The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-05-11
They Are Not Given in Any
Captious or CaViling
Spirit, However.
PERSONALITIES ARE AVOIDED
The Committee States Its Belief
That There Is No Serious
Disagreement.

Har Dor Commissioners. The letter pours
considerable oil upon the turbulent waters,
or rather what appeared on the surface to
be fiercely agitated.
1t sets forth the well-known reasons why
the lease was declined and suggests
changes which would make the agreement
acceptable to all concerned No spirit of
captiousness has entered the objections of
the railway directors, and indeed there is
really no objection to anything required
by the States representatives., only the
committee was forced to conclude that
some of the covenants contained in the
lease would hamper and harass the direc-
tors in hereafter conducting the necessary
business of the road.
More in the nature of a Gliding than
belligerent declarations the directors state
that suppositions of fraudulent combina-
ton with existing railroad lines are not
complimentary, nor do they offer pleasing
encouragement to the men who have
united to build a peoples railroad for the
benefit of California. In conclusion, the
committee assures the Harbor Commits
sioners that it does not believe there isany
serious disagreement between the directors
and Commissioners, and whatever differ
ences do now exist are nothing more than
the ordinary differences of business men in
settling a complicated proposition. All
this may be readily Obviated by a confer
ence meeting of the two boards.
The letter was addressed TO E. L. Colnon,
president of the Harbor Commission, and
as follows:
May 10, 1895.
IT, he Uo,,o,-obTo Pa1-J + Cgofa
Commissioners GENTLEMEN: At a meeting
of the directors of the San Francisco and
San Joaquin Valley Railway Company,
held upon Tuesday, the 18th day of May
last. draft of a proposed lease of China
Basin by your honorable board to the rail
way corporation was submitted, and as the
board was unanimously of the opinion
that certain changes and notifications
were desirable the undersigned were APP
pointed committee to state the principal
objections in writing to your honorable
board. They are, substantially:
First-That the clause forbidding the
assignment of the lease should be confined
to the language of the act giving your
honorable board power to lease, namely:
"That said lease shall not be assigned
without the written consent of the said
Board of State Harbor Commissioners. "
As now formulated no bonded debt could
be created unless the present or some
future Board of State Harbor Commits
sioners were willing TO consent, thereby
depriving the railway corporation of the
right to bond its own property.
Second-The proviso in the paragraph at
the beginning of page is too comprehen-
sive-"Provided that if said demised prem
Uses or the said corporation party of the
second part should ever, during the term
herein, become subject, directly or in
directly, to the control or dominion of any
person, company or corporation having
railway terminal facilities on the bay of
San Francisco, then, thereby and in that
event this lease shall forthwith terminate,
and all rights Hereunder Immediately
cease"
1t is the opinion of the committee that
this clause should be restricted so as to
substantially provide that should the
premises leased ever fall under the control
of any railroad corporation now having
terminal facilities upon the bay of San
Francisco or in control of any terminal
facilities upon the bay of San Francisco
now existing, then the lease should be
forfeited
Third-The committee objects to the
covenant that the railroad corporation will
at any time upon demand by your honor
able board construct the inner embank-
ment or retaining wall forming the entire
east line of the premises proposed to be
leased. No objection is made to that
covenant which requires the railway COM
%n fha Sfo4o oil nd
tolls established by law, even at wharyes
built by the company, but we feel that we
should enjoy the privileges of the seawall
to the same extent and in common with
other citizens of the State.
Fourth-There is also feeling of dissat-
isfaction with the covenant on page
relating to the character of the improve
ments, the amount of road to be built, and
where it shall terminate, and as the act is
very specific in that regard it is question
able whether it would not be safer to fol-
low it.
These objections are not made in any
captious spirit, and while desire to pre-
serve the interests of the people has caused
your honorable board to place in the
lease large number CT restrictive coven-
ants not required by the law, and while the
committee feels that your honorable board
would have been perfectly justified in using
the same enlarged discretion as that shown
by the Legislature in the act giving you
authority to lease, there is yet no objection
made to anything required by you except
in SO far as the judgment of this committee
forces 1t to the conclusion that some of
such covenants would harass and hamper
the directors of the road hereafter in the
conduct of necessary business transac-
tons.
The men composing the board of direc-
tors of the San Francisco and San Joaquin
Valley Railway Company are not moved
in this transaction by any consideration
of personal profit or advancement, and
indeed the interests of the State and its
citizens have been the guiding and con-
trolling motive which has actuated the
entire board. Suppositions of fraudulent
combination with existing railroad lines
and charges of a possibility that those
engaged in this enterprise can be induced
in any way to surrender the rights of
stockholders of this road, scattered as they
ere throughout the length and breadth OF