The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-02-03
Suggestions of a New
Bond Issue.
THE CENTRAL PACIFIC DEBT
IMPORT OF S. p, OFFICIALS
TRIP EAST.
The Resignation of w. II. Mills From
the Directorate of the Central
Pacific and Its Signiti-
canoe.

A cloud of uncertainty is lowering over
the yellow building" at present, and
there is hardly an employe Of the South
ern Pacific Company in authority VINO
does not expect some great change In the
present status of affairs.
All the big interests of the Southern
Pacific are now represented In person IN
New York City. Mrs. Stanford, Coils +.
Huntington, H. e. Huntington, George
Croker and representative of the
Searles are gathered there to consum-
mate what is likely to prove the biggest
railroad bond issue in the history OF the
West. All manner and varieties OF con-
lectures have been put forth as TO the
probable reasons of the Eastern journey
of all the parties in interest. That the
Central Pacific affairs are the sole point
in issue is negatived by the trip of j.
G. Stubs, third vice president Oh the
Southern Pacific Company.
The sudden rise of Central Pacif1c ana
Southern Pacific stock as we'll in man
ner hints at the changes contemplated.
Those in authority who are cognizant OF
the inner workings of the Central Pacific
admit that the jump In STOCKS is Que 10
the contemplated payment OIL the 0oV-
eminent debt.
It was rumored about yesterday that
the debt to the United states Govern
ment would be paid by the issuance OF
ern Pacific system. This would explain
the sudden rise in Central Pacific as well
as Southern Pacific Railroad stock. A
new issue of bonds would then be noateo,
which would cover the vast and extensive
property embraced by the Southern Pa
cific Company and not the comparatively
small mileage of the Central Pacific
The Southern Pacific Company at pres
ent possesses roads that aggregate STU
miles, 1907 of which are comprised in the
Atlantic system and the remainder in the
CT
erty is so great that a new issue of bonds
could be f1oated on the loan TO pay orr
the Government debt at much lower
rate of interest. Instead of a blanket
mortgage being made on the Central Pa
cific It would then cover the entire South
ern Pacific system, of which the Central
Pacific is but an integral part.
AS the Central Pacific has leased its
roads and equipment to the Southern Pa
cific Company this new venture IN BOND
and mortgage manipulation would be the
death of the old-time contention of the
Southern Pacific that the Central Pacific
Railroad was a thing apart.
The Southern Pacific officials are still
insistent in the denial that Mrs. Stanford
has gone East to dispose of her Central
Pacific and Southern Pacific Railroad
stock When the four magnates. Hunt
controlled the road a contract was in
force making 1t impossible for any one to
dispose of his interests in the company
without the consent of the remaining
three and 1t is believed that this agree
ment still holds in spirit, if not in letter,
among the representatives of the Stan
ford, Croker and Huntington interests.
But owing to the recent appreciation in
value Mrs. Stanford may deem it to her
best interests to sell her stock in the
Central Pacific, which has uadrupled, and
that of the Southern Pacific, which has
also taken big jump.
A fact which may be of significance is
the resignation of w. II. Mills from the
directorate of the Central Pacific Com
pany. Four weeks ago Mr.. Mills resigned
as director and a successor was appoint
ed. the reason for which has been studi-
that the resignation of W. H. Mills was
for the furtherance of some signal scheme
of the company, the conclusion of which
will be acted in New York within few
DAYS