Eureka weekly sentinel. [volume] (Eureka, Nev.) 1887-1902, 1900-06-16
Probability That the Road Will Form a
Part of the Proposed Salt Lake
and Los Angeles Line.
Every Indication Points to This as the
Real Cause for the Radical Step
Which Has Been Taken.

One of the most important steps which have been taken n many years
ahechngthe welfare of Eureka. and in fact the entire section Of country tribu-
larry thereto, is that which IA taken o Tuesday of this week when the Eu
reka & Palsade Railroad passed into the hands o a Receiver. Upon the ap
picaton OF the parties directly interested Judge Iiawley of the United States
Court at Carson o that day appointed M. L. Requa to that important position
and when the provisions of the law governing such cases have been complied
With, the road will be advertised and sold to the highest bidder, the proceeds
70 De appnea 10 TN hquidauon OIL TIT claims Oh ~ oondhoaeIs SOAR as
possible. Mr.. Requa's bond was fixed at $4,000, which va Immediately
furnished, j. W. Adams and II. NJ. Yerngton qualifying as sureties.
The circumstances leading up to this enforced action will be of interest to
all the people residing in this part of the State, and the result of the sale will
be douby interesting, as it will decide the future policy of the road. which will
mean either increased prosperity to this section OF a further GRIPPING OF its
resources, according to the views and incinations of its future management.
The Eureka & Paisade Railroad was completed in 1876, and in order to
raise the necessary funds or It's construction and proper equipment m COM
pany, asis common with all railroad enterprises, issued its bonds in the sum of
100000, the interest coupons being payable semiannualy at 7 per cent per
annum. Thus, it will be seen, each semiannual coupon called for a cash pay
ment Of $4,000, or $4,000 a year, which the company val called upon to pay
in interest alone, besides the necessary operating expenses. For a long time
these coupons were met promptly, but Of late years, on account OF the hi IN
silver and the consequent depression affecting all lines of business in the West
the roadha as been unable to meet its interest obligations, and has only taken up
a semFannual coupon every we or three years. This naturally caused the
bondholders. who are widely scattered over this and foreign countries, to
clamor for their money, and after careful consideration it was decided that the
BEST and in TACT the only course open' ws ito appoint a Receiver and in this
way do equal justice to all creditors.
Up to the present time the road has paid thihyiour of these interest cou.
pons, segregaing the enormous sum OF sll9W0M, and this, coupled with the
operating expenses, salaries OF officers, etc, will give some idea OF the business
transacted in this part of Nevada during the past twentyfour years.
The original trustees named in the bonds yer William Alvord and Jerome
Lincoln, but some time ago Mr.. Lincoln died, and when the plan to throw the
road into liquidation was decided upon, Judge Hawey of the United States
Court, at CarsOn o n June Z appointed q. Howard Thompson of the Bank of
California to succeed the deceased trustee.
The Eureka & Palisade has always been a carefully managed road, its
affairs being conducted on strictly business principles, and Its failure to meet
its interest coupons is due solely to lack of business caused by tn. low price Of
silver and the closing down OF many of Eurekas heaviest producing mines.
At the present time the company owes in delinquent interest about
sOOOO and we understand there is no other outstanding Indebtedness.
On Wednesday a special train brought the newly appointed Receiver, NJ.
L. Requa, Superintendent q. d. Abbott, and G. III. Abbott, attorney for the
company, to Eureka, when Mr.. Requa, as Receiver, took formal possession OF
the road. and all the property thereunto belonging. On the way up all the
employees of the road wered dismissed from the service of the Eureka & PaGsade
Railway Company, and Immediately re-engaged in the employ of the Receiver.
Mr.. Requa stated that the fact that the property is in the hands of a
Receiver will make no difference to the people Of Eureka, or the patrons of
the road in genera, as the business will be conducted on about the same lines
as heretofore, and that no change is contemplated either in the running sched-
ue Or in the personnel of the employees OF the road.
Following close upon the announcements the crisis in the affairs Of the
Eureka & Paissde comes the new from New York City that the proposed
railroad between Salt Lake and Los Angeles. to be owned and operated jointly
by the Southern Pacific and the Santa Fe systems, will not be built, notwhh-
standing the positive statements in the affirmative by the management of the
two roads. The dispatch credits the Santa Fe with the determination to build
acquire and extend the Eureka & Paisade as a part of the proposed trunk line.
While a study of the map shows that the local road could be used to form
a part of q through line by the Santa Fe, it is far more likely that it will be
acquired by the Southern Pacific, a by its connection with the main line of that
most feasible route between the Utah and Southern California cities. Some
three months ago the SENTINEL had a lengthy article in connection with the
Southern Pacifcs proposed short line between those two points, and despite
the various rumors of ut-ofs by way of other Nevada towns, has continued
to maintain that when the road was built the Eureka q Palisade would be
used rs the connecting link.
II appears highly probable that the present move on the part of the Eureka
& Paisade Company is made for the purpose OF getting the road in shape to
be transferred to of the trunk lines, which will utilize it IS part of the
short line between Salt Lake City and Los Angeles. Both Receiver NJ l.
Requa and Superintendent G. d. Abbott OF the Eureka & Pahsade, however
while here on Wednesday, stated that. as far as they knew, the matter of the
appointment of a Receiver had nothing to do with such a movement.
Be that as it may, everyone who is familiar with the country west and
south of Eureka knows that it may be said to have been designed by nature
for the construction of a railroad, and in fact, for several miles a roadbed i
already graded.
Should such line be built it will mean much for the future prosperity o
this camp, and insure the development of many mining properties which arr
now lying idle because of the high price OF fuel and a correspondence hHi
n rate o N ores to the Salt Lake and San Francisco smelters.
"Iope dwers eternal in the human breast, is a old and te saying
q and everything considered, the people of Eureka will be justified 10 nursin
: the hope that there is a bright future in store for this camp. and tnat ere Ion
liz will resume Its od-ame hustle and activity.