The San Francisco call., 1905-04-16
Brown Brothers No Longer
Control Car System i'll
City of San Francisco
BUY STOCK SECRETLY
Ladenburg, Thalmann & Go.
Have Secured Majority of
the Corporations Shares

York. The change was effected quietly
by the very simple procedure Of going
into the market and taking in all stock
that was offered for sale 1t is a full
fortnight since the final block of stock
was acquired that gave power over the
great street transportation system of
this city to Ladenburs, Thalmann &
CO., but so secretly and skilifully has
the matter been handled that it is not
until this morning that definite an
nouncement of the fact can be made.
What the change implies no one in
this city is in position to say. When the
Market Street Railway was sold to
what was known as the Baltimore syn
dicate it was With the understanding
that the management would be
changed, the new people bringing in
their own executive staff Then large
deal was openly conducted and a flat
offer was made for all the properties of
the Market Street Railway system, and
this was accepted.
The present officers Of the United
Railroads were asked yesterday con-
cerning the change in control of the
roads that they have administered. In
responses to queries typewriter state
ment was sent out, by consent and
With the authority of President Hol-
land. In that was the following: The
further statement is made that no
change is even under consideration
with respect to the management of the
property Of the United Railroads"
This would seem to imply that the
officers in this city did not know what
tial advices from that city received by
wire last evening were to the effect
that the purchasing of the control was
successfully kept away even from the
knowledge OF the men who are actually
looking out for the properties in an
executive capacity in this city.
The mileage of the United Railroads
is so great and the control that the
system has acquired of the street car
business of San Francisco so nearly
complete that the announcement of the
new deal is certain to attract a great
deal OF attention. and may cause some
anxiety in certain quarters until all
the facts are definitely known.
HUGE CHECK +, PASSED.
When the Market Street Railway sys-
tenn was sold to the Baltimore syndi-
cate check for s17, 100000 passed The
shares of stock of the Market Street
Railway were then listed at s9S. The
syndicate offered s100 per share.
The deal went through in March, 1902,
and since that time Brown Brothers &
Co. have been in control. Why the
change of ownership has been effected
is not definitely known here. One story
IL that Brown Brothers & Co. had SO
much trouble with their roads in ST.
Louis that they could not hold on IN
San Francisco 10 advantage.
Another story has been circulated
in San Francisco that there was some
dissatisfaction concerning the expen-
ditures on the lines in this city since
they were taken over IN 1902. This
story was specifically denied by the
present officers Of the system in their
typewriter statement of yesterday, a
few paragraphs from which are as
follows:
While the exigencies of the case
did and yet require large expendi-
ture Of moneys in improvements, il is
not true that these expenditures have
given rise to dissatisfaction, for they
(the off1cers) have been in hearty ac-
cord with the campaign of improve
ment that has been bringing the street
railway system to state of excel
lence, upward of 100000 having
already been expended.
The officers further say that they
are concerned only with the opera
ton of the property; that they have
no concern with any transaction in
the stock of the United Railways In
vestment Company. The further
statement is made that no change is
even under consideration with respect
to the management of the property of
the United Railroads. 1t is admitted
that a report will shortly be submitted
by mechanical experts, such as those
annually made OF It's financial position
by local It accountants.
TWO INSPECTIONS MADE.
1t is asce- sained on excellent au-
thority that two inspections have been
made of the condition of the United
Railroads by experts who were sent
out from the East. The first of these
examinations took place some weeks
ago, when the idea of a change in the
control of the properties was first
mooted. Since then other experts
have travelled over the same ground
and may not yet be through with their
investigations. The first report was
evidently satisfactory enough to the
new parties in control to warrant
them in purchasing the majority of
shares in the company.
Under the influence of purchases
the stock has risen. The market ouo-
tations for the bonds have also risen
something like SO.
Ladenburg. Thalmann & Co. are re-
ported to be very wealthy rio
Bieicgroeders of Berlin, with whom
the Rothschilds have interests arc
associated with Ladenburg, ThaImann
& Co. as partners.
The Market Street Railway dated
back to 1860, when the beginninr of
its operations was celebrated. In