The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-06
WHERE ARE THE BONOS2
A Complication Arises From
"Borax' Smiths Latest
Purchase.
PLANS OF THE NEW OWNER.
They Include a Local Steam Railroad
Service and a New Ferry
System.
PLANS OF THE NEW OWNER.
OAKLAND OFFICE SAN Francisco CALL,

90S Broadway, Dec. 5.
The sale of the California and Nevada
Railroad to F. M. Smith, as told ex-
clusively in to-day's CALL, has raised a
very important question about the bonds
of the road.
F. NJ. Smith has purchased all the shares
and assumes that he has control Of the
road. 1t is now stated that the bondhold-
ers are anxious to know just where they
stand.
The road was heavily bonded and the
interest has defaulted for several years,
but the bondholders have never taken any
move to foreclose on the road. Now that
the purchase has been made known there
is great anxiety shown. 1t is thought that
there was possibly some fragrant legal
error in their issuance and that this was
known to the Borax King and induced
him to purchase at what is thought to be
very low figure, considering the pros
porous future that IS assured for the
EmeryvilIe and Moraga Valley districts.
Over two years ago Mr.. Smith outlined
his plans regarding the development OF
Emeryville and the proposed line to Wal
nut Creek. He then went East to make
preparations. During his stay the finan-
cial depression of 1884 rendered such
vast undertakings improbable. Although
rich in securities F. NJ. Smith could not
realize the ready cash to carry out his pro-
ject and the new wharf at Emeryville, a
mile. long, has been idle since it was built.
With the announcement that Mr.. Smith
has purchased the California and Nevada
road comes the news that he has Heated a
boom syndicate in London and is now in
position and intends to complete his
schemes as outlined two years ago.
At that time Mr.. Smith said: ut is true
that for a long time 1 have been busy ma
turing plans for operating ferry and for
extending the California and Nevada Rail-
road to Walnut Greek. The two projects
are quite distinct. The ferry is entirely
my own, and with the narrow-gauge road
I have made an arrangement by which l
have controlling interest, but | have not
bought it. Now as to the ferry. | want it
! to be understood that | am not in com Pc
tition with the Southern Pacific. My
service will be in DO sense competitive
one, because no service exists where mine
will operate.
ION this side the terminus will be at
EmeryviIle. | have already let the con-
| tract for building a wharf to deep water,
! for no other purpose than the ferry. There
| is vast tract of land there and it is rap
idly becoming populated, and the people
| there have to travel several miles before
they can make start to San Francisco
| consider it good business proposition
to run ferry direct from there. The dis
lance across the bay to the foot of Market
street, where | intend to make the other
terminus, is about the same as from the
mole. have not yet decided on the type
of boats to be used, but they will, in all
probability, be built mere and be of the
most modern pattern. l know of no part
of the world where travel is so cheap as on
the Southern Pacific ferry system. 1 do
not see how the service can be given for
less than the price of Communication tickets.
There is an enormous amount of bust
ness to be done between San Francisco and
North Oakland, Emeryville and Berkeley
and as business proposition | intend to
step in and do it. / have purchased great
tracts Of Land in the vicinity of the Emery
vile terminus, and | have great faith that
in a few years it will become a very pros
porous district. This city has only just
began to grow, and before my ferry has
! been running five years | expect to be
/ doing an enormous business.
Regarding the California and Nevada
Railroad have this to say: As at present
| built, with narrow gauge tracks, it is prac-
tically useless. The road will be made
broad-gauge and will have to be entirely
rebuilt. Between Emeryville and Berke.
ley there will be double tracks, and a
thorough local service will be established
Cars will run frequently and connect with
the ferry. Beyond Berkeley the road will
at once be built to Walnut Creek. This is
rich agricultural district and I have no
doubt will become thickly populated as
soon as the road is in operation. The
| Oakland of five years hence will not be the
same as it is to-day. l expect to see i'm
mense strides made in the near future, and
| have the utmost confidence that my ex.
otations will be fulfilled !"