The labor journal. [volume] (Everett, Wash.) 1909-1976, 1912-02-16

months hand the McCheey Improvement Com
vice received first jolt when the people Washing
ton, through their representatives the utilities commission,
through the books of the corporations interested for the first time
their creation.
The facts found and reported by Engineer Gray expert
the highest degree all citizens Of
Everett Here them, detailed by Mr.. Gray
The McChesney Browne- -mprov company organization
undertook in filing their as of streets alleys etc. to forever
perpetual and exclusive right lay water pipes power lines
cpa plant the supreme has declared such reservations
void against public policy the still free
Engineer Gray stated that the method used make this
of its kind that he had yet found
Mr. Gray said the books showed the purchase of tract of land
small between Everett and Snohomsh by the interests
representing what the Improvement company for $4,000 and
n bonds
capital the old company turned
company for oer Of its face value the stock being issued
for 100000 and the receiving about $4,000 for it.
In 1905 said Mr. Gray the Everett Railway Light and Water
company issued 100000 bonds selling them Stone Websters
SeaeEvere Traction company for 100000 gift Of 100000
Mr. Gray stated he could for such heavy discount
These three items alone represent about $4,000 of wared
stock which the claims the right to 10 per cent
Stone and Webster contrary to popular Idea do not own the
guaranteed fixed of interest 200O0O bonds
stock issue amounting to s. 100000 prices charged
been high that the leasing known
the Puget Sound International company has issued 100000 stock
on its account
The engineer reported Immediately Stone Webster took
operate the Everett properties that the expense
of operation took jump.
The Improvement Webster had per
deuge of Banker Purdy of Belngham who has
just obtained light and franchises in Whatc0m county
10 per interest Every time the corporation lawyer Who
by way, less than note that eX L. 5 Senator
Samuel pulled string friend Purdy calculated ten
cent" something the order of a talking manikn
of the Seattle Electric company also on
remarked that Jaes testimony not exactly IN line with
what the corporation lawyers looking for.
to testify for Stone Webster columns of fig
cost tables The latter part Of this gentleman testimony
+lo+ she'd bU
sold that he would add his losses to the actual value OF the
business wonder whether the records of the bankruptcy courts
bear this out or whether the and property of the
old Everett Land company by the l. > court during e nara V
made such basis.
engineer found the values of the plant to be as follows
................ .$565,15IOO
Light and power. 459,5o7Oo
Railway ..................... 70l01Oo
The light and power department have made net
return per preceding January l9
The company, for five years ending January l9l1 aver
aged y per year, net
railway for years ending January l9
earned II ID per cent net.
Robert Moody of the First National Everett in trying
aid his masters claims of what constituted reasonable interest
rate read showing that the national banks of Washington
earned 10 cent on their capital and surplus for the
d % m & stock La refused 70 answer ON the ground of personal
privilege benefit readers will that the state
law prohibits charging higher interest rate than L per cent per
year. and provides penalties for violation
The Everett Improvement companys stockholders stated
controlled the stock of the Everett Railway Light and Water
company said Engineer Gray the Improvement company BOOKS
open to the commission
This hearing afforded deal of light of what the people
up against controlling corporations The Stone
Webster Improvement organizations had the council
city literally packed with witnesses brought from all
the country each ready to give just the evidence the
and all their of the corporation
treasury other Words the pockets of the people buying
The Honorable eXU Senator
appeared chief counsel for Stone Webster with
A. Coleman F. H. Browne and Others for the
IcChesney interests
Against this battery of corporation the people
by Assistant Attorney General Steven v Carey
who made up by fighting energy
lacked numbers This OF the corporation
witnesses badly tangled in their testimony notably Robert Moody
Webster star witness values
Despite the spuerng and objections of the corpora
their witness backed into At
torney General Carey damaging admissions from the in
terests - witnesses.
Commissioners Jones and Lee conducted the hearing
able handling of Assistant Attorney
Carey believe the people of Everett ought receive
fair and square deal
Regardless of this particular think the
utilities commission has justified its creation,