The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-04-18


bought II. Not bond had been issued.
no stock issued or sold and rhs rad aid
rog oNs q cent. In $50 Sander, altar
spending SO 80 in the partial construction
Of a double track. organized the LaEs
Washington Cattle Railway Company ana
secured a rev franchise 81 orter 10 over
come NUMEROUS lad Krades ard other Or
ztacles. Sander agreed when &c got the
second franchise 20 double track his iIFie
within Eve years and make other Isss-
provemerts After the second FRANCHISE
Ras received Nt. Underwood ana ar.
Hunt offered 20 purchase the road. san
der szid the road was earning neE slss 70
$40 a day and he asked s5eo.efs for tiae
road.
Underwood and Hunt refused 70 pay
ire price because s. was conditioned that
a double track had 70 be laid IA five years
Thsy Offered Sander xzz5. 90 Tor the ROAD.
ard later raised the offer $1,000 Sander
then sold ;he steamer Kirkland being
included In the sale. Hunt and Under
wood agreed to pay s5aeo within fifteen
DAYS but were un4 bic 10 raise II. ana
consequently they went East and organ
tied the Seattle city Railway Company.
issued bonds ard sold them. realizing
xasi9lo. They paid Sander his money.
improved the road snd poekeied Slos.osi
without paying out cent The bonds
were sold TO poor school marms. War
road at present. Warner alleged. vas
owned by wealthy men. such as Mr. Tn
derwood. who has already shared Ia the
f1eS9S and who Is the present receiver
Of The road They were represented IN
Seattle by DR. Mtften. III. Burleigh and
others.
Mr. Warner insisted that the people
who reside along the route OF the Seattle
City Railway Compauy have certain
vested rights They have purchased prop
erty with the representation that the road
would be double tracked within five
years. AT present many OF them must
walk FIVE blocks Ia order 20 reach car
The double track can be constructed.
Warner insisted. al the present time
much cheaper than at any other time.
Warner on the Witness stand.
AR Burlelgh then put several questions
70 afr Warner How 10 you propose 10
raise the money in order TO build this
double track. atr. Warner" he inquired.
Sell your bonds" answered Warner.
Then continued Mr.. Bufleigh:
what * you can't sell them
II Insist. sir that this city council COM
pei the company TO comply with the
franchise and protect the poor people
living along this railway line" replied
warner.
How viii the poor people be protected
4 the franchise is revokea2'
1T will pass into other hands, and the
double track will be built Let the city
take the road.
Il suppose the city would give us a
double track"
IF the poor people wanted It."
Mr Rufleigb said that II the city re-
voked the franchise IL would simply
mean that the loss would be sustained
BY the poor people in the East-"the wild
ews. the school teachers. the poor Grip
pies, referred 10 by AIR. warner
The Bondiioider's Case.
Harold Preston explained that the Cen
trail Trust Company. of New York, which
h represented, was the trustee of the
bOndhoiters so much referred 70. The
bonds. MIR. Preston said. were far below
par for the reason that interest has not
been paid for two years The road today
only pays a little more than expenses,
and no money Is paid out for interest.
The bonds outstanding foot up siii,00o.
and foreclosure proceedings are now
pending IN the Federal court The re-
mainder Of the bonds cannot be sold be
cause the old ones are not paying inter-
est. The action OF foreclosure having
been commenced. II would be Illegal. Mr.
Preston said. 10 attempt TO issue addi
ttonal bonds If the franchise is forfeit
ed the bondholders have nothing except
the cars and lands at Lake Washington.
The situation would be that the bond
holders would lose ~ per cent. OF their
Investment and the city would have
track I'm the middle OF the street The
stockholders have no interest In double
tracking the road II would he insane for
them 10 do so when they have lost SO
much money. The receiver has no right
to issue certificates for nearly double The
amount OF the mortgage In order 10
build the double track.
Another company will not come IN. ac-
cept the franchise and give the city a
double track. when a single tracked road
loses money. and would double the loss
under a double track System.