Los Angeles herald., 1892-06-29
AMONG THE RAILROADS,
More About the Cable and Elec-
trio Roads Combine.
The Details Of the Agreement Given
in Full.
THE Biggest Railroad Deal Ever Carried
Out In the state-A New Bond
Issue-Railroad
Notes.

eively, as is its habit with import
ant news, published the fact Of a consol
idation of the electric and cable street
railway companies of this city. Th
other papers copied the HERALD
story and endeavored to belittle it, bu
the facts remain exactly as published
in this paper. as corroborated by the
following from the San Francisco Exam
iner of Monday:
The most extensive street railway
deal ever conceived in California is now
being contaminated in this city.
The railroads are located in Los An
geles, but the owners are most OF them
capitalists, bankers and attorneys o.
San Francisco, and all the business il
being transacted here.
The deal is the result of two years ol
contention. In the early part of 1890 q
corporation was organized to bald and
operate an electric railroad in Los Ange-
les. It was not proposed az scheme
hostile to the cable system already in
operation there. The promoters of the
extensive enterprise saw what they be-
'lieved to be a good field for investment
and energetically took possession.
CAUSE OF THE LEGAL STRUGGLE.
The work Of construction had not pro-
gressed far before it was discovered
that, owing to the peculiar topography
of Los Angeles, is would be impossible
to extend the lines of the electric road
satisfactorily without travelling over
some OF the franchises held by the cable
system. According to law it had the
right to use the same streets occupied by
the other roads to the extent of five
clocks, and the first collision between
the two companies was when the cleo
trio system undertook to exercise the
right of using the streets already in
possession Of the cable roads. The
struggle was bitter and protracted.
The litigation on the part of the elec-
trio road corporation was conducted by
the law firm of Dorm & Dorm of this
city, and resulted, q few months ago, in
decision by the supreme court in favor
of the electric road. The first mortgage
bonds of the cable company were held
by capitalists and bankers of this city
and Chicago, and, fearing that their
securities would be impaired, they took
mp the cable company's side of the liti-
cation. They pronounced the electric
company's enterprise as nothing more
than "bluff," professed to believe it
was not the intention of the company to
build good and substantial road at all,
and resolved not to have their interests
paralyzed by any such scheme.
SEEKING A HARMONIOUS SETTLEMENT.
When it was seen that the electric
company was spending large amounts
Of money in constructing most COM
plete railroad system. the cable car
magnates began to consider the matter
more seriously, and proposed concilia-
tory measures.
The directors of the two roads con-
suited together about two months ago
in this city, and negotiations were
opened for the consolidation Of the two
companies, believing that under united
and harmonious management they
could be more profitably operated.
The agreement was finally reached
last Monday by which all the property
of the electric company and the first
mortgage bonds OF the cable company,
amounting in the aggregate to more
than $1,000, 900, were transferred to
John Mckee, cashier of Tallant & Co. g
bank, and d. s. Dorm, of the law firm of
Dorm & Dorm.
THE NEW BOND ISSUE.
A new bond issue on the whole sys-
tenn, amounting to 1000, 600, was thus
guaranteed, akd the interests of both
parties harmoniously consolidated. To
seal the union even more completely q
number of prominent bondholders of
the cable company were placed in the
rf ho mn
roads are now running along under one
Angeles are enjoying the privileges of
transfers to all parts Of the city for
single fare.
The trust deed of the transfer to
Messrs. Mckee and Dorm was put on
record on Thursday, and all the parties
to the transaction, officers and trustees
of the new company, are now in the
city preparing to make the exchange Of
the old bonds for the new. The deal
was completed Saturday.
The new company is very strong one
and represents q capital of fully $5,O00,-
600. To make it still stronger the stock
holders have provided for the payment
of the interest on the bonds for two
years in advance, 80 that the income,
meanwhile, may be used in extending
and perfecting the system. It is be-
lieved that the bonds will command q
premium right from the start.
THE PARTIES TO THE DEAL.
Among the stockholders Of the COM
Rpsny are the following well-known
banking concerns and capitalists: Bank
OF Californis, William Alvord and
Thomas Brown. president and cashier
of the Bank Of California; ex-senator
James G. Fair, the Pacific Rolling mills,
the San Francisco Savings union. A.
Borel, John Mckee, cashier of Tallant
& Co.; Charles Mayne, John d. Fry,
president Of the Safe Deposit and Trust
company; the Pacific bank, r. III. Nc
Donald, president Of the Pacific bank J;
ID. s. Dorm, J. F. Bass, Samuel Miller.
Moses Sherman, JIM. @. Marble, Lowell
White. j. F. Crank and Frank v. Nc
Donald.
The president Of the new company is
General Moses HI. Sherman OF Los An
geles; secretary. Frank v. Mcdonald OF
San Francisco; attorneys, Dorm & Dorm.
The Examiner omits from the list of
parties to the deal the name of Mr., ] A.,
Muir Of this city, who, while not act
lively engaged in the operation of the
system, is the man who induced the
prime movers in the enterprise to come
to Los Angeles. and who undoubtedly
should and will be in the new directory.
THAT SALT LAKE ROAD.
4.