify energetic pushing ahead of local
roads in connection with the advantages
conferred by the srabOard. People would
see at once the beneficial char cter of a
road on our plan. 1t is an absolutely nom
speculative road and would be good in
vestment, returning good dividends and
paying all interest charges upon legiti-
mate ca apitalization.
The cost will not exceed $4,000 per
mile ?'
The authorized capital stock -author-
Zed, mind you-might carry the capital to
more than 5000 per mile, but the actual
stock issued and bonds besides wou uld be
less than $50 000O."
IF you were to place bonds in Europe
that ought to have good effect?"
II think it would be the smallest capital
iZatlon of any road of like character in the
country, and that ought to give confidence
to investors. There is in fact no risk at all
in imaking this road. To show what the
Southern Pacific does in this valley 1t not
only draws out of the State money to sup
port capitalization of $4,000 TO 100000
per mile, but il actually takes out Of the
San Joaquin Valley earnings enough to
pay interest on a long stretch of track
through desert which produces nothing
Now, the San joaquin Valley road would
have not a mile OF track which did not
pass through country yielding traffic. We
shall have no desert and no drain upon
our resources. All our route is profitable.
The probability is that the Southern Pa
cific Company is taking an annual revenue
out or the San Joaquin Valley of S..
zoo n00 -