Weekly journal-miner., 1913-11-05
BROWNS SECOND
 TIME ON THE COMPANY.

| PHOENIX. Oct. 20-Announce- ment was made today by the cor 1 pOration commission of the entering of an order under date of Oct Eth denying the application of the Rapid Transit Company of Phoenix for the right 10 sell to the public shares of it's capital stock.
 ! The application had been origin ally made by the company under the blue sky" law enacted by the last
 state legislature As the name oi the company indicates, 1t proposed to enter the traction field here at
 Phoenix. Its proposed organization grew out of the recent strike by Phoenix street car employees and it was claimed its financing would be done by various organizations of ! the state affiliated with the State Federation of Labor. The applica- ton was denied by the commission on the ground that the company was insolvent
 As originally made the first appii- !, cation by the Rapid Transit Com pany proposed to offer to the public shares only of its preferred stock and the commission having esta5-
 lished a policy against granting such a permit denied this applica- tion but permitted the company 10 amend their application. which was done. There was considerable talk among those interested in advancing the cause of organized labor of re- calling members of the commission but later when it was understood that the order did not finally termi nate the matter this movement died out.
 Application was then made to the commission for permission to sell an equal number of shares of the common stock and the preferred stock and it was this application which was denied today. Both Chairman Geary and Member Jones signed the order which was also concurred in by Member Cole in an extended opinion. The general ground as stated above was the fact that the company was insolvent and the commission did not care to authorize the sale of the capital stock of m insolvent corporation to the public.
 The situation discovered as exist ing in the company was shown not only by the audit of the books of the company by the commission eX-. pert accountant but also by the statements filed by the applicant. It also developed from the evidence taken that the company does not at this time own any of the autos now operated, but that these cars are being operated by independent own CTS. If the application had been granted it would have made possi ble, if the shares of the stock were sold. the bringing into the treasury of S20,0O0, but no member of the company was able to show the com mission what use it was proposed to make of this sum of money
 w. s. Bradford made explanation that the stock would only be sold in quantities deemed necessary for the present. probably S5.OO0 worth. This would put on the streets two large auto busses. but the outcome of such a venture from q financial viewpoint did not appeal to the commission.
 The extended opinion of Member Cole of the commission deals with the general organization of the com pany which he finds to be faulty and further reiterates his frequently expressed opinion as written in con- nection with other cases of his op- position to the issue by any corpora ton of preferred guaranteed earn ing stock shares
 A statement from any of the off cerS of the Rapid Transit Company could not be secured but the opinion was taken before meeting of their executive committee for considera-