The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-27
CLOSING IN ON IT.
BondhoIders Preparing to Buy
in Lake Shore Road
IS THE Q. P. BEHIND THE Movfs
xks y. r. WIN Try % Held on-Es-
dsce6 Rates On SQUAD Products
The @. n. Bridge Repaired.

The bondhoIdsrs Of the Seattle. Lake
Ehore Il Eastern Railway Company seem
20 be already preparing TO begin fore
closure proceedings. They cannot fore
close on the road until six months after
the company has defaulted on the interest
payment aud, - the defaust occurred on
August 4. this period OF grace will not ex-
pirs until February /, 1891. bat prepare
tons ara being made
The evidence OF this move lies IN the
fact tina. the bonds are being deposited
with the Manhattan Trust Company. in
New York. xhsch issues engraved certsh-
Gates ia return for them. THIS 10 the usual
preliminary 90 d foreclosure and subse-
quent reorganization under which the old
stock 10 wiped out AID the bondhoiders
who buy in the property replace II with
neu stock or bonds.
Who IL behind the reorganization scheme
IL matter for speculation. but some
people believe tilat IL is the Canadian Pa
CHIC. This theory Is supported by the fact
that the Canadian Pacific II hanging back
most unacconntably from closing traffic
contract with receiver Brown. The explana-
ton being that IL does not wish 10
delay foreclosure by paying the Lake
-
which would aid IL In meeting its
interest charges. II would pay the Cana
dian Pacific better 70 pat up wish the pre-
sent steamer connections with Seattle for
few months longer and ultimately get
the road entirely into It's hands than 20
merely have the use Of IL until II gets into
the hands of the Northern Pacific again.
Further. By buying the road through It's
friends the Canadian Pacific would be able
10 secure the cancellation Of the Burrard
Inlet Il Fraser Valley contract, which is TO
Ief the Northern Pacific into British CO.
iumbia by way OF the Lake Shore or In
some way 20 prevent il from benefilirg the
Northern Pacific.
On the other hand, there are reasons
why the bondhosders might not wish TO
allow any ane of the connecting transcon-
tinenfai lines TO get control. BY retaining
Il 81 an independent link With connection
with all three OF the through lines enter
Ing its territory they can draw revenue
from ali Of those lines by making traffic
contracts on equal terms with all of them.
II the Lake Shore enables the Northern
Pacific 10 invade Canadian Pacific terri
tory, 20 much the better for IL, and il can
return the compliment by letting the
Canadian Pacific into the Northern Pacific
territory at Seattle.
But the Northern Pacific is fully aware
that the Lake Shore 10 one OF It's most
valuable feeders and will become still more
valuable as Its tributary develops. and il
viii not lose the road without struggle.
The receivers may 20 to the courts and OBJ
tain permission 70 pay the interest IN de-
fault, giving Is reason that the failure
20 do so will imperil what 1t has cost the
Northern Pacific several million dollars to
acquire. or the Northern Pacific may be
rehabllitated before the period of grace for
the Lake Shore expires and then buy tho
road In at foreclosure sale. thus wiping out
along with lis own majority holdings. the
minority stock which has forced the re-
ownership, AMI. paying nothing for IL.