Los Angeles herald., 1891-01-21
THE CABLE ROAD IN THE HANDS OF A
RECEIVER.

The Los Angeles cable railway has
passed into the hands OF receiver, an
official having been appointed in Chi
cago and Hon. j. F. Crank having been
designated to represent the stockhold-
ers here. This development is in no
sense referable to any lack7of patronage
of the road, for it is taking in $1,000
day, sum large enough to pay the ex-
penses of running and maintaining the
system, and to leave enough over to pay
the stockholders fair dividend.
The whole trouble arises from the
personal engagements OF Mr.. G. B.
Holmes, who has been the Napoleon of
cable railway building in the west. The
HERALD republished some time ago an
article from the st. Louis Globe-Dem-
ocrat which described with some parti-
cularity Mr.. Holiness method OF con-
Quoting his financial operations. He was
the head of the great Chicago syndicate
that acquired the st. Louis lines, and ex-
tended them. While in this responsible
position he used, SO it is alleged by his
business associates, the money which
was relied upon to pay dividend ON
the St. Louis cable railway stock to but
tress his own private transactions, ex-
pecting to repay the money shortly.
The St. Louis stockholders did not en-
Joy this style of financial thimblerig, and
they consequently gave Mr.. Holmes the
grand bounce. His Chicago associates
seemed to have soured on him stimuli
taneously, with the result that the great
cable railway exploiter found himself
sitting on the curbstone, in the cold
financial outer air, the money mercury
being for him easily thirty degrees below
zero, and the exposure making his ears
tingle.
For long while Mr.. Holiness star
was in the ascendant. His operations
were daring and successful, and he was
warranted IN taking almost any chances
by the modern standard of financial
morality, SO unvarying had been his
success. He had expected to float
the bonds of the Los Angeles cable,rail-
way without any difficulty, founding his
belief on the past. About the time ne
had the bonds OF his Los Angeles enter
prise ready the silver agitation sprang
up, and the parties who had agreed to
take the debentures refused to touch
them unless there was a stipulation that
they should be redeemable in gold coin
of the United States. This involved a
delay. The bonds had to be engraved
anew. While this work was taking place
the failure Of the Barring Brothers super
vened, and the bonds for the time being
were not negotiable under any. condi-
tons.
The appointment of a receiveris with
view to protecting the stockholders,
who do not desire that the affairs of the
company shall be compromised by suits
or attachment proceedings arising from
the personal complications of either Mr..
Holmes, or OF Col. C. Robinson, under
whose immediate supervision the sys-
tenn was built. The enterprise had
much to contend with, and the fact that
the receipts have been satisfactory un-
der the circumstances speaks much for
the desirability of such investments in
this city. In addition to unnecessary
outlays, arising from defective plans,
the floods of last winter were con-
slant source of annoyance and expense.
The power-houses were repeatedly del
uged with water, sand and silt. 1t must
be said in justice to Colonel Robinson,
that he showed splendid energy in fight
ing the, weather-clerk. But the cables
were eaten into by the grit of the sand
and the whole plant was disorganized.
The expense attending the keeping OF
the road open under such circumstances
was necessarily large. There was prob
ably more wear and tear during the last
winter than would be experienced in
half dozen ordinary seasons.
Under Mr.. Crank's charge the road
will be operated as usual, and that gen.
tleman has shown in the past that he
possesses executive ability of a high Or
der. What complexion the affairs of
the company will take on is of course
matter of conjecture. The principal
concern of our people is, of course, to
know that they will still be able to avail
themselves OF the splendid service of the
company. 5The ability to ride to almost
any part OF our widely ramified city is
privilege which they regard as inestima-
BILE.
The weather is too fine. For the sake
of a certain line of apricuI ItI1 raj in tp rests