Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1892-08-22
DAMAGING DAVENPORT.
The street Car War Over There and
How Sensible People View H.

How Sensible People View H.
The Davenport council, which is surely
OF re preventative of the sentiment of
the people having the interests of the
city nearest at heart, has stirred up
racket by its arbitrary and oppressive
disposition toward the Davenport s.
Rock Island Street Railway company,
and the consequent action of the COM
pany in removing its Second street tracks
west Of Scott street, as a matter purely of
self defense, has not served to improve
the situation. The papers over there
with one accord stand by the company,
the Democrat presenting particularly
strong argument in its defense. 1t prints
an interview with President Louderback,
and deprecates the trouble as tending to
outside capitalists. The Democrat says:
In talking on the subject yesterday F.
H. Griggs said: Il consider the present
situation of the street railway matter
very unfortunate, not to say dangerous
to the interests. not only of the COM
pany, but to the city OF Davenport Per-
6Oudl pTSJuulCO duu oClhSh AOSoi
ought not to influence the action Of the
city council in the premises. What is
for the good of the whole city should be
the main consideration. We are striving
to get outside capital to help build new
factories, packing houses, railroads, etc.
If the report is spread abroad that our
street railways do not pay; that their
owners are harshly treated, how can we
expect that foreign capital will venture
further Investments?
THE Chicago capitalists who have
been spending large amounts-hundreds
of thousands of dollars in rebuilding our
street railways, putting in the best cleo
trical appliances. building car shops and
extending lines. evidently had faith in the
future prosperity and growth of our city.
That mistakes have been made is self
evident, but it seems to me that to take
advantage of the situation and force the
street railway company to operate lines
which cannot possibly pay expenses,
would, in the end, be suicidal-certainiy
would delay if not prevent other capi-
talists from risking their money in enter
prises which we want to establish. Home
capital will not take the risks. Shall we
encourage or drive away outside capital?
There is another point of view. 1t is
well understood that there is danger that
the present company cannot carry the
burdens OF operating expenses, interest.
charges taxes, etc.. without utmost
economy. Should a receiver have to
take the management OF the company 8
property what would be the result? Ger
tainiy no court would order lines to be
operated at loss. Instead of 10 or 5
minute cars 80 or even 0~mirute time
on the ontside lines would be ordered.
| The reputation of our city would be SO
| affected that to ask investors to help us
would be useless For these reasons l
hope the city council will treat the rail-
way company literally, and not force a
| crisis.
Continuing Mr.. Griggs said that he
| would like to have the people of this city
| turn back in recollection four or five
years to the time of the old mule power
| cars, and compare those days and their
| service with the treatment the public gets
now. We would have something like it
| in the appointment of receiver, and this
matter or some. thing worse is not im-
possible to befall us before we are out of
| the woods. The 80 stockholders in this
company are dishearCened. As a business
man who has known a great deal of the
| inside Of the deals said yesterday. they
invested in this property expecting to get
at least the interest rightfully due them
on their bonds. and probably dividends
also. They have got nothing but assess
ments, and heavy ones. They have
reached the point, Mr.. Louderback states
beyond which they will not pass. They
refuse to put any more money on top of
the large sums they have literally spent
here in trying to get this property in
shape to earn money for them. They are
beginning to talk of abandonment rather
than OF additional investment.
In all this the damage to the street
car service of the city would be bad
enough if il were to be interfered with
by the appointment of receiver as sug
gested, but it would not be commensur
ate with the dctriment that would result
in other ways by the left handed adver-
tisement this city would get in such an
an event. As Mr.. Griggs says it would
be disaster to have this report 60 out
about US. Il may not be known 10 the
general public, but it is nevertheless a
fact, that this company of stockholders is
in position to control directly q very
large part of the capital that may come
here for investment and our own ups
building, and it is also imposs-
ible to strongly influence vast
amount of other capital that might
come here. This influence permeates
the financial system from which we
rightly expect to draw our future strength. .
As has been said above. we must look to
the outside source for the maj ority of the
capital invested here. Our own capi-
tslists do not put it up. II an unfavor-
able opinion Of the people and their dis
position goes out. or If there is reason
for outside capital to believe that the
commercial conditions here are so unfav-
able that investment IN factories or rail-
roads or other enterprises here is likely
to be followed by disaster. we will simply
get LETT That is all there is Of it. That