The herald., 1893-02-12
IT MEANS CONSOLIDATION.
MIR. J. f. Crank Gives the News
Ofiicially.
The Electric Company Will Buy In
the Cable Road.
An Agreement Has Been Reached by All
the First Mortgage Bondholders
With the Electric Road
Officials.

Ill business circles in the city. 1t WAS
with a view of ascertaining the exact
status of affairs that HERALD reporter
found Mr.. Crank yesterday afternoon in
the court room of department No, A OF
the superior court, where argument in
the foreclosure suit against the road is
in progress.
In response to questions Mr.. Crank
said that he now had no hesitancy in
talking about the matter, and he pro-
ceeded to throw a great deal OF light
upon the movemente that are going on
in cable and electric road circles. Being
asked in regard to his resignation as re-
ceiver, Mr.. Crank said:
''You may say that 1 took the receiv-
ership of the road on motion of the
creditors to protect the property and
enable the corporation to adjust its lia-
bilities. accepted it upon the solici-
tation of all parties, and at that time
Elk weeks was talked about as the
probable length OF time 1 would be
obliged to serve; but it has now run
over two years.
1t became apparent to me recently
and to all concerped that all probability
of the resuscitation of the corporation
by the Chicago parties was at an end,
and that it will not occur. That being
the case have no further duty to dis
charge toward the corporation. That is,
feel that have discharged my obligs-
tions to the corporation. The attitude
OF the Chicago people is the virtual
abandonment by them of the property.
Now suppose you want to know about
the consolidation ?v
"Yes, sir. Has it come to an agree
ment?"
within the past 10 days the balance
Of the holders of the cable railway frat
mortgage bonds have entered into an
agreement with the Consolidated Else
sric Railway company, looking to the
consolidation of the properties. This
brings in the consent of all the first
mortgage bondholders."
"That depends upon this suit ?'
'It will be brought about by the fore
closure of the first mortgage, which suit
!s now pending before Judge Van Dyke.
There is no doubt about the foreclosure
,f the first mortgage; the contentious,
Il any, will arise over the distribution OF
the proceeds of the sale."
"The argument of the electric road
people has reference to the sale of the
property. supposeT'
"The Electric Railway company peo-
pie are under agreement to bid for the
property to the extent of their bond
holdings, which will undoubtedly make
a bid of $1,250,000. 1t is not expected
that there will be any other pur-
chasers."
"What is your opinion as to the future
OF the properties?" o.
There is no question in my mind
that when all matters are adjusted the
properties will become one of the great
street railway properties of the country.
wish to say that the appointment OF
Mr.. d. X. Trask as receiver in my place
was on motion of the attorney for the
trustees OF the first mortgage bonds, but
was agreed to by all the parties in
interest. So far as known all the pro-
ceedings have been harmonious and
agreeable, as far as the programme for
consolidation is concerned"
what about the second mortgage
bondholders, Mr.. Crank?"
He replied, with twinkle in his eye,
that that is what they are trying to
find out, and he then returned to the
court room, refraining from saying any
thing about what his future connection
with the road might be after consolida-
tion takes place.
THE SECOND MORTGAGE.
Quite number of attorneys were
spoken to with reference to the second
mortgage, and they seem to incline to
the opinion that it would be held in
valid, although they did not desire to
be quoted pending the termination of
the case now on trial. They did not
seem to think it would be held lien on
the property, saying that in all proba-
bility the conveyance by the cable
company to the Pacific Railway COM
pany will be declared invalid on the
grounds that it is ultra wires of both cor
porations and the laws of their respec-
tive states-Ilinois and California.
In case this should be the decision it
would leave the second mortgage bond
holders completely out in the cold, and
they will lose cool $4,000, 1000, or there
abouts.
It is singular fact that all the second
mortgage bondholders are Chicago men,
while all the California people who are
the holders OF bonds have those issued
under the first mortgage. OF course the
second mortgage bondholders had
planned, when the first deed was given
by the Pacific Railway company, to
ultimately take up the first mortgage,
and thus make themselves whole, but
after President @. B. Holmes went down
1t made so many complications that the
time for such contamination of their
desires was never reached.
The order for the appointment of Mr..
Trask as receiver WAS made yesterday
and he will take possession when Mr..
Crank has rendered his accounts, which,
1t is expected, will take place about the
10Th or 10Th inst. 1t is understood that
Superintendent j. ]. Akin will continue
in his position under Receiver Track,
and that the present efficient force will
be continued, certainly until the destiny
OF the property is settled and policy
adopted as to the consolidation and
workings of the Electric Railway COM
pany.
1t is believed by attorneys that the
sale OF the road will take place in about
Hix weeks, although no definite idea can
be given of that until the decision OF
the court.
One gentleman who is in position to
know remarked, in regard to the whole
fight, that has been going on SO long,
that the result that is fast approaching
means the success of the electric rail-
road in their plans matured long ago of
occupying the territory OF the cable
company and eventually securing DOS
session of the whole field.