The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1907-07-31
Parker, Wash, July 30, 1907.

wise, in view of what has recently
appeared lin public print, to explain
to the public every move that has
been made by those who are trying
land who, by the way, are going to
succeed) to construct, or get con-
structed, system of local motor
railroads, connecting up all the var
ious valleys of this county with the
city of North Yakima. The work is
new to every man connected with
it and we necessarily meet with num-
erous obstacles that would be avoid
ed by men of experience; and to
tell of all our difficulties would be
simply to waste time and annoy the
reader; but perhaps it would be
we'll to tell about the principal
moves that have been made and ex-
plain the reasons for making them.
The Traction company was organ
ICED with capital of five hundred
thousand dollars. Our plan was to
sell one-half of this at once and be-
gin operations with what could be
realized from light and frequent as
sessments, to-wit: an assessment of
five per cent per month on two hun
dred and fifty thousand dollars would
provide a fund of twelve thousand
five hundred dollars per month.
With this amount, which would con-
struct an average of nearly one and
one-half miles Of road per month.
we would be enabled to protect all
our franchises and make quite a
showing in mileage of road construct
ed. 1t was proposed, too, at the
same time, to perfect bonding ar
engagements and as soon as possible
realize on the sale Of bonds, and
with the proceeds push the con-
struction of the entire system of
lines to completion as rapidly as pos
sible.
The first snag we struck was to
learn that our organization was not
legally complete until all the capital
stock was subscribed, consequently
we could not, under our plan, issue
any bonds that any bonding COM
pany could buy. So then we set out
to reduce the capital stock to an am
cunt that we could get fully sub
scribed, when we discovered that un-
der the law the capital stock could
not be reduced before it had all been
subscribed. Then we decided to or
ganize a new company with a capt.
tai of two hundred and fifty thous-
and dollars, which we could get sub
scribed. to take over the franchises
ETC., of the present company. When
plans to effect this change had been
completed we discovered that under
the laws of this state the value of
our assets were not at adj available
as security upon which we could is
sue bonds. Our attorney informed
us that no matter hos valuable our
assets, we could issue bonds for no
more than double the amount of
our paid up capital stock. This, I'M
der our plan of assessing five per
cent per month, left us unable to
realize anything upon the sale of
bonds that would do us any good in
the early part of the work, and the
management concluded that it would
be necessary to proceed in some way
that would make our assets availa-
BILE as security in a bonding propo-
sition. To that end we adopted this
plan, to-wit: We would organize
new company to be called the Yaki
ma alley Transportation company.
with a capital stock of five hundred
thousand dollars; the Traction COM
pany would sell to this new COM
pany all its rights of way, franchises
and every available asset of which
it was owner for two hundred and
fifty thousand dollars of its paid up
capital stock; the subscribers to the
capital stock of the Traction COM
pany would be asked to subscribe for
an equal amount of the stock of the
Transportation company and when
the whole of the remaining two hun
dred and fifty thousand dollars of
the capital stock of the Transporta-
ton company should be subscribed,
then the paid up stock issued to the
Traction company for franchises,
etc, would be distributed pro rata
among all the subscribers to the cap
ital stock of the said Transportation
company, who, of course, would be
substantially the same people who
had previously subscribed the stock
of the Traction company.
In order to prevent any one from
getting any paid up stock for moth
ing all the certificates of paid up
stock were to be endorsed by the
several owners and placed in the
hands of trustee to be held by
said trustee until the stock subscrib-
ed for in the Transportation com
pany had been fully paid for when
1t was TO be distributed gratis. as |
have said, pro rata, among all the
subscribers. In order to facilitate
the transaction of business and have
more available stock for sale TO peo-
pie who will be ready and willing
TO join us later. and in order to pro-
vide the additional money which we
know will be necessary to carry out
all our plans and also to smut out
the possible cry that we had issued
or intended to issue WATERED
stock, this last part of our plan was
subsequently arranged in this WISE
Now every subscriber asked to DO
NATE to the company for its sole
use, all of this paid up stock: the
stock is to be placed in the hands
of trustee and be sold by him for
the benefit of the company. only
upon the order of the board of trus-
tees of the POmDauV who bava oot;~.