The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-13
A GOOD INVESTMENT.

The one substantial and permanent ele-
ment in the conduct of legitimate business
enterprises is the hope of profit on the
investment. That is the test of the true
business man. Contrariwise, capitalist
who is too timid to invest in an enterprise
which offers every reasonable assurance of
profit is not a genuine business man. 1t
is the employment of capital in developing
resources that makes a community pros
porous, and he who withholds his money
from such employment fails in one of the
salient qualifications OF a useful citizen.
All this is evident without taking into &C.
count such humane consideration as the
employment of the poor or the effect that
such employment has on the character
and enforcement of penal laws. He is the
best citizen who, with a wise regard for
his private interests, understands his enor-
nous power for good or evil in the employ
ment of his own capital.
Those eminent capitalists who refuse to
invest in the shares of the San Joaquin
Valley Railroad through fear that they
will not receive profit may take what
consolation they can from these considera-
tions. 1t would require hardihood and in
and attempt to prove that a generous
profit would not accrue from the invest
ment. The matter should be regarded
solely as an investment with a reasonable
prospect of fair return and in no sense as
donation. The promoters Of the enter
prise being shrewd, able and successful
business men have put their millions into
it because it is so evident to them that it
will yield handsome profit. 1t is easy to
assume that, having shown themselves in
this aspect to be good and useful citizens,
they Will be glad to see the community at
large enjoy prosperity which their enter
prise has made possible; but however ad-
mlrable they may appear from this point
of view, there are many who need look no
further than personal benefits. Those who
are inaccessible to the promptings of pride
and shame have nevertheless abundant
room in their pockets.
A very important matter that has re-
ceived no attention is the fact that as this is
to be strictly home affair, there will be no
drain upon the resources of the State in
the form of interest paid to foreign holders
of the securities. This country annually
sends to Europe about 500, 100000 in in
ItItob d1Q ulSlCbllUS SecurltleS
alone. The expenditure of energy and the
consumption OF resources required to meet
this drain are enormous, reaching vastly
further than the face of the outgo. The
benefits which would accrue from the
keeping of this money at home, where it
might be reinvested in further enterprises
which would furnish employment and
produce prosperity, would be beyond COM
putation.
1t is knowledge of these vital matters
that has prompted the promoters of the
San Joaquin Valley Railroad to use all
diligence in disposing of the shares to
the capitalists of California. Not alone by
direct means will the shareholders receive
benefit, but they will enjoy the additional
advantage which viii come indirectly from
the increased prosperity of the State.
This is an advantage which local share
holders in railroad properties that have
borrowed largely abroad cannot hope to
enjoy. 1t is instructive to observe how much
greater confidence generally foreign CAPT
talists have in American enterprises than
Americans themselves are apt to show:
and most conspicuous among such Ameri-
cans are those in California, and particu-
larly in San Francisco, who prefer to count
their small gains on "gilt-edged loans" and
who are content to be merely usurers and
pawnbrokers.