The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1913-06-07
Immense Sum, Held in Trust
by Bank, Is Not Available
to Trustees of Smith Inter
! ests, Says Report, Which
Is Denied by Officials
WORK WILL BEGIN
WITHIN 80 DAYS
City's Financial Circles Are
Much Concerned in Ability
of Advisory Board to Meet
the Payment of So, 100000
Notes of San Francisco
Oakland Terminal Roads

San Francisco financial interests are
much concerned in the ability of the
Smith trustees to meet payment Of the
s2.5oe.OOo notes of the San Francisco
Oakland Terminal railways. which fall
due Thursday next While there was a
grain Of comfort in the statement Of
John S. Drum. printed in The Call yes
terday, to the effect that the advisory
committee is working out refunding
scheme to meet the notes and he had
every expectation they would be sue
cessful. there continues to be more or
less uneasiness on this score.
That uneasiness was increased yes
terday by rumor that s1,000,000 held
Ia trust for one of the Smith companies
would not be available for use by the
trustees in settlement of Smiths af
fairs. According to a generally ac-
cepted story. the trustees had endeav-
ored TO obtain this 100000 but the
bank with which il was deposited had
kesolutely refused to give it up except
upon the terms under which it had
been placed in their care. These terms
required expenditure for certain spe-
cifc improvements and not for pay
ment OF debts.
STORY Is SECUTED
While the trustees and others con-
cerned secuted this story as wholly mn
aginary sufficient information was
CLEANED from several authoritative
sources to show that the rumor, in part
at least, had foundation. Publication
of the facts here may quiet one dis
turbing canard.
There is deposited with the Union
Trust company of San Francisco
s1,000,00o subject to the order of the
United Properties company upon GER
tain conditions This money was raised
by release of three mortgages upon
the following properties: San Fran
cisco. Oakland and San Jose railway
(frst and second mortgages) and S. f.
0. & S. J. Consolidated railways first
mertgage).
The terms of this payment were that
the $1.ooo.oOo given for the release was
entirely to be used in the improvement
Of the Key Route basin. Those terms
ara about TO be complied with.
CONTRACTS ARE LET
Within 80 days the trustees of the
United Properties company will begin
the filling in, solidifying and improve
ment of the Key Route terminal pier
at Oakland Contracts have been let
and the expenditure of all of the
100000 will be made upon the pier.
This much was admitted yesterday by
"a trustee of the United Properties and
by an official of the Union Trust COM
pany.
The latter, however, denied that any
request had ever been made by the
Smith trustees for the money. They
knew the terms under which 1T had
been deposited and that it could not be
used for any other purpose, he said.
One of the Smith advisory commit
tee yesterday admitted that the pay
1nent of the s2.5oo,OoO notes op Thurs
day was the crux of the whole situa-
ton
That is why we are bending every.
effort to evolve method of payment"
he said
TWO COMMITTEES AT WORK
Not only is the advisory committee
holding daily meetings in the Royal
Insurance building, but several local
fipanciers meet daily in the offices OF
a prominent underwriting firm, both
sets of meetings engaged in finding
a way out of the black hole.
We have had financial offers from
abroad, but we are not going to make
any bargain counter SALE The notes
for which we are arranging payment
aOe well secured and we will finance
the proposition right here" said one
OF those interested.
Securities for the s2.5oo.0Oo notes
total s2s,777.200 made up as follows:
ST. .s4s, 600 Oakland Traction General Consoli-
dated 5s.
s1.4ls,ooo San Francisco. Oakland and San Jose
Consolidated S.
ss1i 200 preferred "A' San Francisco Oak
land Terminal Railways cumulative 6s
100000 preferred II" ditto.
sls71o. 600 common stock ditto
An extension for 80 days may be
had for payment OF the notes.