The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1902-02-14
"SALE NOT CLOSED
SAYS WELTY
CONTINUED from page ~

property as possible in order to avoid
a gigantic collapse which was threat
ened at the time the committee took
charge of the affairs of the syndicate.
1t was announced in the News Dem
ocrat of last Friday that the policy
of the bankers would be to sell the
railway lines instead of the Federal
telephone holdings, and that the local
city line would be one of the roads
sold. When this fact became known,
the Tucker Anthony company. of Bos-
ton. the Hearst estate of California
and other capitalists who are back OF
the H. K. Meyers Construction COM
pany, of Chicago. took up the matter
and made a proposition to the bank
ers' committee. of Cleveland, to take
the Canton-M Massilon road Off their
hands at the same price 1t had been
purchased for.
When the sale of the Canton-kIassil-
lon road was made to the. Everett
Moore company, the actual amount of
cash put up by the purchasers was an
even 100000. The balance that went
to the stockholders was furnished by
Philadelphia bankers and brokers.
The Philadelphia parties hold the en-
tire issue of stock, the face value of
which is 100000. to indemnify them
against loss of tho amount they ad-
vanced, which was about 5000, 900.
c. & M. LINE A GOLD BRICK"
The deal for the sale arranges for
the payment of the 100000 back to
the Cleveland company and also takes
care of the Philadelphia parties. The
Cleveland parties simply save them.
selves in the transfer, IL 1t is made
without a dollars profit in the deal.
Recent developments brought about
by the bankers investigation of the
Everett-Moore business reveals the
fact that many of the railway proper
ties acquired by the Cleveland specu-
lators were in the nature of gold
bricks" and that about the thinnest
coating of gilt was on the Canton
Massillon line.
An official of the local line is au-
thority for the statement that there
has been great disappointment in the
showing made by the Canton-Massil-
Ion roads earnings since the N. o. T.
people took charge. There has been
net loss of $50 day to the COM
pany. The Canton end is barely self
sustaining, and the Massillon city line
and the Navarro extension are report
ed as big losers.
The Lake Shore electric line was the
one, however, that more than any
other, determined the bankers upon
letting go of the railway lines. 1t
was an expensive acquisition that does
not come anywhere near paying oper-
ating expenses and has no immediate
prospects of doing SO.
DEAL NOT CLOSED.
Messrs. Kolp. Welty and Meyers
were seen with reference to the sale
of the Canton-Massillon to the Can
company. All admitted
that the negotiations were still pro-
ceeding, but they declared emphati.
cally that they were not YET in shape
to he closed. Mr.. Welty said:
Il will say this much-the deal is
not closed. When it is l shall say so
frankly. AS to the terms or any in
formation whatever. l cannot speak. :"
1t is stated, however. that IL the
Canton-Akron company secures con,
troll there will be no delay in repair.
ing and equipping the city lines witt.
the proper rolling stock and making
the necessary repairs to the wiring
POWER HOUSE IN CANTON.
The acquisition of the local lines
by the Canton-Akron company will in
all probability mean the building Of a
large power house in Canton. The
construction company had received or
ders to build the power house near
New Berlin just after the collapse OF
the Cleveland syndicate. When it be-
came apparent that there was prob
ability of the Canton Akron company
absorbing the CantOn-Massillon lines,
orders were received not to start upon
the power house, and II Is now
tupuSht tHat ~ IA OatSf 81 "hs
be located in this city and that Can
ton will be the central point In thu
line.
While the combined price of tho
two roads is stated at or near two and
a half million dollars, this Is simply
adding the price of the local lines
to what had been asked for the Can
ton-Akron line. When the combine
is made the two roads will be capital.
ized jointly. Already mortgage Sc
cured by bond certificates for $1,000.
900 has been placed on record against
the Canton-Akron company, against
which it Is stated 100000 of bonds
will be issued.
L. z. Meyers. who has charge OF the
construction and represents the capi-
talists, has returned to Chicago and
is In consultation with the capitalists
who are back of him.
Clerks Wise Suggestion.