The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-05-23

had become lnha blted since the building
of the works, this company was obliged,
two years ago to remove the pumping
station three miles further up stream"
The circular, which is signed by
Thomas T. Davey, of Chicago, vice presi-
dent of the company, further says that
ga careful examination of the books of
the company, based on earnings for the
past six months, shows that you can de-
pend upon the results here given, as the
present depression, not confined to To-
peka alone, may continue for an indefi-
mite period, and will probably, for reasons
which are generally understood, continue
longer in the state of Kansas than in
other states"
AS the town grew the plant paid very
good interest on the investm ent, and
small dividends were declared. The
stockholders of the company changed
from time to time, and it was only few
years until part of the original members
of the company had transferred, their
stock and stepped down and out
The plant finally paid so we'll that the
stock was watered 100 per cent, but not
withstanding this watering, something
in the way of dividends was still paid.
1t is claimed that this addition to the
stock represented earnings invested in
the plant.
Two or three years ago Coffin & STAN
ton of New York entered into negotia-
tons with Joab Mulvane, then president
Oh the company, IOE the purchase u tAo
plant Mr.. Mulvane went around to the
stockholders and after securing an OPP
ton on all the stock went to New York
where he sold the plant at very fancy
price of 1926, 900 to Coffin s. Stanton.
How Much Mr.. NIuIvane Cleared.
The old company had increased it's
stock to 100000 so that when Mr.. Null
vane sold the plant to Coffin & Stanton
for 1926, 900 the very handsome sum of
1926, 900 was cleared on the transaction.
Mr.. Mulvane made such good thing
out of the sale that some of the stock
holders who had given him an option on
their share of the stock demanded that
he pro rate the profits in the deal with
them. AS a result of this, DR. M.
O'Brien, who had been secretary of the
company, brought suit against Mr.. Null
vane, but up to the present time he has
not obtained a part of the profits from
the sale.
At the same time Coffin g. Stanton
bought other water plants in the west,
both in Kansas and elsewhere. They
made in Topeka some improvements,
costing perhaps $4,000, over which i'm
provements they made at least 100000
worth of noise.
The circular was distributed broad
cast over the east by Coffin 81 Stanton,
and the men who had been intrusting
their investment to that firm seemed to
be satisfied with the explanation until
MONDAY ABOUT IUOuIu ago there lduOou
in New York an English gentleman,
Mr.. Kelman, representing about seventy |
five millions of English investments,
mostly in water and gas plants, and he
proceeded to make an investigation. He |
came to Topeka, as told in the JOURNAL
at the time, and while here he failed to /
discover any indication that the con- |
sunni tion of water had fallen off. but on |
the other hand every evidence was that /
the income of the plant was increasing, |
and had been steadily increasing even |
during the last three years of depres- |
sion.
Trusted New York.
This gentleman confided to Mr.. p. L |
Bonebrake that he and the men he rep
resents had trusted to their New York |
agents in making their investments, and
as a result they had had water plants all i
over the country bonded for several times
heir value loaded onto them.
Every body in Topeka knew that Cot
I'm & Stanton paid fancy price for the
and wondered how they were
going to make any money out of the deal.
Their plan, of course, is now apparent.
To buy corporation, with its property
and franchises, for 100000. and to sell