The Topeka state journal., 1897-07-12
COMPANY is FORMED
Capital of the Organization
Placed at $1OO,OOO,OOO.
Is Already at Work in a Num-
ber Of Large Cities.
MILLIONS BEHIND 1T.
Morgan, Whitney and Wander
bits in the Deal.

Chicago, July 12.-The indications are
for an early consumIaation of the plans
for consolidating the surface traction
companies of Chicago under one man
agement Positive information from an
influential financial source was receiV
ed yesterday which tends to prove that
the projectors of the gigantic deal are
nearly ready to make public their en-
tire project. AS far as Chicago is con-
cerned the plan of consolidation en-
braces all the existing surface COM
panies, with the possible exception of
one or two suburban roads. Before the
plan is finally launched it is believed
to DE the intention of the promoters,
of whom Charles T. Yerkes is the head,
to obtain from the city council sub
stantial lengthening of the life of the
present franchises, in accordance with
the provisions of the new Allen bill.
Coupled with this consolidation of
Chicago stret ear interests there is said
to be on foot the completion of a trust
in similar interests in all the leading
cities of America The men at the
head of this traction trust are Napo-
leOnic in their conceptions. Not even
the Standard Oil company or the sugar
trust. with their enormous capitaliza-
tionS and absolute InOnOpOlieS, will be
able to compare in Importance with the
mOnopolization of street railway indus
tries if the plans of Mr.. Yerkes and his
financial associates are carried through
Already the consolidation of traction
interests in half a dozen other Ameri-
can cities has been perfected by the
same interests. Philadelphia and
PittSburg are recent examples, and
New York, Boston and st. Louis are
undergoing the same process of having
their entire street railway system grad
ually absorbed by the trust. The orig
inal Philadelphia syndicate, composed
of Wideners EIl0Tns and Yerkes, is said
to be the master protector of these abb
sorptions, but other financial interests
of still greater power have also been
brought into the combination. J. Pier
pont Morgan, the great railroad organ
izer; William c.. Whitney, of Standard
Oil connections; J. Edward Simmons,
H. Walter Webb, representing the Van
derbilt interests and a score or more of
other capitalists, each of whom is said
to be in position to control millions
for investment, are all alleged to be
working in harmony with Mr.. Yerkes
and his Philadelphia associates in cap
turing the control of the principal
street railways of America.
Not only in regard to the ownership
and operation of street railways does
the new traction trust project it's far
reaching plans. It proposes to manu-
facture all it's own equipment, and to
SiemenS-HalSke company of Berlin and
Chicago with the Pennsylvania Iron
works of Philadelphia. This latter COM
binatiOn will enable the new traction
trust to avoid the necessity of extensive
contracts for equipment, which up to
the present year have fallen to the lot
of the General Electric company of
Schenectady, N. Y, and the Westing-
house Electric company. Coincident
with this new move of the traction
trust it is claimed that a working ar
rangement in regard to electrical pat
ents is being drawn up which may
eventually lead to the formation of a
gigantic electrical trust in which the
General Electric company of Schenec-
tady, the Westinghouse Baldwin COM
pany and the Siemens-H -Halske-Penn-
sylvania combination will succeed in
pooling their interests. There is al
ready a working arrangement between
all the electrical companies outside of
the Siemens- -HaIske combination in re-
gard to street railway and other cleo
trical patents.