Hattiesburg daily news. (Hattiesburg, Miss.) 1907-1908, 1907-07-12
TRACTION COMPANY CONCLUDES
PURCHASE OF CONCERNS.
Many Important Improvements and
Extensions viii Be Made as Soon
AS the Bonds Of the Big Corpora
tion Can Be Sold.

Ing Cily SOuHcll last night unani-
mously passed an order agreeing to
the merger of the Hattiesburg Light
and Power Company, the Hattiesburg
Gas Company and the Hattiesburg
Traction Company, and the consolidat-
ed Company will in future operate un-
der, the name and charter of the Hat
tiesburg Traction Company.
The consummation of this plan
means that Hattiesburg VIII have one
strong holding company that will now
be in position to dispose of some
100000 of its bonds, and that the con
templated extension of its business
and the installation of electric car
service will be effected at once.
1t also means that the contracts
which have heretofore existed with the
old companies will be carried out by
the consolidated company, which will
be in better position to give greatly
improved service in every depart
ment.
NO Legal Barrier.
The question came up at the ad-
journed session last night shortly after
the council convened. An effort had
been made during the afternoon to get
together on basis upon which all
could agree, but this failed, and the
matter was opened by call for the city
attorney to explain the legal status of
the case. In response to this call, the
city attorney stated that he had ex-
pressed the opinion at the meeting on
the previous night that there was no
legal objection in the way of the mer-
ger. There would be objection, how
ever, II the companies were to form
a combination, and Ihe explained the
difference between al combination and
a merger a combination being the
combining of two or more companies
and the formation OF an entirely new
corporation, and merger being the
merging of one or more corporations
into another in existence. This is
what is proposed in this instance, and
the city attorney gave it as his opin-
ion that 1t would not be In violation of
law. He thought it well enough for
the council to inquire into the cues
tion as to whether or not the new cor
poration will be in position to carry
out the contracts of the old companies.
The city gave franchise to the Trac-
tion Company on condition that it
build three miles of track within two
years, and exempted it from taxes
for five years. This was valuable
concession, and If this transfer is
made, the city will not only lose the
taxes of the Light and Power Com
pany for five years, but also will lose
the taxes on the Gas and Traction
Company, hence the city should look
well to securing some valuable con-
cession from the companies before the
merger is agreed upon.
Travis Talks.
Mr.. Travis, representing the mer-
ger, was then invited to be heard. He
said that it was not the purpose of
his clients to ask the city to surrender
any Of the rights and privileges it now
enjoyed under the various franchises.
The Traction Company proposes to
carry out all the contracts of all the
existing companies. 1t will operate |
under the franchises of all three com
panies and will live up to the prom
ises of all three. "We feel" said Mr..
Travis that we can give the city /
much more efficient service under our
plan that is now being given. These
companies have already spent thou
sands Of dollars to develop their prop
critics on the strength of the franchises
zlresdy granted. We do not ask you
to surrender one single right or privi-
Iege yoI now enjoy under the old com
panies. Some Of you gentlemen want
a new contract y.hile we simply want
to carry out the old contracts. We are
willing to have you put ii-in the order
that we win carry them ott We
think we can better ourselves SEq
better the people by allowing these T
three companies to do what one Is
now doing We win go further sna I
say that we are willing to 4ay the
taxes not only on The Light and Power
Company, and th<l Gas Company. but