The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-27

ent, competing highway. That can be done
by such popular subscription to its stock
as will make it unnecessary to issue bonds,
and leave no opening for Huntington
raid upon the control.
The Examiner offers its services in Sc
curing such a subscription. On the first
page of this issue will be found blank to
be filled out for any number of shares, from
one upward. Tomorrow arrangements
will be made by which persons unable to
subscribe individually for as much as one
share may club together When subscrip-
tions to the amount of $4,000 have been
received through this office the Examiner
will add $1,000 to them, and it will keep up
this proper ton until further notice.
Let us have the first $40, 600 to-day. The
entire amount needed to complete the road
could be taken from deposits in the savings
and other banks of this city and never be
missed. The sooner it is applied to the
construction of the competing road the
sooner business will revive and the greater
will be the earning power Of the money
remaining.
Although the San Joaquin Valley Rail-
road is not expected to be operated exclu-
sively for the direct profit of its stockhold-
ers, an investment in its stock can hardly
fail to be at least as profitable as savings
bank deposit. In most American railroads
the elements of security and of profit are
separated. The bonds represent security,
and, although they pay only low rate of
interest, which no business prosperity can
increase, they sell, in the case of most
well-managed roads, at par or above it,
The stock represents the chance of profit,
and, although almost the entire value of
the road is generally covered by the bonds,
whose interest must be paid before any
dividends can be declared, the shares are
often quoted at high figures.
In the case of the valley road, if built on
a cash basis, security and speculative value
will be united. The stock will be as safe
as first mortgage bonds, because it will be
entitled to the first returns from the busi-
ness above operating expenses and, at the
same time, it will have all the chances of
unusual profit that make Lackawanna stock
sell above 1853, in spite of the existence of
debt of over $55, 100000.
The only thing that stands in the way of
extraordinary dividends on the stock of
the San Joaquin Valley line is the policy
of the company, which is that of reducing
rates whenever possible, for the purpose of
promoting the general prosperity, instead
of charging all the traffic will bear. There
are not likely to be any 10, II or Is per
cent dividends, for the simple reason that
the policy of the stockholders will be to
gain their returns in another way. But
that there will be good. substantial profits
sufficient to make the shares of the new
line a gilt-edge investment, irrespective
of other considerations, hardly admits of
doubt.
Although there is every reason to sup
pose that the stockholders will draw good
dividends from their ivestments, we do
not urge subscriptions entirely on that
ground. The new line is to be weapon
for the emancipation of San Francisco, and
it is not to be kept in glass case. The
stockholders ought to be men who would
not be afraid to go into fight, if one
should be necessary, even at the cost of a
emporary loss of direct profits. They