The morning call., 1893-02-12
4 RAILWAY DEAL.
Consolidation in the City
of Los Angeles.
THE ELECTRIC ROAD CONTROLS
An Attempt That Was Made to Dis
pose of Bonds in London-They
Could Not be Sold.

Another large deal has taken place. This
time it was in Los Angeles. The Pacific
Cable Company and the Los Angeles Con-
solidated Electric Railway Company will
unite as one just as soon as the mortgage on
the cable company, which is now pending
in the Los Angeles courts, can be fOrecosed,
so said teleGraphic dispatch received yes
terday.
d. :. Dorm. one of the trustees Of the cleo
tric company, who was seen by a CALL
representative yesterday. stated the facts OF
the deal. Mr Dorm said that the cable
comlauy, which was controlled largely by
san Francisco capitalists, had. since the
starting of the electric road, not been pay
iag. while on the other hand the electric
road has been paying dividends right along
A great expense 10 the cable road was the
yexatious litigation which il has been
brought into. When the electric road
started, in order to run its cars over the
main street of Los Angeles, il had 10 traverse
i've blocks Oh the tracks Of the cable road.
This was objected 10, and suit was brought
into court by the cable company 10 enJOn
the electric company; but after long de-
lay and the expenditure OF much money the
case was decided against the cable company.
Then there were other large expenses.
The cable company has three power-uOuSes
in the city, while the electric company has
only enc, which IS situated down by the
railroad depot. This was a wise idea Of the
elte.ric company. for when coal Is required
an electric FIRE CHIT car has only TO run
short distance down the track, where 1t is
loaded. while tho cable company has 10 60
70 tie expense OF carting the coal to It's
three poWer-hOuses at different points In the
city.
Ever since the electric company started
enormous expenses were added 10 bOth conf
panles in the way of starting new branch
lines IN order TO get ahead CT each other
Some Tine ago the electric company de-
cided 10 run It's cars over 10 East Los An
geies. IL would have been useless Tor The
cable company 10 have extended the line,
because Il would take its cars over two
hours 10 cover the distance, while the electric
cas- could do IL in less than one hour;
therefore the electric company would make
a big cut into the receipts Of the cable COM
pany.
All this time the electric company had
been irving TO effect a consolidation.
for he directors saw the utter absurdity Of
Two companies controlled by San Francisco
capital fighting; and at adTectorS' meeting
Of the electric company John Mckee and
u. : Dorm were selected 10 represent the
various interests Of the trustees OF both COM
panies TO Try aud effect the consolidation,
WHEN Lut1 ulu.
As the cable company was head over heels
ln debt a great deal OF trouble was ex-
acTleuceG. Shortly before the consolida-
ton was brought about the cable company
issued s.. CO. 600 in bonds 10 lift the large
floating debt. These bonds were sent TO
London to be sold, where It was found that
they did not state what kind OF gold coin
the bonds were to be redeemed with, and
they were refused. just at that time came
the Barings failure, which made it next to
Impossible IL lift the debt on account Of the
depressed condition IF the money market.
Then the electric company set to work
paying the creditors Of the cable company
and COMPROMISING with the stockholders.
A new issue oil bonds amounting to 5000
0O0 which is secured by the property Of The
electric company aud the first mortgage
bonds Of the cable company. was printed.
the bondholders Of the electric company
accepting them IN place Of the old bonds.
The reason Of Issuing s., 000 900 in bonds
was 10 have a large surplus left after re-
deemng tie old stock, which Will be used in
changing the cable road into an electric
road, and for any improvements that may
be required. The whole stTeet-TailWay
system in Los Angeles, which is IN control
Of the Consolidated Electric Railroad Com
pany, viii be run from one poweT-hous