The herald., 1895-03-18
THE SALT LAKE ROAD
s. b. GORDON

To the Editor of The Herald Although
the Legislature has denied to the people of
Los Angeles county the authority of how
to determine the amount of their several
contributions to the building of the Los
Angeles and Salt Lake Railroad. there re-
mains to them still the right of voluntary
concerted action. whereby they may effect
this purpose, so important to all southern
California. Their financial resources are
ample and are the same whether appealed
to under the proposed and defeated law or
by individual voluntary subscription. The
plan of voluntary subscription cannot sue
coed unless you can satisfy the subscribers
not only that there will be no loss to
them or their subscriptions, but that
there will be a reasonable and permanent
income on the amounts they shall invest
in the building of the road. This propo-
stion of no loss and a reasonable income
is true. and therefore the people along the
line of the road from Salt Lake to the sea.
board can be convinced of its truth and
will therefore respond with subscriptions
to the capital stock in moderate sums in
dividually, but aggregating enough to
build a considerable strip of the road
from each end. When this is done capital
all over the country seeking investmen6
can he successfully appealed to by the
same argument used to secure subscrip-
tons along the line of the road-that is,
that the capital stock of the road is but
a safe investment and also a reasonably
profitable investment. Public spirit added
to the financial argument will get the
local subscriptions to start the work and
push it far enough to demonstrate our
own faith in its merits, and that it is Il
living reality in actual process of con-
struction. This latter consideration will
operate to secure outside capital to finish
the road, the same as public spirit did to
initiate the work.
But all this can be done in only one
way, and that is on plan that assumes
as its basis that the project is a meritor
ious one, capable of filling the promise
that our investment in it is safe and
profitable. If the road is built for spot
cash for all labor and material and its
building and management are character
lied by business prudence, such as sue
cessful men give to their private affairs.
the capital stock will pay yearly income
of at least & per cent as regularly as the
seasons and as long as grass grows and
water runs; such stock will be as sure and
safe as United States Government
bond, and will sell for its par value.
These fundamental and Interchangeable
terms must therefore be incorporated in
the organization that is to issue the stock
and build the road; First, that no indebt-
edneSs is to be incurred, but that all its |
operations are TO be for ready cash. and,
second, that the stockholders alone will !
own the road and all its belongings, free |
from incum brances and from all prior |
claims-that is. that no mortgage or other
lien is to be placed on it or any preferred |
stock issued. The stockholders are to be |
and to continue the sole owners.
When urging the Legislature to author
ize the county to build the road. we
represented, and truthfully, that it |
would be profitable investment for the |
county. and on that basis alone we asked
the needed authority to proceed by law.
Being refused. let intelligent voluntary
cooperation, based on business consider
atoms and conducted on business meth |
DDS, supply the lack of this pr posed law |
and accomplish the same purpose.