The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-09-06

pave the streets. The Cleveianders thought
they had caught a young fool from Ken
lucky and gave him everything he wanted;
He made a fortune for himself and for all
his friends here again. He was also con-
cerned In the purchase and electrifying OF
the B1nalo railways Hardin n. LAtteii ana
j. Il. Speed were the most prominent local
capitalists interested In this enterprise. no
good manager could be found In the East.
on a contract for four years at $1,000 year
and a bonus OF $4,000 OF the railway stock
10 manage the road. How well he do his
work was shown by the sale Of the system
lew months ago at par for a stock that
perhaps did not cost the promoters 3 cents
on the dollar and which has paid four per
Tom Johnson's biggest venture after the
cleveland coup was the purchase OF the
brooklyn lines now composing the Rapid
about zoo miles. and when he sold out IL was
at another great profit for himself and
irienas. Louisville capitalists also shared
Tom has not had so much 10 do with trac-
ton properties, though he joined with r. T.
w, wnsoI IN the purchase OF the Detroit sys.,
tenn. III Is understood here that Tom did
not care 10 go TO Detroit, but Mr.. Wilson
visited the city and was so taken with IL
that later on he wired his friend that he
had bought the railroads on Joint account.
Johnson did not take large interest in the
roads. though Mr.. Wilson depended on him
TO manage them. II is Toms plan now to
sell out the lines 10 the city of Detroit
at profit, of course-and that he will do IL
yet no one here who knows him doubts.
He owns no other railway interests except
the system I'm Johnstown, Pa, and his
friends here say they do not believe he will
go into the problem. of introducing trolley
roads in London unless IL may be to help
his brother Albert. He is an extremely
wealthy man. with his fortune safely In
ana an income t ,,i greater r than ne can
made in his steel and iron enterprises at
Johnstown ard Lorain. but he got his first
work in life as sweeper-out of the Office
of the Central Passenger Railway OF this
city, ard his first millions were made as a
dealer in franchises got for nothing and
sold at very high prices.
HIS SHREWDNESS.
Many entertaining anecdotes are told
about Johnson's shrewdness and knowledge
of the conditions necessary TO make street
railways profitable. Once some Louisville
capitalists formed a plan Of buying up the
Evansville Railway. An option was taken.
and a careful map was drawn of the town.
places of amusement. churches and SO
forth. and the street railway lines john
son came to Louisville. but like lightning he
he told his friends that the population be-
ing largely German, IL was not a good town
for street railways The average German
laborer will not spend a nickel for a car
ride when he can go into a saloon, buy
glass of beer and discuss IL for hours. IL
takes tax Americans white and black to help
lines were not laid on the best streets
There was some money in the scheme. but
not enough for him.
Suburban lines are not so profitable as
imagined. Travel on them may be heavy.
but 1t costs more to handle 1t. This is what
Louisville street-car men say. though usu-
ally ii is thought desirable to establish long
suburban lines. The profit comes almost
entirely from the traffic in the thickly set
tied portions of the city, where the people
ride but short distances. Tom Johnson once
remarked relative to money that might be
made on lines I'm big cities that a mortgage
Of 5000 mile was too much for some
reads, but 900 mortgage a mile was
not too heavy on others. A rapidly growing
city is essential to great profits. IL the
Gather turns hot and dry and especially
If there are hot nights. 1t is all the better
for the traffic
While the profits in street railways are
large. il should be remembered that the
electrifying Of the roads was an experiment
In which few cared to invest at first. The
use of electricity has also doubled the value
of the service over what IL was ten years
before and this Is equivalent TO a reduction
In fares. In fact, the electric railway has
been the greatest factor in building up
modern cities. and in this way the giving
away of franchises has not been the rob-
berry that some people imagine.