Imperial Valley press., 1913-11-28
Working on Proposal to
Issue SIS, 100000 Bonds
For S. D. & A. Railroad

the road remained in strong financial
hands.
In the hearing Tuesday and yester-
day the assets of the San Diego &
Arizona railroad were itemized and
scheduled, together with it's probable
earning capacity, in the effort to
prove beyond doubt that the $15,OOO,-
600 in bonds would be amply secured
by the intrinsic value of the property,
and that the five per cent interest
charges would easily be paid from the
earnings.
In a recapitulation of the assets of
the company, Harry L. Titus testified
that with the money expected to be
secured from the bond sale invested
in the property, there would be more
than $2O,OOO,OOO in assets back of the
bond issue.
Commissioner Edgerton also asked
Mr.. Titus to explain how it was pro-
posed to place that part of the rail-
road lying in Mexico back of the pro-
posed bond issue.
Mr.. Titus replied that it was pro-
posed to place the stock of the Mexi-
can corporation owning the Mexican
mileage of the road in the hands of
trustee for the benefit of the owner
of the stock, the San Diego & Arizona
railroad. This method had been de-
cided upon, Mr.. Titus said, only after
consultation with leading attorneys of
Mexico City, who had recommended
that manner of dealing with the prob
lem.
On the proposition of the market
ability of the bonds, Mr.. Titus told the
commission: eve have been assured
that the bonds may be sold within a
reasonable time"
On the matter of the value of the
San Diego & Arizona railroad as a
completed project, Mr.. Titus said:
"We have an underlying value of
$20,0OO,0OO, besides our right-of- f-way
and the value of the Mexican conces-
sion, which gives us the best road
that can possibly be built from San
Diego eastward, and no other road
can build through Mexican territory to
parallel us.
at is going to take $17,0OO,O0O
bonds and stock to build this road,
and it would take $20,0OO,0OO to build
any other road. l consider the value
of the road when completed to be $780,
100000, and with its earning capacity,
it may be worth more"
The only other matter considered
by the commission yesterday was to
hear testimony on the value of the
company's right-of-way in the Imper-
ial valley and Lower California.
C. j. Williams, office engineer of
the company, presented map show
ing the railroads filings on govern
ment land, and the right-of-way
through Lower California.
w. M. Herbert, a local real estate
man, acquainted with land values in
the Imperial valley, estimated the val
ue of the railroads land east of Dixie
land as worth $3.50 an acre, and a
half section at Helpers station, west
of Dixieland, at from $35 to $50 an
acre.
Nat r. Titus, right way agent of
the railroad, testified he had been
city assessor in San Diego for twelve
years, that he bought the right-of-
way for the railroad, and that the es-
innate of it's value filed with the COM
mission had been prepared by him,
with an expert knowledge of the value
of real estate in the district in which
the right-of-way laid.
w. C. Earle, chief engineer of the
railroad commission, filed reports of
the value of the right-of way as of
June 80, 1912, and separate report
of the real estate on the portion of
the road that is not operated and that
is operated. He also filed a sup
Elemental report showing some minor
adjustments that had been made
since the making of his first report.