Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1897-05-02

cases subscriptions were received upon
payment of one dollar per share, the
balance TO be paid at the convenience
of the subscriber In this way it is said
that more than $4,000 were raised,
nearly all in small sums. After the
market for stock had been exhausted,
a mortgage of $500, coo was placed upon
the franchise and the plant yet TO be
built. And now the stock that was pur-
chased at SO share is being hawked
about at SO share and shares have
been offered low as $3.50, entailing a
loss Of IS per cent. on the original in
vestment.
An examination of this mortgage
shows that it purports TO have been
authorized "at a general meeting Of the
stockholders called for that purpose. ="
But several stockholders state that they
never received notice of any such meet
ing, and that at the annual meeting of
the company held on Monday, it finally
came out that no such meeting was ever
called or held. 1t was shown, however,
that the entire issue of bonds and $780,,
coo In stock had been bargained to a
concern called the New York Telegraph
and Telephone Construction Company
(having an Office on Nassau street, and
composed largely Of individuals connec-
ted with the Newark Telephone and
Home Telephone Company in payment
for the construction of a telephone
plant in Newark. At that time much
was made of the fact that a reputable
trust company had agreed to furnish the
Of h,
the name of this old and reputable COM
pany has been used TO entrap the UNI
wary investors. One of the directors
informed us that the agreement with
this construction company called for
the payment OF 100000 in cash and
100000 in bonds for the complete con-
struction and installation of telephone
plant including instruments. switch
board and pole line circuits. If the ca
pacity was 5000 subscribers. as stated
in the advertisement, this would make
the cost nearly $50 a station, though
the promoters had talked CT a cost not
exceeding $50 per station.
No financial statement, either from
the treasurer or from any ether source,
could apparently be obtained by the
anxious stockholders at this annual
meeting. But the company acknowl-
edged that it was in default some $12,-
GEO in its sinking fund payments called
for in the mortgage; that none Of the
amounts received from the sale Of stock,
etc. $1,000. was available; that the
company practically had no income, and
according to the terms Of its contracts
could expect none. until At least 800
subscribers were connected to the eX-
change. and as the total number now
connected was only 106. the possibility
of an immediate income was not at
all hattering. But here bomb was
exploded by showing that as the date
on which 200 subscribers were to be
connected in service had expired on De-
cember 18th. 1898, according TO the
terms of the franchise. the entire prop
ertv reverted to the city, and the New
ark Telephone Company possessed
nothing on which any future income
could be secured.
whether the city of Newark lest its
interest in the reversion Of the prop
ertv by not protesting against the plac-
ing of the mortgage is a question yet
to be detefmlheu dH wei - hC' ~
there was any authority for placing the
MORTGAGE. In any event the city ap-
pears to have been a loser, thus far,
for its streets have been torn UP to no
nurpose. and the citizens are dissatis-
fed with the limited service supplied
and the poor prospects Of ever receiy-
ing one per cent. of their investments
for the capital stock.
OF the capital stock disposed of, it is
acInowledged that $50, GOO was issued
for the rights 10 use the alleged patents
of the Home Telephone Company, OF
Baltimore. and it is claimed that every
certificate issued bears the stamp Is
sued for property purchased, and that