The herald., 1895-06-24
THE LOS angeles ROADS
Consolidated Lines to Be Os-
tensibIy Sold
A TITLE BY A LEASE
How the Present Company Controls the
Roads
A Perfect Title Is to Be Guaranteed and the
Lines Will Then Formally Be
Transferred
Associated Press Special wi1c.

Associated Press special WIG
SAN FRANCISCO, June 23.-On Aug
ust 18th the Los Angeles Consolidated
railroad will be sold ostensibly to the
highest bidder but really TO the bondhold-
ers, they having already formed q COM
pany to take charge of its affairs. Since
the consolidation OF the various electric
and ca BILE roads Of Los Angeles, their
affairs have been in a complex state.
The present company has no title except
by lease, and 1t is to create a perfect
title, and at the same time form COM
pany financially able to put the road on
a paying basis, is 5he reason assigned for
the coming sale.
The road has a bonded Indebtedness
of 49, 0G0,000 most of which is held by
San Francisco capitalists. 1t is under
stood that the Bank of California and the
Pacific rolling mills are large bondhold
ers and it is mainly at their instigation
that the forthcoming sale is to be made.
April last Thomas Brown, cashier of
the Bank Of California, was elected plesi
dent of the company now controlling the
road, and it is believed he will h old the
same position with the new road. Mr..
Brown alsu owns large block of the
bonds.
Most of the bonded Indebtedness of
the Los Angeles Consolidated railway is
held by San Fracisco parties" said Pres
ident Brown. The August sale is at their
instigation and is merely a means of ar
irving at legal formation of a new COM
pany. The mortgage, as is well known,
was forecosed few weeks ago. Just be-
fore tnat time we thought to make a
thorough investigation OF the condition
of the affairs and the probable cost of
needed improvements. So with that end
in view we sent down Hassell and Hunt,
tile midwinter fair electrical engineers.
They have gone over the road carefully
and Mr.. Hassell will file his report with
me in few days.
"We are now building three or four
miles of new road, though more extensive
construction will take place after the sale.
An older for ten new cars has Oeen put
in, and it is probable that this will be du-
plicated within the next sixty days. and
after the sale the entire system will be
changed from cable to electric and other
improvements beneficial to the road made.
1T has been enormously reported that
the Bank of California held large
road as collateral security for loan made
for the Pacific rolling mills.
"That is a mistake, for the bank has
not one dollar Of stock as collateral, and
the bonds held by the rolling mill are free
from debt of any description. Just who
does hold the bonds in San Francisco
en- unwilling to say, for the simple reason
that the parties interested might not
wish it known. can say this, however,
that the bank is not interested in any
way, except that it holds few bonds,
though it will take no active interest in
the management of the affairs Of the road.
"As soon as Mr.. Hassell makes his re-
port I will be in better position to tell
Just what will be done, but until then
would rather not go into any further de-
tails than have"