The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-03-01
Reorganization of the Console
dated Railway
SHERMAN READY TO LET 90
Security Holders Now Considering the
Roads Finances
Expert Report on the Value and Earnings Of
the Corporation Show II Isa
Valuable Property

management. The causes leading to the
change which will depose President M. II.
Sherman, are many, but the main one is
the failure of the corporation or CONSOLE
dation to meet end pay the interest on
It's indebtedness.
The interest on the So, 900, 600 bonded in
debtedness, amounting to upwards OF
$3.50, 900, falls due this month, and there
IL no money in the treasury to meet 1t.
Mr.. Sherman knew this would be the stu
alton some time ago, and accordingly he
sent word to the people holding, or repre-
seuting the parties who held the bonds
and mortgages OF the system, asking
them to meet here, have the books ex-
perted, the whole business and equip
ment of the road inspected by an expert.
and from the reports made by such ex-
uert decide what they wanted to do with
the property. As the heaviest stockhold-
er in the copcern, as well as its manager,
Mr.. Sherman wanted thorough exposi.
ton of all the business and property or
the consolidation at this time, before IL
goes out Of his hands.
: II will be remembered that when the
Pacific Bank failed, Dick Mcdonald, us
wrecker, charged to the street railway
lines Of Los Angeles. and incidentally 10
NJ she snssa the the nsttut &c doo s
Later he modified his charges, and still
later he dropped them.
With his former experience staring him
In the face, Mr.. Sherman sent for his
eonfreres, and to his call the following gen
s%psn Of Ts sbs Bsni of aH%ss Judge
Allen, that Banks attorney; Lowell White
cashier of the San Francisco Savings
Union: ex-Mayer E. B. Pond Of San
Francisco, trustee; Edwin Burrit Smith,
attorney, OF Chicago; Morris Trumbuli
Of Peabody. Hostin q Co., chicago UaR,
Rolling Mills OF San Francisco, and DIR;
Moore president of the Pacific Mutual
Life OF San Francisco.
The officers of the road and the COM
mittee above named have been in con
sultation at the offices of Judge Bicknell
and during the conference Morris Trum
bull, an expert, went over the company's
property and its available assets.
TO the committee Mr.. Trumbull re-
ported that there are 2.56 miles of single
track cable road, 1892 miles of single
track electric road, 900 miles OF single
miles of single track horse road not in
operation; making total of 77.72 miles:
He places the value of the real estate OF
the consolidation at $50, 100.
He also reported the road in general, in
fairly good condition, but says the equip
menu is Ddu, CNCl NthihS 'Oe'A
regarding the power, cars, etc. He re-
ports that the Second-street road from
Spring street to the depot, is not included
III the security for the bonded indebted
ness on account of the fact that James
NJ. Davies the former owner of the road,
its purchase. He also finds that the So
called Larrabee franchise, recently granted
supposedly in the interest OF the CONSOLE
dated road, has not been transferred.
In regard to the power, consisting of
three cable power houses and one large
electric power house, the expert said:
IF the energy necessary to operate the
whole were obtained from single plant
much of the present machinery could be
dispensed with, and it is believed could
be sold for enough to fully equip single
plant with the necessary, power (electric)
informed by an expert in such matters
that it is doubtful whether the generators
now employed can develop more than 1000
to 1900 horsepower without overtaxing
the machinery, and that want of prompt
ness in starting cars when loaded, and
Glow time after starting, are observable.
The life of the present cables is estimated
q to be: Seventh street and Downey ave-
nue., to April 1, 1896; Plaza, to November
/, 1895, and Grand avenue and Boyle
Heights to September 1, 1895.
The expert then took up the equipment
reads:
"From careful inquiry made by experts
and others it is manifest that the cars,
both in number and construction, are en-
tircly inadequate to conduct the business
successfully. The cable cars are all open,
and much complaint is made OF them,
especially in cool or wet weather. 1t is
manifest also that the equipment of the
electric lines Especially what is known
a. the University line, running through
from the northeast to the southwest por-
ton Of the city, is inadequate. In the
morning and evening tive-minute SER
vice, at least, is needed, while complaint
Is made that the intervals between cars
IL often twenty minutes Some of the
electric stock is supplied with the older
appliances, necessitating frequent trips to
the shops for repairs. Some of the details
OF operation seem imperfect, but more
careful investigation might approve the
present methods
"The company's cars ran during the
year, 1921, 236 miles; earnings per mile
run, 20.5 cents operating expenses per
mile run, 1916 cents. The earnings per
other cities from which I have figures.
The expenses per mile run are, however,
very large, explainable partly by the
heavy cost of moving cars by cable power,
and by the heretofore burdensome fuel
expenses. The wages paid to trainmen,
W employees III power nOuSeS dllu 10 line
md trackmen, ard prices for material and
supplies, are in keeping with similar ex-
peilses in other cities.
I'm the matter OF the Los Angeles and
Pacific railway, called the Santa Monica
railway: This is q line running from near
the Sisters hospital to Santa Monica,
distance of eighteen miles, with branch
from junction, to Burbank, on the
Southern Pacific, distance of eight
miles. Mr.. Clark tells me that he has
secured control of the bonds of this enter
prise. and that it is the plan to fore
close it and then take up the rails on the
branch to Burbank, use them on the line
vi he consolidated company, and cleo
tyicize the line from the center of the
city to Santa Monica, making separate
corporation for the line beyond the ter
minus Of the companys city lines.
,sThere is every evidence of prosperity,
and the future of the property OF the COM
lany seems to be entirely hopeful If it can
beproperly equipped and the hostile en-
tcrprises now pending are not consum-
mated.
sin conclusion, / wish to say that full
and free access to the books and records,
which are in Los Angeles, has been
courteousy extended, and the investiga-
tim reveals to me what seems wonderful,
viz: that the property has been carried
with such u heavy floating debt through
thu time OF financial peril which began
IN 1898, and the trial of which has not
nYsn yet entirely passed away"
lle meeting Of the committee was exec
Tive and every session held with closed