The San Francisco call., 1898-11-11
NO CHANGE FOR THE BANK.

What. then, is the best line of policy for those having actual investment in the property? I told you during our confer ence that, in my opinion, you should re- verse your lines of action. and move in another direction-that no matter how badly the bank needed it's money, 1t could not get 1t nor sustain it's credit by stand ing behind the scheme any longer; 1 recommended that you recall your cleo. tric bonds and pool with the holders or bond issue of less than $1.500,0O Let the electric bonds default their interest and have a foreclosure as soon as it can be reached. If you stop now the electric road is wrecked at once. You may carry 1t a while, possibly three or six months, but the last condition will be far worse than 1t Is now, and you will be only the more deeply involved, and the credit of your bank still further weakened. The owners of the S36 cable bonds will be only the Pacific Bank to pro rata a scheme, and if you should only get 70 cents all round R in casn h you ! S would i'd you. If on the other hand, the electric property should pass into the control of the combine, which l have suggested, you would receive more. than par in new bonds for those now held by you, and the new bonds would be worth par, for the property can be so operated that it will pay per cent on 100000. Of course to reach this result, the entire electric plant would have to be eliminated, that is aban- doned as a street railway system, but the material and electrical machinery could be utilized on such lines of the two syS- tems as 1t would be profitable to operate
 You have nothing to fear from the pro- jectors of the Eastern scheme. They have done your bank all the harm they can do If you stop now, for l assure you that the whole situation Is widely understood, and each effort to bolster 1t will only result in further injury The whole financial atmosphere about you is filled with state ments of fact and congregations, and they are growing stronger all the time. You ask me to talk frankly to you, and I am trying my best to do 1t. l desire that you should save every dollar that your bank has invested and if I had any means of helping you other than by advice, would do so but know that the course you are
 l heard at San Francisco that an effort would be made to get. the British Vice Consul at that place to certify to the scheme, and that act would be "coppered" would be asked to warn British investors against investment in the property.
 l am well acquainted with the govern ing committees of the Boston and New York Stock Exchanges, and know what will be required If an attempt Is made to list the electric bonds there, even for wash sales.
 Alvord, Lowell White, John Mckee and the others. and have them join in the plan which have suggested, even if you do not associate yourself with the Roll ing Mill Company,
 1 do not think it necessary for your suc- cess that you have the rolling mill join in the scheme have suggested, because you can succeed without them If they do not want to join you.
 I fear if you do not do this that the Ralston fasco will have to be repeated, and even more widespread disasters re- suit. Respectfully submitted,
 J. H. WOODARD,
 1907 Grand avenue, Los Angeles.