The record-union., 1895-03-11
AS LrnE AS TWO PEAS.

The railroad that comes preceded bv
the announcement of peace on earth,
good will toward men," in other words,
the San Joaquin Valley Railroad, which,
according to its chief journalistic sup
porter, is railroad by the people and for
the people, wants a free gift from the
State of California of rent values, which,
according to the most conservative esti-
mate, are worth ten millions OF dollars.
There are about eighty-four acres of
the waterfront of San Fraucisco-thirty
acres lying north of the foot of Market
street, and about ffty-four acres lying
south of the same point. And now
comes the San Joaquin Valley Railroad
to ask that lease for fifty years be
given of fifty acres of land on the
waterfront of San Francisco. We say
give" because the rate proposed by the
Powers resolution is the equivalent of
gift of this property for fifty years.
In railroad construction it is the use of
capital which makes the enterprise
feasible. If the land now asked for by
the San joaquin Valley Railroad were
valued it would be placed at twenty
millions of dollars. It is doubtful
whether the people of California would
accept twenty millions Of dollars in ex-
change for it.
The city of San Francisco has always
believed that the water front should be-
long to the city; but the people of the
State of California have a great interest
in it, since it is their products that are
handled on the water front OF the prin-
cipal deep sea harbor of the coast. If the
property for which the lease is asked is
worth twenty millions of dollars, then
per cent. of that sum would be one
million dollars per snnum. fit is worth
only ten millions, then 100000 per an
mum would be the value of its use. If it
is worth five millions, then $3.50, 600 would
be the rent rate of its use. In either event
the Legislature proposes to give, for
practically a nominal sum, five, ten or
twenty million dollars worth of prop
erty belonging to the State for fifty years.
This is the equivalent of loaning capital
to that value, because terminal facilities
are OF paramount importance in the oper-
alton of railroad, and their purchase
costs money.
The bill before the Legislature is there
fore in effect a bill to loan five, ten or
twenty millions OF dollars worth of cap
ital to railroad, and to its successors and
assigns. The Eran{ner suggests that the
bill should pass providing that the San
Joaquin Valley road alone is granted this
privilege. The Legislature is prohibited
by the Constitution from passing a special
Act granting any corporation any exciu-
sive right, privilege or immunity. So that
the suggestion is wholly impracticable.
The enactment of the bill into law there
fore turns over fifty acres of the COM
mercial water front of San Francisco to a
corporation, Its successors and assigns.
for fifty years.
Within that period many changes will
have taken place. The men now active
in railroad construction and operation
viii all be dead. Consultations and
combinations are the rule, not the ex-
ception. Competition between moneyed
men does not endure beyond the time
when it is profitable. Competition is
maintained with reference chiefly to ad-
vantageous combination. 1t is perhaps
not surprising that men engaged in the
same undertaking should possess sc
many points of resem mblance. The best
proof that the new enterprise is a railroad
is found in the spirit of the demand un.
der consideration. It finds itself popular
just now. 1t is welcomed by the public.
It is disposed to make the most of the
opportunity. It wants fifty-year lease
OF fifty acres of the water front of Sar
Francisco for a mere trifie in the way o
annual rental. The chief protector
actually infOrms-the public that if ihi.