The San Francisco call., 1909-06-07
FIRST STEP IN
POWER MERGER
OF u. R. LINES
Company Incorporated to Absorb
Stanislaus Plants With Cap=
itaI of S20,O0O,O0O
Gigantic Combine and Improve-
ments Planned to Give
Cheaper Electric Current

Through the filing of articles of in
corporation with the county clerk of
San Mateo county on Saturday. the
first legal step was taken for the
merger of the Stanislaus electric
power company with the United Rail-
roads investment company and prac-
tically with the United Railroads of
San Francisco.
The articles filed in Redwood City
were entered by the Sierra and San
Francisco power company, which will
absorb the Stanislaus concern. The
capital stock was placed at $4,000. 600,
of which sum $1,000 was subscribed
by the following. j. S. Thornton, So
noma; Winfield Dorm, Oakland; H. ]. p.
Jackson, Berkeley; George H. Whip
pie, San Francisco; Warren Gregory,
Berkeley. OF these, Thornton. Dorm,
Whipple and Gregory are connected
with the law firm of Chickering &
tions between the United Railroads
people and the original owners of the
Stanislaus electric power company.
Consolidation Admitted
AS yet neither the United Railroads
of San Francisco nor the United Rail
roads investment company has ap-
peared in the financial records, but
these concerns are ready to act. Under
the corporate name of the Sierra and
San Francisco power company the
property of the original Stanislaus cleo
trio power company and the auxiliary
power plants in San Francisco will be
merged and given over to the control of
a holding company, to be formed in the
east under the auspices of the United
Railroads investment company, the
chief Calhoun corporation.
The new san Francisco electric rail-
way company, which recently took over
the Parkside line will be joined with
the Sierra and San Francisco power
company under the spreading financial
wings of the holding company nesting
in Wall street and New Jersey.
improvements Planned
Warren Gregory admitted last even
ing that the incorporation of the
Sierra and San Francisco power com
pany was for the purposes of the new,
consolidation.
There will be great capital involved
in the prospective manipulations. The
germ of the proposition, was purchased
for $4,000, 900. That represented the
settled value of the water rights, res
ervoir sites and possibilities of the
property. which was not extensively
developed. To this initial expense the
United Railroads financiers will apply
for development purposes an issue of
bonds in the sum of s10,O00,00O. in
creasing the value of the plant to
$4,000 900. The local auxiliary plants
nation of me Sierra and San Francisco
power company will increase the value
of the property to 500 100000 the sum
at which the new concern was capi-
talized.
Economy in Trolley Power
The San Francisco electric railway
will be capitalized at s10,000,00O That
will give the holding company $780,
100000 capital to start with and with
the incubation facilities of the mag
mates there should be husky bond
issue to show for the great merger.
The purpose of the gigantic power
combine is that the United Railroads
may have it's own power with which
to operate its San Francisco lines. At
present the power is purchased from
the City electric company at cost of
IL cents per kilowatt hour. To the
new concern, it has been reported, 1t
will pay rs cent per kilowatt hour