The record-union., 1895-05-09
A DIMINISHED PROSPECT.

We express q regret which will be
shared in by every well-wisher of Cali
fornia in saying that we are sorry to OBJ
serve the diminished prospect OF the early
Railroad. We looked upon the fate of
this enterprise as test of the capacity of
California to inaugurate and carry to
completion great enterprises by the COM
bination of its own capital. The money
invested in the railroad system serving
the Pacific Coast is not Pacific Coast
money. It was borrowed abroad. Itwas
founded primarily on the ability Of four
or five enterprising citizens of the State
possessed of large wealth; and, second
arily, on the aid extended by the Govern
ment in the construction of the first over
land railroad. Subsequently the moneys
invested in the railroads of California and
the States and Territories west of the
Rocky Mountains were the result of the
sale in foreign markets of stocks and
bonds. In true sense, California has
not built an enduring railroad. Some
short lines have been constructed; but
they very soon fell into indistinguishable
combination with the great system by
the force of financial gravity.
The prospect OF constructing the San
Joaquin Valley road from San Francisco
throughout the San Joaquin Valley is daily
diminishing; and if it fails, let it be re-
corded now that its failure will be attrib-
uted wholly to the mean-spirited opposi-
ton which the Southern Pacific Company
has encountered.
The Legislature granted lease of cer-
tain lands in the China Basin to run fifty
years at a nominal rental. AS we pointed
out, when the mesasure was before the
Legislature, the lease, as outlined by leg
ialative enactment, was worth anywhere
from five to ten million dollars as an asset
to the new corporation. The nightmare
of fear which haunts the dreams of few
unreasoning fools concerning the proba-
bility that the new enterprise would be q
railroad based upon the idea of COM
mercial profit to those who invested their
money in it, has practically eliminated
the value of the proposed terminal facili-
ties. Money is not obtained without
labor, effort and the necessary skill to
obtain it. The man who owns money
invests it only in the hope of profitable
return for his investment. There will
never be railroad built in California as
an elesmosynary institution. and the
sooner this people give over the idea that
railroads are built primarily for the bene-
fit of the shipper, the sooner will they
obtain that position of mental lucidity
which makes enterprise of any kind
practicable.
The subscribers to the San Joaquin
Valley Railroad desired to enter the field
of transportation untrammeled. They
desired in short, to be railroad with the
right to take advantage of any circum-
stances influencing their business which
might be to their advantage. They de-
sired to build to Eastern connections, and
if they did this, they would find it adj
vantageous to become member of trans
continental pools. They desired to make
such Accommodations with their competi-
tors as to freight rates as would conserve
their revenues. In short, they desired to
enter the field of transportation in order
to make profitable return for the capital
they would invest and for the general
profit, which is as much the right of the
transporter as the shipper.
Insurance companies form themselves
into boards of underwriters to protect the
rate of insurance and guarantee theil
own solvency. Bankers hold conyen.
tions to enforce upon each other the
principles of legitimate banking, ano
protect themselves as individuals agains
the inherent tendency to ruinous com
petition. A bank Is run in the interes
of it's stockholders however just its dis
position may be toward its deposition
and customers. Merchants form boards
Of trade and chambers of commerce fol