The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-11-26
That Gentleman Now in Chicago. Where the
Transfer Is Being Fixed Up-His State
ment of Facts to the Directors
The Pittsburg Capitalists Stop at the
Denison, bat Do Not Register.
A Detailed Story Of How They Evaded the
Newspaper Men-It Looks as Though
Frenzel Vas Out and Shaffer In.

During the past two days. while the citi-
zens of indianapolis have been resting in
the sweet security that the long-pending
street railroad deal had been finally con-
summsted In a manner satisfactory to Mr..
Frenzel. at least. matters have been
quietly taking their course, and this morn
ing's sun. whether 1t be beautifully bright
or entirely obscured, ushers into existence
two startling surprises. The greatest one
and the one of most absorbing interest to
the people of Indianapolis is the fact that
John r. Frenzel has rendered his resiRna-
tion as president of the Citizens Street.
Railroad Company to the Chicago d.
rectors. the same being now in the hands of
Samuel w. Allerton, a director. to be pre-
sented for action before the full board at a
SPECIAL meeting that will be called.
The other startling surprise is the fact
that Mr.. Allerton does not now own, as re-
Gently stated, a controlling interest In the
stock of the Citizens Street-raIlroad Com
pany; that no transfer of stock, other than
that already held, has been made to him.
aud that Mr.. J. G. Shaffer. x -president of
the corporation. has at last secured control
of the property for his Eastern syndicate.
One noticeable feature attending the
street-car negotiations of the past few days
has been the fact that President Frenzel
did the talking and Mr.. Shaffer held his
peace. Several months ago. when there
was talk of q sale, Mr.. Shailer talked a lit
tie. and Mr.. Frenzel was as mum as an
oyster.
The Journals information concerning
the fact that President Frenzel has ten
dered his resignation comes from u repre-
sentative in Chicago where the nucleus of
the negotiations is located, and is consid-
cred thoroughly reliable and trustworthy.
lie will berecognIzed at once that the cir
cumstances leading up TO this denouement
TO the deai must be of a peculiarly interest
Ing character. The story regarding the
alleged transfer of q controlling interest
In the stock of the road to director Aller-
ton is well known to the public, owing to
the recent publication, as is also the story
of prior negotiations. And everyone will
believe that President Frenzel must have
felt pretty secure In HE position TO have
submitted to interviews in whlch he stated
that the negotiations would reach a sue
cessful issue soon and. upon his late re-
turn from Chicago, to state that the
transfer of stock hau been made to director
Allerton.
MR. + AROUSED.
It was this latter statement of President
Frenzel that seems to have aroused Mr..
Shaffer to quick action. 1t will be remem-
bered here that when informed by a Jour-
nal reporter of the closing of Mr.. Allerton's
option on q controlling interest in the
stock Mr.. Shaffer made q positive state
o- g. Al. aH.o< %ho& Aarto, hold No
option. This was in the early part of the
week. From then until now Mr.. Shaffer
has been a busy man. Notwithstandtng
the fact that Thanksgiving. with all its
allurements. WAS but a day removed. he
boarded q train and went to Chicago. The
negotiations in which he was interested
were in about this shape: He hadeorgan-
lied an Eastern syndicate, of whom MIR
ray A. Werner. H. :. Mckee and James
Mason. of Pittsbure. Pa. were the princI-
pals; for this syndicate he had some time
previous made q proposition to pay $. go 900
for the entire plant of the Citizens Street.
railroad Company, and had been given an
option. upon which q forfeit had been put
mp. which had not yet expired when Presi-
dent FrenZel returned from Chicago with
the story that q transfer OF the stock had
been made to Mr.. Allerton. And right here
the Journal wishes to state that 1t does not
mean to convey the idea that q transfer of
the controlling interest In the stock TO Mt.
Allerton was not. contemplated by the
stockholders. such really was the case.
and an agreement TO that effect had been
made. although the actual transfer
had not been consuinmated. When Mr..
Shaffer learned that such o deal was
under contemplation he ut once went to
Chicago. and to the directors OF the road
made a statement to this effect: You have
given me. as the representative of an East
ern syndicate. an option on this property.
and u forfeit has been put up. That option
has not been annulled by any action of the
syndicate, and If you disregard your agree
ment. and transfer the stock to Mr.. Aller-
ton. litigation will follow.
This phase of the matter had the effect of
causing the directors 10 put q stop to all
negotiations with AIlerton. and there is
every reason to believe that Mr.. Skaters
proposition was accepted and that his syn
dicate has secured control of the street.
car property. Among the things leading to
this deduction is the fact that yesterday
morning there arrived In this city
Messrs. Werner. Mckee and Mason.
of Pittsburg. the gentlemen who com.
pose TO q large degree tho Shaffer
syDdicate. They came here presumably to
meet Shaifar, but found that he had gono
House. but did not register. During the
day several kilograms were received at the
Bates House for Mr.. Werner. which was
evidently due to a prearranged scheme, as
after these kilograms were delivered to
him he sent q note to the Bates House, re-
Questing that all telegrams and mail mat
ter addressed to him be sent to the Denison
House as soon as received.
WORD FROM CHICAGO
Late last evening q telegram from Chi
cago, evidently from Mr.. Shaffer, was de-
livered to Mr.. Werner. He Immediately
ordered o carriage TO take HIS party to the
Union Station at II o'clock. and purchased
sleeping-car accommodations for three to
Chicago. All efforts to see the Pittsburg
capitalists last night were unavailing. as
each time the reporter was met with tho
announcement that they were out"
Every precaution was taken by them to
keep out OF the way of newspaper men.
The fact that these gentlemen were
called TO Chicago last night 10 meet Mr..
Shafier and the directors of the Citizens
company. taken IN connection with the an
nouncemeBt of President Frenzeps resig-
nation. 10 most significant LII means that
Skaters Eastern syndicate bas secured
the property al the hgnre named i'm the
option. No OF or consideration ex.
sspt this fact would have prevailed