The record-union., 1897-07-29
NOT A PAYING ENTERPRISE.
BEGINS NOWHERE AND TERMI-
MATES NOWHERE.
But the Valley Railroad Managers
Are Hopeful OF the
Future.

selor for the san Francisco and san Joa-
ouin Valley Railroad, was before the
State Board of Equalization yesterday
morning for the purpose of giving data
and information on which the board
might be able TO fix the assessable Vaiue
of that part of the property Whlch comes
within its official Jurisdiction.
In his opening statement Colonel Pres
ton submitted that up to Date the cor
poration has 1896 miles of track, and
that the actual value of roadbed road
way and rails is S626, 100. The earnings
for the three months ending March 81
1897. were S53. .454 50; expenses for the
same period, S39, ,S1S So, which, deducted
from the earnings, left net earnings 10
the amount of S13,636 II.
Colonel Preston further submitted
the corporation had not handled frelsht
prior to the month of July, 1896 ana
that regular freight trains were not run
until September of the same year, WhlIe
regular passenger trains were not put
on until January of the present year.
The net earnings for the year 1870. ne
said. were as follows: July Sl,ool oo'
August S4776 62, September $3.50 o.
October S4, ,422 %, November SZoto oo,
while in December there was denclt OF
81, 1,277 SO.
EQUALIZER Morehouse suggested TO
Colonel Preston that the ROAD was d
pretty good property to own.
Colonel Preston submitted that the
company was trying to make 1t goo"
one. The road, he stated, was punt lnoie
with a view to giving the people OIL tiie
San Joaquin Valley competing lliie
and access to tide-water rather imam a'
a money making proposition Inc ro'"'
he argued, had as yet only got TO llie
edge of the promised land' ana - III
reality only a fragment OF track "AiCA
will be extended both north ana soulh'
when it is expected to turn INTO d wv
dend-paying concern. Much OF the couh-
try through which the line OF road no"
runs. he said has very little actual Va1-
he. and besides it parallels another roau,
giving it actual support from a strip ol
country only about three miles broad he
submitted that there is no doubt apout
the ultimate value of the property pu'
argued that it would take some years
to huild ND the outlying country anu
consequently the value of the road
Colonel Preston estimated the Valua-
tion of all assessable property OF the
road at S14OOO or $14. 800 per mile, ana
thar over which the Board of Equall2a-
80 hoe jurisdiction at $4,000 per mile.
The figures were based on actual cost
of construction, less the cost OF surveys
dredging, etc 20
Wouldn't the road be worth more II
there was no parallel lineE" inquired
Equalizer Arnold.
.sYes. it would" returned Colohei
Preston. "and we expect that IN le"
years if will be worth as much as the
Southern Pacific Company's paralIel
line. but it isn't to-day"
..Doesn't" INQUIRED Mr.. Arnold, the
business done by the Valley ROAD oe-
nreciate the value of the parallel hhe
of the Southern Pacific Company!
s.T s,ppose So" replied Colonel Pres
ron. ~but of course their line haholes
overland freight, on which there Is ho
competition" :;
At this point Equalizer Morehouse IN
teriected a question as to whether OF iio'
a. multitude of roads through parucu-
lar section would not enhance the value
of realty. and Mr.. Arnold was opilgeu
~ wait some time before he again put
in his pointed question. When he hnally
did get his chance, Colonel Preston salu
+bere was no doubt whatever but What
every dollar the Valley Road collected
from the people was dollar taken from
the earnings of the parallel line
Colonel Preston reverted to the prl-
mary object in building the road' anu
said that while the proposition was not
nurelv philanthropic, ii came nearer pe-
ing so than any enterprise instituted Oh
the Pacific Coast. The road, he sald' was
largely built by popular subscription pu1
was not vet finished The track Is not
vet ballasted, and to do that properly
viii add from 81, 800 to S2OOO per mlie
to the original cost
In answer to a question put oy MI.
Warehouse, Colonel Preston admitted
that Colonel Crocker had ADVISED the
citizens of Merced County to suoscrlpe
for building the road, ana that lhe
Cracker estate had treated the NaAey
Company very kindly In fact, he sald,
he believed Colonel Crocker was glad
to see the road built
Mr.. Morehouse asked Colonel Preston
a astring of questions concerning the com
narrative value of the Valley ROAD Win
others in different sections in the state
which received no definite reply.
Colonel Preston throughout TOOK con
servative course, and maintained lhat
he was before the OOaFu 10 diiSNSA 49,
tions pertaining to the Valley Road, and
not such as would reflect on any other
road in the State.
Then Mr.. Arnold got back to the queS-
tion of comparative values between the
Valley Road and the Southern Paclhc 5
naralleling line He said to Mr.. More
house that comparisons with roads IN
other sections of the State could cut no
figure with the business on hand. he
called attention to the fact that the
Southern Pacific COmpany's parallel
line was assessed last year at Sli ,4ou
per mile and in order to strike an esti-
mate he inquired of Colonel Preston
whether. if the board conceded that half
of the business done by the Southern
Pacific Company's line was in overland
traffic. he would consider one-haf the
amount of their assessable value-SS,-
700 a mile-would be an equitable as
sessment on the Valley Road.
Colonel Preston thought that figure
would be rather high. and in reality too