The herald., 1895-08-16
STOPPED BY An INJUNCTION
3
Sale of the Consolidated Electric
4 Railroad Postponed
INTHE NATURE Of SURPRISE
The Matter to Be Argued in Court This
Morning
The Trustees Confident That They Will Be
Allowed to Proceed and Complete
the Sale

Z (. The long advertised sale OF the Los An
keles Electric railroad did not take place
at the Broadway entrance OF the conrt
house yesterday morning. Auctioneer
Clark was on hand TO conduct the sale
the trustees and representatives of the
bondholders from San Francisco. as we'll
as a large crowd of local capitalists were
on hand. and the programme could have
bsen carried out but for restraining or
DER issued by Judge Clark, which at least
postponed the sale twenty-four hours.
ID. r. Brcarly a local real estate opera
tor and capitalist is The complainant who
objsotsd to the sale vi the electric rail-
road system, and be set forth his reasons
in a complaint of formidable proportions.
his attorney being George II. Smith,
Esq Among other reasons set forth why
the sale should not proceed, it is alleged
that the sale had only been advertised
once week in local paper, and that
this was not sufficient to attract the at
tention which the magnitude of the deal
ipyolved; that to have secured the de-
,Ired results publication should have been
made in the money ccnters OF the coun-
try, whore men who purchase such un-
considered trifes as electric railroads
most do congregate, as py that means
better bids could have been secured as
competition is the life of trade. Further.
it IS alleged that the present bondholders
referred to in the notice of sale as consti-
tuting more than cne-third OF all the
bonds issued, have entered into an agree
ment among themselves and o majority
OF the stockholders to buy tho road and
bold it for their own use and benefit.
Not only this. but it is further alleged
that it Is the intention to purchase the
entire property for about one-third its
value. convert the same to their own use
and foreclose the interests of all other
bondholders.
When the complaint was presented to
Judge Clark, his honor issued tenpor-
ary restraining order returnable in judge
Shaw's department of the superior court
this morning at 10 O'Clock, and fixing the
bond at $1,000. The bond was promptly
filed, with Gen. Il. Bouton and John T.
Jones as sureties, and when the hour of
noon arrived there was nothing to do but
to announce the postponement to the Wis.,
ting crowd.
Among those present at the hour fixed
for the sale were Trustees d. s. Dorm and
y. B. Pond M. A. Dorm, Messrs. Allen.
d Campbell. representing the hond-
bank of California; Lowell White. cashier
of the San Francisco Savings union;
Captain Payson, manager of the Pacific
Rolling mill, all of San Francisco; Fred w.
Wood, local manager of the electric rail-
way system; Judge y. d. Bicknell, di-
A<,v- r.xI ~f
Holabifd, OF the Chino sugar refinery; D.
X. Brearly and other local capitalists.
The postponement Of the sale was in the
nature OF surprise, AS it was the general
opinion that the transaction was merely
pro forma affair to enable the majority
OF the bondholders to CO N plete the de al
sand perfect their title to the entire sys-
tenn, and various rumors were in circula-
tion during the afternoon. One was to
the effect that Mr.. Brearly had no iuter-
est in the matter, but that he merely al.
lowed several small bondholders the use
OF his name to bring the suit whicn was
really for the purpose of forcing the large
no lders to purchase their interests at
heavy premium. Another was to the
effect that it was engineered by General
M. ii. Sherman, and was for the purpose
OF gaining time, with view to securing
backing in an effort to again gam control
OF the road. while still another was to the
effect that it was simply for the purpose
OF harassing the majority bondholders.
A Herald.reporter called on George H.
Smith. the attorney for Mr.. BreatIy, at
his Office in the Law building. but that
gentleman had nothing to say. The COM
paint as filed told the whole sto-y.
There was nothing sensational about the
matter. His clients did not think that
the best means had been taken to secure
the best bids for the property. They did
not think that the best price would bo
obtained under existing circumstances
and that the courts had been asked to
holders. Mr.. Smith stated that Mr..
Brearly was not suing for himself but for
the benefit of other bondholders who
may want to join with him.
Trustee ID. $. Dorm was seen at the
Hollenbeck hotel last evening. where he
Dorm, and Messrs. Allen and Campbell,
representatives of several of the large
bondholders. The gentlemen had copy
Of the complaint and were apparently
discussing the allegations it contained
when the reporter entered. In answer to
the reporters question as to what, in his
opinion, was behind the injunction pro-
ceedings, Mr.. DorD, with charming
ffankness, replied that he did not know.
AS one of the trustees 1t was simply his
duty. with his colleague. Mr.. Il. B. Pond,
to see that the conditions OF the trust
utou Wcio Cuiu PlIeu Win. Tie WAS mere
to sell the road and would have done SO,
as per the ad vertisemunt. but for the re-
straining order. He knew absolutely
nothing about any scheme or plan. The
sale had been legally advertised and so
far as he knew there was no bar to carry
ing out the transaction to its log cal con-
clusion. He thought that the injunction
would be dissolved this morning and
that the sale, would be made. Messrs.
Allen and Campbell ana NJ. A. Dorm CO.
incided in this opinion. There was moth
ing in the law requiring publication in
New York or other money centers. The
sale had be EN- advertised in The Herald
and other looa papers and this was sutli-
cient. Mr.. M. A. Dorm was confident that
the sale would take place today and init.
mated that the reporter might give no
tice to local capitalists 10 be on hand at
the advertised time and bring ,heir
money Dags with them.
What Mr.. Pond Says
Hon. r. r Pond tha sarond trustaa