The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-06-28

low the plan of the Southern Pacific Com
pany to rob Peter to pay Paul. That road
| is bonded for each mile for double its cost,
and must maintain fixed charges in order
TO pay interest. If this were not the rule
of the company the difference in the fixed
charges on the 700 miles of the Southern
Pacific in the San Joaquin Valley would
| be S693, COO year.
''The Southern Pacific has large mile
age of road that is non-productive. From
| Cotton TO Yuma there might as well be
| bridge, so far as business is concerned. 1t
| is the same above the Sacramento Valley
and in Texas and New Mexico. The loss
must be provided for, and the good portion
of the road must make up for it in in
| creased local charges.
THE excess charged upon the mileage in
the San Joaquin Valley amounts in one
and half years to enough to reproduce
the road and eQuipit.
1.-THE building of the Stockton and
| Bakersfield road is in reality the first step
toward securing another overland line. If
! it pays to run line down the San Joaquin
Valley it will pay to run one in the Sacra-
mento Valley, and the people of that Sec
ton will quickly find it out. When the
latter line is started it will not be long
getting over the range into Utah.
"As l have said, we do not propose to
capitalize the road for more than enough
to accomplish Its construction and equip
ment so that its fixed charges will be at
minimum, the object being to create a
legitimate railroad under legitimate cap
italization, operated on business princi-
plies for the upbulding of the country
through which it runs, as well as for the
benefit and Improvement of the road
itself
The object in beginning the road at
Stockton rather than at some point on the
bay of San Francisco is because a smaller
amount of capital will be needed to begin
work where construction will cost less
money to the mile of road. and every mile
of road after leaving Stockton will pro-
duce an ncome at once.
"a line between this city and Stockton
is not necessity now, because the present
rates are reasonably low and are governed
by water competition. Stockton is great
milling and manufacturing point and the
gate city of the San Joaquin Valley, and
will continue to be the basing point for
rates for the valley in both directions.
"Our plan Is TO secure in this city as
lUuCH llUU6N dS we Can anu ldcu aSh lDt
people of the San Joaquin Valley TO make
up their proportion of the stock. We will
issue stock fully paid up for such subscrip-
items. The entire stock of the company
upon the com Dletion of the road Will be
placed in the hands of board of trustees
for period of at least ten years, subject
to a contract which will insure the main
tenanc e of the road as competitive line
for that length of time.
ut seems almost imperative that the
people of this city and State should as a
matter of self-pTeservation become builders
of railroads. because when the excessive
capitalization of the roads now in the State
is considered it is pretty certain that any
attempt to secure reasonable rates through
them will be resisted by all the power at
their command, and that every possible
effort upon their part viii! be directed to
the perpetuation of the present burden
upon the State 1t appears that the plan
has been 10 sell bonds rather than pursue
legitimate transportation business
1T has been the policy of all the trans
continental lines for many years TO neu-
tralize this seaport by all the means within
their power, one of the most potent of
which has been the maintenance of high
rates between the sea and the interior of
this coast. This has worked a great injury
to the producer and consumer of the in
terror and can only be abated by competi-
ton such as the new road will Afford
The subscription papers of the Stockton
and Bakersfield road will! be sent out this
week and VIII be placed wherever they
can do any good in the city Copies will
also be sent to the towns of the San Joa-
quin Valley, where the banks have agreed
| to take charge of them.
Representatives of the California League
Of Progress have waited upon the Traffic
Association and rendered the services of
| the league in collecting funds for the new
road.
Although the work of securing funds has
not yet commenced those who are pushing
the construction of the new road feel
greatly encouraged by the words of cheer
that are being received from those who
are to be benefited and will aid in making
the enterprise a success.