The Montgomery advertiser., 1908-11-15

time and attention to the upbuilding of
 That the Philadelphia capitalists were disappointed in their Montgorn- cry investment is an open secret.
 "They tried to manage 1t by long dis tance phone and 1t couldn't be done" said a former official of the company few days ago.
 An efYort was made to sell the prop erty last summer and Mir. Tflits was mentioned as & probable purchaser, ~ the same proportionate figures at which he sold.
 -No." he said, in denying the report. .It Is not true, don't want the property at what they paid for It. They paid too much !"
 The investment would probably not have been a bad one for the Philadel- phians or the city of Montgomery, either had not the financial storm broken last October a year ego. The company was unable. after the panic, to raise the money necessary to carry out planned improvements. Still the company has spent probably $2o0.ooo in improving.
 A thorough inspection and examina- tion of the property of the company was made by experts for the Well- known street car corporation or Ecrds Bacon & Davis. The experts reported that extensive improvements of the system were insistently needed. It was said that the report of the ex- perts called for an expenditure of some thing like half a million dollars in improvements alone.
 The report of Ford. Bacon & Davis was submitted to the officers and direc- tors of the Traction Company in Phila- delphit last August. The queston be- fore them was whether they would or would not raise the half million dol- lars for immediate Improvements. The Montgomery investment, because of the hiwh price paid for the property. had not been profitable. As one officer ex- pressed it, 1t looked like sending good money after bad money" Nothing was done with the report.
 Har. TalHia Held BonAs-
 At the same time Mir. Tillis. who had the old bonds and who had refused to sell them. was asked to purchase the system. Ee took up negotiations with the Traction Company but the psEEtes to the trade split upon the deeatlas lt fs said that they were s100,000 apert and that the difference could not De overcome.
 After this a proposition was taken up with Ford, Bacon & Davis to take charge of the system. Improve 1t, and run it like that concern was running the Nashville system. This contem- plated the additional investment of a large sum by the Traction Company.
 This proposition was undecided ur- til midnight Thursday. Again the otfi- cers of the old company were face to face with the proposition of ''sendng good money after bad.' Mir Tillts had made an ofter forgthe property and was pa tiently waiting for the company to do something.
 Mir. Taylor, the trusted representa- .a-- Al .AE awa. under the authority of a resolution of the Board of Directors. at a meeting in Philadelphia. came to Montgomery Wednesday to confer with the local ot- fcers of the company. having in view two projects, first the possibility of increasing the investments In Mont by large Improvements, in con- nection with Ford. Bacon Davis. and. second, closing the trade with Richard TIliis, on terms previously discussed. Mir. Taylor was advised by local ofn- cers that the wiser thing to do, under existing circum stances, was to close the deal with Mir. Tillis. 1t being better to pocket a certain loss than to make other expenditures and have to pay a heavier loss in the near future.
 Thursday Night Conference.
 Mr. Tillis reached Montgomery Thursday from a trip to New York He was in conference with Mir. Taylor and Ray Rushton until midnight Thursday night going over the details. i By midnight an agreement had been reached for the big business transac- tion.
 A M. Taylor left Friday morning at s o'clock for Philadelphia, leaving Mir Rushton to finally conclude the deal. It was agreed then that the announce ment of the transfer should be made Sunday mornins1in order to allow Fri day and Saturday for the settlement of q number of existing claims and busi- ness matters, the settlement of which would be jeopardized by an earlier an- nouncement of the transfer.
 The Advertiser came into possession of the details of the trade Friday aft ernoon. Part of the information came in a confidential way, and because of the question of property Involved, to- gether with the earnest plea from both parties to the transaction, that fnan- eIaI loss and damage would reeult from the unauthorized publicf<!on trade which had not been fully con- sumated. it was agreed to. hold up the publication of the story until the time agreed upon by the contracting par ties. The filing of some preliminary papers at the court house at noon Sat urday revealed the fact that some deal affecting the street car system was on.
 . The announcement of the sale of the property was followed by several re- ports. The first and most persistent of these rumors was to the effect that Mir. TllIis. in purchasing the property, was acting for the Montgomery Light and Water Power Company, and that company would in the future control and direct the property. MT. TiIlis's denial of this report was without equivocation.
 s ''The Montgomery Light and Water Power Company had nothing whatever to do with the purchase" he said. ''I alone am the purchaser and I will control and conduct the company in the future. The New York officers of the Montgomery Light and Power Company have told me that they con sidered the Traction Company a fine piece of property but they were unable at the time to make such a large in- vestment in Montgomery. They have nothing whatever to do with the trade"
 Previous to the purchase of the prop erty by Mir. Tillis. the Traction Com pany authorities had determined to put down new tracts between Court Square and past Postoffice on Dexter Avenue. The material for this work has already