The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-05-10
He RepeIs the Governors In
situation About the Direc-
tors Intentions.
MAYOR SUTRO'S POSITION IS
CRITICIZED.
Harbor Commissioners Told That
There Was No Cause for
Suspicion.

Claus Spreckels, president of the San
Francisco and San Joaquin Valley Rail-
way Company, made positive denial yes
terday to the Governors assertion that the
Valley road management had changed its
mind and does not wish to take China
Basin for terminus in San Francisco.
Instead of throwing up the lease the d.
rectors are more anxious than ever to Sc
cure China Basin that they may have ter
minal facilities here when they begin to
consider the proposition of joining the
heart of California to the metropolis with
bands of steel.
The committee appointed by President
Spreckels to draft communication and
send it to the Harbor Commissioners, Gov
ernor Budd and Mayor Sutro making
formal objection to the case and suggest
ing changes met yesterday in the office of
E. F. Preston, attorney for the company,
and prepared letter for presentation to
the Harbor Commissioners.
The communication is addressed to
Governor Budd, Mayor Sutro and the
State Board of Harbor Commissioners. 1t
states that committee had been APP
pointed to lay before the Harbor Commits
sion in writing a statement showing why
the railway company was most unwllllngly
compelled to decline the lease as offered,
and continuing says that two of the clauses
in the proposed lease are wholly objection
able.
One of these clauses forbidding a trans
fer of the lease would render it Impossible
for the company to issue bonds saIable to
capitalists, because if such bonds were
issued and from possible misfortunes the
mortgage were foreclosed the foreclosure
. would not include the leased premises in
China Basin, and therefore the road would
be without a terminus at its chief place of
business.
The second objection is that the lease
requires the company to build an inner
restraining wall to support the outer sea-
wall when the latter is built across the
water line of China Basin, work every
where built by the State on the water
front where it collects-as it will from this
company-regular wharf charges.
The committee asks that these prohibit
tory clauses may be stricken out and the
lease therefore made acceptable to the
company.
1t also adds that the attorney has at
various meetings of the commission
endeavored to have the Objectionable
clauses modified, but was utterly unable
to have this done chiefly because of the
who because of supposititious danger of the
company's future consolidation with the
existing monopoly" seems determined to
prevent the possibility of the establish
ment of any opposition to it.
ffIn view of the widespread subscriptions
to the stock of the San Francisco and San
Joaquin Valley Railroad on the part of the
citizens of San Francisco and OF the State,
subscriptions made wholly because the
line is to be competing one, the fears eX-
pressed that the road may consolidate with
the Southern Pacific are certainly not COM
plmentary to the men who, to resuscitate
land values and rescue State and City COM
merce and agriculture from utter depres-
sion, organized this company" continues
the letter. "If the consolidation feared by
some members of your honorable board
were ever made it would naturally only be
done because of the pecuniary profit to
result to the stockholders of the
San Francisco and San Joaquin
Valley Railroad; but that large
profits from the road was not the primary
object of the subscribers is shown by the fact
that it has been expressly agreed that the
company Will not at any time allow the
stock to pay over 6 per cent per year in
dividends. Nor would any possible profit,
however large, resulting from possible con-
solidation or selling out, be at all compare
BILE in its benefits to the stockholders of this
company from the maintenance of compe-
tition, the eXaction of fair rates only for
freights and fares, and the resulting COM
mercial benefits to be derived by all classes
of our citizens.
This company was organized in the best
interests of the City and State, and its di-
rectors are at a loss to imagine what they
have done since to justify the creation of
even suspicion that they have in the least
swerved from the policy which they orig
inally united to subserve.
1.-The directors of the road are anxious to
obtain the lease of China Basin if it can be
had without the imposition of restrictions
that will render it useless or worse than
useless to them, and to this end they ask
for an open conference with your honor
able board"