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to know from conversations with Older and Heney in Washington, before the franchise matter came up, that Spreckels was the man who was to back their investigation in San Francisco.

The franchise matter is, however, a most important incident in the development of the public character, interest, and ideas of Rudolph Spreckels; and, likewise, in the history of the corruption and reformation of the city. Brown Bros., bankers, of New York, managed the consolidation of the San Francisco street railways. These had been held separately by the Southern Pacific crowd and by other groups of capitalists. As the earnings increased, the fare had to be reduced, higher dividends paid, or the stock watered, and, of course, the stock had been watered. The consolidation meant more water- ing, and the result was a capitalization amounting to several times the cost of construction.

This over-capitalized consolidation was taken over by Mr. Patrick Calhoun, of New York, Cleveland, St. Louis, and Pittsburg. And genial San Francisco merchants, in conversation with me, sympathized with this very charming gentle- man, “because,” they said, “he really was cheated by our Mr. Huntington.” But Mr. Calhoun has left everywhere the reputation of a very astute financier; he probably knew what he