The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-09-06
SQUABbLE GOES
I ON OVER FARES
Tom Johnson and the CIeve.
land Railway Company
Are in Trouble.
SUIT BEGUN BY TAXPAYER
VARIOUS CHARGES MADE IN THE
PAPERS FILED.

Cleveland, Sept. Suit was filed in
common pleas court today by James K.
Farasey. taxpayer. asking that the Sc
curity grant of the Cleveland Railway
company be declared null and void and
ne lease of the property to the Munich
pal Traction company be set aside.
rrauc and financial interest by city Of
ncials is named as a basis for the suit.
me petition declares that the Munich
pal Traction company is a fraud upon
the city and its taxpayers without legal
Or financial responsibility, and was
wholly and solely controlled and DOM
mated by Tom l.. Johnson. mayor of
Cleveland. II is further declared that
the franchise grant is a fraud. because
IL provided a higher rate OF fare than
had been offered by the Cleveland Elec-
trio Railway company of seven tickets
Tor % cents, with universal transfers.
IL Is alleged that the public funds of the
city were used to promote the interests
OF the scent fare lines Five hundred
Thousand dollars is named as the sum
SO used.
Receiver Asked.
After asking that the ordinance be
declared null and void and the lease be
set aside, the petition prayS that the
company be enjoined from operating
under the franchise. The petition fur
ther asks that a receiver be appointed
10 take charge of the property of the
Municipal Traction company, which 1t
declares is utterly insolvent. having liza
bilities vastly in excess of assets. and
that the same be administered in the
interests of the city of Cleveland 1t
Is charged that the west side pumping
station, valued at $500, OO0 was leased
to the Forest City company at an in
adequate rental, and that land adjoin-
ing was purchased at a cost of $69 900
out of the waterworks fund and is now
being used by the railway company.
Selected by Mayor.
OF the organizations of the Munich
pal Traction company. il is charged
that the original directors of the COM
pany were selected by the mayor, and
that they were at the time of their
election mere tools and puppets of the
mayor. agreeing with him that all that
should be done in the operation of the
company should be i'm furtherance of his
scheme and plan TO control the street
railway system.
IL is alleged that these original incor-
porators and directors OF the company
had no personal interest in said COM
Dany. and though pretending TO sub
oNiibt SlpsVVO VI llc capital SlOth Ol the
company. not one of them was the real
owner Of single share of the stock.
fhe suit is brought against the city
Of Cleveland, the Cleveland Railway
company. the Municipal Traction COM
pany and its officers and directors. in
Guiding Mayor Johnson and members of
the city council.
Some of the Charges.
1t IS charged that prior to April 81
last when the security grant was
passed by the city council. the Munich
pal Traction company and Forest City
Railway company were creditors and
depositors in the Depositors' Savings &
Trust company. of which Mayor John
son was president and Vice Mayor
Lapp and Councilmen Zinner, Hanrat-
~ and Henry stockholders. II is charged
that these four knew that If the Forest
City property was sold to the Cleveland
Railway company and the property of
the latter leased to the Municipal Trac-
ton company the stock of Johnson,
Lapp. Zinner Hanratty and Henry
would be made more valuable. and they
would be financially benefited. 1t is
claimed these men had their financial
interest in sight when three of them
voted for the grant and Lapp signed II
as vice mayor. johnson having purpose
~ conspired TO go outside the city linn
It's while Lapp signed the ordinance,
thereby endeavOring TO avoid the finan-
cial interest charge