The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-08
REBUILDING SYNDICATE NOW.
FIRST STEPS no FINANCE SAN
FRANCISCANS NEEDS.

Senator Newlands Here and Hartman Com-
ing To.morrow-SsO 600 900 Loans
for Private Bullding Operations Con-
templated-Syndleate VIII Sell Bonds.
The first definite arrangements for the
formation OF a syndicate to finance the
rebuilding Of San Francisco were made at u
meeting held in this city yesterday. There
were present at the meeting Frank A. Van
derlip, ice-president Of the National City
Bank, and the active head OF that institu-
ton In the absence Of PRESIDENT tillman;
II. s. Black, president Of the United States
Realty and Improvement Company; United
States Senator Newlands Of Nevada; Thomas
Magee, a large property owner OF San
Francisco; former Congressman Lane OF
San Francisco, and Vice-President Simon
son of the National City Bank. Mr.. Simon
son returned from San Francisco yesterday
morning and brought word from e. h. Harri-
man, who will be one Of the most active
men in the syndicate. Mr.. Hartman will
be back from the Coast tomorrow morning,
and the syndicate, In all probability. will be
organized formally within a few days after
his arrival.
The syndicate will command sufficient
capital to rebuild the entire city, but the
scope Of it's organization will be limited to
financing the rebuilding Of private prop
erty. with particular reference to the con-
%struction Of the more costly modern busi-
ness and Office buildings.
aThe necessity for the organization OF the
syndicate" explained one Of its members,
arises from a natural h~esitanoy on the part
Of the big life insurance and trust companies
to make a loan Of. say, 81, coo, 900, on a mort
gage on any one building in the city. While
previously they might have made loans Of
suoh magnitude, now they would very likely
remind the applicant for such q loan that
there has been an earthquake In the city
and that reasonable care for the interests
of p~olicyholders or stockholders preoludes
large investment on q mortgage on any one
building. Our plan 10 80 to organize the
financing that loans can be distributed.
We aim to bring about a division of risk
that will enable property owners TO secure
the loans they need and permit the lender to
feel secure
The syndicate will probably finance re-
building to the amount Of $50 COO 600, though
estimates OF its operations, one Of the men,
bers said. must necessarily be very unoer-
tain pending the return Of Mr.. Hartman.
He is in thorough sympathy with the general
purpose of the plan and is expected to have
the plan elaborated in greater detail on his
arrival here. Securing information in re-
gard to the amount Of money that will be
needed and the method OF investing it have
occupied much Of his time in San Francisco.
and the time consumed by his return journey
gives him ample time to work out the details.
Senator Newlands stated at the confer
ence that all efforts to secure a Government
Enforcement Of San Francisco bonds to
be issued for rebuilding purposes must
be abandoned, now that the Senate Finance
Committee has by a unanimous vote re-
ported adversely his resolution providing
for such an Endorsement. Efforts to Sc
sure an Endorsement OF San Francisco
bonds will now take the form Of an appeal
to the California State Legislature. Gov.
Pardee will be asked to call a special session
of the Legislature to pass an act giving
the States Endorsement to bonds OF the
city. These bonds will be used, however,
simply toward the reconstruction Of public
buildings and public works and not to aid
any rebuilding Of private property. City
bonds issued with this guarantee. 1t is
thought, will meet a ready sale.
Soon after the organization Of the syn
dictate for private rebuilding it il expected
that the syndicate will issue bonds secured
by mortgages OIL property on which loans
are made and put these bonds on sale,
possibly with a guarantee by the syndicate.
In this way the objection Of the carrying
| of a very large loan by any one institution
would be obviated.
whatever the details of the PLAN" said
a member Of the syndicate, you may
be sure it is going through and that the
money will be provided to rebuild the city
in a durable and substantial way
President Calhoun of the United Rail
ways of San Francisco t~elegraphed as fol-
lows yesterday to Ladenburg q Thalmann,
| fiscal agents of the United Railways Invest
ment Company:
One hundred cars In operation yesterday:
gross receipts, S6.373. 20. Water extended
TO North Beach power station last night.
Two hundred cars in operation to-day.
| including line 10 San Mateo. All electric
lines except some OF those in burned district
will be in operation tomorrow. In addition
Market street throughout has been equipped
with the overhead trolley since the FIRE and
Is now in full operation. We will start sew
eral additional electric lines In the burned
district as soon as dangerous walls are re-
moved. We will then give through electric
service to all parts OF the city. Normal
conditions are being promptly resto red and
the city will be rapidly rebuilt.
New York banks transferred ss4l, 900 to
San Franc isoo through the Sub-Treasury
yesterday and replaced in the Sub-Treasury
81, COO, 900 that had been withdrawn to facili-
tate the import Of gold. There were no new
Withdrawals on account of gold imports,