The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-02-25
PLAN FOR REORGAN|zA.
TON OF. WESTERN
PACIFIC RAILROAD

The reorganization of the Western
Pacific railroad in which the people of
Idaho are necessarily interested has
been undertaken. The re-organiza-
Mr.. Benz. Bush as given in the last
issue of The Tribune in the interview
of Col f. R. Place means a great
deal to southern Idaho. Those plans
comprehend the construction of two
branches of the line, one the Winnie
mucca-C Caldwell branch and the other
the Twin Falls branch. into Idaho.
The Western Pacific is now in the
hands of a receiver the road having
defaulted in the interest payments of
its first mortgage bonds. The first
mortgage is a bond issue of $5OOOO,-
600. These bonds are largely in the
hands of the Denver & Rio Grande
railroad, which is owned by George J.
Gould and associates.
The present reorganization plans
for the Western Pacific are given by
the San Francisco Bulletin as follows:
Bond Holders Agree to Plan.
The next step will be for the COM
mittee of twelve, of which Alvin W.
| Kreck of New York is chairman. and
which includes Senator James D. Phe-
Ian, George Whitell and A. M. Hunt
of San Francisco, to buy in the prop
erty for the bondholders at public auc-
ton under United States Judge Van
Fleet of San Francisco.
This will enable the committee to
declare the plan operative. Briefly this
means the creation of holding COM
pany with $20,00O,OOO of bonds. $47,-
10000 of common stock and $780,
600 of per cent non-cumulative pre-
ferred stock.
The bonds have been underwritten.
say E. H. Rollins & Co. and the old
Western Pacific bondholders are sub
scribing literally for them. Both is
sues of stock will go pro rata to the
bond subscribers.
With proper directors and officials
the new company will Immediately
start in on the following important
program: Branch lines in state $1O.-
$685. $50; railroad betterments. $685.
$50; new equipment, $3,5l4.OOO.
The sale at auction will wipe out
100000 of Western Pacific stock
mostly held by the Denver & Rio
Grande, and the $l6OOO,000 in cash
advanced by it to the Western Paci-
6c.
Not only will Gould's Rio Grande
system sustain this big loss. 1t will
face suit for $l8.OO0,OOO by the new
owners at auction of the Western Pa
ci6c because of its being the guaran
tor of the interest on the $5O,OOO, OO(
of first mortgage bonds during theii
lifetime.
1t is of interest to observe in thi!
| hot ha nv
issuing securities and spending casf
built the Western Pacific for total o
$84 10000 About two years ago tn,
Interstate Commerce Commission fig
. ured the actual cost of the road a
$77, 100000. ~
. The holders of the $50,000,0O0 o
| first mortgage bonds will therefore ge
. good bargain at auction at the fac,
, value of their holdings.
, The crying need of the road is TO
, some feeders, or branch lines. espe
, cially to San Jose. to tap the rich San
, ia Calar valley, into the San Joaquin
: country south from Stockton, and on
;, from Sacramento into the rich an,
: strategic valley of the same name.
: Probably feeder to San Jose vii
: be the first one built. for it has lon
= been contemplated.
:, With the approaching sale at auc
: ton the final chapter will be write
: in the story Of the ambitious drear
4. and utter collapse of George ia
S Gould's ocean-to-ocean line.
~ In that role he was a strong char
acter, and one of the only thre
n Americans who ever essayed it.
). c. P. Huntington was the only on
!. who succeeded. He had one via Cir
i cinnati and New Orleans from New
!. port News to San Francisco. But h
got out at the right moment. sellin
n favorably east and north of New 0,
leans before the scheme could crus
: him and wipe out the $60.0O0.0O0 h
+ died with.
!. Hartman was seeking that ambitio
/. when he died from overwork, leavin
i an estate of $l00,O00.00O.
Is According to bankers Gould is tt
h day very rich man through other fa'
n orable investments. in spite of his CO
" lapse as a railroad magnate of an III
5 usual order.
&c mortgage bonds of the Western p
>. ci6c held in San Francisco and Il
r. State of California, 100000 we
D. voted for the pending plan to rehnan
E. the road. and they were forward'
,e to the committees headquarters
~ New York.
- The Holland holders of 100000
pr the bonds are to follow suit. and it
\. believed by Z. II. Rollins & Co. TIL
rs the committee will get the support
~ $47. 100000 of the $50.00O0O0 bon
Il when it adds up The returns.
;s The state railroad commission mu
err first approve the reorganization pls
.. 1t is said to be fair presumpti
IL that the scheme will become operati'
W 1t will begin with sale at aucti
ID in San Francisco of the road to t
a bondholders' committee in f
nd weeks.
"a Following will come the incorpol
id ton of holding company in st;
>. | where there is nOn-asseSsahIe sto