The herald., 1896-08-19
MANY Millions
~ o AFRICAN GOLD
Seeking Investment in
California
LOS ANGELES Street RAILROADS
Attract the Attention of the
Capitalists
A DEFINITE OFFER IS MADE
For the Purchase Of the Consolidated
Electric Road
Scarcely Doubt That the Project Will Be
Carried Out
Bondholdsrs' Pool win Be Bought Out and
the Road Pass Into Control Of the
Chartered South African
Company
A DEFINITE OFFER IS MADE
For the Purchase Of the Consolidated
Electric Road
Scarcely q Doubt That the Project viii Be
Carried Ont
BondhoIdsrs' Pool win Be Bought Out and
the Road Pass Into Control Of the
Chartered South African
Company
Associated Press Special Wire.

SAN FRANCISCO, Aug. 1S.-Millions
easily and quickly made in the African
p gold fields are seeking safe and moder-
ately remunerative employment in Cali
fornia. The big shareholders in the
South African Chartered company. such
as Cecil Rhodes, Barney Barnato and
their moneyed associates. after having
purchased with their diveidends the
street railroads Of the City of Mexico.
have turned their attention to the same
class of investment at Los Angeles.
Through Henry A. Buffers and others
they have made a definite proposition
to the bondholders' committee for the
purchase of the pooled bonds of the Los
Angeles Consolidated Electric Railway
company, for which are to be substitute
ed those of the Los Angeles Railway
company. If made the sale will repre-
sent about $4,25O,0Oo, and will include
all Of the interests of the bondholders
In the property and assets of the Los An
geles Railway company. At the same
time It will give the South Africans con-
troll of the Los Angeles street railway
system. The remainder Is largely held
by NJ. II. Sherman. The price to be paid
and the large capital behind the new
management will be sufficient to relieve
him of his financial embarrassment. In
addition the Peoples Home savings
bank holds about 200 of these bonds.
from which $780, 900 Is expected to be re-
allied, and will be able to distribute
that large sum of money in dividends
among it's depositors.
This is one of the most important
a., loI xrhfo 70
place in many a day in California. 1t is
not mere idle street talk, but definite
proposition to consider which the bond
holders have been called to meet tomor-
row afternoon at the San Francisco Of
flee of the Los Angeles Railway company
in the Savings Union building on CAL
ifornia street. That the project will be
carried into effect scarcely admits Of
doubt. The bonds, with the con-
troll Of the road involved, are held in few
hands The holders have been consulted
and a form of resolution has been pre-
pared for adoption at the meeting. In
the notices sent out the bondholders'
committee expresses its belief in the
genuineness of the offer as IT says it
has received from parties of good re-
pute, believed to be financially strong.
a definite proposal for the purchase of
the bonds mentioned"
In all there are 5000 bonds and the
proposition briefly stated is as follows:
The purchasers will pay face value, $1,000
each for the 2S43 bonds pooled, and the
same rate for so like bonds, being the
share and proportion of the bondholders
in 157 bonds in the treasury of the Los
Angeles Railway company. This, it is
stated, will give for each of the pooled
bonds $l02S.14, plus some interest to ac-
crue. less expenses, which will be trifi-
irg in amount. A payment of 100000 in
the nature of a forfeit is to be made
on November 1st, 1896, q payment of
$4,000 OH account of the purchase on
February 1887. dividend following
this payment, and the balance Of 81, ,00O,-
900 on August 1. 1897, with interest at the
rate of per cent from February /. 1897.
In addition, portion of the capital
stock of the Main street and Agricultural
Park Railway company, the property
and franchise of the Fifth street road
and majority of the capital stock of the
Los Angeles Railway company, which
controls the two other organizations, are
included in the bargain. This is under
stood to represent about 81, 25O, 900 more,
bringing the total investment of the
South Africans close to $4,25O,OOO.
The entire plan is set forth in the pre-
anble and resolutions to be presented
at the meeting on Wednesday. Under
the plan the pool of the bondholders will
be entirely cleared up, the twenty-seven
bonds remaining in the treasury of the
Los Angeles Railway company will be-
come the property of M. Fl. Sherman.
and he will hold 40 per cent of the stock.
The control and management Will, how
ever. be in the hands of the South Afri-
cans. 1t will mean the pouring of over
$4,000, 900 into circulation in this state.
and the easing of the affairs Of the banks
and Industrial enterprises holding the
bonds.