The San Francisco call., 1895-05-23
SETTLED ON THE LEASE,
Valley Road Directors and
Harbor Commissioners
Agree at Last.
WILL BE SIGNED IN A WEEK,
Several Changes Made In the In
strument That We're Salts
factory to All.

The lease OF the China Basin has been
definitely settled at last, the Harbor Com
missioners, Governor Budd, Mayor Sutro
and the Valley road directors having
reached an agreement yesterday as to the
| form of the instrument. The lease will
probably be signed on Wednesday, A
meeting was held yesterday morning at
which there were present Governor Budd.
Mayor Sutro, Harbor Commissioners Col
| non. Cole and Chadbourne and Attorney
f. S, Stratton, representing the State and
Vice-President Robert Watt, Second Vice
President A. II. Payson, Directors Charles
| Holbrook, Thomas Magee, Isaac Upham,
John D. Spreckels, Leon Sloss, Alyinza
| Hayward and Attorney E. F. Preston OF
the San Francisco and San Joaquin Valley
Railway Company.
Acting President Watt and Attorney 6.
F. Preston did most of the talking for the
directors, while the Governor was spokes-
| man for the State and Mayor Sutro had
| but little to say except to define his posi-
ton, and he declared in emphatic terms
that he was the friend of the competing
road and the friend of California. He was
assured by Mr.. Watt that the company did
not object to his amendments, and with
| this assurance given his Honor declared
himself in favor of the lease There was
considerable debate and two lively tilts be-
tween the Governor and Messrs. Hayward
and Preston added to the interest of the
proceedings.
The directors had three objections to
| o fer and the Commissioners gave way to
them. They asked that the retaining wall
clause be eliminated; that the time for
| building fifty miles of road out of San
1 Er he ayfanIp6 70,
| years, and that the clause whether by
| operation of law or otherwise be stricken
| from the forfeiture provisions.
| President Colnon called the meeting to
order, stating that he believed that the
object was well understood by all. The
minutes of the preceding meeting relating
| to the communication from the committee
of the Valley road were read.
| Harbor Commissioner Chadbourne
| moved to proceed to business. Governor
| Budd suggested that the directors be heard
| from.
81 see they are all here" he said, with
smile.
| Acting President Watt, on behalf of the
| Valley road, addressed the Commissioners.
Il think, said he, THAT che letter TO the
| honorable body expresses the feelings of
the board. We cannot add anything to it.
| The board does not object to being bound
by all the requirements of the law, but, as
| you are aware, we must build 230 miles of
road before we can come here, and this
will come very near exhausting our re-
sources. We must come to San Francisco,
| for the largest amount of capital investe d
comes from here. To do this we mus :
bond the road. While we do not wish to )
turn over the China Basin lease, it will be
| necessary for US to include it in mort
gage of the road. No careful capitalist
would accept mortgage on a road with
out terminus, and we do not think that
it is the purpose OF this board to hamper
us.
with regard to the retaining wall
will say nothing, as | understand that you
have expressed a willingness to knock out
that clause. We should like the clause
which gives US only five years in which to
build into San Francisco eliminated alto
gether, or at least have the time extended.
We cannot tell what complications may
arise to hinder our work. DISTINCTIONS in
the way of lawsuits over rights of way
may be forced upon as, and there is no
telling how much time may be sacrificed.
You can with safety eliminate the clause
altogether. You are assured that we must
come to San Francisco, and ought to be
satisfied with our intention to do so.''
'As that was my amendment" said
Commissioner Cole, II suppose I should
answer your objections to it. Our object
in granting China Basin as terminal is to
not somewhere up in the San Joaquin
Valley"
1--WE certainly shall do that" responded
Mr.. Watt, "but we want time in which to
do it,"
"There would be no profit in running a
road out of San Francisco at the start, :"
said the Governor. 81 would be in favor
of extending the time. 1t will be long
time before any road limited to Califo rnia
can be made to pay"
"The object of competing road" con-
tinued Mr.. Watt, 'sis to bring goods from
the interior to tidewater, and when we
reach here the benefit to San Francisco
will be great
81 am in favor OF extending the time, !"
said Governor Budd.
''Say ten years." suggested Mr.. Watt.
u am in favor OF that" acquiesced the
Governor.
"If you are allowed to mortgage China
Basin," continued his Excellency, 'you
would have to limit the time. If the mort
gage on the road were foreclosed you would
have to sell the BASIN"
III the road can't meet the bonds when
they fall due the bond d-holders take it as
preferred stockholders, and as such they
merely take the place of common stock
holders"
"But as such," said the Governor, "they
can squeeze the others out"
"They could squeeze the others out.n as
serted Mr.. Watt, "but they will have to
step in our shoes and they would have to
take it on the terms of competitive road. !"
But that would be an assignment, and
the law is against it, !" returned the Execu-
tive.
Give us the lease in the language of the
law" replied Mr.. Watt quickly.
II don't think that that would be salts
factory to the'Legislature which passed the
law or to the. people, and the law was
loosely drawn"
81 don't know about the Legislature, but
l know what the feelings of the people are
in the matter, and think that the Legis-
lature knew that the road would have to be
bonded"
'No, they did not. Mr.. Preston assured
US in Sacramento that the road would be
built on a cash basis.''
''You have said that before, Governor
chimed in Colonel Preston, 'ibut I think
you are in error"
81 don't think So" retorted the Execu-
tive.
sGreat minds differ,' said the attorney
with a laugh.
"Have you got great mind, Preston Pr
queried the Governor quizzingly. ssI
haven't, although / may sometimes have q