The San Francisco call., 1908-10-04

Inc young engineer rose, IeennS
much as if a bucket of ice water had
been suddenly emptied down the back
of his neck But one of his saving
qualities was the springlike resi-
Hence which responds instantly 70
shock. Spreading his papers on the
table, he began with a little apology.
Il didn't come here this morning
prepared TO make a promoters speech.
and perhaps il is just as we'll. since
my gift, il I have one. lies in doing
things rather than in talking about
them. But 1 can lay a few facts be-
fore you which you may deem worthy
of consideration"
From this as a beginning he went on
swiftly and incisiveIy. The Pacific
Southwestern. in it's present condition.
was failure. II was an incomplete
line. trying vainly TO hold its own
against great and powerful systems
overlapping it at either end The. rem-
edy lay i'm extension. The acquisition
of a controlling interest in three short
roads. which. pieced together would
bridge the gap between the Missouri
river and Chicago. would place the Pa
ci1c southwestern upon an equal foot
ing with its competitors as a grain
carrier. BY standardizing the Plug
Mountain narrow gauge and extending
sit TO Salt Lake and beyond. the line
would secure a western outlet. and
share of transcontinental business.
To finance these two extensions
capital of $4,000. 900 would be needed;
s5.000.000 for the purchase OF the ma
jority stock in the three short roads.
and the remainder for the western out
let. These assertions were not guesses:
by referring to exhibits marked "a"
"b'' and "f." his hearers would find ac-
curate estimates of cost. not only OF
construction, but also OF stock pur-
ehases-
As to the manner OF providing the
capital he had only a suggestion to
offer. The So. 10000 necessary for. the
requirement Of a controlling interest i'm
the three short roads would be a fair
investment. 1t could be covered inn
mediately by a Teissue-share for
share-Of the reorganization stock OF
the p. S-W.. which would amply secure
the investors. since the stock OF the.
most prosperous OF the three local
roads was listed at 2s. ten points lower
than the present market quotation OF
P S-W-
The ssO.OOO.OOO extension fund
might be raised by issuing second
mortgage bonds upon the entire
system, or the new line itself could be
bonded mile for mile under a separate
charter. Ford mOdestly disclaimed any
intension of debating the financial
again he would submit facts. The
grain crop in the west was phe-
nomenally large In prospect With
its own eastern terminal In Chicago.
the Pacific Southwestern could control
the grain shipments in its own terri
tory. With the moving OF the grain.
the depressed P. S-W. stock would in
evitably recover. and on a rising mar
ket the new issue of bonds could
doubtless be floated.
- The enthusiast closed his argument
with a hasty summing up of the bene-
fits. which must. in the nature OF
things accrue. From being an alien
link in the great transcOntinental
chain, the Pacific Southwestern would
rise at a bound to the dignity of a
great railway system; a power to be
reckoned with among the other great
systems gridironing the west Its
earnings would be enhanced at every
point: cross lines which now fed its
competitors would become its allies:
the local lines TO be welded into the
eastern end of the system would share
at once in the prosperity OF a strong
through line
For the western extension he could
speak from personal knowledge of the
region to be penetrated. Apart from
the new lines prime Object--that of
providing an outlet for the system
there was a goOdly heritage of local
business awaiting the first railroad TO
reach the untapped territory. Mines.
valueless now for the lack of trans
pOrtation facilities. would become
abundant producers: and there were
many fertile valleys and mesas to at
tract the ranchman, who would find
on the western slopes of the mountains
an. unfailing water supply for his res
ervOirs and bitches. Ford did not hesi-
tate to predict that within short time
the extension would earn more. mile
for mile, than the grain belt portion
of the system.
When he sat down he felt that his
cause was lost. There was no enthusi-
asm. no approval. in the faces of his
auditors After a short and informal
discussion. in which the engineer was
called on to explain his plans and
of the members. Magnus. the bank
president. sufficiently summed I'D the
sense of the meeting when he said;
There is no question about the in
genuity of your plan, Mr. Ford. You
must have given a great deal of time
and thought to il. But it is rather too
large for US, I'm afraid. and there are
too many contingencies. Your province.
/ understand. is the building and op-
Grating. of railroads, and il is nothing
TO your discredit that YOU are Unfa-
miliar with the difficulties of financing
an undertaking as vast as this pre-
posal of yours"
Il don't deny the difficulties" said
Ford But they wouldn't seem TO be
insuperable."
The mods OF assent were too numerous
TO leave Ford any hope of turning the
tide in his favor. He rose. gathered up
his papers and reached for his hat
1T is very pointedIy your own
funeral. gentlemen" he said eurtly.
Nothing venture. nothing have is an
old prOverb. but IL is as true now as IL
was when it was coined. With p S.-W.
sstock at 3S and steadily declining: with
another dividend about to be passed.
and with the certainty that the July
interest on the bonds will have to be
defaulted unless some compromise can
be effected with the bond holders"
What's that you're saying?" broke
in Mackie. whose p. S.-W. holdings
We're large
Ford drew a folded paper from his
pocket and laid il on the table.
II was merely quoting from the
auditors semiannuaI report. of which