The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-07-07
ANDERSON OPPOSED
THE ISSUE OF BONDS
Mr.. McCune Bought His Stock
at Sixty Dollars.
STREET RAILWAY MEETS
RAPID TRANSIT BONDS TO BE
TAKEN UP.

The stockholders Of the Salt Lake
Street Railway company, after sur
mounting an obstacle which threatened
for a time to be Of embarrassing dimen-
sions. held the scheduled meeting yes
terday forenoon and ratified the action
OF the directors On the S500,0c0 bond
issue. The obstacle referred to was
block Of stock, 593 shares in all, held
by r. r. Anderson. Before the bond
issue was acted upon A. W. Mctune,
who now owns over three-fOurthS of
the capital stock Of the company, pur-
chased Mr.. AndersOn'S holdings. He
did SO at a figure fixed by the holder,
and which is said 10 have been in CX-
cess Of 500 per share, or about $S6,OO1
for the block.
The meeting was to have taken place
at 10 a. IN At that hour, President G.
l. Rood. Vice President W. p. mead,
Secretary Joseph :. Wells +. Y. Nc
Cune r. N. Ellerbeck and Spencer
CIaWsOu were present Negotiations
had been on the night before between
Secretary Wells, representing Mr.. Nc
Cune. and Mr.. Anderson, looking to the
transfel ~ the latter's stock, but the
figure asked by Mr.. Anderson was con-
sidered excessive and nothing came Of
the conference.
Anderson's Opposition.
Mr.. anderson appeared at the com
terday. and on the advice of his attor-
neys. Brown 4 Henderson, practically
served notice that he would oppose the
bond issue His position was that his
would m eaG the failure OF the pf0P1-
Ritt1n. as he claimed that under the
law the consent of every stOckholl7r
mIs1 be secured before any property
can be bonded or mOrtgageu- A nasty
consultation took place, and at its c0n-
ctusion MIR. Anderson received a good
rFrr r. e-GlrH1
the stock certificates, some Of which
bear the signature of Brigham Young,
so old are they and turning the papers
over to Mr.. Wells, ceased to be a
stOckhClder IN the Salt Lake City Street
RailWav company, for the first time
since the corporation was organized
The stockholders then went into ses-
sion, and by unanimous vote latlhed
the bond proposition. NO other DuSl-
ness was transacted. nor was there any
development in the Rapid Transit deal
This is a matter which will come unde-
the consideration of the board of di-
rectoUs which viii meet subject to the
call of p esident Rood. The situation
indicates that there viii be no trans
fer of The Rapid Transit company Tor
perhaps a month
IL the price paid for the Anderson
stock was trifie over 500, report
neither Mr.. Anderson nor the rallrOad
people viii confirm or deny, bat which
.ierson received between S3J.UOO and
S36 600 for his shares. BY acquiring this
block Mr.. MCCune now owns 1874 out
of Il 1000 shares. His original holdings
and those of w. l.. HOge, which he
purchased. amounted to lOSO0 shares
He has since acquired 2,354 shares from
The Francis armstrong estate, and 5S5
shares from r. r. Anderson, making
the total Of 1874, as above given.
Purpose of Bond Issue.
There is no longer any doubt as to
the purpose o. the bond issue The
$500. 600 realized by the sale of the
bonds which viii very readily be &C
complished, it is said, Will be used -
take I'D the $500. 600 issue Of Rapid
Transit bonds. The Rapid Transit
stockholders also hold the bonds Of the
Rapid Transit company, and before
they would consent 20 part with their
stock, they demanded that the Rapid
Transit bonds be replaced by SAT- Lake
company bonds. as a matter Of pro
lection to themselves.
Mr. Andersons reason fer opposing
the bond issue was stated by MN as
follows. Mr.. McCuns is mOrtgaglnS
the Salt Lake company's property 10
nav off the debts of the Rapid Transit
company. yet the Salt Lake company,
as a company. has nc interest IN me
Rand TRANSIT. Mr.. McCUne, person
alIv. as ] understand il, has purchased
the RAND Transit. ] would not, or
course. allow my property to be mort
gagged for the benefit OF property III
which I had no interest. / nave Deen
through the courts twice on the same
rrop0sitiOn and did not purpose to ge-
the worst of it in this instance so j
SET a figure on my stock and 1t was
purchased I am pledged not TO state
what that figure was