1
.4
XJa-fc; btuSiJAi. OKiiUUMAJi, i'OKl'LAA'D.
J LLii 1. 1913. .
- . ;
M
aim JLme
s ot i
wo 1 ran
Bib
ntal Railroads a'Tlbreateiiiec
105
VOTE
x NO!
What the
Prominent
East-Side
Shippers
Say:
We understand that the operating agreement
entered into in 1912 between the Spokane, Port
land & Seattle, Oregon-Washington Railroad &
Navigation Company and Southern Pacific Rail
road Company will afford exactly the same facili
ties for handling traffic on East First, Second and
Third streets, as would be possible to obtain under
the proposed ordinances, hence we are opposed to
these drastic measures, which would cancel the
existing franchises of the Oregon-Washington
Railroad & Navigation Company and Southern
Pacific Company on East First and East Second
streets.
Beall&Co.,
By Jno. S. Beall, Pres.
k Parlin & Orendorf f Plow Co.,
By W. O. Munsell, Mgr.
International Harvester Co. of America,
By J. F. Carson, Gen. Agt.
, Studebaker Bros. Company, N. W.,
By W. P. Wiggins, Vice-Pres.
Pacific Iron Works, 7 ,
By O. E. Heintz, Prop.
John Deere Plow Co., of Portland, Or.
H. S. Staver, Secy, and Asst Mgr.
If the proposed drastic
punishment of the rail
roads will not benefit
the shippers, why should
any just person support
these ordinances?
To the Fair -Minded
Citizens of Portland:
Portland, Or., May 31, 1913.
On the ballot to be voted next Monday are ini
tiative ordinances which, if they carry, will be no
tice to the world that in Portland neither corpor
ate nor individual rights to property are safe.
These ordinances seek to deprive the O.-W. R. &
N. Company and the Southern Pacific Company
of their ownership in and use of franchises legally
acquired by them; their main lines, as well as their
industry tracks, being involved.
The companies whose property is thus threat
ened with confiscation have observed every re
quirement of their franchises. The tracks au
thorized by these franchises are operated for the
accommodation of the traffic of our competitors,
as well as our own, without discrimination, thus
affording adequate transportation facilities for
the East Side.
Relying upon the contracts made with the city,
the companies in good faith constructed their
railroads into the City of Portland and vast sums
of money were borrowed and expended in devel
oping these transportation systems. And now it
is proposed that the city shall repudiate its con
tracts with the railroads, repeal the franchises
and remove the rails. The companies are to be de
prived of their franchises and facilities and to be
stripped and crippled.
O.-W. R. & N. Company's expenditures in Ore
gon alone for extensions, new properties and bet
terments, exclusive of maintenance and opera
tion, during the last five years exceeded $23,600,
000.00, and substantially an equal amount was
spent in Washington and Idaho.
During the same period the Southern Pacific
Company has expended in Oregon for like pur
poses approximately $20,000,000.00, thus making
an aggregate annual expenditure in Oregon in
excess of $8,700,000.00 by both companies.
How will it be possible to procure money for
great, enterprises if the companies must report to
the financial institutions furnishing capital that
franchises under which the railroads operate are
repudiated at the polls?
If the people would assist the companies in their
plans for the further development of the state
and would protect them in the lawful use of their
property, they should register their disapproval
of the intended repudiation of the franchises by
voting
105 x NO 107 x NO
OREGON-WASHINGTON RAILROAD
& NAVIGATION COMPANY,
SOUTHERN PACIFIC COMPANY,
.'' General Superintendent.
VOTE
107x1
O
LUMBERMENS NATIONAL BANK My attention has been directed to
ordinances to be voted upon next Monday, attacking franchises of two rail
roads entering this city. The serious consequences that must result from the
enactment of these repealing ordinances should challenge the attention of the
press and of the people.
Railroad securities have been rapidly growing into disfavor because of
attacks of this kind, and a city that will repeal franchise contracts entered
into and acted upon -will not only cripple its railroads, but will injure its own
credit in financial circles.
