The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-01-19

Pacific Is Making Every Possible
Effort To secure the seattle 4 In
stock of the Company II On the
Jump-The Local Ohcials Talk.
AT no time In the history Of rsiiroading
in the Pacific Northwest, excep, possibly on
the completion Of the Great Northern rail-
road into Seattle. has the situation been
as interesting as at present. Yesterdays
special dispatch TO the Post-In;eliigeneer
from Spokane carried with il the advance
information which Was later sent cut by
the Associated Press from New York. Of
an interest In the receivership sale Of tho
Central Washington road by The Canadian
Pacific railway. Should the present ca.cu-
lations OF the wise ones be borne out by
subsequent events. the much discussed
future of the Seattle 6 International road
will be practically settled.
The first snt,matIon Of Canadian interest
in the Central Washington railway APP
peared in yesterdays Post-Intelligencer.
and the afternoon reports from the East
sustained the assumption that the big for
eign corporation would seek 10 enter Se-
attic from the northeast, employing the
Central Washington and Seattle & Inter-
national. A later report by Associated
Press suggests that the Central Washing
ton may again pass under the control OF
the Northern Pacific. by which 1t was first
operated as a part of the general system.
Some confusion has arisen in railroad cir
cles over the confounding of the Central
Washington with the Spokane & Seattle.
and the consequent assumption. by many
not familiar with the situation, that the
two roads were identical. The Spokane q
Seattle was originally part of the Seattle.
Lake Shore & Eastern. and was built with
the idea of eventually closing the gap be-
tween what is now the Seattle & Interna-
tionai and the Spokane & Seattle. through
the Snoqualmie pass.
Heretofore the Burlington.
All predictions were then to the effect
that the property when extended across
the state TO Spokane would become the
western end OF the Burlington. which 10
now built as far west as Billings. Mont.
The New York Herald. always conserva-
tive in its handling of great financial and
oil ha faf al
Press 10 issue the following from Its New
York office:
THE Herald says: The contest for the
control OF the Seattle. Lake Shore &
Eastern railway bonds. now in progress
In Wall street, Is the sharpest fight OF
the kind that has occurred in several
wears in the financial district. That
neither side is confident of It's position Is
made apparent by the advance in the
price OF certificates.
For the last two years the certificates
have remained dormant, without income.
and with little or no value. beyond what
the distant future might have for them.
A week ago Saturday they sold at Is.
while yesterday they changed hands Al
high as a. although the last sale was
made at Ssia.
THE secret Of the present value or the
certificates liz found in the terms Of the
Shore & Eastern road In 1886. The road
had been constructed by the Northern
Pacific, through a guaranty OF its bonds,
but when the Northern Pacific Itself be-
came insoIyent its guaranty was worth
less.
"A receivership OF the Seattle road fol-
lowed. In the reorganization it's prop
critics and franchises were divided up be-
tween two new corporations, the Seattle
& International and the Spokane q Se-
attic. II was provided. however, that
should the trustees OF the stocks and
bonds Of the two new corporations wish
10 self lease or consolidate the roads
they should first secure the assent OF 50
per cent OF the certificates representing
the old Seattle, Lake Shore * Eastern
bonds which were deposited with the
Manhattan Trust Company at the time OF
the reorganization. II r. the certificates
issued on the deposit Of the bonds which
are row In demand.
In view % the discovery OF gold In
Alaska and the Yukon country traffic be-
tween Seattle and the North is expected
to be large, ani the Canadian Paeifc ap-
parentiy recognizes the advantage which
would accrue 10 IL through the control "
the Seattle International which runs
almost straight north from Seattle 10
suuas where IL connects with the Cana
dian Pacific. The agents OF the Canadian
days or more gathering in consents but
50 far as can be learned they have not
succeeded 70 any great extent.
There was meeting yesterday OF soma
90 the bondholders at the office Of Morton
). Patton, when the terms offered by the
Canadian Pacific for ihe lease were made
public. The company proposes TO susran-
tee the interest on the bonds at the rate OF
per cent for the first year. 3 per cent
for the second year and per cent. there
after,
1T also asks that IL be given an option
20 buy the bonds from the bondholeers
outright AT TIA.
cit is said that those present represented
about $50 nD1 out Of the issue OF g. 55s ofs3.
Several very large holders Of the cer-
.Iacates who have lively recollection oR
how they farrd under a previous guaran-
~, object TO the terms and expect 70 or
gansze an opposition piar.
Moore e. SchIey advertised in the Sum
day ia pers asking that holders call On
them for consultation. and as result they
were kept busy yesterday. TO visitors II
was pointed cut that a guaranty Of for
eign corporation WAS not very desirable