The record-union., 1896-09-18
WILL TURN OVER THE FUND.
The Industrial improvement Association
So Votes.
It Will Levy an Assessment to Help
Build the Orangevale
Electric Road.

A meeting Of the note SignerS or
stockholders Of the Sacramento I'm
provement Association was held at
Pythian Castle last evening and was
we'll attended
The meeting had been called for the
purpose of considering the question of
levying a small assessment upon the
stockholders with view of using the
proceeds towards a subscription to
bonds Of the Sacramento, Fair Oaks
and Orangevale Railway, for aiding
that enterprise as being in the line OF
the development and progress of the
city.
c. A. Luhrs called the meeting to or
der and introduced Frank Miller, who,
he stated would explain the reasons for
which the meeting had been called.
Mr.. Miller first explained the purposes
for which the association had been
originally formed, and told why the
meeting had been called. He said that
Eastern capitalists had expressed their
willingness to build an electric railroad
from Sacramento to Orangevale, near
Folsom, the estimated cost of which
would be $3.50, 900, provided the city OF
Sacramento would express it's good faith
by advancing $4,000, which would be
secured by first mortgage q per cent
bonds on the property. Cox & Clarke,
Mr.. Miller said, had expressed their in
tcntion to advance $4,000 and j. Terry
$4,000 of the amount. Other citizens
had agreed to advance another S2O,OOO,
of which $4,000 could be depended on,
and il remained only for the association
to raise the sum Of $4,000 to insure the
electric road under consideration.
George B. Katzenstein, Secretary of
the association, stated that the assocla-
tion already had on deposit $4,000 in the
California State Bank, which had been
raised by an assessment levied in 1895
as an inducement to the OstranQef
Arms Company of East Boston to re-
move its plant to this city. Negota-
tions with the Arms Company had fall
Ell through, and the money raised by the
assessment was now lying in the bank
to the credit Of the association and
might if deemed eXpedient, be turned
into the fund to purchase bonds for the
proposed road.
Russ d. Stephens stated that proba-
bly, $4,000 remained to be raised, and
as the bonds of the road were to be OF
81 900 denomination, it would
be beyond the financial ability of most
individuals to subscribe.
BY putting the road through, Mr.
Stephens said, the territory in proxim-
ity to the line would be settled up, in
crease in value, and the result would be
that the increase in population and
wealth would be good investment fol
the city, as all of the extra traffic WOULD
come here. If the citizens and associa-
ton had confidence enough in the future
Of Sacramento to loan SoO,OOO on the
road it would, he thought, show &c
Eastern capitalists that our citizens
were not afraid of home securities, ano
if the road proved a success the BONDS
would be at par, and nothing whatever
would be given by the note signers ex-
cept what was secured by the road IT.
self. He thought it worth while to rlsk
$50 900 in order to get 100000 Of out
side capital invested in the city.
L. I. Hatfield stated that the Eastern
capitalists interested in the venture had
concluded while on the ground that
fits. The developments along the electric
vest money, but after they had gone the
Chamber of Commerce reSurrected the
matter, and it was now in a fair way OF
being put through, if only the city
would raise $4,000 for the purchase OF
bonds This amount would be a guaran-
tee of good faith on the part Of Sacra-
mento, and would cause an influx OF
$500, 900 outside capital into the city.
Mr.. Hatfield considered it a reasonable
conclusion to arrive at, that develop
ment on an extensive scale along the
line of the proposed road, even tC
Orangevale. would be extensive, and
IA
fits. The developments along the electric
lines in the city We're instances of the
developments which must follow the
building the line Of road, and if the
road proved a success the bonds would
be worth 100 cents, and If the bonds
were not worth one cent the county and
city would still have the railroad.
Major H. Weinstock was called for,
and said he believed if Sacramento
would take the present tide at the flood
it would lead on to fortune. Some. he
said, believed that if the city We're called
on to put up a bonus of $4,000 to in
sure the investment of $500, 600 it would
do so, but he personally believed that
the venture would be a success, and
that the bonds for the road would be
worth their face value. There were few
cities, he said, which had the magnif
cent chances Of Sacramento. 1t was a
natural trade center, but it needed con-
fdence in itself Confidence begets
confidence, and the association Should
respond cheerfully and literally to this
BID for prosperity. Not only should the
"A 900 now on hand be set aside for the
purchase Of bonds for the road but each
| member should be given a chance to in
vest his mite.
V. S. McClatchy, being called on, felt
certain that if the road were built those
y no financially assisted in it's con-
struction would never be losers nor
sorry for their action. If Eastern cap
italists We're to be informed by the ac-
tion of this meeting that the city had no
confidence in itself, he himself should
tell them not to come.
THE proposition" he said. SIS this:
The Eastern capitalist has said: Will
you, gentlemen, loan US $50, 900 on the
road. taking first mortgage 6 per cent
J bonds for security?", and he contended
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