The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-21
SCENT JOKER
IN TROLLEY
MERGER
Opposing Stockholders Sis.
piciOus, but Have Not De-
cided as to Threatened Suit.

There is little chance at present of a
suit being brought in the courts to
test the legality of the mercer yes
terday of the North Jersey and the
Jersey City, Hoboken and Paterson.
and the United Railway companies
into the Public Service Street Railway
Company. the new corporation incor-
porated with a capital of S3s, 900, 900 to
take over the three companies named.
Only seven men talked and voted
against the merger at the meeting of
the stockholders yesterday. and they all
own stock of the New Jersey Street
Railway Company, n all but one. of
them live in Newark. One owns a
few shares of stock of the jersey City,
Hoboken and Paterson Company. One
of the Newark men is the largest owner
of stock of the North Jersey of the
seven men who opposed the merger.
He talked yesterday for a suit in the
courts. He was not at his office to-
day. Other men We're said not to be
in when an EVENING STAR reporter
asked for them. One man was found
who talked.
1T don't know what will be done
about making a fight in the COURT he
said. "All of us who opposed the mer-
ger because we wanted to know lust
hcw we would fare after it was made
nave been in several deals, and we
always stood together. We will now,
but l do not know that we could make
our position any better If we brought
suit and won. The trolley companies
in New Jersey have not paid, and hons
of US got any dividend on our stock.
President Thomas N. McCarter told
us at the meeting yesterday that the
trolley companies lost 1919, 900 last year.
He said something had to be done to
largely reduce expenses, and the plan
of consolidation was devised for this
purpose. Well, any business man
knows that if a big business can be
conducted in one large office, instead
of a dozen small ones. a very large
saving will be made in expenses. But
we who opposed the merger have
thought, and we still have an idea,
thai there is more back of the mtrger
scheme than the economy plea"
The EVENING STAR man remarked
that IL the Public Service Street Rail
way Company makes a saving of tens
of thousands of dollars a year in ex-
penses, and the company makes a
profit, thai the market value of the
stock would bound up and all who held
on to the stock would be the gamers.
He instanced the case of the United
Electric Company stock, which has
risen in value from less than rs to 60.
and asked who were the gamers by
the suit several men brought up against
the United Gas Improvement Company,
of Philadelphia, where the suits were
settled out of court for cash and good
stock.
THE few men who brought the
suits" was the reply, land the rest of
them got left. But in that case there
was good legal grounds for suing. In
the present case there is very great
doubt
Assemblyman Henry c. Hines, who holds
a good deal more stock of the North Jer-
sew than the other men who opposed the
merger. said this afternoon it had not
been decided what course to pursue
whether to go into court or not.
eve are not men who would engage
In n hold-up," he said. what we wanted
wss some reliable information about the
finances for each company 50 that we
could rate intelligently on the merger plan.
7 wrote to President that we
asked for the asked for the informatloh
as stockholders.
eve got no information until we asked
CleEJiO0S ut the SlONhaCio@A8
Tbep we were told of the general financial
combination of the companies. but Presi-
dent McCarter said none of us could copy
ANYTHING, for it was not customary 1or
corporations to publish all about their
business.
we who oppose the merger will nor
take any action without careful inyesti-
cation. If the new concern makes q iarse
reduction in expenses, especially IN lhe
North Iersev's lines, which have not PAID
while others have, we will all be bene-
fitted. That is a business proposition tnat
ali can understand. But the way people
were tricked in the electric lignt anu
mower combine has made all suspicious OF
every move made by the OF the
big corporations" o,
The Jersey City. Hoboken and Paterson
Company. generally called the Whl.e
Line made a profit of $4,000 last year.
but North Jersey has not only never made
a dollar hear, but was thousands OF dollars
last year below the profit mark.