Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-10-16

Then he began a campaign of education.
He showed the amount of tonnage the road
had carried in the past; sand and gravel
chiefly, but that was not emphasized. Then
he displayed a map of the country, and
showed what an important link this five
miles of road might prove in time if two
rival systems extended their trunk lines.
Well, he was a ready talker, good sales
man, and he was working last desperate
game to retrieve his fortunes. The big rail-
road buyer listened patiently studied the
receipts, examined the charter, and finally
said:
"Ill take your railroad just as it is for
hundred thousand"
The president of the old sand and gravel
company was so surprised at this offer that
he nearly lost the deal by getting confused
and ratified; but he gathered his wits, and
within few days the deal was effected.
Then he went home happy and jubilant, and
not very favorably impressed by Wall
Streets shrewdness. He had beaten one of
the leaders of the street at his own game, and
his conscience did not trouble him.
But few years later he lost good deal of
his enthusiasm over his astuteness. The
trunk line of one of the systems was ex-
gage road became the key to a remarkable
situation. Without this right of way the big
railroad would have been blocked in reach
ing tide water at one of the most important
points. The query now in the old mans
mind is. as he looks at the double track of
standard rails that long ago replaced his old
narrow gage. did the railroad buyer fore
see coming events and shrewdly pick up a
bargain on his own terms?"
Into the Hands of the Enemy
r
works company wanted to install big
plant to supply water for the residents and
for irrigating surrounding farms. The town,
although very poor, decided on municipal
control, and bonds were issued by the author
tiles for building the plant. There was not
much demand in the town for municipal
bonds and the town decided that it would be
a shrewd move if it could dispose of these
bonds to Eastern investors. So bond sell
ing agent of one of the big houses in New
York was enlisted in their services. After
explaining their position, they asked the
agent if he could dispose of the bonds to adj
vantage.
Sure" was his ready reply, II can sell
everyone of them. Investors are more than
anxious to buy municipal bonds. I'll take
the whole lot"
This was little surprising, and at first the
authorities demurred. They wanted to keep
some of the bonds at home.
But the bond agent said no. It's the
whole thing or nothing with me. The job
is small enough as it is"
The agent finally had his way. The bonds
were turned over to him for sale, and within
month they were all safely sold and the
town had the money to build the water
plant The agent was simply after his COM
mission, and few inquiries had informed
him of the past quarrel with the private
waterworks company. To make his job easy
he went to them and sold all the bonds and
got his commission.
In time the plant was completed and put
in operation; but there had been too many
fingers in the pie. 1t didn't pay from the
first, and the political party in control found
just before an election that it had to face the
situation of defaulting on the first payment
on the bonds or of raising water rates. They
did not dare do the latter on the eve of an
important election; so they took the other
alternative.
The result was that the bondholders fore
closed, and the private water company
which had offered to build the plant and
operate it secured complete control As it
had no interest in municipal elections, water
rates were Immediately raised and the in
vestment paid good dividends within year.