The herald., 1897-07-11
MOUNT LOWE RAILWAY REORGANIZATION

The following - Prof. T. s. c. loves
nrst public explanation Of Mount Lowe
railway difficulties. Its present condi-
ton is fully set forth in the following
communication to the reorganization
committee:
PASADENA, Cal, July 8, 1897.
To the Bondholders' Committee of the
Pasadena and Mount Wilson Railway
Company: Gentlemen-It has come to
my knowledge that your committee has
made provisions, by agreement with
portion of the creditors of the Pasadena
and Mount Wilson Railway company
to issue to them bonds of the new or
ganization, known as the Pasadena and
Mount Lowe Railway company. in set
element of their claims. This l con-
cider a step in the right direction, pro-
vided, however, all creditors fare alike
in this settlement 1t is only just and
honest that all who have contributed
to the building of the railway and Its
various structures and plants should
be recognized and fairly dealt with.
Such a proposition was contained in my
paper to the bondholders of October 20.
1886, a copy of which was mailed to every
bondholder. This paper bore the follow
ing recommendations and endorsements
of well known bankers and business
men:
''I endorse the within and stand ready.
when matters are in proper legal shape.
to join in this exchange of bonds which
we hold for the per cent bonds of the
new issue as indicated.
FRANK c. BOLT.
president San Gabriel Valley Bank"
IT heartily endorse the suggestions
contained in the above communication.
and believe 1t to be the true solution
Of all difficulties arising in the matter,
and as president Of the First National
bank of Pasadena, shall recommend that
our bank and its customers join others
in making an exchange Of the bonds in
which they are interested as indicated
in the communication above referred to,
believing it to be their very best inter-
ests financially, as well as to the inter-
est of this community that the full plans
Of the originator may be carried out.
'P. NJ. GREEN"
IT fully concur in what is above writ
ten by Mr.. Green and Mr.. Belt, and as
a bondholder of the road individually
agree to settlement on the terms pro-
posed. WILLIAM STANTON,
''vice President Pasadena National
Bank"
at cordially concur in the foregoing
proposition as approved by Messrs.
Green, Bolt and Stanton, and will make
the exchange of my holdings as above
suggested. ]. w. HUGUS."
1--WE concur in the above"
JOHN M. c. MARBLE,
president National Bank of Califor-
MIA"
FARMERS AND MERCHANTS
BANK, Los Angeles, Cal, October
Is, 1896
"Mr. I. S. C. Lowe, President Mount
Lowe Railway, Pasadena, Call: My
Dear Sir-I have read your proposition
for funding the Mount Lowe railway
bonds, and would recommend to parties
interested in same exchange of the per
cent bonds in place of the present per
cent bonds, as 1 believe they would
give more confidence. and besides
per cent bond is not considered good.
Respectfully yours,
HERMAN W. HELLMAN."
LOS ANGELES, Cal, Oct. II, 1896.
"Prof. T. s. C. Lowe, Pasadena, Cal:
Dear Sir-I have examined carefully and
somewhat in detail your proposed plan
for refunding the bonds of the Pasadena
and Mount Wilson railway and for TAX
ing care of the floating Indebtedness of
your corporation. 1t occure to me that
the plan which you propose, if carried
out, would benefit both bondholders and
creditors, as well as the magnificent en-
terprise that was conceived by your
geniuS Yours very fru1V
'W. C. PATTERSON"
'UNION BANK OF SAVINGS,
Los Angeles, Cal, Oct Is, 1896.
IT have carefully read the foregoing
proposition for refunding the Mount
Lowe railway, and recommend the ex-
change of the per cent bonds in place
Of the old issue. believing they will sell
better among eastern investors, and will
give more confidence than the per cent
bonds, which is too high a rate of inter-
est for these times. Yous vry truly,
I'M. w. STIMSON, President
In response to this proposition, Mr.. c.
A. Newcombe, a large bondholder of
Detroit, Mich, wrote as follows: IT con-
sent to the exchange of bonds as indi-
Gated. and request that exchange be
made here with Detroit National bank.
This enterprise, of it's kind the greatest
in the country, and Of so much impor-
tance to your locality, ought not to fail.
1t must be looked upon, not wholly as a
money investment, but from broader
standpoint. The possibility of extending
this enterprise so those mountains may
be the home of some scientific school,
should arrest the attention of the wise
men of your growing city. The real
wealth of nation is in her institutions
for good, and the opportunity is before
you there to evolve some good in that
direction"
afterwards learned that before this
proposition reached them, most of the
bondholders had committed themselves
to proposition for foreclosing the bonds
as soon as the first opportunity should
present itself, effected through the So
licitation of unwise persons and par
ties having Interior objects in view, the
particulars of which 1 will not enlarge
upon unless it becomes necessary
In the proposition contained in my cir
cular above referred to, both the bond
holders and outside creditors were pro-
vided for in the proposed new issue of
bonds, and those larger creditors, con-
sisting of myself and members of my
family and others interested in the
stock, proposed to waive all claims, pro-
vided we retained the same stock inter-
est in the new organization that we held