GEO. W. BATES, President. ,
THE BANK OF CALIFORNIA, National Association The initiative
ordinances to be voted upon next Monday directed against the franchises of
the railroads, in my opinion, constitute a serious attack upon their properties
and will aggravate the present difficulty with which they are confronted in
the securing of necessary funds for the improvement and extension of their
properties.
Attacks of this kind in recent years have caused financial institutions to
look unfavorably upon railroad securities. Manifestly, if railroads cannot
depend upon their contracts with the city, their properties to chat extent are
insecure and money for large enterprises cannot be obtained on such uncer
tain collateral. WM. A. MACRAE, Manager. ,
For the past five years and more the railroads of this country have been
the target for adverse legislation, lowering rates and canceling franchises and
restrictions in many ways. No doubt the railroads are a good deal to blame
in not treating the public fairty, but they have learned their lesson and it is
thoroughly time to call a halt. Few realize the benefits obtained from the
operation of the railroad companies. At the present time there is a feeling
of timidness on the part of the investor to subscribe to any new issues offered
by railroads for the purpose of development and improvement, entirely owing
to the attitude taken by the Legislatures and politicians against the railroads.
R. LEA BARNES. ,
(Mr. Barnes is vice-president of the United States National Bank.) t
One of the important matters to be considered at Monday's election will
be the initiative ordinances to be voted upon, directed against the franchises
of the railroads, which, in my judgment, constitutes a serious attack upon
their property and will, to a very marked degree, at least, aggravate the diffi
culty with which these roads are confronted in the securing of necessary capi
tal to carry on contemplated improvements.
Similar attacks in past years have caused moneyed men in financial insti
tutions to look with suspicion upon railroad securities. It would seem that if
railroads cannot rely upon their contracts with municipal corporations, their
properties, to that extent at least, are uncertain and unsecured, and capital
ists, being at all times more or less timid, would unquestionably hesitate
before investing in railroad securities in this city, without which it would be
next to impossible for the railroad corporations to even carry on their con
templated improvements, much less initiate any new ones.
,,r , . R. I j. DURHAM. "
(Mr. Durham is president of the Merchants National Bank.)
HARTMAN & THOMPSON, BANKERS By ordinances to be voted upon
next Monday it is proposed to repeal certain franchise contracts entered into
by the city with the Oregon-Washington Railroad & Navigation Company
and the Oregon & California Railroad Company. Such action by the city iii
my judgment, would be a serious mistake. Railroad development cannot be
prosecuted without the issuance of railroad securities, and if the railroads are
discredited and their franchise contracts repudiated by action of this kind,
they cannot interest investors in their securities.
J. L. HARTMAN.
THE NORTHWESTERN NATIONAL BANK The securities of f.avinrs
institutions throughout the country are represented to a large extent by rail
road stocks and bonds. If the terminal cities through which these railroads
operate are to repudiate their franchise contracts with the railroads, as con
templated by the initiat ive ordinances to be voted upon in this city next
Monday, the result will be, first, a great shrinkage in railroad securities, and
secondly, a refusal of financial institutions favorably to consider these in
vestments. The people of Portland cannot afford to repudiate the franchise contracts
attacked by these ordinances.
EMERY OLMSTEAD, "Vice-President and Manager.
HIBERNIA SAVINGS BANK The franchises proposed to be repealed
next Monday by initiative ordinances constitute a part of the property of
these railroad companies, and upon the strength of their property they have
secured millions of dollars and reinvested them in betterments and extensions
in Oregon. Already the securities of railroads have become too seriously
discredited with financial institutions.
Without considering the railroads, in our opinion, the city should, as a
matter of principle, stand behind its contracts and maintain its credit to the
world by so doing. FRANK E. DOOLY, Vice-President.
Confidence in the Business Integrity of Portland Will
etained by Voting Against Both Ordinances
B
e
R
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