New Iberia enterprise. (New Iberia, La.) 1885-1902, 1901-09-07
TOM L. JOHNSON AS A BUSINESS
MAN.

OF ''The Ways of a Demagogue,' fey
| days ago told in an editorial how
ga rotund man known as Tom John
son appeared in Cleveland and bought u
| bankrupt street railroad for song,
| doomed it, waterd the stock enormousl,
! and then dumped it on confiding publi
| at an immense profit to himself
The Press continues:
''Now Mr.. johnson has appeared il
Cleveland again, this time as its mayor
and with the intention of booming no
his pocketbook, but his political fortunes
And in order to play to the galleries he ha
instructed his board of equalization Il
raise the assessment of the street railroad
he doomed so as to include the water ht
had pumped into the stock and sold at 4;
big figure to deluded purchasers. The
road has hardly been able to pay mod
crate dividend on its Tom johnson water
ed stock, and with its Tom johnson as
sessment it will be able to pay little o.
none."
Evidently playing to the galleries il
the way the Press chooses to say that
Mayor Johnson is in his assessment cam
paigning performing an official duty that
meets with popular appreciation. But
this aside, what is the truth of the matter
which bias Of some kind prevents the
Press from statings
1t is fact that, with his now decease d
brother, Albert l.. johnson, "a rotund
man known as Tom johnson appeared in
Cleveland and bought up bankrupt
street railroad for song." 1t was an in
significant affair in the suburbs. Only the
eye OF genius and the daring Of early man.
hood could see what might be done with
such poor material. The Johnsons bought
four old cars in Chicago, which they re-
painted and shipped to Cleveland. They
imported a carload of 20 mules from Ken
lucky. One died in transit, so that with
10 mules and four secondhand cars they
started their career in city dominated
by the skill, the wealth and the master
full nature. Marcus A of Hanna. The John
sons improved and pushed out. They
quietly extended toward the Superior
street viaduct, proposing by that route to
strike for the heart of the city. 1t was a
long, bitter war, with sensational incidents.
against them. But they had the people
with them, because they paid better wages
to their men than any of the other roads.
They never had a strike, and they offered
an increasing ride without increasing the
five-cent fare. Suddenly they made a
master stroke. They asked the city au-
thorities for franchise from the center
to the opposite side of the city from
which they had entered.
They offered in return not only to carry
passengers from one end to the other of
their system for a single fare, and thereby
provide for five cents what before their
advent the public had had to pay 25 cents,
but in addition they bound themselves to
10 what few if any railroad companies
lad up to that time dreamed of doing-to
pave the streets through which their tracks
should run. The low fare and the street.
paving condition were too popular for the
combined railroad opposition. The John
sons received the franchise. Nor did their
stop there. They were first to
lpply electricity in Cleveland transit
ABILITIES; SO that in low fares and free
ransfers, in high wages to their men, in
peed and convenience of their tra4sihl
ervice and in contributions toward the
,ublic treasury the Johnsons led.
Now in the middle eighties was formed
] combination of Cleveland streets rail
Dads known popularity as the "Little
Mark Hanna headed this.
About the same time was organized a
arger combination commonly called s'The
Big Consolidated" The johnson roads
.ppeared in this combination and the
ohnsons went on the board of directors,
nd though neither ever became president
t the company, their spirit and methods
argely prevailed in the management.
Whatever watering of stock was done,
ccurred at the time of consolidation. |
annot tell the extent of the water, or
indeed, if there was any at all assume,
owever, that the economies attending the |
would, in the opinion of the |
ombiners and the public insure larger
ividends, and that the managers must |
ave proceeded as other railroad managers
o in like cases, on the principle that /
aiher than pay ten per cent. dividends on
given valuation they would pay five per
ent. on twice such valuation in other
lords, pay out the same sum of money,
ut on doubled principal. Whatever was
one in the matter the Johnsons received
heir proportion of stocks and bonds as
ased on the ratio Of value contributed by
leir roads to the combination.
But they did not then proceed to "dump"
lese stocks and bonds "on confding
ublic." On the contrary, they proceeded
use all the influence they could com
and in the management to improve and
nild up the system, and it was not for
amber OF years after the consolidation
lat the Johnsons withdrew from the Big
Perhaps the Press would have made no
,jection to Tom L. johnson if, after this,
, had not chosen to devote himself to the
lblic veal and, on being elected to the