The San Francisco call., 1896-05-08
A BLOW AIMED
At SUTRO'S LINE,
Market.Street Company Is
After the Sutter-Street
System.
MORROW WOULD SELL.
Buckley and Schmitt Also Said
TO Be Willing to
Get Out.
TRANSFER CONTRACT HOLDS.
The Mayor Says 1t Will Stand If a
Dozen Changes Take
Place.
TRANSFER CONTRACT HOLDS

Inc QgQS Is SLlll Oh O0IWe6H III yO1 DuIAO
and the octopus" and in the next round,
pugilistically expressing it, the octopus"
will be on the aggressive.
Though known to few it is not quite
an open secret that the Market-street Rail-
way Company has long had its eye on the
Sutter-street line. In years past the COM
pany would bave drawn large draft on
its treasurer to possess itself OF the sys-
tenn, but since the construction OF the
Sutro line and the incidental combine
entered into between the Mayor and the
Sutter-street company, the covetousness
of the octopus" in that direction has
been greatly stimulated.
Thereby hangs the tale. If the Market
street company could gain control of the
Sutter-street system and shut off Mayor
Sutro's feeder a severe blow would be dealt
the arch enemy of the octopus"
Until few weeks ago, so the story runs,
these aspirings on the part of the ''octo-
pus" were vain, shapeless and without
promise. But there came a Frightening
on the horizon of Southern Pacific hopes.
a climax was approaching'in the deal be-
tween Robert Morrow, the heaviest stock
holder in the Sutter-street company, and
d. o. Mills. Mr.. Morrow was pushed for
ready capital to carry on his mining op-
erations in Nevada. He.applied to d. o.
Mills, the well-known millionaire. Mr..
Mills was willing. He knew the Sutter-
street railway was good property, and he
so told his friend, Mr.. Morrow. The latter
saw the point, and no time was lost in
negotiating the loan so much needed.
Mr.. Morrow transferred his interest in
the Sutter-street company to Mr.. Mills in
exchange for few hundred thousand,
and the money and Mr.. Morrow hurried
off to the mines.
In such transactions it is next to impos-
sible to get at the actual facts, but as near
as can be learned the conditions on which
the loan was made were that in event the
loan was not repaid the Morrow interest
in the Sutter-street Company should pass
into the hands of Mr.. Mills at the expira-
ton of a specified time. The knowing
ones say that the time elapsed several
weeks ago and now Mr.. Mills is in posi-
ton to dispose of his interest in the Sutro
lines feeder to the octopus"
Additional color and probability are given
to the sensational story which is being
quietly whispered about among those iden-
titled with railroad affairs by the knowl-
edge that Chris Buckley and Maurice
Schmitt. two large stockholders in the
Sutter-street company. are not at all un-
willing to talk business with Market-street
people. It is also fresh in the memory OF
the people that through the delicate
manipulation of the Market-street COM
pany Mayor Sutro was shut out on his bid
for the Bush-street line and il meant war
to the knife when the first rail of the Sutro
line was laid.
The key to the situation is the contract
entered into by the Sutter-street company
and Mayor Sutro. If the controlling in
terest in the Sutter-street line passes into
the hands of the Market-street company
the latter will make an effort to break this
contract in the courts.
On that head Mayor Sutro said yester.
day: "The octopus can't do it. This story
has been in the air for several days, and
have no doubt the octopus will invok,
the aid of its law hatchery dom
think they can do anything in that direc
ton. The contract have with the Sutter
street company runs as long as the road i
in operation. If it passed through dozer
hands it would not affect the existin,
agreement. No; their law hatchery i
powerless to do me any harm there. The,
will, no doubt, try to have the contrac
declared illegal. Yes; l have known
about the scheme of the company to bu,
the Morrow, Schmitt and Buckley stock
but it may be that they will back ou
when they find that my contract is par
of the road itself and cannot be affected b,
any change of ownership. In any event
they will have all the fight on their hands
they want and will follow them through
all the courts in the land.'
Mr.. Mills could not be seen Yesterday
but his presence here at this time is re
garded as significant by those who are OF
the inside in street-railway affairs.
Within the last few days there has bee1
considerable quiet discussion in street
railway circles concerning the perpetuit
of Mayor Sutro's contract with the Sutter
street company.
1t is contended by some that when tn
road changes hands the present compac
will be void. Others agree with the Mayo