The herald., 1897-05-05

Ir4nCniSe 10 one company WOulQ oe u
the nature OF a monopoly. and canno
see how the council can consistently d.
II. Besides. 1t is against the direct wishe
OF majority of the people"
OTHER OPINIONS
Another citizen informed the reporte
about the financial operations of tn
i Pasadena and Los Angeles electric road
How they had hypothecated s350,000 IL
bonds, giving their notes for $175,000, the
bonds being given as security. at about
one-half their face value. The invest
ment in the road, the informant states
was about $17500O. II the city accepts
the exclusive franchise proposition the
bondholders and creditors of the COM
pany will be enabled to dispose Of the
bonds at par to eastern capitalists. This
can be done during the first year after
the exclusive franchise is granted the
electric company. and after that they can
withdraw from the contract If they de-
sire, as no guarantee can be given the
city that will hold in law.
Ed I.ockett, the lumber dealer, and q
prominent city politician, said freely that
he favored the entrance of the Terminal,
and opposed granting an exclusive fran
the city would give him the exclusive sale
of lumber in Pasadena he would build a
plank road to Los Angeles and keep 1t
in repair free of cost. The city could not
afford to barter away the right of the
people as exemplf1ed in competing
electric road.
FROM THE ELECTRIC PEOPLE
From George F. Kernaghan, ex-post-
master, who has recently taken the posi-
| tion of president Of the Pasadena Nation
al bank, and likewise the position in the
Pasadena C Los Angeles Electric Rail-
way company. formerly occupied by Mr..
Webster the following statement was
obtained: THE facts are that the elec-
trio company had becom financially en-
barras ssed. owing to the trend of the times
and inability to float their bonds. About
two weeks ago the affairs of the company
were placed in the hands of reorgani-
cation committee comprising some of the
resident bond holders of this city. as
follows: George F. Kerna CHAN. Andrew
McNally. D. B. Dewey, P. NJ. Green, c.
w. Smith, Geo. H. Barker, Henry Fisher,
F. c. Bolt. H. H. Markham and NJ. H.
Sherman. Inaemuch as there is r o prob
ability that there can be sufficient bust
ness for two electric roads here. the Pas
adena company asks and is willing to
pay for protection and its financial life
Should the Terminal be allowed to come
in and divide the traffic the result would
be disastrous financially to the Pssa lena
road. When the reorganizat ton Of the
company is complete the board of direc-
tors will be principally Pasadena men
and the road practically Pasadena en-
terprise.
THE reorganization committee has
purchased the electric lighting plant Of
this city. and have proposed to light the
city free of charge so long as they are
protected in their expenditures already
made for the road and franchises in
Pasadena. This will be saving to the
city of at least $11. 900 per year, which ie
the present cost, and which cost is likely
to Increase from year to year. The city
council is to have the privilege of sus-
pending the arrangement as to lighting
and the company's rights under the
agreement at any time, and the company
is satisfied with theee conditions, believ-
Ing they can satisfy the people that they
are gamers as well as the company by
the proposition. For this reason the cry
of monopoly is absurd. The company.
owning the electric lighting plant, will
be enabled to furnish the city lights It
absolute cost, make profit on CONNER
cial lighting and save the traffic loss to
a competing line, which explains how
they can afford to carry out the PROPOSE
tion to light the city free. Many leading
citizens and capitalists of the city favor
the proposition. and we feel confident the
council Will decide favorably to the COM
pany and at the same time for the best
interests of the city. There has been
great change of sentiment since the peti-
tion for the Terminal company was cir
culated. If the city accepts the proposi-
t1on of the company the bondholders will
raise money enough to cover all the un-
completed franchises in Pasadena at
once. and the money raised for this pur-
pose will be used for no other"
The impression seems to prevail in
Pasadena. according to opinions heard
even among those favoring the Terminal.
that the council will accept the PROPOSE
ton of the Pasadena company, if it is
presented in a definite and legal form.
But many consider this impossible. The
matter will probably be decided May II.
at which time the council have agreed to
take up the Terminal petition.
GENERAL MANAGER CLARK
E. P. Clark. general manager of the
Pasadena and Los Angeles Electric
Railway company,was seen at the offices
of the company in Los Angeles. At first
he declined to make any statement as to
the company's business or the situation
in Pasadena. on the ground that the for
mer was not Of general interest to the
public, and the latter had been
more than fully covered by the press al
ready. He could not see wherein the
highly -colored reports of the company's
financial affairs or other private busi-
ness concerned the public, so long IS the
service and equipment of the road was
equal if not superior to any other elec-
tric interurban line in the country.
Mr.. Clark finally said: 1.-The Pasadena
and Los Angeles Electric Railway COM
pany determined to build up good rail-
way service from Los Angeles to Pasa-
dena and over the latter city, and it has
already accomplished much of the OBJ
ject desired. The business or passenger
traffic varies but little, only a few dol
lars, from day to day. About so much
business can be done and no more. The
rates of fare are as low as any road in
the country, considering the distance
There is now only A living patronage
Another electric road would divide the
business and necessarily reduce the
service and complement of cars on both