Watsonville Transportation Co. - Uncanceled California Gold Bond
Inv# SS1147 Bond$25 5% Uncanceled Bond. Nice ship and trolley car vignettes. 57 of 60 coupons remain. Rare & Attractive. The Watsonville Traction Company or Watsonville Transportation Company was a 3 ft (914 mm) narrow gauge, interurban electrified railway in California. At the turn of the century, the city of Watsonville felt it was surrounded by the monopoly of the Southern Pacific Railroad. The failures of previous railroads to the Southern Pacific meant that the city was embittered, believing that it was now up to the city's prominent local businessmen to push against the Southern Pacific.
With this, various local businessmen (headed by R.E. Eaton) proposed a new railroad between Watsonville and Monterey Bay, believing that if they could build a new seaport then they could secure more favorable rates for the local economy. On February 13th, 1903, the Watsonville Transportation Company was founded, as listed in their articles of incorporation, to "construct a single or double-track railroad of either narrow gauge or standard gauge, operated by steam engines, electrical power, gasoline motors, or any lawful means of power, from the City of Watsonville along any feasible route to Monterey Bay at an estimated distance of five miles." It was also decided upon to have the railroad support telephone and power lines along its route. Capital stock was issued at $200,000, with 200,000 shares being distributed largely in the local area. Read more at https://en.wikipedia.org/wiki/Watsonville_Traction_Company
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
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