The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1913-09-20

OPhsCh
sbauRhnessy, First Associate Com.
missioner:
THIS proceeding was begun by the
Commission upon its W initiative
ander date Of Febru nary 10, 1913. after
receipt of notice from the Richmond
Eureka Mining Company that the Eu
reka. Nevada Railway. through its lessee.
the Nevada Transportation Company,
had withdrawn from the various con.
pecting lines the concurrence Of the
Eureka and Palisade Railway. its in.
solvent predecessor. in through joint
rates TO and from points on the Eureka
Nevada Railway. and that the new
schedule of local rates covering the
movement Of low grade ores, materials
and supplies. between the towns OF
Palisade and Eureka. Nevada. were in
creased to such a point that the saio
mining company could not operate sue.
cessfully hereunder.
Responsive e n investigation initi-
ated by the Commission the following
facts were developed:
Historical
A corporation was formed under the
laws of the State of Nevada on Novem-
Der 10, 1873, TO construct, operate ano
maintain a railroad bet the town
Of Palisade and the town of Eureka,
both in Eureka County, State OF Nevada,
under the name OF the Eureka aud Pail.
SADIE Railroad. This corporation was
capitalized for 0 1900, 600; stock being
issued for si.00o.0 900, and later on .
bonded indebtedness Of 81 .000.0 900 was
created upon which bonds were disposed
OF for practically the entire amount
On June 10. 1900. the road was placed
10 the hands of a Receiver for the reason
that said corporation had defaul'ed IL
the interest charges on said bonded IN
debtedness due for several years; tina,
thereafter the road was operated by the
Receiver until February /. 1902, when
il was sold to satisfy the mortgage upon
which the bonds were issued. TO q cor.
p~orstion known as the Eureka and Pail
SADIE Railway Company, organized by
the bondholders Of the original Eureka
and Palisade Railroad Company, under
the Laws of the State Of Utah on July
10. 1901. The capitalization of the new
corporation was reduced to $300,000 and
at the time Of reorganization the stock
Of the original corporation was cancelled
aud the parties owning the bonds agreed
and did accept one share OF stock in the
new company Eureka aud Palisade
Railway Company, at the par value oil
800 each for each $500 OF the old bonds.
That. on March /. 1910. the said Eu'
reka and Palisade Railway Company
was partially destroyed by flood. and
for a period Of approximately two years
thereafter was totally disabled from
further operation. Following the said
disaster the road, having an indebted
ness exceeding $40. 900 was placed IN the
hands of a Receiver aud was sold under
adecree Of the United States Circuit
Court. Ninth Circuit. State of Nevada
on November 30, 1910. to George w
Heintz. General Manager of the said
Richmond Eureka Mining Company t.
satisfy said Judgment.
Following the sale at public auction
Tor the purpose above named, George
Whittsll of San Francisco, California
q stakeholder and originally the pur
chaser and owner Of 1856, 900 oil th'
bonds Of the original corporation (Eure
sa and Palisade Railroad Company. re
quested the company to redeem the prop
erty within the statutory limit. Tn
Board of Directors Of the Eureka ant
Palisade Railway Company. at a reguia
meeting held at San Francisco May .
1911, finding itself without funds and be
Ing without power to force contribution
from it's stockholders, and also withon
means of raising money from u othe
source, officially refused to redeem tn
property within the statutory limit.
Thereafter. it is alleged, Mr.. WhitteI
did. on May 2S. 1911, redeem the sal
property by paying to the said Georg
w. Heintz the amount Of said judgmen
together with other costs amounting
all to $50. 345.
Subsequent thereto on April 80. l9l;
the Eureka Nevada Railway Compan
was formed under the laws OF the Stat
oil Utah. with a capitalization OF $500
600. The importsnt provisions of IL
charter are given below.
The purposes. pursuit and bushes
Tor which this corporation is organize
and formed are as follows. 80 wit: