The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-04
A TIMELY SUGGESTION.
The Importance of the Scheme
Pointed Out by Traffic
Manager Curtis.
GENUINE RIVALRY ASSURED.
Looked Upon as a Strong Argument
Against the Passage of a
Funding Bill.

In line with the policy of endeavoring to
turn every development in the railroad
situation of the coast TO the benefit of San
francisco and the State generally W. B.
Curtis, traffic manager of the Traffic Asso-
citation of California, has devoted consider
able time to the question now so promi-
nently before the people of the country
and one which is particularly agitating
the citizens of San Francisco-the disposi-
ton of the debt of the Pacific railroads to
the Government.
Speaking on the subject yesterday he
gave expression TO an entirely new idea in
connection with the ultimate disposition
of the property should the Government de-
eide to foreclose and sell the Union Pacific
and Central Pacific railroads to satisfy its
| claims. He said it behooved California to
watch the matter now pending before
Congress most carefully and to see that d
victory was won Tor the people. COntinu-
ing, he said
1t is not enough that the Government be
spurred on to bring the to head. 1t is
in the final adjustment that California must
show her hand. The gentlemen now engaged
in the laudable effort to insure justice being
dealt out with an impartial hand are engaged
in the capacity of private citizens striving for
q principle.
The merchant of San Francisco, as q mer-
chant, views this proposition only in the light
OF its elimination, as that finale means for
him either a lease OF prosperous life or the
sealing up of one more avenue of escape from
Southern Pacific domination.
The vital point for the merchant of San
Francisco to consider is, What disposition will
be made of this property once it passes into
the hands of the Government? And therein is
the experimentum crueis of the whole ques-
ton
Obviously, the property obtained at such
enormous sacritce must be made by the
Government can never be made to yield COM
menSurate returns consistent with Its eX-
traordinary cost.
1t has been proposed to the Government by a
syndicate of capitalists in Nebraska with East
ern co-operators) that the roads be sold out
right to them and that they be operated one
line from the Missouri River to the Pacific
Ocean. The syndicate proposes that the Gov
eminent shall set the minimum price at
$40, 0o0,O 900, obtaining as much more as pos
sible.
Now this syndicate is composed of Eastern
men whose greatest interests are in the East;
they would operate the road in the interest of
the greatest revenue for them and in every
case would seek the long haul. We're they to
make rates to Utah which would permit San
Francisco to do business in that section, it
would cut them out of better paying business
for their line from the Missouri River. 1t
would be line with such a multiplicity of in
tereSts TO look out for and assimilate that they
would find it eXpedient to ignore our best in
terests or at least subordinate them to others,
whence greater revenue would result for
them.
on the o.her hand, with the Central Pacific
Railroad operated as a separate proposition,
best interests would be served, since its life
and revenue does and would depend upon do
ing every pound OF business possible between
its Eastern terminal and San Francisco.
AS an independent line it would serve as an
impartial connection Tor the Union Pacific or
the Rio Grande Western Railway, which con-
meets with the Denver and Rio Grande, Bur
lington and Missouri, Chicago, Rock Island
and Pacific, Colorado Midland, Atchfson, To-
peka and Santa Fe and Missouri Pacific rail
ways. 1t is our present mainstay in Southern
Idaho and the whole of Montana Whereas
as part of through line in connection with
the Union Pacific it would be bound to mill
tate against San Francisco and render more
inadequate her present too poor facilities.
In the event, therefore, of d sale of this prop
erty by the Government we should insist that
the Central Pacific Railroad should be handled
as a separate proposition.
In fact, il would be a feather in San Fran
cisco's cap could she form syndicate here and
purchase the property, in the event of its being
offered for sale. That would be another and
most telling step in the direction of release
from Southern Pacific thralldom, the Valley
road being the first step made in the right
direction and on the proper lines.
From the standpoint OF the merchant what
is most needed is an increase in the army OF
purchasers. New lines of communication, an
increase in transportation facilities and little
more enterprise and energy in the direction of
inducing immigration to our Statewi accom-
plish these ends.
his staying qualities in weathering the
financial depression OF the last three years
and can now hug the idea with gratifying as
surance that he is at last on the high road to
improvement. The extent of his improvement
Will depend OH the enc rgy put forth in the de-
velopment of each avenue offering. He should
FirSt-PreServe present facilities intact.
Second-Utflize present facilities through
every conceivable channel.
Third-Lose no opportunity to provide new
| transportation channels.
To allow the Central Pacific Railroad to be
absorbed by through line controlled in the
East and thus lose its identity is to deal the
present bright prospects OF increased business
in Utah a serious blow.
When view San Francisco as terminal
what do we find in the way of transportation
facilities?
We have the Southern Pacific Railroad of
Kentucky, with its main office in New York.
We have the Pacific Mail Steamship Com
pany, owned and controlled in New York.
We have the Occidental and Oriental Steam
ship Company, owned and controlled Jointly
by the Southern Pacific Company OF Kentucky
and the Union Pacific of Omaha.
There is not q single long-distance carrier
which we can point to with pride as local in
stitution, and IN addition, each that we have is
q monopoly in its own field.
Truly this is the most anomalous situation
from transportation standpoint existing to-
day in the United States-that a city like San
Francisco, in her unexcelled position, with
her great inherent strength, should be re-
stricted to such meager facilities for reaching
the outside world
Daily is this fact becoming more and more
the subject of comment, and local capitalists
will some day awake with start to the fact of
the great opportunities that were neglected.
Let us hope that San Francisco capital will
not be the last to grasp the present situation
with its vast opportunities, and that the profits
of the transportation business of California
will not be always destined to circulate else
where than on the Pacific Coast.
1t is therefore of more than ordinary conse-
quence that the Central Pacific Railroad be
not allowed TO pass into the hands of Eastern
spectators, but that every possible means be
employed to retain for it its identity, and that
it be perpetuated as a feeder for the Pacific
Coast and not for our competitors of the East.
Local ownership of the Central Pacific would
also give the Valley road an independent out
let for freight destined for the East and make
its competition for business in the San Joaquin
more effective as against the Southern Pacific
Company.
1t is not improbable that the Traffic AS
ISOLATION may take up the matter of or
ganizing such a syndicate as indicated by
Mr.. Curtis. If such a syndicate were to
take the field against the Nebraska people,
and formally announce its readiness to
bid for the Central Pacific Railroad, it is
generally conceded that another strong
argument would be furnished those who are
in favor of compelling the Southern Pa
citic Company to meet its just obligations