Los Angeles herald., 1891-08-18
The Latest Phase in the
Cable Road Tangle.
Proceeding to Foreclose a Trust
Deed.
Over a Million and Half Dollars
Worth of Bonds at Stake.
Attorney Hubben Of the Cable Com
pany Explains the Suit-Allega-
tions in the Complaint-A
Complicated Matter.

The Chicago creditors of the Pacific
railway company, through the Illinois
Trust and Savings bank, have brought
suit in the superior court of this county
to foreclose on their holdings of the
second: mortgage bonds of the road,
amounting to 81 1000, and accrued
The title to the suit as it ap-
pears in the complaint is "The Illinois
Trust and Sayings bank vs.. the Pacific
Railway company, Los Angeles Gable
Railway company, M. L. Coenan, F. ].
Coenan, Joshua Hendy and ]. F. Crank,
receiver"
The bonds in question were issued
little over year ago (shortly after the
Los Angeles Cable Railway company
became the Pacific Railway COM
pany), to the amount of $2,-
500, 600. Eight hundred thousand
dollars worth of these bonds were
held in reserve to satisfy the first mort
gage, and the remainder were given to
the Chicago creditors as collateral or
sold outright at 95 cents on the dollar.
A trust deed to secure the bonds was
deposited with the Illinois Trust and
Savings Bank, and an attempt is now
being made to foreclose on this No
interest whatever has been paid on the
bonds since their issuance.
The property included in the trust
deed is as follows, being the entire plant,
real estate and franchises of the cable
road: Lots 9, 10 and IL, Monterey
tract; lots 1, and 2, block D, Park
tract; lots l and 2, block 13, East Los
Angeles lot southwest corner Seventh
and Grand avenue; lot 20, block 2,
Wright's subdivision; lots 1, and 3,
block A, Shafer. tract; lots l and 2,
block 70, O.. S.; lots IL and south . of
lot IL, block SO, o. S. lots II, 18, 10, 20,
20, 80 and 81, Willhardt tract; lot Z,
block 1, Stevenson's subdivision; lots 4.
5 and 6, block L, Stevenson's subdivis-
ion lot southwest corner Downey ave-
nue. and Hansen street; lot 50x120 feet.
OF the west end of lots 20, 2L and %,
block H, Bonnie Brae tract, and street
railway and franchises.
Judge s. G. Hubbell, attorney for the
Pacific Railway company was seen last
evening by a HERALD reporter, and
asked for statement. He said in effect
B 81 have not vet been served with a
copy of the complaint, and therefore
cannot give you much information.
You can say, however, that the fore
closure will be fought to the best of our
ability. These bonds are pretty we'll
scattered, and no very large quantity is
in anyone's possession. About half a
million have been sold, and the remain
Aor Hat <0
debts incurred by Mr.. Holmes at the
time of the construction of the road
They bear per cent interest, l believe,
pany thus far having been unable to pay
any portion of it.
''The bonds are not due yet, but the
plaintiff in this suit claims that, be-
cause Of the company's default in the
legally due. and that the holders are
entitled to foreclosure. That is mat
ter that must be decided in court.
Besides these bonds there are $780,
900 worth of first mortgage bonds,
which are held by California parties
and are not affected by this suit. At
the time of the refunding of the debt of
the road, $500 900 of the second mort
gage bonds were reserved to pay these
other bonds, but the holders refused to
exchange, and as far as l know the
bonds reserved are in the possession of
the company still. If foreclosure is
obtained it must, of course, be subject
to this prior lien. The company has
regularly paid the interest on the first
issue or bonds"
Judge Hubbell tells an interesting
story in connection with the difficulties
OF the cable road. When the second
mortgage bonds were about to be issued
an English syndicate stood ready to
take the whole lot, 81, 300 900 worth, at
their par value. Their agent saw the
bonds, however. and objected to the
stipulation that they should "be payable
in United States currency" He wanted
them payable in gold coin. The
bonds were therefore destroyed and
new ones ordered of the engraver, with
the correction made. Ahe cable COM
pany wanted the very finest work done
on the bonds, and the work was there
fore slow. The Englishmen had de-
posted 100000 as an earnest of their
intention to purchase, but before the
new plates were made the Chicago
creditoas became clamorous for their
money, the Englishmen got scared and
the deal fell through. Soon afterward,
the receiver was appointed, the bonds
having in the meantime been hypothe-
Gated in Chicago.
The Coenan's who are made co-defend-
ants in the suit, hold an unsatisfied
Judgment against the company tor
Sis, 900 for injuries received by Mrs.
Coenan from being thrown from car.
Joshua Hendy is one Of the former firm
of Hoadly & Hendy, who furnished the
boilers for the power house. The firm
has a $25 900 claim against the road, but
the partners have quarreled among
themselves and enjoined the road from
paving either Of them. The case is still
in the courts.
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