The herald., 1897-03-20
THE MOUNT LOWE RAILROAD
w. c. Patterson, One of the Receivers
Has a Word to Say
At the Present Time the Road Is Paying Con-
siderabiy More Than Expenses Can
Earn q Five Per Cent Interest

AS was related in yesterdays Herald,
foreclosure proceedings were instituted
Thursday evening by the Los Angeles
Safe Deposit and Trust company, as
trustee, against the Pasadena and Mount
Wilson Railway company and others
A sale is asked Of the defendants prop
erty embraced in the mortgage given to
secure the indebte dness to pay the same.
This amounts to $500, 900, for which bonds
were issued to construct the Mount
Lowe railway. On account of the finan-
cial condition into which the defendant
company had drifted, c. w. Brown, W.
G Patterson and 1. B. Newton were ap-
pointed receivers on the 29th of July
last. Mr.. Brown was chairman of the
board.
Speaking of the foreclosure proceed
ings. Mr.. Patterson said to Herald re-
porter last evening:
"Some time ago 1 was made aware or
| the fact that the signatures of bond
| holders were being obtained to docu-
ment which purported to be an agree
ment to begin foreclosure proceedings
/ have not seen the petition, which is
said to have been filed in court, ana
therefore, of my own knowledge, know
nothing of its contents beyond the prlef
references to it which l have seen IN
the newspapers. 1t was my understand
ing that the document which was being
signed by bondholders was also to be
signed by Prof. Lowe, and that 1T con-
tained an agreement whereby the inter-
ests of Prof. Lowe and the sfocknolderS
as well as of the bondholders, would be
placed in the hands of committee, con-
sisting of Mr.. p. M Green, Mr.. Andrew
nF7NJnJtxr opd threa other gentlemen,
whose names 1 DO not at this moment
recall.
ssWhat effect the proceedings which
have been instituted will have upon the
preent receivership / am unable to say
It is possible that the bondholders may
apply to the court for the appointmen OF
a receiver from their own number, but
as to their intentions in this regard
have not received the slightest hint
Personally, I accepted appointment as
one of the present receivers with great
reluctance as my life was already
very busy ore. was then, and am now,
desirous that the Mount Lowe railway,
which is one of the greatest attractions
of Southern California should be main
tanned and operated to the best possible
advantage. My interest in the road
from the beginning has simply been
matter of public spirit.
''It is my sincere hope that the bond
holders in the final adjustment will be
| literally disposed toward the creditors
OF the road. 1t Is also my sincere hope
that out of the stock something will
be left for Prof. Lowe. However his
business methods may be criticised, no
one will dispute that he Is man of gem
| ius and that out of his fertile brain has
grown what Is undoubtedly, for its
length the most scenic and unique rail-
way on the American continent"
Can the road be made paying in
vestment?" asked the reporter.
"At the present time 1t is considerably
| more than paying expenses. There was
period during the early winter months
when it ran behind. The business Of the
last few months should not be taken as a
fair criterion Of its earning power, for
the reason that 1t has been handicapped
by variety OF things growing out of
its demoralized financial condition. In
my opinion, with its floating indebted
ness out of the way and with sufficient
working capital, the road, under careful
management, can be made to earn all
expenses and interest on a per cent
bond issue of $400, ,000."