The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-10-21
WHAT 1T MEANS.
I. w. Hellman and Others Indicate
thu Effect Of the Decision.

lie
the Effect of the Decision.
1. W. Hellman, president of the Nevada
Bank and at the head of the syndicate
of capitalists who are willing enough to
take the Market-street bonds if they are
valid, said yesterday that he had heard
from Los Angeles that the Supreme Court
had sustained the opinion of Judge Wal
lace in the matter.
'This settles the whole question, of
course" said Mr.. Hellman, land we will
take the bonds and pay for them. 1t has
been my opinion from the start that the
bonds were legal, but we wanted the very
highest authority in the State to decide the
question once and all before placing our
money.
at is quite a serious matter, the pay
ment of 100000, and we very naturally
wanted to be sure of what we were doing.
OF course, our attorneys made every pos
sible point against the validity of the
bonds, and now that they have been up
held we do not consider ourselves in any
sense like a defeated litigant. Judge
Hayne argued the case before the Supreme
Court, and with the experience and assist
ance of Attorney Bergin behind him you
may be sure that no point against the
bonds was left uncovered.
1.-THE chief point in the controversy was
that permitting stockholders to vote by
proxy. 1t was the contention of our at
torneys-for the purposes of the test case
that voting by proxy under these circum-
stances was illegal.
Il am glad that the Supreme Court did
not uphold that view of the case. If it
H. 4 10,
holders would have been greatly wronged.
1t would have made illegal millions of dol
| lars worth of bondsFalready paid for, and
| would have been in no small sense pub
| lie calamity.
II have been quoted as saying that in
my opinion these Market-street bonds
| were not worth the paper they were
written on. Now, that was entirely wrong.
I never had such an idea, but have been
| believer in the validity of these bonds from
| the start"
| Joined with I. W. Hellman In this
amicable suit to determine the validity of
the Market-street bonds were Daniel
Meyer. Paul Barth, the Parrot estate, the
| Nevada Bank, the Bank of California and
others.
The agreement for the consolidation of
nearly all the streetcar lines in San Fran
cisco was reached in October, 1898. This
was planned to capitalize the stock for
about 5000, 900, of which the Market
street system should take rs per cent, the
"a per cent remaining to be divided among
the Omnibus, North Beach, Ferries and
Cliff and other systems The combining
roads were the Market-street cable, the
Market street and Paramount, the Park
and Ocean, the Potrero and Bay, the
| Southern Heights and Visitacion, the City
Railroad, the Central Railroad, the Omni-
bus Gable, the North Beach and Mission
and the Ferries and Cliff.
| After capitalizing the stock at $18. $780,
| 600, the stockholders authorized an issue
Of bonds for SIT, 100000 bearing per cent
| interest. In December of last year an
agreed suit was brought before Judge Wal.
| lace. w. F. Herrin was the chief counsel
| for the railroad, while Robert Y. Hayne
represented the syndicate that had agreed
| to purchase the bonds if they were proved
valid. Attorney Thomas I. Bergin had
previously given an opinion that the bonds
were illegal because of the proxy clause
and from the fact that, as it was claimed,
| the issue would make bonded indebted
ness of 81, $4,000 in excess of the capital
| stock.
| Mr. Herrin says that a private telegram
| from Los Angeles informed him that the
Supreme Court had upheld Judge Wal
| lace's decision, and that meant, of course
the validity of the bonds.
| In all probability the Hellman syndicate
will buy its 81, 600 600 worth OF bonds. and
| probably this issue will be Immediately
| followed by another $4,000, 600 worth, for
| the Market-street Company is in need of
| ready cash.