The morning call., 1893-09-13
THE SUM IS $4,000, 600.
Almost S3O,OOO,0O0 to Be Put
Into New Lines.
ROADS IN SAN JOAQUIN VALLEY.
The Directors of the Big Corpora
ton Meet and Decide Upon a
Plan of Action.


Pacific Railway yesterday, and it was evil
dent that some mea>ure of more than
ordinary Importance was to be considered
by the gentlemen comprising that body
and for which they were called together in
special session.
After the conclusion Of the meeting one
of the officials, when approached by rep
resen tative of THE CALL, said:
"Our object in meeting TO-DAY was to
consider the proposition for the issuance of
new bonds, and the result of our delbera-
tions is that we have concluded to take
decided action in that direction. The mat
ter has been under consideration for some
time. and as the undertaking is one of vast
magnitude you will readily see that j. was
not question that could hurriedly be dis
posed Of"
what amount of bonds will be issued ?"
asked the reporter.
"In round mum bers, SS9.U0O, OOO" replied
the official, land a number of millions of
this sum Will be expended in STRENGTHENING
our California system. There are a good
many visionary railroad, or would-be rail-
road men, in these parts nowadays, and it
will be our privilege TO show these gentle
men that practical results usually follow
any measure undertaken by this company.
There is a territory in this State that
mas D66Q uOO6C CnDSu6GdOle discussion,
from a railroad point of view. for some
time past, to which we purpose to pay de-
cided attention, and l refer TO the San
Joaquin Valley. Our interests there are
very large, but they will seem small when
compared with our present contemplated
plans"
The details of the proposed new bond
issue were gathered piecemeal from sew
eral of the officials, the evident impression
among them being that the matter had
not yet sufficiently matured to be laid be-
fore the public.
The amount of the new issue will be
something in excess Of SS9, 600, 600, paving
8 per cent interest, but how many years
they are to run was not stated. The bonds
under the original mortgages placed upon
the road bore per cent. but the manage
ment seems to think that they can take no
THESE loans and successfully float the new
issue at a lower rate of interest.
Many of the old bonds have already
been paid off through the sale of lands and
the operation of the sinking fund under
the existing State law.
The new bonds will be placed on the
market just as soon as II is thought prac-
ticable TO do so. 1t is rumored that one of
the missions of Vice President Croker to
the East at present is to arrange for placing
these new investments. Bonds, ike
other securities, are materially affected at
times by the source through which they
uDu tuGlE way lnkO LUP C0aUOeiS OIL TRADE,
and the Southern Pacific officials are
thought to be arranging to have some one
of the great bankin g-houseS OF the country
negotiate the new issue.
1t is contemplated when such an ar
rangement has been effected 10 place the
bonds on sale in New York and London
simultaneously.
IAN erroneous opinion prevails" COM
placently remarked one informant, shat
the placing OF q new mortgage in
an Instance similar to this increases
the bonded debt of the road per mile,
trary, its operation will have the effect of
decreasing the same. The last issue of
bonds, including this one, was not so great
rs the original issue of twenty years ago.
The bonded debt has SHOWN a gratifying
decrease for some years past. aud will con-
tlnue to do so. Under the original mort
gage the bonded debt of the road reached
$4,000 per mile, while since 1888 the same
has been upon a basis OF So, 800. o.
course. the main object of the new loan
will be that 1t shall take the place Of all
other Indebtedness and stand as a first
mortgage.
The latter will apply to all properties
held by The company, including trackage,
rolling stock, depOtS, grounds, etc, and
also what is left of the original land
grant"
In the disposition of the moneys raised
y.
proposes to devote S50,000.0O0 to taking up
OLD mortgages and paving eff other indebt-
edness, while not quite S40,000,G00 will be
utilized for the construction of new roads,
etc.: but the old bonds will necessarily be
taken up first.
the corporation known as the Southern
Pacific of California alone.
But there is something yet hidden from
view In the new move contemplated, and
gentleman with whom the reporter was in
conversation last evening said that be be-
lieved the move was nothing less than
complete consolidation of all the varied in
terests of the Southern Pacific road and
its contributing factors under one corpora
ton.
Taken in this connection, the recent
transfer of lands and other properties by
the Pacific Improvement Company to the
railroad may have some meaning.
To take look at the present status of
affairs to the south, and the changes which
are likely to occur:
The work of filling the existing gap be-
tween Santa Margarita and San LUIS Obs
DO will be pushed to an early completion.
Notwithstanding the recent reports of
wholesale discharge of abnrers on that
work, there are at present 600 men engaged
upon the construction of the big tunnel
near Santa Margarita.
During the past few months the CON-
60-pound rails on the Coast Division be-
tween Ibis city and Santa Margarita, the
present terminus. and replacing them by
90-pound rails, as when completed this
will be the main overland line, going
through Santa Barbara to Los Angeles.
1t is said by the railroad people that the
60-pound rail VIII be used on the proposed
line to be built from Fresno to Monterey
Bay, where G. p. Huntington hopes to be
able To retaiate on his San Francisco ad-
mirers by diverting the Shipping of some
OF the grain from the Bay of San Fran
cisco to til at famous old roadstead.
just what further developments are
forthcoming in the San Joaquin Valley
aside from those already mentioned is only
matter of conjecture. A gentleman cor
nected with the civil engineering depart
ment OF the Southern Pacific saiG yester-
dav that that department would be i.abued
with new life in few weeks
Just what is contemplated / do not
Know" said be, ''but one thing appears to
be certain. and that is some move is on
foot in which the public in and about
Fresno will be much interested. That
neighborhood will be the scene OF liyely
days before long, if present indications are
followed by what now appear to be iney-
able results"
CALI raporter met Manapsr (