The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1906-12-11
GOULD BIDS FOR
LOCAL GAS
TRUST
Financier Negotiating for
Control of Corporation
Headed by John Britton
ELECTRIC RAILWAYS
SOUGHT AS FEEDERS
Power Plants and Trolleys
Desired as Adjuncts to
Western Pacific Road


Reports reached San Francisco yes-
terday that negotiations are pending
In New York for the sale Of the PaciAe
Gas and Electric Company, the local
gas trust, to the Western Power Conn
Western Pacific Railroad. Preliminary
details were discussed I'm New York at
recent meeting of Eugene de ,Sabla
and John Martin, representing the gas
company, and Edwin e. Hawley of the
Western Power Company The con-
waits upon the action of the local
stockholders of the gas corporation.
The Pacific Gas and Electric Com
pany was formed here recently by the
consolidation of the San Francisco Gas
and Electric, the California Gas and
Electric and the Independent Electric
Light and Power companies. The mer-
ger thrived and paid big dividends.
After the fire, however. the big concern
was confronted by a very serious finan-
cial problem. The corporation. in adj
dition to its large stock liabflity car
ries bonds to the extent of $45 600. .ooo
OF this amount s20.ooo.ooo consists OF
an interest bearing mortgage on the
San Francisco portion of the plant. The
remaining s25,ooo. 900 represents the
first mortgage on those portions OF the
plant located outside of this city.
RAILWAYS IN THE DEAL
In addition to its extensive holdings
in the city of San Francisco, the gas
corporation owns system of power
houses and electric railways in the
northern counties of the State. All
these are to be included in the sale
After the April disaster, when the
gas corporation took up the subject of
rehabilitation, there was a pressing
need of ready cash. President John A.
Britton of the gas company decided
to raise the coin in New York. George
Gould, who controls the Western Pa
cific, became interested and offered to
purchase the entire plant outright. Ne
gotiations were opened with the West
Ci OWci OOiipdhyr WHICH Is uIfQeT
the direct management of Edwin Haw-
ley. 1t will be recalled that Hawley
conducted for Gould some of the most
important transactions in the organiza-
tion of the Western Pacific. -
The Western Power Company con-
trolls ore fork of the Feather River and
has begun work on what is to be one
of the largest power plants in America
Besides this, the Western Power Com
pany has vast water rights In the
northern counties of the State. The
purchase of the gas companys system
of power plants and electric railways
would give Gould as strong a hold In
that section of California as Hartman
has in the bay counties. The electric
lines would act as feeders for the main
railway system. They tap rich Sec
tion, which has remained undeveloped
through the lack of transportation Ia
cilities.
OFFSETS HARRIMAN's MOVE
When the gas merger was effected
in San Francisco, the financial arrange
ments were perfected by the Union
Trust Company. 1t is stated that the
same Institution, of which l. w He'll.
man is president. win act for the gas
company in arranging the financial set
tlement with Gould
The purchase of electric railways in
Northern California by the Gould in
terests at a time when Hartman is
negotiating for the Huntington system
of Lines in Southern California is sig
nificant Gould was one of the first
New York financiers after the April
disaster to express his faith in Cali
fornia as a place for profitable invest
ment He Immediately ordered that
work on the Western Pacific be hur-
ried and then cast about In an endeayor
to find other promising Investments in
California When he heard that the
gas company had made overtures to
New York capitalists, he at once d.
rected his agents to place themselves
in communication with the San Fran
ciscans Gould was first requested 70
supply the coin to enable the local
magnates to .rehabilitate their plant
He replied that he would prefer to buy
and negotiations We're at once Opened
The entire matter was placed in the
hands of Edwin Hawley, who, in his
own name. is reputed to be worth
$40, 600, 600.
President John A. Britton of the gas
trust denied yesterday that the sale
had been effected. He declined to dis
cuss the matter when asked to con-
firm the report that negotiations were
pending