The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-04-27
interest in this enterprise was not very

interest in this enterprise was not very
great.
William IT. Brown was a few years
ago stenographer and typewriter in
the city of New Haven. he went tc
New York as a stenographer for Simon
Borg & Co., and is in their service as
| their statistician. He does not pretend
to be a man of capital; he simply
speaks for Simon Borg & Co.
| Mr.. Breeds knowledge of his assoc1-
ates is shown by the fact that he stated
| that Mr.. Brown was partner of Simon
Borg & Co.
Mr.. Brown has never had any tele-
phone experience.
Mr.. Rutherford of Philadelphia, civil
engineer, has in the last two or three
years had some experience in building
telephone lines for companies who are
in fierce competition with the Bell COM
pany. He has no knowledge of operat-
| ing telephone company. He claims TO
have built line of telephones in Allan
| ia, but it is not yet in operation. IL
will, as he thinks, get into operation In
May or June.
Some things are always to happen in
the future, and somehow never quite
happen. There is proposition to build
an independent telephone system in
Louisville and he expects to estimate
on it.
He took the topogra phical map of the
state, copies of which can be had in
Hartford by anybody on paying small
fee, and he traced upon it in red ink
some lines running from Greenwich to
Springfield on the line of the CONSOLE
dated railroad, a line running out to
New London, and line running from
Bridgeport up the Naugatuck valley.
He has been working on these estimates
a few days.
All the testimony of the petitioners
unites on the point that the capital for
this project is to be supplied by the
financing of the same by Simon Borg &
Co. of New York but Mr.. Brown states
that this is the first venture of Simon
Borg & Co. into the telephone field.
Surely this is very discreditable
showing for capital or experience, when
there is talk about Incorporating an
other telephone company in the state
of Connecticut, whose first blow must
necessarily be at the invested capital
of the Southern New England Tele-
phone company.
The scheme of these men is this:
Rutherford is expected to have the
contract for building the plant of the
proposed company in the state Of Con-
necticut. He takes in pay the bonds
and stock of the company He sells to
or places the bonds and stock with ST.
mon Borg & Co.. they advancing the
money with which to pay the expense
of the work, and when the work is
completed, or as it is being completed, |
they negotiate the bonds with the pub
lie as best they can, and when the plant |
is finished the stock of the company will |
be in the hands of Simon Borg & Co. |
for such distribution among the pro-
moters of the enterprise as may be
agreed upon.
1t is clearly one of those enterprises
where there is no intention that the
stock shall be issued only for cash. The |
charter of the corporation seeks to have
power to issue stock for property. We
all know what that means.
No capital could be got into such
as this at ordinary rates. 1t
Is hazardous venture, and those who
enter into it will make very greatly, if
they win and they will take very good
care that the dear public who may take
the bonds shall be the persons who lose
In case the corporation becomes insolv-
snt.
Lest I am accused of exaggerating
this point, I quote from the testimony.
Mr.. Holbrook testifies on examination
oy Mr.. Seymour
@. who are the persons actually in
crested in the Boston Telephone COM
oany?" A. by advice of our Boston
attorneys we applied with very LIMIT
Ed CAPITAL AND VERY OBSCURE
so as not to excite the New
England Telephone company.
On the cross Xamination of Mr. Hol-
brook:
@. Have you any subscriptions
meaning to your capital stock)?" A.
I will have to refer you to our finan-
,ial agents. Messrs. Simon Borg & Co."
c. Are they the persons who fur
lish it?' A. "They have agreed to
FURNISH ALL THE CAPITAL
NEEDED FOR THE STATE OF CON-
FOR STARTING AN IN ,
TELEPHONE SYSTEM
N CONNECTICUT"
@. And as far as you know, there is
10 other capital than that furnished by
simon Borg & Co.? Is there any 9TH
r?" A. you will have to ask Simon ]
3org & Co."
@. "Then that (proposed) charter is
n outgrowth from the Massachusetts
A. mo, sir it came from
he New York end, and we met on Cap
.ol Hill. My recollection is that the
uggestion first came from Messrs. ST.
ION Borg & Co. of New York. i
@. And so far as you know, Mr.. Ed s
ard Bradley is not furnishing any con-
iderable amount of capital for this in (
or Mr.. Seymour, or Mr. Cakes t
mes, or Mr.. Adams, or Mr.. Brown, or S
lr. Rutherford" A. Il do not
now +
@. "Simon Borg & Co. are bankers S
/ New York. Are they engaged in tel
phone schemes?" A. "You will have &
ask them r
Q. 1.-THE suggestion came from them
you?" A. 1T did first" s
@. rs it your idea that Simon Borg I
Co. are coming into Connecticut for
enevolent purposes, to furnish tele- e
homes cheaper than they are now get S
ng them?" A. "No, sir, Simon Borg
90 arc actrated nv the desire tn v