The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-11-20
COLLAPSE OF A RAILWAY,
The Projected Line From Oak.
land to Stockton Is No
More.
MERCHANTS ARE DISAPPOINTED
Judge Simonds of Chicago and His East.
ern Contracts Arouse
Suspicion.
MERCHANTS ARE DISAPPOINTED
OAKLAND OFFICE SAN Francisco CALL,

SHhHh-'O OFr i0f DAN Il RANC1SCO GALL,
90S Broadway, Nov. 10. (
A dispatch was received from New York
by the Oakland Board of Trade Yesterday
stating that all negotiations regarding the
building of railroad from Oakland to
Stockton are at an end. The promoters,
Messrs. Drake and Stratton, decline abso-
lately to have anything further to do with
1t. The news was great surprise to those
who had become interested in the road
and they are now wondering what has
caused the sudden change of heart, or
whether the talk of the road was simply a
ruse OF the Southern Pacific Company to
find out how much support competing
road could depend upon.
Several months ago J. G.. Simonds of
Chicago appeared in Oakland loaded down
with credentials from Eastern capitalists
who were anxious to build road
from Oakland to Stockton and from
Stockton to Bakersfield. Mr.. Simonds,
a contract that explained clearly
the terms upon which the road
would ne built. This contract is long
document and las been carefully guarded
To-day it was seen by THE CALLS repre-
sentative and found to contain many in
terestlng paragraphs.
Messrs. Drake and Stratton agreed to
build the road if there could be found
enough merchants to give the necessary
guarantee that the following articles of the
agreement would be carried out. These ar
tlcles are:
To obtain q charter and to organize a COM
pany whose capital stock was not to exceed
$10,O0U000
TO supply final surveys and to secure termi-
lie citn md tn nh Of MN ah fran
grazing as possible from those whose land
would be traversed by the road
To guarantee the payment of the in terest on
the bonds at > per cent for q period Of five
years.
To guarantee that majority of the shippers
on the proposed route should patronize the
new road.
To agree that the bonds should not be sold
for less that so cents on the dollar.
In consideration of these guarantees the
builders were to thoroughly equip the
road and to be paid from the proceeds OF
the bonds. 1t was also stipulated that a
horizontal cut of 80 per cent below exist
ing Southern Pacific rates should be
charged, and should the Southern Pacific
reduce their rates the patrons of the new
road were to receive the benefit of the cut.
The road was not to be bonded for more
than $4,000 a mile, and the head office
of the road was to be at Stockton.
Judge j. c. Simonds partners were 3.
c. kemble and Henry 2. DAILY, all of
Chicago. Their attorneys, who drew up
the contract, are King Il Shaw of San
Francisco. The matter WAS submitted TO
business men all along the route and met
with considerable support. In fact, the
promoters did such good work that they
were able TO inform the New York end OF
the com bine that with some changes there
was support enough promised to justify
the building OF the road.
One OF the changes from the original
proposition was to abandon the proposed
road from Stockton to Bakersfield, as the
Valley road would do the largest share of
the business on that route. Another i'm
portant point demanded by the local mer-
chants was. that the ferry system be built
first, and that it be considered a part OF
the road. The head office was also to be
changed from Stockton 20 Oakland. Still
another change was, that the proposed
branch to Bakersfield being abolished, the
builders should construct branch north
ward.
All these changes from the original
proposition were submitted to New York,
and on October Judge Simonds received
a reply stating that all was perfectly agree
able with the exception of the building of
the northern branch and as the builders
knew nothing of values IN that section it
could not be entertained. The merchants
then asked that the notifications be con-
firmed and the reply came by dispatch to
President Keller of the Oakland Board Of
Trade that all was clear sailing and that
the Oakland and Stockton road would be
built.
This was about two weeks ago and moth
ing more was heard of the matter till the
remarkable letter Of yesterday, in which
was announced the sudden determination
of the promoters to call all negotiations off.
The information was sent that they "had
abandoned the project and that they never
had any intention of constructing the
road" An excuse was offered that rail-
road bonds were not selling well just now,
and what was thought to be a genuine
proposition b as faded away.
Now the merchants want to know the
meaning of it all.
There has been duplicity somewhere"
said President Keller tonight, "but what
the object of it is cannot well he told lust
now If the promoters never intended to
build the road, as they say. then why did
they send man from Chicago and keep
him here several months interesting mer-
chants? Ii they did intend to build, and
| believe they did, then some influence
must have been brought to bear on them
TO induce them to withdraw. The whole
thing is mystery, and l expect to know
more about it in a few days. / do not
know what support they received, as | was
merely approached as president of the
Board of Trade, but the men who were in
tcrested are loud in their denunciation OF
the scheme, and are anxious to know what
oil ~