Omaha daily bee., 1909-03-07

was bought at Nineteenth and Nicholas Streets, and contracts
awarded for engines, generators, cars and material for eIectri-
fCation.
Letting contracts was one thing; paying for the goods
was another. When the Street Railway Company attempted to
market a so mortgage bond issue in New York on a 90-cent
basis, it failed to sell a single security, Much more favorable
terms did not tempt investors. President Murphy made spe-
cial trips to New York in the effort to dispose of the bonds
without success.
By midsummer, 1889, the directors we're thoroughly dis
heartened, as is indicated clearly by the records. At one time
1t was proposed to sell the bonds prorata to the stockholders
on a 6O-cent basis, but this plan did not work and on August
10Th the president was authorized to borrow $4OO, 900 "on such
terms IS he could obtain and deposit bonds as collateral"
A contributing cause OF the failure to sell bonds was the
waning of the boom" but the principal cause was the fact
that the Street Railway Company was not alone in the field
and was menaced by the competition of the Motor Railway.
Therefore, securities went begging.
Meanwhile the Motor Railway Company, also, had cnti-
cal financial problems to solve. Long before the road was put
in operation the public anticipated its consolidation with the
Street Railway, so logical was this course. About the time
electric service was first offered to the public, negotiations
were held between the two managements.
The result was the purchase of the Omaha Motor Rail-
way by the Omaha Street Railway Company October IS, 1889.
The owners of the Motor Railway had made extraordi-
nary effort and sacrifices to create the property-had taken
/. great risks in doing so-and they were in position to drive a
good bargain, They secured in the transaction a large profit
IN stock, which, however, was of little value for years.
Prior to the purchase the Street Railway Company had
proceeded too far with identification to draw back. 1t built
the brick power house at Nineteenth and Nicholas Streets,
electrified the HanScom Park and North Twenty-fourth St.
line, and within a short time, placed in use its first installment
of electric cars, consisting of 20 motor cars and 10 trailers.
The power house was equipped with two Westinghouse en-
gines of $50 horse power each, belt connected to Edison
generators.
Under the terms of purchase DIR. Mercer and u. Brown
became directors i'll the Street Railway Company. The
motor roads property was turned over November ? and
unified operation, which has continued to the present day,
began November 4, 1889.
Competition caused the erection and equipment of two ex-
pensive electric power houses and one cable power house where
there might have been but one, and duplication in many miles of
track, all Of which could have been avoided had the people prefer
red to deal with and encourage the existing company, instead OF
granting franchises to new organizations and inviting competition.
Fortunately the power systems of the two electric estab-
Iishments were such as could be worked together. For a
period of years the Nineteenth Street house was maintained
as the chief power source and the Twenty-Second Street sta
ton used as a reserve.
With uniication the immediate financial problems be-
came somewhat easier despite the Debated boom and
approaching hard times Electrification of the old horse
railway lines, therefore, proceeded swiftly
G. w. WATTLES, President,