The record-union., 1895-05-08
CHINA BASIN LEASE.

The Terms Rejected by the San Joa-
quIn Valley Road.
SAN Francisco May THE China
Basin lease was rejected to-day by the
San Francisco and San Joaquin Valley
Railroad Company. In its amended form
the document was held to contain cond1-
tions too onerous for acceptance and not
to conform to the spirit of the Act of the
Legislature authorizing The rental OF the
waterfront premises to competing rail-
road The directors appointed Messrs.
Mapee. Sloss. Watt and Preston to COM
municate this determination in writing to
the Governor, the Mayor and the State
Board of Harbor Commissioners, who
will assemble tomorrow morning to
again consider the lease.
There are two principal clauses to
which objection is made. These require
the railway company to build the re-
straining wall, and forbid the assignment
or transfer OF the lease or any interest
therein.
The lease was not accepted" said
Vice President Watt, because it lni-
posed too onerous conditions on The San
joaquin Valley Railway Company and
hampered it in manner not contem-
plated by tho Legislature In the Act
which authorized the execution OF the
lease TO competing road. We did not
go through the document sseriatim and
did not take up the clauses inserted
therein on motion of Mayor Sutro, but
confined our attention to the prohibition
of assignment and the obligation 10 build
the seawall.
'.rhe second of these provisions is OBJ
ieclionable tor the reason that 1t would
prevent the floating or bonds, which.
from the present outlook, will have to be
done if the road is to come to San Fran
cisco, and for the further reason that it
would prevent Us from placing mort
gage, which you know would be lien
on all OF the property and might be con-
strued as an attempted assignment. in
yolving the forfeiture of the lease to the
basin.
while there is no prospect of trouble
at present, it is always well to provide for
the worst, and if misfortune or insolvency
should overtake the company an assign
ment or transfer to Its new owners, The
bondholders, would carry a road with
out a terminus as the lease would have
expired. Under these conditions people
would say, OF what value is road with
out a terminus?
~ 1.-The other great objection to the docu-
menL as prepared is that 1t requires the
San Joaquin Valley Railroad to construct
a seawall at the bequest of the HarDor
Commission. This is not just. We are
obliged 10 pay wharfage, dockage and
tolls the same as the Southern Pacific or
anyone else, but they are furnished with
a seawall built at tbs expense of the
State, while we would be compelled to
build one out of our pockets"
Director Upham said the competing
railway had been very fairly treated by
the Harbor Commissioners themselves,
but the Governor anu Mayor had insisted
on placing in the lease conditions that
were not acceptable.
At to-day's meeting of the Board of
Directors of tho new road it was de-
termined that a steel bridge should be
constructed over the Mormon Channel
at Stockton. 1t Will be revolving
bridge of handsome design, and will be
on a center pier with clear openings,
probably seventyfive feet on each side.
It will be located at Edison street. Build
ers will be asked to submit designs and
figures.