The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-08-23
GOULD TAKES
HOLD OF THE
OCEAN SHORE
Western Pacific to Finance
the Coast Road to
Completion
TO HAVE TRADE PACT
Competition With Harri-
man VIII Now Be As
SureQ Fact
MAY RUSH WORK
Magnate Has Thousands of
Men Available for
MAY RUSH WORK
Magnate Has Thousands of
Men Available for
Construction

An arrangement has been eff
fected by which the Western Pa
cihc will finance the Ocean Shore
railroad. The news created wide
spread interest in financial circles
yesterday, particularly in view OF
the fact that it will mean compe-
tition for the Hartman interests
along the coast. The Ocean
Shore will run from San Fran
cisco to Santa Cruz and Watson
vile and will tap a rich section
along the line. The details of
the arrangements have not been
made public, but it is said that
the community of interest viii be
such that the Ocean Shore viii,
for al practical purposes, be a branch
OF the Gould system.
From the inception Of the Ocean
Shore project there has been much
secrecy as TO its hackers and its reIa-
tions with the larger lines. J. Downey
Harvey. president OF the Ocean Shore,
has always maintained that the com
pany was financed entirely by local
capitalists. To support this statement
he had but to point to the stock
holders whose rating IN the financial
world was regarded as sufficient to
guarantee the success Of the under
taking.
The project was we'll on its way at
the time OF the FIRE in April, 1906.
Construction was proceeding both from
Santa Cruz and San Francisco. A large
depot site had been purchased at
Eleventh and Market streets and rights
OF way secured through the city
Franchises had been obtained from
the city and track laying had been
begun IN earnest. Bonds carrying in
terest at 5 per cent had been voted
and It was thought that they would
find a ready sale.
Since the FIRE the line has found the
financial problem a dificuIt one to
solve. The bonds had found few pur-
chasers and within the last few months
the tightening OF the money market
has made 1t almost impossible to mar
ket the securities. Some OF the largest
and strongest railroad corporations IN
American were experiencing difficulty
IN marketing securities carrying a
higher rate OF interest
The Ocean Shore people have carried
their work along by means OF assess
ments. The stock holders have been
paying in cash for the work as II pro-
gressed, but the burden has been
heavier than they care TO continue. At
the same time many of the minority
stock holders have objected vigorously
to this method of financing the under
taking. Not having the cash at hand
to meet these assessments they have
been forced TO sell out their holdings
at q loss.
Perceiving the condition Of the cor
poration and recognizing the value Of
the line as outlined the Gould interests
placed themselves in communication
WITH the directors OF Lnc ocean Shore.
and after brief negotiations e deal was
arranged
Grading has been continued with
great energy by the engineering de-
partment Of the Ocean Shore. and It IS
claimed that far more than half of the
work has been done. As Gould now
has 10000 men at work on the Western
Pacific between Salt Lake and San
Francisco, he can easily rush the
ocean Shore 10 completion il he is SO
disposed.
II Is pointed out that Gould has not
purchased the line. but has merely .un-
dertaken to finance It, with the assur-
ance OF a traf1c agreement which will
make II practically part OF the Gould
system.
The ocean Shore contempIates the
Improvement OF the beaches along the
line and the opening OF new tracts OF
land for farming purposes. This
work. II is stated. Will be carried out
as originally planned. II will mean
the development OF a large section Of
country tributary to San Francisco
which heretofore has been kept back
because Of the lack OF transportation
facilities.
The Ocean Shore tracks have been
laid on the city line and only recently
the hrst car was sent out over the line.