Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1896-01-25
W. H. CAMPBELL i8 GENERALLY
CORRECT.

c0RRECT.
| The Chicago gas companies, with n
majority Of the Fidelity Insurance
Trust and Safe Deposit Company's cer-
tifcates extinguished. have thrown
down the gauntlet ana propose to fight
their intended reorganization and con.
sOlidatiOn scheme through the courts.
At the several secret meetings Of the
principal companies on Monday II was
voted by the holders Of the proxies on
u majority Of the stock to merge the
Chicago Gaslight and Coke Company,
Consumers Gas Company, Equitable
Gaslight and Fuel Company. and tho
Peoples Gnslight and Coke Company
into one to Ike known ms the Peoples
Consolidated Gaslight and Coke Com.
pany. A messenger was dispatched to
Springfield on the late train with an
application for license to incorporate
the last.named company. Secretary Of
State HInrichsen refused to issue II on
the ground the law made the cOnsOli.
dalton illegal. Not word OF this
leaked out until w. J. Campbell, coun.
sci for the companies, issued a state.
ment.
Mr.. Cnmpbell's declaration follows:
".The four principal Chicago gas com.
panies yesterday took the first step
toward testing the question of the right
to consolidate. Resolutions were pass
ell for the consolidation Of these four
main cOmpanies-namely: the Chicago
Gaslight and Coke Company, Peoples
Gnslight and Coke Company. COnsum.
ers' Gas Company, and the Equitable.
Gasllght and Fuel Company. and Ger.
tiacates In accordance Herewith were
sent to Springfield. The Secretary II
State refused to accept or file them
on the main ground no more than two
companies could consolidate under tho
law.
AT the several meetings certain
stock. which formerly had been held
by the Fidelity Company. was voted
In favor Of consolidation. These
shares had. upon the demand Of per-
sons representing the actual interest
therein. been surrendered for cancella.
ton to the several companies and
transferred to Messrs. OlcOtt. Brady,
ana Ferguson. Nothing was done to.
ward the election Of directors Of the
several companies, and no act was done
on the part Of the Fidelity, or OF the
gus companies. or Of any persons. In
violation Of the orders hitherto entered
In the gas cases.
"rhe action Of the Secretary Of State
will give the opportunity to squarely
test the question Of the right of the
gas companies operating In Chicago to
consolidate. and the parties In interest
declare their intention to proceed with.
out delay"
From all appearances a coup was
planned ana successfully carried out In
such a way as to bring the question OF
the companies right to consolidate d.
rectly before the Supreme Court
stripped OF features which Attorney
General MOlOney has commended stamp
ell the companies as trust.
According to the story told the de
pOsit Of the Fidelity Trust Company,
certificates with the Reorganization
c0mmittee, while 1t left no doubt Of
- willingness of the stockholders Il
acquiesce In any plan of consolidation
agreed on by the committee, still lef
difficulties In the way Of carrying Ou
such plan, aside from any question,
as to the right to do 30 under the law
! The stockholders were obliged to form
ally vote for II. Attorney Genera
MOlOney's Injunction, obtained last Jan
nary, restraining the voting Of the Ger
tificates held by the Fidelity Trus
Company made II impossible to ballO
that stock.
At this stage 1t was suggested a wa!
out OF the trouble existed, II the Fidel
ity Trust COmpany's certificates wer,
exchanged for the stocks Of the DIFF
ferent companies held by the trust con
Germ as the basis for It's $25 ,OOO.OOO OF
certificates. The trust company wa.
willing and the Reorganization Com
mittee. the members Of which wer,
clothed with full power under the reOr
ganization agreement, lost no time II
. exchanging Fidelity Trust certificates
for the stocks OF the four Chicago com
) panies before named. Fidelity certif
icates representing more than a ma
jOrity of those stocks were turned II
and eXtinguished and on Sunday mem
) bers Of the Reorganization COMMITTEE,
came to town with stocks In their peck
cts prepared to vote them. Attorney
g General MOloney's injunction operated
) against the Fidelity Company's Ger
! tificates. IL didn't apply to the stocks
!, the committeeman carried.
= Their first meeting was held on Mon
! day as the adjourned annual meeting
I of the companies. Resolutions to merg
: the companies as before described wer
5 carried through flying and young maj
D went to Springfield to show them Il
: Secretary Hinrichsen, who, as said
0 promptly refused to license the pro
: posed amalgamated company. NJ
9 other result was expected and at ono