Bondholders Ask Seattle for More Track, More Time

The first mortgage bondholders of the Lake Street railway met with a committee of the city council yesterday afternoon to ask for a longer franchise. The road is in the hands of a receiver, and its representatives say it cannot meet the city's demand that it pay its share of paving Lake Street and Pike Street unless it can reorganize. Receiver M. K. Backus said the condition of the consolidated road is serious: the city is requiring it to repave and pay its portion of Pike Street paving, and the treasury will not permit the expense. The cost would fall on the first mortgage bondholders, whose representatives — N. W. Harris and G. W. Bartol — are in Seattle to see what can be done. They favor a reorganization that protects Seattle interests, second mortgage bondholders and secured creditors, while allowing the first mortgage holders to reissue bonds on the company's property. That, Backus said, is impossible under the present short franchise. The company also wants to improve the road and rolling stock and extend its line somewhat. Improvement of Pike Street would involve an entire reconstruction of the railway through that thoroughfare, since it would not do to pave over the present inferior construction. "We need a longer franchise," the gentlemen said. Harris and Bartol expressed themselves freely, saying they had confidence in the future of the city and were prepared to raise such sums as might be required to improve the streets through which the company's lines extend, if the council would grant an extension enabling them to float securities when better times arrive and make their investment remunerative. Thomas P. Shepard warned the committee that the profits were so deeply involved that something must be done. The committee adjourned without taking action; the matter is expected to come before the full council on Monday.