The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-05-09
AN UNFORTUNATE LAPSE.

The San Francisco and San Joaquin Val
ley Railroad has been all along regarded
as peoples railroad-a measure of relief
which the people of California greatly de-
sired. This idea found expression in the
last Legislature, which took uncommon
pains to recognize and encourage the enter
prise by providing for the leasing of State
lands on the water front of San Francisco
for the terminal uses of the road.
The Hibernia Bank, animated by patri-
otto desire to aid the people in the build
ing of an opposition road, and being pro-
hibited by its articles of incorporation
from subscribing for shares, made direct
donation of $50, 900 to the enterprise. The
construction of this road from its very in
ception has been aided and encouraged by
the true friends of the people, and the
leaders in its promotion have been re-
garded as the truest friends of California
Hence any movement or act which now
retards the speedy completion of the road
is in direct violation of the will of the peo-
pie, and will be construed as favoring the
Southern Pacific Company in holding its
grasp upon the industries of the State.
Whatever may be the explanation made
by the members of the Harbor Commits
sion, the fact remains that the Board of
Directors of the Valley road has decided
that the lease under the present restrictions
would be of no value.
Capital is an imperious power, and can
require that the terms under which it is
invested are such as will give it reasonable
protection. In this aspect of the case it is
clear that under the terms of the lease now
offered by the Harbor Commission it
would be impossible to sell bonds on the
road, and that the lease is violative of the
wishes of the people, and should not for a
moment stand.
Men Entrusted with the administration
of affairs which bear so vital a relation to
the welfare of the people are charged by
the very functions of their Office with a
broad knowledge of financial and indus
trial affairs. They should know the con-
ditions on which capital may be employed
in the promotion of the public welfare
with reasonable protection to itself.
The Harbor Commission might exhibit
this proper understanding by correcting
the terms of the lease so as to assist the
promoters of the road in the floating of
bonds. The bonding of such property,
as the merest tyro in finance is aware, is
a mortgaging of the property, and the
average citizen requires no enlightenment
on the meaning of mortgage.
The safeguards already provided, with
out reference to the terms of the lease, and
wholly independent of them. are sufficient
TO make it impossible that the property
oh Fol ;pfo @6o 10 81 e
the people.
The lease should make it possible for
bonds to be foated without leaving room
for the smallest doubt on the score of
their validity. 1t is not sufficient to say
that the Harbor Commissioners are favor
able to the Valley Railroad. 1t will not do
to claim that the restrictions which they
are seeking to impose are simply to pro-
tect the people and prevent the final trans
fer of the Valley road to the Southern
Pacific Company.
1t is well known that the stock has been
pooled for period of ten years and that
an agreement has been entered into where
by the freights and fares charged shall be
no higher than will net a revenue of per
cent on the actual cost of the construction
and equipment of the road.
The fact cannot be overlooked that the
moment the new road was given life by the
generous subscription of Mr.. Claus Spreck-
els, quickly followed by the support of
other brave and generous men, the people
of the entire State sounded their praises on
every hand, expressing thereby and other
wise sentiment which those in authority
could not do better than heed.