The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-12-28
AIR LINES METHODS
HAVE BEEN REVEALED
10000 Stockholders Who
Contributed 100000
Now Wise.
FRENzIED FINANCE SEE
Cooperative Construction Company
Paid In Stock and Sells Stock
for Material.

good idea of tho manner IN which
the promoters Of the Chicago-New York
Air Line railroad and the Gary and
Interurhan railroad which is 10 con-
struct and operate tile Gary street rail
way service are doing business may he
had from a New York telegram
Inside facts and the secrets OF the
company have been revealed as a re-
suit of the differences between the COM
pany and the Hancock company which
had taken up the task Of selling air
line stock.
These secrets came to light through
the sudden closing in and about 40
other cities in the United states of
the deliberately furnished offices Of the
G. Fl. Hancock company
The disclosures are likely. 1t was de-
clared, to explain many things not
hitherto comprehended by the 90. 600
o, more persons who contributed about
100000 toward the construction of
this most advanced project OF modern
times. marking the dawn of a new era
il the field of transportation" to quote
the prospectus
The Hancock company it appears
was the selling agent for the stock of
the road. 1t had a monopoly of that
business not only in the United States
but in the whole world, until the some
what sudden cancellation of its CON
tract about month ago Its president
IS G. II. Hancock, young and energetic
book agent.
Hancock, it was learned, was backed
by the Cooperative Construction COM
pany of Laporte Ind, which holds the
contract TO build the road; that is to
say. the Price concern, or officers of it.
held about $500. 900 worth Of the 81 .00O,-
600 capital Of the Hancock company
Hancock became known to the pro-
meters of the Air line scheme through
an advertisement in the newspapers
calling for the services of men able
to sell stock He took the agency for
New England. He made a contract to
handle all the stock that was issued
and to be issued
THAT contract was made with the
Cooperative Construction company be-
cause that concern was taking prac-
tically all the stock Of the railroad that
was issued in return for work done in
tho line The total cost of this con
struction was to he about $3.50. 600. In
short, the Cooperative company was to
build the line, be paid for it's work in
the stock of the company and to sell
that stock through the Hancock CON
Germ. of which it was the principal
stakeholder.
"Details having been arranged. Han
cock enlisted the services OF Charles
Foster, who was well known TO j. d.
Price and to Alexander e. Miller pres
ident of the railroad company Mr.
Miller formerly was the president Of
a bank in Aurora Ill
Foster had charge of the agents en-
ployed by Hancock and for some
months was very successful in aiding
in the disposal OF the stock He was
made vice president of the Hancock
company and was promised salary
OF $4,000 a year $4,000 in real money
and $4,000 in stock of the Hancock
company
Last September Mr. Foster became
convinced so he said. that the Han
cock concern could not make any
money under the terms Of its agree
ment with the construction company
namely % per cent commission on
the money taken in, and to pay out of
that commission all the expenses of
advertising and Of maintaining offices
Nj. Poster resigned and Immediately
thereafter the Cooperative Coustruc-
ton company Cancelled its contracts
with Hancock"