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estimate, as the Guatemala Government is today financially bankrupt .
Gold in that country is at 400% premium. It is impossible to get
money out of the country; the Government will not allow it to be sent
away.

The bonds of the Guat. Central 6% are payable in New York
and the P.I. Co., being the owner of the controlling interest in the
stock, has to advance the money to pay the coupons. It is a serious
question in my mind whether it would not be good business judgment
on the part of the P.I. Co., which is now losing $150,000 per year in
paying these coupons, to allow this road to go into the hands of the
bondholders and be reorganized. If this should be done, the P.I. Co.
would of course lose its stock in this company, the par value of which
is $1,236,800.

In this connection you will doubtless remember
that $1,788,000. of these bonds were placed in the Central Pacific
Sinking Fund, when the Morgan SS Co's bonds were taken out, - Dec.31 '93
In my opinion, the value of the Guat. Cent. RR property will depend
upon a reorganization of the finances of the Guatemalan Government.
How soon this can be accomplished it is impossible to say, but the
P.I. Co., being the owner of the control of the Guat. Cent. RR stock
must pay the coupons on the bonds. It may be possible for the P.
I. Co. to sell this railroad to Mr. C.P. Huntington. But as to the
probability of this I am unable to say.

As soon as all matters between the P.I. Co. and the So. Pac
Co. are settled, it is my intention to have all the real estate which
the P.I. Co. owns, appraised by competent real estate experts, as to
its value under forced sale. Then the stockholders will be able to
form a comprehensive idea as to the value of their entire property.
Today it is impossible for me, conscientiously, to give you an esti-
mate of the value of your stock in the P.I. Co. In conversation
with Mr. Stillman, after we adjourned last Saturday, he said to me