The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-03-14
CHICAGO TRACTION
STOCKS TAKE SLUMP
Court Decision is Great Victory
for the City
BROKERS GET WRONG TIP
Value of Franchises Wiped Out BY the
Decision Is Estimated Anywhere
Between sixty and Eighty
five Million Dollars.
BROKERS GET WRONG TIP

almost in half, dropping from 11& to rs.
The preferred stock which closed last
night at 46, declined to 30. West Chicago
showed decline of Is points, from a
close of So last night, and North Chica-
go was down % points There were no
sales of the stock of the Chicago City
Railway company yesterday, and the last
quotation prior to the opening of the
stock exchanges today was 1881. It
changed owners today at 10. On the ex-
change here, the break in the prices of
Traction stocks was attributed to the
rush of small holders who desired to get
rid of their stocks at almost any price.
Brokers Get Wrong Tips.
A wrong Interpretation placed on the
first reports of the supreme court decis-
ion aroused much wrath among local
brokers today. Several prominent brok-
erage houses were thrown completely on
the. wrong tack by the first reports which
declared that the decision was in favor
of the companies The amount of money
involved was not great, but from the
flood of angry and perplexed messages
which We're rained on Chicago brokers to-
day. it was evident that great many peo-
pie had been sadly perplexed by the de-
cision.
1t is estimated by local inanciers that
the decision of the supreme court has
wiped out franchises belonging to the
Union Traction company valued at any
where from s6O,OOOOOO to $S5,OO0,OOo.
Mayor Dunno in discussing the decision
Complete Victory for Chicago.
1.-THE decision is a complete victory for
the city of Chicago. 1t means that there
are no ninety-nine year rights in the
streets of the city, that the occupancy of
the streets on the north side of the city
is without any warrant whatever in law
and that the right of the companies on the
south and west sides to use the streets
is based upon provision in the ordinance
which gives them right to occupy for a
period of twenty-five years the streets
they are now in and until their tangible
property is purchased.
The decision has placed the city in q
position where 1t can tender to the COM
panies the value of their tangible proper
ty under the terms of the ordinance. The
present companies have the right to be
paid for their property. and that is about
all the rights they do have. The decision
by one giant stride makes it possible to
bring about multiplication just as soon
as the city can provide the money for the
purchase of the lines
Will Vote on Scrip Issue.
The Mayor and his friends believe that
the decision has greatly enhanced the
chances of the proposition to issue scrip
for $75, 900. 900, to be used for the purchase
of the lines, which is to be voted on at
the election next month.
The attorneys for the Chicago City
Railway company which operates the lines
on the south side of the city and the law
yers for the Union Traction company. OPP
Grating on the west side of the city, claim
that under the purchase clause in the or
dinances governing the franchise, which
the supreme court has held are alive until
the property is purchased by the city. all
of the tangible property of the companies
must be bought in order to extinguish
the life of the franchises.
----~---~---~~~---
self I have had much trouble in getting
my tank cars trans-shipped at st. Louis
This generally happens when | am low
on oil. Once 1 had a tank car of oil drift
off from East ST. Louis to Alabama. AT
the time I was out of oil and / lost Gus
toners on account of il. The Standard
company, my competitor in Springfield,
had plenty of oil and got the customers
had lost"
Mr.. Willhoyt said that while agent for
the Standard at Topeka he was instructed
to watch all shipments of oil to that point
and to ascertain the name of the shipper
and the point of destination
How would you get information from
railroads as to your competitors ship
ments?'' was asked of Mr.. Willhoyt.
Given "Good Fellow" Money.
II never went to railroad officials"
said the witness. II always got my infor-
nation from employees of the railroad.
was allowed $S month to spend with
railroad employees in buying drinks and
making myself a good fellow. and | was
permitted to give away oil and gasoline
to railroad employees and report such
gifts as donations The IS month was
sent me in a personal check by f. p.
Pratt, manager for the Standard in Kan
sas City, and later by j. w. Mayer, who
succeeded him as manager. My instruc-
tons how to spend the check never came
by letter; they were always given in per-
sonA / was also instructed to promise
railroad employees good positions with the
Standard Oil company. ! was instructed
to tell them tndI a man cOulu get Il sal
airy with the Standard greater than the
President of the United States receives.
This system of bribery was inaugurated
by the Standard Oil company and has
been In vogue for years.
Willhoyt said that by keeping track of
the shipments made by their competitors
the Standard was enabled to know the
names of every dealer who was buying
oil from Independents.
at enabled me-, he said. ito go to
each of my competitors and either tie
him up to US with contract or cut the
price so that he lost money on the oil
he received from independent reineries."
Put Independent Out of Business.
Before going to Topeka for the Stand
ard WilIhoyt said he had been a travelling
agent for that company with headquarters
at wichita. He said that while at Wich-
ita an independent refiner of Pueblo of
the Rocky Mountain Oil company, ship
ned carload of oil to a wholesale gro
Gerry in Arkansas City, Kan Il was no
tilted of the number of the car said
without. ..and was told to go there and
tie up that grocer with a contract to buy
all his oil from us or to maintain our
~~~~~-~~~~~~~~~---~ ~---~-~-~-~-~-~~~~~-s--
.(contInued on Seventh Pasel