The Detroit times., 1910-11-19
HOW THREE CITIES
WERE BUNCOEO BY
SAND LOT VOTE
Glaring Manipulations Blossom in
Cities Service Co." and Tax
payers of Denver, Spokane
and Joplin Are Victims.
They Have Been Bilked Into Paving
Dividends on $4,000, 900 in
WGtered Stock.

DENVER. Nov. 19.-The further
away from Denver, or Spokane. or
joplin, Mo-, you live, the more likely
you are to see the advertisements OF
The Cities Service Co."
One million dollars is being spent
In newspapers and magazines To float
the common and preferred stock OF
the Cities Service Co.
The Cities Service Co. is a New
Jersey corporation. II Is a holding
company and has absorbed the Den.
yer Gas & Electric Co, the Spokane
Gas Fuel Co. and the Empire District
Electric Co. Uoplin).
he formation OF the Cities Service
Go. didn't add foot of gas main nor
an inch of electric wire nor light an
other light in any of the three cities.
The first thing, however that the
merger did was to pay TO Henry L..
Doherty and his pals $500, 1000 as a pro-
motion fee.
Doherty was president of the Den
yer company. He was the custodian
OF his stockholders interests. He has
sold his company to the Jersey corpor-
alton.
Four years ago the franchise of the
Denver Gas & Electric Co. expired.
When the city came to renew the
company demanded extortionate rates.
The city officials didn't fight very
hard, hut the people were angry. A
new 20-year franchise was drawn up,
and with a great flourish II was said
that this was to be submitted to the
people" for a popular vote.
Then the lawyers and the courts got
busy. First Il was arranged that only
taxpayers" could vote at this cleo
ton, and second the court held that
the mere possession OF a tax receipt
should be final proof OF right to vote.
In the edge OF Denver were acres
OF sandlots. The treasurer was sick
and not In his ONCE. The public rec
ords-the tax books OF the people
we're carted to the offices of the gas
company.
Lists OF names were drawn up. The
grating police furnished the names
FOR the women OF the tenderloin and
their male parasites. The employees
OF the gas company who we're active
in church work furnished the voters
Of the bible class. so the lists were
turned in and thousands of tax re-
ceipts we're out for amounts ranging
from to As cents, and on election
day from the slums and innocent fire
side the mysterious hidden power OF
the gas company marshaled the votes
that overruled the bona fide taxpayers
of Denver and saddled them with rob
ber's rates for 20 years.
An attempt was made to enjoin the
swindle. Judge Lindsey called Doher-
~ before him. Doherty refused to
answer questions, and for three days
he was in jail for contempt Then.
as usual, Colorado's famous SUI
preme court reached down and opened
the prison door, ruling that frauds In
franchise elections did not fall under
the regular election laws and could
not be judicially investigated.
Frank w. Frueauff, Doherty's first
lieutenant, lost his notebook showing
how thousands OF dollars had been
paid to candidates on both party tick
cts and the political leaders and ward
heelers OF both parties.
Mayor Speer got $4,000, but, OF
course. It was explained that he didn't
keep any of It. Speer will probably
be Colorado's next United States SEN
ator (Democratic) to sit with Simon
Guggenheim republican,, as the pres
ent Democratic senator, Hughes, is
not to be candidate for reelection.
Hughes was attorney for the gas com
pany.
Among others whose names were
In the doughbook OF Frueaun was
Chief OF Police Delaney, Democrat,
and Oil Inspector Russell. Republican.
Well, the franchise vested and the
profits were 50 indecently big that
they must be concealed. So the Jop-
lin company was absorbed. II had not
paid dividends. The Spokane plant
was added. II was so indecently wat
cred that Doherty squeezed its $4,000
600 stock down TO 100000. The Joplin
outfit had a quarter OF million or SO
of water squeezed out, and then the
three million and a half OF Denver
stock was exchanged for $9,45l,OOO OF
Cities Service stock.
With the eleven millions and half
of the stock out. more stock was solo,
not to light lights or lay pipes, but
TO pay the Doherty outfit half "A mil
lion> dollars promotion fee, and anoth-
or million to develop" Develop
ment" in this case means the selling
OF more stock. As fast as the stock
pays 6 per cent, more will be sold
saws Doherty. and New Jersey has pro
vided a supply Of fifty million dollars
of the paper money which becomes
stock by being signed by the presi'
dent and secretary.
This is a little OF what lies back OF
THE Cities Service Co" and its gilt
terinR stock-selllng advertisements.
provision For Alley Entrances.