The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-02-21
Entire System Will Be
Renovated.
MONEY FOR IMPROVEMENTS
HUNTINGTON WIRES CoNGRAT-
ULATIONS TO REQUA.
Latter Says New Rolling Stock Has
Been Ordered and the Entire
Southern Pacific System
Will Be Benefited.

Following the settlement of the debt
of the Central Pacific Railroad Company
to the United States is TO come an era
of renewed activity and improvements
on that line and also on other properties
of the Southern Pacific Company. Many
improvements contemplated of late years
have been held in allegiance awaiting the
disposal Of this great financial problem,
which has been considered one of the
most difficult in the history of the road
and in the career of Coils P. Hunting
ton
Owing 10 the cloud which this incubus
of nearly sixty million dollars of debt cast
on the credit of the Southern Pacific
Company, it was found impracticable for
that corporation to go into the money
markets of the world to raise funds for
much-needed improvements, This OBJ
stacle has been removed by the settle
ment announced last week, and a scheme
of financiering is now in contemplation,
which will not only provide ample means
for liquidating the entire funded and float
ing Indebtedness of the Central Pacific,
but will leave an ample surplus Tor I'M
provements to the roadbed, additions TO
the rolling stock and even for extensions
of the line.
That President Huntington Of the
Southern Pacific Company is extremely
gratified over the outcome of his long
pending controversy with the Government
is shown by telegram received yesterday
from New York by President Isaac l..
Requa of the Central Pacific Railroad,
signed by c. P. Huntington, which read
as follows:
of the board of directors on the consum-
nation of the result we have so long
hoped and worked for, namely, the settle,
ment OF the Central Pacific Railroad
Compahy's debt to the Government My
associates and myself want you to under
stand that we appreciate all that you and
The h,rr done tn1x ord h a ND
are glad to give you all the credit you
deserve for your assistance in behalf or
the stockholders am confident lent that that
stood by each other in defense of the
best interests of the Central Pacific Rail
read Gompabny ana iSeI ITS shareholders build
President Requa was no less pleased
over the outcome, and said he believed
be visible in the improvements that
would be inaugurated and in those under
way that would now be rushed 10 com
pletion. Referring to the closing OF the
and Elwood he said:
THE company is now very well pre-
during the past year Strengthening out
the crooks and grades on that line, and
will now have sufficient money at It's com
mand to connect the two ends or the line.
The work of doing so Will no DOUBT De
Immediately begun. / calculate II VIII
take about twelve months 10 nave II IN
shane. A great deal of work has already
been done on the main line as far as Sa-
linas in the way of putting the line into
condition for attaining a greater rate OF
speed with safety.
"The question of the Central Pacific
debt to the Government" he continued,
''is now out of the way for good. You
will hear no more talk about the Central
Pacific Railroad being owned by. the Gov
eminent Under the terms of the settle
ment we shall pay the Government $15,-
600 600 on the 9TH of July. After that they
viii get about 50, 900 900 every six months
until the balance is paid. The notes to
the Government bear interest at per
cent and are twenty in number, the total
amount of the debt being something over
I'm order to raise the money to meet
these notes the entire Central Pacific sys-
tenn. comprising about fourteen hundred
miles of railroad, will be bonded for $780,
900 COO the bonds to bear per cent. The
Government aided line only takes in
about 500 miles. Before these new bonds
are issued all the 8 per cent bonds in the
hands of the holders of the first mort
gage bonds will be called in and replaced
On Satisfactory terms with the new bonds.
This will be taken up at the annual meet
ing of the stockholders. which will be
held in San Francisco in April.
Il look forward 10 very active and
profitable business awakening on this
coast from one end to the other. In anti
cipation of what has come to pass the