The $10,000 Gamble: How Seattle Citizens Bought Their Way to the World

There was a large attendance at last night's meeting of the Chamber of Commerce, and the actions of the members presaged that something of unusual interest was coming up. The president of the Chamber of Commerce was present, and Judge J.P. Hoyt acted as chairman.

Secretary C.H. Kittinger arose and stated that at a meeting of the Committee of Fourteen held on Friday evening last, it was suggested that the citizens of Seattle should assist in the building of the northern branch of the Seattle, Lake Shore & Eastern railroad to a connection with the Canadian Pacific railroad. This road had already done a great deal for Seattle, said Mr. Kittinger, but Seattle had as yet done nothing in a financial way for it.

The Puget Sound Construction Company, which is building the road for the Seattle, Lake Shore & Eastern, was receiving a mile in bonds and in stock for building the road and was not doing its duty toward it. He thought it would be a good plan to subscribe the amount necessary and thought that there would be but a small loss even on $10,000 worth of bonds as they were selling at a discount in New York and those who purchased could afford to lose this small discount for the sake of having Seattle connected with a transcontinental line.

There were but 50 miles to build and if $20,000 a mile or $1,000,000 were subscribed the road would be built. Mr. Kittinger then submitted the following as a sample of the subscription for the bonds:

"To the Seattle, Lake Shore & Eastern... The citizens of Seattle... do now propose... to subscribe and purchase those said dollar[s] of the first mortgage bonds of your company at 60 cents..."

The next speaker was E.W. McGinnis, the local agent of the Canadian Pacific, who stated that if it were represented in a poor condition for the handling of certain classes of freight, but as far as time was concerned if it was desired, he could, by wiring the company, have freight rushed through from Chicago to Seattle in 14 days. He thought the question could be best settled by aiding the northern branch of the Seattle, Lake Shore & Eastern. If that road was finished it would give Seattle an all-rail connection with the coast; there would be no breaking of bulk, and goods would be handled quicker and to better advantage.

W.H. Thornell, manager of the Seattle, Lake Shore & Eastern, being called upon, said if the subscriptions were made in the manner outlined by Mr. Kittinger, it would be conducive to the success of the road he was connected with. The road had been operated since the early part of 1890 and had paid its operating expenses and also the interest on its bonds. It had treated the Puget Sound fairly and equitably during that period.

Judge Hoyt spoke warmly in favor of the citizens of Seattle subscribing to the bonds. It would give the company such credit that it would build other portions of its road also. The loss would be very slight to those who purchased and sold the bonds.

George Dumont thought a critical period had been reached in the history of Seattle. The only way out of the difficulties which at present beset this city was to build the Seattle, Lake Shore & Eastern on to a connection with the Canadian Pacific. Therefore he thought the citizens of Seattle should subscribe the sum needed immediately.