The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1909-05-12

of the prominent fnanciers on the
sound.
The bonding company furnishes the
capital necessary for construction and
accepts the bonds of the company
bearing reasonable rate of interest
running for a long period of years.
The company is capitalized for exact
ly what it costs to build. For in
stance, in our own case, If 100000
were required for construction pur-
poses, the company would be capital
lied for that amount and each stock
holder would be issued stock in the
new concern in exact proportion to
what he holds today. In other words,
the necessity of watered stock would
be eliminated in the reorganization.
Then as time progressed and the road
returned the dividends on the invest
ment that all of us believe possible,
the men who have contributed to the
success Of the concern thus far would
be the ones to share in the success
and the earning power of the road.
At the end of few years a sinking
fund could be established to pay off
the bonds when they came due later.
That is exactly the plan that is be-
ing followed in the case referred to,
and with the responsibility of the
money end of it established, negotia-
lions from the same source here
would, If contaminated, result in sew
eral mighty benefits to this valley. In
the first place, of course, the report
of the engineer would have to be IA
vorable, but the representative of
this money with whom the writer
talked, assured us that in a general
way he was convinced that the prop
osition had merit and his engineer is
of the same opinion. Whether sub
sequent railroad activity here has al
tered the situation as they have al
ways known it is question that can
not be determined until he gets on the
ground in an official capacity and
takes note of the actual situation
from an engineering point of view.
Aside from this feature, the concern
is one that brooks no breaches of in
tegrity. They deal in straightfor-
ward way, asking no side money and
giving none, paying only a commission
to their representatives as the bonds
are executed, much the same as any
bonding commission is paid. This
feature cannot but appeal as being
one of merit also.
AS far as the stockholders are con-
cerned, if negotiations are opened in
the near future and the engineers
report is favorable, the proposition
allows the company to remain purely
local in character, and will thereby
permit of that faith being kept with
them which was established at the
outset, namely, that no one should
hold more than a certain amount of
stock and no one should have control.
1t will be recalled that this was one
of the representations made when the
past issues of stock were disposed of,
and it was upon this basis that a
great deal of money was raised for
the undertaking. The building of the
road by capital from a source that
permits of carrying out the original
plans, therefore, must appeal as one
having absolute merit also.
We trust that in a very limited time
it will be possible to have negotiations
opened along this line. At any rate
we are assured that it will be within
the 80 or 60 days mentioned and at
that time we will place the whole de-
tail of at least one deal along the lines
mentioned in your hands for vertical
ton. Please understand that the mat
ter will not be delayed one moment
longer than necessary
Very truly yours,
THE YAKIMA MORNING HERALD,
By H. H. ANDREWS, Editor.