The herald., 1895-02-23


Competing transcontinental lines are
needed to accomplish it, and il | had
property would not care how much II
was assessed if the line was only as
sured -
Frank G. Finlayson then spoke as fol
lows:
The overwhelming Importance of rail
road to Salt Lake is admitted by all. Now
what is the most practicable plan for at
tanning this end? There are three known
methods of railroad building, namely, as
purely private enterprise, paid for by
private money only; as a public enter
prise, paid for and performed by the pub
lie as state, county or municipal enter
prise, and as partly private and public
enterprise. The best method involves a
partnership between the public and pri-
vate individuals, and is usually accom-
plished by the state loaning its credit.
This last method is now prohibited by our
new constitution, and is therefore out of
the question. As between the other two
which is the most practicable? The courts
of all the states have repeatedly held that
railroad building is a public or govern
mental function, and that taxes levied
therefor are levied for public purpose.
Now in the first the evils resulting from
the assumption of public functions by
private persons or corporations is as
fraught with evil consequences as the as
sumption of purely private functions by
the Government. But aside from this
abstract objection to railroad building by
private MEANS there is another more prac-
tical objection. Private construction and
ownership of railroads means increased
taxation If we use it, and taxation in a
broader sense than in technical meaning.
In the broader sense every man, woman
and child, every consumer in Los Angeles,
is taxed for the building and operation of
railroads, for the cost to every consumer
is affected by the rate of fares and freights.
Whatever increases fares and freights in
effect increases this taxation, and con-
versely taxation is decreased by whatever
decreases fares and freights. Now, then,
when road is built by private capital the
fares and freights must pay interest upon
the cost of construction, a sinking fund to
pay the cost of construction and dividends
upon stock, which in the majority of cases
is watered. Admitting that the public
building of railroads would be attended by
leakages, still it is not conceivable that
the amount of increase in taxation caused
thereby would equal the increase in fares
and freights that would be due to watered
stock in case of purely private enter
prise. 1t is evident therefore, that if we
regard fares and freights as the same in
substance as taxation, that the increase of
taxation due to the building of railroad
by the state or society would be much
less than the total amount paid in fares
and freight to private corporation.
Hence, upon the ground of economy, it
would pay for the counties to build their
own railroads, even if the present gener
alton, had to foot the bills, but
as the bonds would run for forty
years, the next and succeeding gem
erations would help share the expense
1t is manifest, therefore, that the con-
struction of railroad highways by the pub
lie is more economical and practicable
than the construction of the same by pri-
vate capital; first because it is as much a
proper function OF the Government as the
building OF country highways, and, sec
ondly, because of the great saving to all
consumers and benefit to property owners.
The next question is how shall the bill
for this purpose be passed? Tuesday next
will be the tiftieth day of the present
legislative session, after which no bill can
be introduced except with the consent of
two-thirdS of the members. Therefore,
whatever is done must be done quickly.
Sent delegate to Sacramento, introduce
the bill next Monday, get it on the file,
and then, if it be deemed the best bill for
the purpose, get the Legislature to substi- |
tute ii for some measure of similar
character now on the file, and in this
way, by all pulling together, get the bill :
to Salt Lake within two years from now.
Do this and Los Angeles will be a me-
tropolis." "
At this stage of the proceedings g. ]. |
Griffith spoke up and said that he thought
the other side should be heard from He
was then invited to speak to the assem-
blage, and with deprecatory smile he
he, that the better plan would be to
subsidize same road to come in here in
stead of taxing the people, which l am
opposed to doing. Il have letters in my
pocket now to show that years ago road
would have been built into Los Angeles if
a subsidy of only $500, 900 were given.
am free to say that sometimes politicians
are sincere and sometimes they are not,
and don't favor the building OF the road |
in the way proposed. | am willing to |
give $1,000 and several hundred others will |
give like amount for a subsidy and |
then line can be brought in here with |
out putting burden on the taxpayer
Captain Cross jumped to his feet, and |
said that the road from Cincinnati to (,
now proposed, and he challenged anyone |
to say that there was any jobbery. In |
none of the campaigns which have been |
leld since, has it ever been limited that |
there was any political trickery. He said |
he would give $1,000 to G. J. Griffith if he |
could raise over $50, 900 for subsidy, and |
ne would give him two weeks in which to |
10 it.
DR.. A. S. Longley then offered the fol- |
owing resolution, and every one present
save q. |. Griffith voted for it,
Resolved, That this meeting indorse
what Is known as the Cincinnati plan as
l means for the construction of a line of
railroad between Los Angeles and Salt
Lake as the most feasible method of con-
structing such road.
Resolved, That a committee of five citi-
,ens OF Los Angeles be selected by this
who, in connection with the
chairman OF the meeting, shall appoint
rom among the citizens of Los Angeles |
| committee OF twenty, who shall without
ieay proceed to Sacramento and lay be- |
ore the Legislature the action of this !
meeting and use all honorable means to |
secure the passage by the Legislature of |
aw incorporating the aforesaid plan.
Mayor RAIDER appointed the following |
committee: W. H. Workman, Captain |
John Cross, J. NJ. C. Marble, A. S. Long -,
ey and Frank G. Finlayson.
They Immediately conferred and ap- |
pointed the following committee to go to |
Mayor Frank RAIDER,
John Cross,
\. >. Longley,
w. III. Workman,
John NJ. c. Marble,
Nathan Cole, .jr.,
Frank G. Finlayson,
Charles Forester,
Frank Sabichi,
o. 5. Brant,
w. c. Furrey,
John L. Gaffey,
II. w. Mayer, Pasadena,
;. Il. Lukens, Pasadena,