Evening star. [volume] (Washington, D.C.) 1854-1972, 1886-06-16
CnICAGO's JAKE SHARP.
True Inwardmess sf she Recent Stree
Railway FrMmchise TrAasAealNaa.

Railway Franchise rraasaeatsas.
CHICAGO. June 16.-The Daily NcsCs this
morning prints a four-column article on the
North side railway matter.
IL says: "The full Intention OF Mr.. Yerkes and
the Philadelphia syndicate in their pending ne
gotiations with the Doodle gang In the city
council il at last disclosed. Less than month
ago n new COM any was orgauized 20 seize the
Ia sale SIRE ,uhns sa nd ,ns y.
swallow the old North Chicago City Railway
Company. The new company is called the
North Chicago Street Railroad Company'-a
title so like that OF the well known North Side
corporation, the North Chicago City Railway
Company that it was evidently insert ted Tor the
purpose OF deception. and was so far successful
that until yesterday no one save those directly
interested dreamed that an entirely new enter
prise was projected. The organizers OF the new
company control the stock Of the old. While
the two corporations are ostensbly under scpa-
syndicate I'm power In each Is the same.
After Mr.. lerkes secured a controlling interest
in the stock of the North Chicago City Railway
company he secretly organized the North
Chicago street Railway company, with
S5,ooo,ooo capital. When the books were
opened for subscriptions, one I. III. Wentworth.
sr., a gentleman whose name is missing from
the Chicago City Directory, promptly sub
scribed Tor 1890 shares. representing par
value OF $4,999.OO0. The ten remaining shares
were handed over to four other capitalists OF
equally low degree, but who were fortunate
enough TO be friends OF Charles I. lerkes. The
scheme was To absorb the ola company. This
was easily done by the Yerkes people In the
old board OF directors leasing the franchises OF
the old company to themselves. The new COM
pany, IL is said, agreed to guarantee an annual
dividend of $50 a share on the old company's
stock. 1nasmuch as each share now produces q
dividend OF $50 year, this proposition wiped
out one-half OF the value OF the old stock The
next move was to secure FOR the old corporation
the right TO adopt the cable with ali the attend
ant expense, and finally the monopoly OF the
| tunnel was 10 go TO the new company with all
the attendant advantages Very naturally the
minority stockholders in the present corpora
ton have taken alarm, and Congressman Geo.
L. Adams, heavy holder OF minority shares,
hurried from Washington yesterday 10 learn
something OF the proposed freeze out. He had
| a hasty consultation with Alderman Manierre,
| of the Philadelphia gang. The manner Of
wrecking the old company had not yet been
discovered.
When the horse system is replaced by the
cable lerkes expects the road will earn what
would be equivalent to 80 per cent on the pres
ent pital. But as president OF the North Chi
cago Street railway company, holding the pass
| through which the whole system can alone be
made available. he can collect the tolls over all
the roads, account 10 himself as president OF the
old company Tor 80 per cent on Its capital stock
and divide the remaining 90 per cent and any
thing left over among the small but elect num-
Der OF Quaker stockholders In the North Chi
cago Street railroad company.
| Andrew Crawford, one OF the subscribers for
the stock, IL the attorney OF the new corpora
ton. Regarding the Identity oil L. III. Vent
worth, who has signed the list tor $50 900
worth OF stock, little can be learned. II Is stated
| in the NeaCs that MIR. Crawford says he Is n
| No one of the hive smaller stockholders had
| ever been recognized as "A capitalist The dis
| closures have caused a great sensation In the
| board of aldermen.