Los Angeles daily herald., 1889-11-25
future movements of the Union Pacific,
It saws in a recent issue:


It saws in a recent issue:
The Boston dispatches tell of the
determination of the Union Pacific tc
build into Southern California by way oi
Milford on the Utah Central and Pioche
New. The fact that contracts have been
let for building the piece Of road between
the points named and an outline of the
route southerly to Barstow were pub.
lished in this journal some time ago. II
ia the prediction of wise railway men
that the Union Pacific, with the ambi
tious plans of its present managers, will
not rest with Los Angeles as its Pacific
terminus, but will, by some of the many
routes already surveyed, before many
years have passed, send its trains into
this city.
A number of eastern grocers propose
to visit California this winter in special
party which has baen organized by Ben.
jamin Johnson. the editor of the Neo
England Grocer, He writes that they
will leave Boston next February. "The
party will be composed of business men
who handle large quantities of green and
dried fruits and canned goods Of the Pa
cific Coast. The Boston Fruit and Pro-
duce Exchange is taking lively inter
est in the project, and it's membership
will be represented in the party. This
excursion is in the nature of an educator
to all participants, and is not in any
sense money. making scheme" AS at
present arranged, the party will enter
California at the extreme southeastern
corner of the State, aud visit Cotton,
Riverside, San Diego, Los Angeles, Tu-
lare, Fresno, MADEIRA, Merced, Modesto,
Lathrop, San Francisco, Sacramento,
Marysville, BEDDING, and returning by
way OF the Northern Pacific. George W.
Meade and other local merchants are in
teresting themselves to arrange enter
tsinment for the visitors. 1t is sug.
gested that citizens Of points to be vis-
tied, as above noted, make necessary
preparations to receive the party, whose
visit cannot but be of advantage to local
producers and dealers.
The reorganization of the Santa Fe
system is progressing in very satisfac-
tory fashion, and it appears now quite
certain that the road will pull out of the
financial difficulties in which it has been
involved.
The following official statement, which
is intended to meet the objections to the
reorganization plan, has been issued
from the Boston office: First, the princi-
pal and interest of both the general mort
gage and income bonds proposed to be
issued under the organization plan are
payable in gold, and both classes are to
be issued in pieces, $500 and 81 900. The
bond scrip necessarily issued in making
exchanges will provide the small pieces
required by the smaller investors, and
the issue of bonds for less sum than
$500 is not permitted by the charter
(section 19). Fractional scrip will carry
interest payable on presentation of the
scrip at the Office of the company at the
same rate as the corresponding bonds.
Second, the proposed income bonds are
to be secured by the same indenture as
the general mortgage bonds, but subject
to the priority, both as to security
aud lien, and as to the payment of
both principal and interest of the general
mortgage bonds, thus preventing the
Intervention Of any other lien between
the general mortgage and income bonds.
Third, the first determination of the
surplus earnings applicable to the in.
come bonds will be made for the period
ending June 25, 1890. Fourth, with
reference to the proposal to give voting
power to bonds, pending the payment Of
interest upon the income bonds, refer
ence should be made to section 6 of the
charter, which provides that the board Of
directors shall be chosen by the stock
holders, and in the absence of express
statutory authority from the State of
Kansas, the voting power proposed can
not be given to the bonds. Fifth, q con-
version OF the income bonds into stock
at any tims at the option of the holders
would result in the increase of the capital
stock of the company, which cannot
legally be done without the assent of the
present stockholders.
The Salt Lake Tribune has this to say
concerning the work now in progress on
the Utah Central extension: "Half q
dozen contractors are going over the line
between Milford and Phoebe go as to fig
ure on their bids, and the same is being
done between Ogden and McCammon.
Then when the bids are awarded active
work begins. The new line north will
run to Logan, but ere long there will be
cutoff for through trains. Were Logan
to be left on siding, it is claimed that
real estate would depreciate so per cent.
Considerable winter work in the way of
rock cutting will be doue in the upper
country, but not much dirt handling until
spring. On the southern desert, how
ever, it is thought that grades can be
made without any difficulty to speak OF
during December and January"
The Union Pacific is reported to be
literally submerged with traffic." its
motive power and equipment being en-
tirely inadequate to the present demand.
Several other roads just now are expert
encing the same embarrassment, which,
however, is in no danger of being per-
manent.
w. G. Farnsworth, of the Mechanics
Mill, this city, has had his hearing COM
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