The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-09
AN IMPORTANT MOVE.

News comes from San Diego that the
Southern Pacific is preparing to build
railroad from that city to Salt Lake, and it
is confirmed by Mayor Carlson of San
Diego to the extent of his declaration that.
while he is not at liberty to tell at present
ali that he knows, there is every prospect
of success in building such a road Mayor
Carlson is known to have been much in
Mr.. Huntington's society lately and is
supposed to be in his confidence. 1t is
asserted that he represented Mr. Hunting
tons interests in the Trans Mississippi
Congress.
The news is not only probably true, but
it indicates, if true, belief on Mr.. Hun
tington's part that the Government will
foreclose its mortgage on the Central
Pacific. By building from Southern Cali
fornia to Salt Lake the Southern Pacific
could retain some of the business which
it has been doing over the Central
Pacific. Itshould be borne in mind, how
ever, that as a needless presumption would
arise to the effect that the construction
would impair the money learning capacity
of the Central Pacific, and consequently
reduce its value, the hint of building the
new line may be intended merely as
threat to the Government that it would
pursue an improbable course in foreclosing
the Central Pacific mortgage.
The talk of the railroad from Southern
California to Salt Lake is by no means
new. One of the arguments which the
Southern Pacific has constantly urged
against foreclosure of the Central Pacific
mortgage is that thereby the Government
would be paying two or three times as
much as the property is worth, as besides
the value represented by the Governments
mortgage and accrued interest, the first
mortgage would have to be taken up. The
Southern Pacific has even gone so far as
to declare that it would be glad to sur
render the Central Pacific for the whole
debt, as it could build a road from Southern
California to Salt Lake at cost of $4,000
600, and thus save something like
$50, 600, 900 or 100000, and at the same
time have a line from California to Salt
Lake. This is presuming that the taking
of the Central Pacific would serve as
cancellation of the whole debt, but the
country is not willing to accept that view.
In other words the policy of the South
ern Pacific has been to obscure the ethical
presentation of the financial. The threat
to build from Southern California to Utah
seems to be part of that plan. California
would be glad to see the Southern Pacific
construct the new line, for 1t would be
harmless as an agent of extortion if the
Government owned or controlled the
Union Central Pacific, and under these
circumstances would be an instrument of
good. And undoubtedly it could be
operated at profit if it would charge rea-
sonable prices.
The affairs of the Santa Fe have become
accomplished of late that only those on
the inside can know positively whether
the old agreement between it and the
Southern Pacific is still binding. This was
that neither should invade the territory of
the other with railroads, but that each
might solicit traffic in the others terri
tory and have its cars hauled over the
others tracks. This much seems evident:
The Santa Fe is not in a position fnan-
cially to build into Southern Pacific ter
ritory; that is it cannot run an indepen-
dent line to San Francisco. If this likeli-
hood is an absolute fact the Southern
Pacific is master of the situation and free
to build into the region south of Cotton
and Santa Ana. Indeed it has already
secured line from San Berrardino to
Riverside, and is expanding a large
amount of money in that section in inn
proving its lines and in constructing costly
stations. The presumption, therefore, is
that it is free to do whatever it pleases in
Southern California without fear of the
Santa Fe and so may build from San
Diego to Salt Lake.
We may next expect threat that if the
Government pushes its claim against the
Central Pacific, the Southern Pacific will
divert its Oriental traffic from San Fran
cisco to Santa Monica or San Diego and
make the new road to Salt Lake the great
overland line. In short we may expect
any number of mysterious moves and
threats from this time on, and may know
that they are intended to brighten Con-
gress out of any intention to pursue the
righteous course of foreclosing the mort
gage on the Central Pacific.