Clipped From Evening Sentinel

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 - A RAILROAD SUBSIDY. It is hardly possible to...
A RAILROAD SUBSIDY. It is hardly possible to obtain a railroad subsidy in this city for the coast or any other railroad. When we had no railroad, nearly a quarter of a century ago, this county did vote a subsidy of $G,000 a mile, an aggregate of $111,-500, and the balance of the money necessary to build the Santa Cruz and Watsonville road was practically all raised in this city and by Claus Spreck-els. The road was not a success, and when it was transferred to its present owners by F. A. Hihn, who owned a majority of the stock, Mr. Hihn. was the only man who received a dollar from Huntington & Co. for his stock. All the rest of the stockholders were in the "soup," and glad not to be sued for a deficiency, as was Mr. Spreckels, who had, by decree of court, to pay $40,000 in addition to the money he had paid on 1,000 shares of stock. Years later, when the Santa Cruz ami Felton railroad was constructed, no subsidy was asked from this city or county. Some of our people took stock, paid assessments from time to time, and when a controlling interest in the road was s-vild to Fair & Co. these stockholders were "raised out of their boots" by assessments; and Bernard Peyton of the Powder Mills, who paid the last one of these assessments, his assessment being $1,500, was told, in a friendly way, by A. E. Davis, President of the railroad, that he had better go and call back his money, as the Peyton interest was so small in the big pool as never again to be discoverable. Mr. Peyton heeded the admonition.

Clipped from
  1. Evening Sentinel,
  2. 27 Aug 1897, Fri,
  3. Page 2

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