Daily Los Angeles herald., 1884-07-12
The Late Railway Transfer.

We learn from responsible sources
that It is true that the Southern Pacific
Railway has sold its Mojave branch to
the Atchison, Topeka and Santa Fe
Railway. The facts of the case seem
TO be that the Central and Southern Pa
ciic Railway managers owned forty
eight per cent. of the stock OF the At.
lantic h Pacific Railway. Cooperating
with them for some time past was New
York syndicate which owned about ten
per cent. Of this stock, and which for
the time being gave to the California
Railway men the absolute control of this
road. The remainder of the stock OF
the Atlantic h Pacific Railway Company
was owned by the Chicago, Burlington
h Quincy road and the Atchison, Topeka
& Santa Fe Company. For some time
past these latter companies have been
FESTIVE at their exclusion from the Pa
cific Coast, and they threatened to OBJ
tain a command of the stock, through
the New York holding, which would en-
able them to build road parallel to the
Mojaye branch of the Southern Pacific;
and, ultimately. to build parallel road
TO San Francisco. For some six
months past negotiations have been
going on at the East through
Mr.. Huntington, Mr.. Stubs and MIR,
Goodman and the officers of the Atchi
son, Topeka and Santa Fe Railway, with
a view to the sale OF the Mojave branch
of the California road. Both of the lat
ter gentlemen spent some time in the
East. Lately the transaction was
closed. BY its terms the southern Pa
cifc Railway sells its entire interest in
the Moiave branch of the Southern Pa
cifc and in the Atlantic 4 Pacific Rail
way at cost, giving in return lease OF
both for ninety nine years. The stipu-
lations also provide that the Atlantic h
Pacific Railway shall have the use of
the Southern Pacific Railway track from
Moiave to San Francisco, the California
company reserving absolute control of
the local traffic.
As there has been so much discussion
Of the financial status Of the Central and
Southern Pacific Railways, of late. the
facts in the matter, as derivable from a
source other than the San Francisco
Chronicle, would seem to be of interest.
That these roads have lost much money
during the past year of disas rous floods
is true. In the Soledad canon there
will have been an outlay of at
least 100000 when the road
shall be thoroughly reconstructed. The
losses by the detention of thousand
freight cars dispatched by the southern
route, and which We're sent back and
dispatched to California by the Central
Pacific Railway, and from business
which would have been done in an ordi-
nary year, have been at least a million
dollar. more. In addition, the Central
Pacific k ulway Company, on the LIST of
July, had to pay 81 500, 600 worth OF
State Aid bonds aud a million dollars
besides on their contract of purchase OF
the Morgan line OF steamers and rail
ways in Louisiana. They had to do all
this in the midst of red-ho panic in
New York, which made the procurement
Of ready money something that required
credit OF the first order. However, all
these obligations have been met, the
Southern Pacific Railway will shortly
be satisfactorily re-established and the
California railway system will very soon
again be sharer in the exceptional To-
cal prosperity which it has been mainly
instrumental in creating, and whose per-
manence it guarantees. The temporary
endorsements OF the corporations
which they control have of course been
mere bagatelles to the individuals who
own the leading shareholding interests in
the Central and Southern Pacific rail.
ways, whose personal fortunes are vari.
ously estimated at from fifteen to twenty
million dollars a piece. Fortunately
they were able TO stand in the breach
and did 70. Weaker men might have
been engulphed, with the effect of sur.
rendering the Pacific Coast to a set OF
msrciless Eastern railway cormorants.