The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-09-17
STOCKHOLDERS AND
CENTRAL PACIFIC
Plans Formed to Oppose
Huntington.
BAKER AND MORSHEAD ACT
HAVE A CONFERENCE WITH
THE ATTORNEY GENERAL.
English and American Security Hold
ers Now Talk of Taking the
Road Into Their Own
Hands.
Special Dispatch to The Call.
Call Office, Riggs House,

Call Office, Riggs House,
Washington, Sept. 16.
Hon. Charles w. Baker of Rochester,
N. Y, and Walter Morshead of London
had an interview to-day with Attorney
General Griggs in regard to the dispo-
sition of the Central Pacific Railroad.
Baker represents American stockhold-
ers and Morshead English and Ameri-
can stockholders. They had previously
conferred with Secretaries Gage and
Bliss and outlined the efforts which the
stockholders propose to make to OBJ
tain possession of the road.
Morshead has been in this country
for about a month arranging with
American stockholders to cooperate
with foreign investors in preparing a
plan of reorganization to be presented
to the COMMITTEES for approval. The
English stockholders are very much in
earnest about the matter and propose
to force conclusions if possible. They
consider that the stockholders are the
real owners of the road and believe that
they can raise money to pay off the
Government mortgage and arrears OF
interest If they are permitted to take
charge Of the reorganization. They still
have confidence in the road and believe
not, however, wish to see it burdened
with further charges, and think that II
the road is to be saved to the stock
holders it is time that aggressive &C
ton be taken. The contest promises to
be one of millions against millions. for
the foreign stockholders profess to be
able to raise $100, 100000, If necessary,
and they are ready to fight c. P. Hun
tington, who is equally well supplied
with money.
Morshead explained to members of
the commission that the English stock
holders were prepared to oppose any
effort Of Huntington and the Speyers
to reorganize the road, and that most
eminent counsel In London had assured
them that they could easily defeat the
Speyers in the English courts. The plan
has been proposed through the Speyers,
who are the London agents for Hun
tington, backed by the Banbury com
mittee, his London committee, to plas-
ter the road with a blanket mortgage,
covering everything belonging to the
road. The money obtained from this
mortgage is to be used in paying off
the debt Of the road to the United
States and Strengthening out the
tangled affairs of the road.
Morshead says the English stockhold
ers can prevent such action being
taken in England. and the American
stockholders can do the same In this
country. He has, he says, several
times charged fraud, and believes when
the facts are submitted to the English
courts the latter will forbid the issuing
of bonds secured by a blanket mort
gage One of the frauds alleged to
have been perpetrated on the English
public, according to Morshead, was in
connection with the leasing Of the
Southern Pacific to the Central Pacific
and then the leasing Of the Central Pa
cific to the Southern Pacific.
Morshead will take a trip to Califor-
MIA to consult with Southern Pacific
stockholders.