Los Angeles herald., 1891-01-21
The Cable Road to Be Re-
organized.
G. B. Holmes Fails to Dispose Of
the Bonds.
Other Items About Railroads and
Kindred Matters.
The Salt Lake Line Again Bobbing Up.
Engineer Perris in Town-Notes
and Incidents.

Street railway manipulation G. B.
Holmes has, among his other ventures
got the Los Angeles cable road into a
mess, and the result is that yesterday
Judge Wade, of the superior court, ap'
pointed Hon. j. F. Crank, the general
manager of the company, receiver OF the
property. Mr.. G. F. Morse, OF Chicago
is the receiver ir that city.
A HERALD reporter yesterday made an
investigation OF the matter, and OBJ
tanned from Mr.. Crank a statement
which is in general terms as follows:
The action taken appointing Mr.
Crank as receiver is an entirely friendly
one on the part Of the creditors and the
stockholders, and is done go that the
company can be reorganized. There
will be no change in the officials, Mr..
Crank filling the dual role OF re.
ceiver and general manager, and Mr..
Aiken OF uperintendent. The road ia
doing q good business, its receipts
averaging thousand dollars day, and
it is entirely out of debt, excepting, as a
result of Mr.. Hulmes' financial embar-
easements in the east. MI. Holmes is
now entirely out of the management, be-
ing neither an official nor director. The
present action is taken solely for the
purpose Of reorgaAizing the road, the
stockholders having agreed to take the
bonds themselves and pay for them.
The trouble has arisen from Mr..
Holiness inability to dispose of the bonds
issued AZ the time ofthe road construc-
tion, which he intended to sell to an
English syndicate. The bonds read" pay
able in lawful money OF the United
States" The silver agitation came up
at that time and the English syndicate
refused to take the bonds unles they
read that they were payable only in gold
coin. This necessitated the printing of
new securities, and the drawing up of
a new trust deed, and when the matter
was ready to be acted on again, the
financial furry in London occurred and
the syndicate went to pieces. The bonds
to the amount OF million remained
unsold, and that has caused the present
temporary embarrassment.
The road owes no money in this city
or anywhere else. It is doing an ex-
cellent business, as stated above, aver
aging thousand dollars a day in re-
ceipts, and there is no question, now
that the stockholders have agreed to
take up the bonds, but what Mr.. Crank
will manage to put it in solid financial
condition, and make it the profitable
property it ought to be. Mr.. Crank is
possessed of exceptional financial ability,
and knows just what he is doing and
how he is coming out.
Aside from Mr.. Crank's statement, it
was learned that pert of the rrOuDIe IL
due to the terrible expensive manage
ment OF the road under Mr.. Robinson.
That officer had of course great deal
to contend with in consequence of the
destruction done by the floods, but he
often ran the line at an expense, count
ing the damage done by sand and debris,
OF thousand dollars an hour. There
are other stories of the way money went
during Mr.. Robinson's rule, which it is
not necessary to cite here. Serious
charges regarding Mr.. Holiness acts in
regard to his eastern roads have been
made, and possibly the same may apply
to his conduct of the Los Angeles Lines,
before Mr.. Crankgained control OF them.