The sun. [volume] (New York [N.Y.]) 1833-1916, 1900-06-27
ATLANTA's STREET CAR YTGHT.
Bitter Municipal Confess I~nvsivsd-Ths etvahrS
Of Mr.. Hart and Mr.. Atkinson.

Of Mr.. Hurt and Mr.. Atkinson.
ATLANTA, Ca, June "A municipal cam
paign Is about to open In this city which
promises to eclipse in picturesque and con-
troversial features any former political strug-
gle in Atlanta. 1t Will not end until the result
| Of the white primary Is known next October.
| Keen observers say that ono Of the factions
| the one headed by Joel Hurt Of the Atlanta
Consolidated Railway Company and the Atlantis
| Railway Company-ntends TO begin an out
and-out "Parkhurst- campaign, using for the
purpose the Rev. Len q. Broughton, q preach
| or with Sensational tendencies. and Sam Jones,
the revivaltst. both Of whom like 70 bssk in the
sunshine Of prosperity and notorsety.
The men and events which led to this I'M
usual state of Affairs are many; but the storm
| centre Is over the heads Of Mr.. Hurt and h. NJ.
Atkinson. the first about SIS years OLD
and the second In his early thirties. Mr. Hurt
appears TO be the Goliath and Mr.. Atkinson
the David Of the situation. For several years
MIR. Hurt has been the real head OF the street
railway system Of Atlanta. Ono after an
other he acquired competing lines until finally
he was master Of all. Legal apd financial
causes have prevented actual consolidation.
although plans were prepared on several occs-
sions.
When he bought the last competing line.
the Atlanta Railway Company, from j.. J.
Spalding and others, Mr.. Hurt turned his at
tentton to the electric lighting business. In
his first financial plan he set aside t750,OOo in
bonds 10 acquire the Georgia Electric Light
Company, OF which Mr.. Atkinson Is President
and which occupies the field singly. He placed
the arbitrary value Of s750.0O0 upon the prop
erty without consulting Mr.. Atkinson or any
one concerned in the electric light company.
The figure was $780, 900 under the actual money
invested in the plant, which on d 100000 was
yielding 10 It's stockholders 10 per cent. In
the general consolidation plan had the electric
light company been acquired at this price It
would have increased the total earnings Of the
company so per cent. and increased the CAPT.
talization only Is Per cent.
Apparently Mr.. Hurt believed he could
organize and equip a new company for less
money than hs offered for Mr.. Atkinson's
plant. Intimations were made that the Gsor
sia Electric Nght Company would DO forced
from the hdd OF bought at q nominal figure,
This took place early In 1890. when Mr.. Hurt
WA ths dominant man in Atlanta politics. He
made and unmade Mayors. Commissioners.
fAAhoh AAe ~" ubb'iNbeAoho
for franchises we're invariably granted. His
attitude wa that Of the city's benefactor. Mr..
Atkinson, whose financial backing in New
Englan d and Sew York h. enormous. appeared
not to enjoy Mr.. Hurts proposition to ruin the
Georgia Electric Light Company. He prompt
ly entered the arena with the street railway
colossus, and one year Of legal and political
fighting followed.
MIR. Hurt declared that Mr.. Atkinson's APP
plications to the city government for street
railway franchises were mere bluffs: but they
were granted and they cover the four cardinal
points Of the city, paraIeling all Of MIR. Hurts
points. Several Of the Atkinson ines with
double tracks and modern equipment are COM
pleted and In operation. Work is being rapidly
pushed on the others. The capacity Of the
greatly enlarged and all Of its wires have been
put under ground. Mr.. Atkinson's theory is
that instead Of Mr.. Hurt forcing the Georgia
Electric Light Company, out Of. business
the Consolidated Street Railway people.
Originally the Hurt company was capital
i.ed Z, - ss;s 20 divided into IT. s2,s9S, coo 3
were issued and s225,OOo were reserved TO re-
tire an underlying = per can't first mortgage
lien. Using the Trust Company Of Georgia
Atlanta COn.oliiated Street Railway Stock
acquired from the Mercantile Trust and De-
p psSis o q 9saTs,s Of .I ssI bSSSSt NJ The al IsE,, f Rai.
R@bJ " o1O Sct6tA AV h4uiAtd III
way Company's stock and bonds for 345l 900
cash. These two purchases required $780,
600. To finance tie project the Trust Com
psny Of Georgia had to borrow tho money.
The sum Of u 10000 was loaned by the Mer-
camille Trust and Deposit Company. which
took for security all u tie Consolidated stock
and all Of the Atlanta Railway stock and bonds
by which srranT ement the Trust Company Of
Georgia margfnod the Mercantile Trust and
Deposit Company S46i 900 on the loan.
The result was that the Baltimore company
sold out at a proft, and. instead Of m owner
became a lender to Mr.. Hurts company, charg-
ing the equivalent Of 7 per cont and q com-
mission. II will thus be noted that the collat-
ersl whiohMr, Hurts company gave the Mer-
camille Trust and Deposit Company had cost
81, Us 900. on which only st,5OO,0OO In money
was loaned From other sources II was neo-
essary for Mr., Hurt to borrow 100000. This
he did " various quarters and II carried the
project up TO May, 1879. slDoe when, by fGht-
ing the Atkinson routes With construction do
signed to shut them out he has added heavily
to his financial load. The loan due the Mer-
camille Trust and Deposit Company matured
on Jan. 70 and was Ytended TO allow MIR. Hurt
another opportunity to r~eorganlze the prop
erty. The two existing mortgages cannot Sc
called. and IL will be seen that when Mr.. Hurt
IN May. 1899. formulated his financial scheme
his company was carrying these fixed charges:
Interest on N. T.. loan .--.-.....-. 10000
Interest on other loans. .".-..... $4,000
IaAes .,.... $4,000
IA q NH " fnnd 0n =