The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-01-27
SHAREHOLDERS COMPLAIN.
A Transaction Which They Do
Not Understand.
THE RAILROAD INAUGURATION
Omnibus Shares Exchangeable for
Market-Street Stock, but at
Great Loss.

1t has been generally conceded in bust
ness circles that the stock of a street rail-
way company is pretty good property. but
there are a number of small stockh Olders
Of the Omnibus Railway Company who
have come 10 the conclusion that II
is not always so. Those who bought Om-
nibus stock twelve months ago at $40 a
share are out of pocket about S25 or S35 a
share. All this happened about the time
of the consolidation of the Omnibus road
with the Market-street company.
just before the consolidation the stock
of the Omnibus Railway Company fell 10
So and S54 share, and at the time it was
selling for SO share an assessment of
$40 share was levied for the purpose of
buying in the North Beach and Mission
road. so the Omnibus directors averred.
Immediately after the assessment was
paid the stock Of the Omnibus company
dropped. while that of the \ orth Beach
ana Mission was quoted at higher Inquire
than that of the hrst-named corporation.
During all of this time the road was on IA
paying basis.
The small stockholders are asking,
wv here do we secure any return for our
investment in the North Beach and Mission
line, and why did The stock OF the Omnibus
Company take such a sudden tumble prior 10
the consolidation? 2"
Soon after the consolidation scheme was con-
sulnmated Omnibus stock was no longer quoted
in the stOckboard, but the stock of the Mark ct
street Railway Company was placed at So and
S34 share. Inquiry was made 1T lie office OF
The Omnibus Company as 10 the value OF a share
OF the Omnibus lines stock and the queStiOner
was told 10 20 10 Fourth and Townsend streets
for information.
To investigate The causes for complaint OF
the small stockholders OF the Omnibus Com
pany a CALL reporter interviewed Assistant
Secretary WIllcutt OF the Market-Street system
yt Iday afternoon.
In answer To question concerning the buy
ing in Of the North Beach and Mission road by
the Omnibus Company. Mr. Wlllcutt declared
that lie knew nothing OF The transaction, and
that inquiry would have 10 be made of the sec
rotary Of the Omnibus Company.
Relative 10 The charges made by the stock
holders That thclr stock Is worthless" he con-
tlnued, Il can assure you that This is not so.
We Will issue for every share OF Omnibus stock
one aud a half shares OF Tie stock OF the Mar
ket-street Railway Company. Now, where does
The loss come n?''
But MarkeI-sireet stock is only worth $50
and So 90 Il share" replied The reporter land
even II you do make the allowance YOU name
then the stOckbolder in the Omnibus Company
would sun he getting only S4S share for his
shares for which he had paid S76, together with
4 SO assessment"
But" said Mr.. WIlcutt, Omnibus stock
was never worth SO share"
When convinced that II had been sold at that
figure about year ago MIR. Willcutt relented
and said:
well yes. but IL was a long time ago."
The stock of the Omnibus Company was
quoted separately during the early part of The
present month AZ S02 ana S54.
Provided that shareholders of the old COM
pany are allowed one and half shares of
street, in less tuan twenty days then
they VIII lose ST TO SO a share on an invest
ment III road that Is known TO he paying and
cannot help but be a paying institution.
AT the present day Omnibus stock is no longer
quoted, its shares are only valuable when eX-
Company and there is practically no longer any
Omnibus Company.
Mr.. Willcutt could give no plausible or salts
factory reason why old stockholders in the
Omnibus Company should suffer because of
consolidation. and in the meantime number
OF investors are losers good deal of money to
all outward appearances.
THE CALL obtained its Information directly
from stockholder In The company, VINO has
watched the proceedings carefully.
The following notice has been issued by the
Market street Railway and looks like still an-
other assessment:
Notice is hereby given that I'm pursuance OF a
resolution OF the board OF directors OF the Market
street Railway Company. a special general meet
ing OF the stockholders OF said road viii be held at
the office OF the company, in room ~, Fourth and
townsend streets. ON The 9th day OF February
1894, al O'Clock. for the purpose o: conside ring
and acting upon the proposition TO create bonded
indie BITE dn eSs OF said corporation amount in
the aggregate OF l75oUOO0 "a portion to be us ed
III retiring existing bonded Indebtedness and TO
increase The bonded Indebtedness of the CORPORA
ton up to the amount named, and to secure the
bonded Indebtedness so proposed to be created by
a mortgage upon the railroads aud railroad lines
OF said company and certain other properties be-
longing to the company prescribed in the mort