The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-09-14
The Pacific Improvement
COmpany's Trouble.
A WAR IN RATES POSSIBLE.
The Santa Fe and Southern Pacific
at Loggerheads-Mo About
the Bond Issue.

in the company the gentleman who i'm
parted the information was unable to
state.
IF the comnany does go out of bust
ness" said he. sit will either sell out to a
similar corporation organized expressly to
conduct its business, or it will be merged
into the Southern Pacific Company and
operated with it as one system"
The Santa Fe system has made move
in the way of cut in rates that may III
timately open up the liveliest kind of a
rate war on the coast. IL placed in effect
yesterday cut of 81 from Southern Cali
fornia common points to the East on all
through tickets, one way and round trip.
The cause OF this cut was primarily an
action of the Southern Pacific, and of
course both companies had different YER
sion of the trouble to give the public.
Third Vice-PreSident Stubs of the
Southern Pacific said that few days ago
his road brought number of the members
of the Los Angeles Board of Trade to San
Francisco on what railroad agents call a
side trip" when the party was Ell route
TO Chicago. To this the Santa Fe people en-
tered strong protest. hut Mr.. Stubs said
X is no more than the other folks have
been doing right along.
The rate oil fare for this side trip to San
fTduClScO mas heretofore Deeu Dul INC
official quoted said the Santa Fe people
allow their passengers who are going east
to run over 10 Denver from La Junta and
return without extra cost, and mentioned
one or two other similar trips which were
allowed by the same company.
This action on the part of the Santa Fe,
Mr.. Stubs said, juStifies his road in
assuming the position it has taken.
On the other hand W. A. Bissell, general
passenger and freight agent of the Allan
tic and Pacific at this point, had this to
say:
"By an agreement between the two COM
panieS there has for years been the follow
ing arrangement: When passenger starts
to go East from Los Angeles by way of
Latnrop, If he is brought into San Fran
cisco and taken cut again, his ticket is SUE
posed to cost him "a more than if he pro-
ceeded directly East without coming here
Our people have found the Southern Pa
ciic Company cutting the rate on this
business, and when 1t was brought home
to them they acknowledged that such had
been the case In few instances. We in
terpret this 10 mean that they have been
bringing people into San Francisco from
Lathrop free and taking them out free
whenever they found it necessary to do so
10 get the business. We are to-day making
a 81 lower rate out of Los Angeles, east
bound, than the Southern Pacific Com
pany makes its east-bOund passenger rate
81 less it will haul passengers through
Sacramento. and that means a reduction
out of San Francisco"
General Passenger Agent Fillmore said
that as soon as his rosd is officially notified
that the new rate had been placed in effect
his company will meet il at once Mr.
Fillmore will rObably receive the neces-
saTy notification to-day, and further deVel-
Opments Of more startling nature may
mateTaliZe.
Speaking of the proposed new issue oil
bonds yesterday, Il. Z. Hunting ton said /:
The plan is to have but two issues OF
bonds in existence where there are now
three or four, ana TO place the new mort
gage that will be issued not only on the
roads already built but upon those we shall
construct in the future. The old issue of
6 per cent bonds-that of 1S76-will be
gradually taken up and replaced by the
new SIS. We have a great many of the
5 per cents issued in 1888 still on hand and
which we have made no effort to sell be-
cause this move has been anticipated.
$50 far as the floating debt Of this road
is concerned | believe it is the smallest,
considering its miles of trackage, of ans in
the United States, and | have no hest
fancy in saying that the company could
take it up In thirty days time, but we
might crowd some of our de btOrs in doing
so. AS to building new roads we don't
expect to add much TO our mileage in the
near future, and there is no truth in the
rumor that we intend taking in the Pacific
Improvement Company"
statement of the existing bonded in
debtedness Of the Southern Pacific Com
pany of California was obtained from
Secretary Lansing. and is as follows:
Southern Pacific Railroad per cent
southern ETaGs Pacdc Railroad per cent
southern Pacific branch railway -'''-'OOO
stockton ana Copperopolis Railroad '7'OO'
bonds ........................ 100000
Total ..................... .........S4s 3O3, 500
The new bonds will run fortY-four
years, so they will expire at the same
time as the issue of 1888 and which they
are expected to replace.
Secretary Lansing said that the general
object of the new issue was 10 supply
funds for new roads. The plan hitherto
pursued, he said, had been to issue bonds
for each separate road as 1t was con-
structed, while the present plan embraces
covering the whole property by one mort
gage, which will finally become the only
one against the company.
Vice-P resident Croker added the fol-
lowing to the foregoing:
I'm 1888 1t was arranged to consolidate
a number of branch roads built from time
to time into the Southern Pacific of Cali
fOrnia. Alterward many other lines were
projected and built which were not in the
company under the bonds of 1888. Legal
proceedings are now being taken to take
up these bonds. There will be- when our
plans are perfected, two mortgages IN ex-
stence, the first on all new lines and the
second on the old original Southern Paclfir
line, which secured the land grants from
the Government. Although $50, 100000 is
the total amount of the new bonds, it
must not be supposed that we intend to
dump them upon the market in a lump.
They will simply be used as crcum-
stances in the future may require"
The new lines projected, Mr.. Croker
said, embraced among others two connec-
tons, the Santa Clara and Salinas valleys
and the San Joaquin. besides others in
Southern California. One of the lines in
the San Joaquin Valley will extend from
HanfOrd to Wade station. where IT, will
strike the present line running into
Bakersfield. which is only short distance
from the place mentioned. Another, it
was learned from different source, would
probably run from MERGED to Sanger,
closing up a gap and making third line
through the valley.
Mr.. Cracker of the Southern Pacific re-
turned from two weeks trip TO Chicago
and the Worlds Fair yesterday. Speak
ing of the latter Mr.. Croker said that