The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-27
BALTIMORE'S EXPERIENCE.
A SO-CAI.LED HOME ENTERPRISE
WOULD NOT THE RESULTS BE
THE SAME HEREg
(From the Pittsburg Leader.)


phone manufacturing company and a So
called telephone construction company Sc
Letting town in which to operate, they
would proceed to incorporate an operating
telephone company. and would subscribe
for one-thlrd of the capital STOCK. Iheu
they would induce three or four reputable
and prominent citizens TO serve as directors.
These directors would be induced TO vote the
remaining tWo-thirdS Of the STOCK TO the
so-called manufacturing company in pay
ment for the exclusive right to use IN that
city certain patented telephone apparatus
(which cannot be enjoined or interfered
with by the Bell Telephone Company, and
is now In successful competition with the
franchise, bonds would be issued for, say,
$500, 900 and protected by a mortgage placed
on the franchise and the plant proposed
be entered into with the so-called construc-
ton company to build an operating tele-
phone plant Of, say, $500 telephones com
plete for the entire issue of bonds, say,
$3O0, 000 and 100000 in cash.
Then the promoters would offer the cap
ital stock to the public through agents.
Electric Engineering" a periodical pub
lished in Chicago, and edited by f. A c.
Perrine. D. Sc, of Leland Stamford Uni
versity, and Leland l.. Summers, after out
lining the scheme as above, says:
LAS the stock had all been issued, 1t is
not surprising that the Investigations re-
vealed certain owners of stock who had
no trace of these payments could be found
on the books of the operating telephone
company. Nor was it surprising that the
testimony given in court Qn Baltimore) re-
veaAed the fact that the construction COM
pany and not the stockholders of the oper-
atng company owned the entire plant Yet
in two cases, at least, these small investors
held stock in a proposed opposlton tele-
phone exchange of 500 proposed SUBSCRIBERS
for which there had been or would De pald:
$500 600 in bonds $l00, 900 in cash, plus $2OOOOU
in stock for the right to use certain APP
paratus, and plus 100000 in stock TO the
promoters, or a total of 100000 for, pro-
posed plant of $500 proposed subscribers.
Briefly the details of the plans carried
through in certain cities are shown by the
records of the courts and of the inveSu-
eating committees to be as IolloWS, COM
mencing with the so-called manufacturing
About the close of 1894 and early in 1885,
William ]. Atkinson, son-in-laW OF the
late Henry George, became identified with
the opposition telephone movement, ana
was the promoter of the Best Telephone
Manufacturing Company, OF Baltimore a
West Virginia corporation serving as the
parent company OF all these sea nome mo e. en- en-
exander Brown G. Son, prominent bankers
of that city" At frequent intervals cir
cuars, pamphlets and catalogues were Is,
sued containing statements indicating a
rapid growth in it's business and an APP
parently prosperous condition H. IN III It's az
fairs Then mortgage for SSO0gO we" vas
Issue of bonds to the same amount. But
the last announcement of a dividend APP
peared in the Baltimore papers IN May. 1891
At a meeting of the board Of directors
of the Best Telephone Manufacturing Com,
pany, held this day, a quarterly dividend
declared, together with an extra dividend
at the rate Of 2 per cent per annum, pay
P Pele Jg Nav T. 1897 1897 to StGfkB9fsgs of
Treasurer, Best Telephone Manufacturing
Before that dividend was paid the ac-
ing suit for payment and asking for the
appointment Of receiver in the belief
that the company was insolvent. attracted
the attention of the stockholders and re-
suited in an investigation that led TO rad
ical change in the business methods ana
''the Best Company is perfectly solvent
now" and that wv. j. Atkinson is no longer
the general manager"
But, on Aug. "a. a receiver. was appointed
for the Best Company on the application
of this same W. j. Atkinson. to satisfy
Judgment he held for $467. "as the company
tons at maturity, and that suits for large
amounts on negotiable paper indorsed by
the company are pending against it."
to the finish between Atkinson and the men
who had invested money or loaned the use
of their names to advance the interests of
this Best Company and its schemes.
Thus, on Aug. 81, Judge Stockbridge d.
rected that IAN absconding debtors attach
ment be issued for William j. atkinson"
Then, on Oct. 49, Douglas H. Gordon editor
of the Baltimore News). filed a petition ask
ing that Atkinson be declared insolvent. and
that trustee be appointed to take charge
fit Of creditors, the petition being based
upon an unpaid promissory note for $1,000,
given in June.
Finally, William j. Atkinson. F. B. Hub
bell and James Russell, of the Best COM
pany, were indicted by the grand jury on
the complaint of the Stock Exchange for
tho fhaF elTiV nf fOl-
statements to influence the sale of it's Sc
curities, claiming that the company had
valuable real estate and patents and that
its assets amounted in all to about 81 800. 000
and asking that the stock Of the Best Com
pany be listed by the Stock Exchange
When the company passed into the hands of
the receivers they "found that the assets
consisted merely of machinery and stock on
hand and were worth not more than GOO
$4,000, instead of 81, 500 900, and of all the
stock of the various companies claimed in
the statement made to the Stock Exchange
as being held. by the Best Company, that
alone remained where the companies had an
existence on paper only the real estate be-
longing to Cecil Atkinson, brother of W.
j. Atkinson, and Cecil also owned the pat
manufactured"
The receivers then advertised TO sell on
Feb. II, 1898, by auction. to the highest bid
der, the entire plant of the Best Telephone
Manufacturing Company located at Nos
1915, 1917 and 1919 South Howard street. Bal
timore, together with an undivided half in
terest In certain patents issued to Paul
MINIS, and certain other patents and the
following certificates of stock:
1850 shares of the stock of the United
States Long-distance Telephone and TeIe-
graph Company, Of the par value Of 500
each.
1900 shares Of the stock of the Southern
Home Telephone Company, par value, $780,
1,750 shares of the stock Of the Home Tel
ephone Company Of st. Louis, Mo-, par
value 500.
4sO shares of the stock of the Home Tele-
phone Company, Of Richmond, Va, par
value $10O.
1900 shares of the stock of the Home Tel
ephone Company OF Bridgeport, Conn.,, par
1900 shares of the stock of the Home Tel
ephone Company, of Washington, D. c., par
value So
45OO shares of the stock of the Home Tel
ephone Company, of Paterson, n. j., par
4,5Oo shares of the stock of the Home Tel
ephone Company, Of Atlanta, Ga, par
value $40.
5000 shares of the stock of the Home Tel
ephone Company, of Syracuse, N. Y, par
value SO.
375 shares of the stock of the Home Tele-
phone Company, of Alexandria, Va, par
value So
Total value. s1,91S.75O
Near the close of 1894 William ]. Atkinson
interested number of Baltimore capitalists
in scheme for building and operating
telephone exchange in that city. by pur-
chasing the charter of the Writing Tele-
very liberal local franchise permitting wires
TO be laid Underground or strung overhead
throughout the city. Mr.. Atkinson changed
the title Of this company TO Home Tele-
graph ana Telephone Company, and sub
scribed to about all the capital stock. Then
the Home Telephone Company or Baltimore
was organized, and Incorporation papers Sc
cured In West Virginia. TIC. this company