Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-06-13
s5OO,OOO SUNK IN
TRACTION SCHEME
Lorimer's Construction Firm
Backer of Southern Com
pany of st. Louis.
RECEIVERS HAVE CHARGE
Part Of Road in Operation, but Chi
caoosn Can't Realize on
Expenditures.

st. Louis. No. June I3.-The South.
ern Traction company, the corporation
which Jeptha ID. Howe, former repub
lican boss. used in his attempt to
mOnopolize the free bridge across the
Missouri river. and into which VIII
lia'h Lorimer poured more than $780,
600. played its part in bringing about
the closing OF the former senator's
banks in Chicago.
I When the St Louis promoters con-
/ ceived the idea of utilizing the free
bridge the Southern Traction COM
pany. a purely paper road at the time.
applied for and received a franchise to
operate cars across the bridge and
over loop on ST Louis streets for 80
years Jeptha ,. Howe. who has been
the front" of the company in St.
Louis, interested LOrimer in the ven
ture.
Lorimer Construction Firm Smashed.
It was Lorimer's company-the Lori
mer-Gallagher Construction company
that took the contract to construct
the road. The franchise, which was
granted in haste by the municipal as
sembly. and which has been the real
reason for the refusal of the citizens to
vote for the completion of the bridge,
vas considered so valuable Lorimer
undertook the construction work, and
never has been able to draw a cent.
At the time Lorimer began build
ing the road il was believed all OBJ
stacles to its being a veritable gold
mine had been overcome with the
granting of the franchise. The road !
has been completed from East ST |
Louis to Belleville. The track par-l
allels the Illinois Central, but work |
was recently stopped. The closing of /
The Lorimer bank in Chicago, reveal |
ing lack OF funds. is taken as the rea-
son why the construction work was
not pushed.
Bonds Underwritten in London.
II. d. Mepham, one of the promoters
OF the Southern Traction company,
Y ent to London to arrange for the sale
O. bonds. He was successful in hav-
ing a bond issued underwritten. but
the proposed bondholders required a
certain amount OF construction work
be done before the bonds could be
marketed.
Lorimer's contract was that he was
TO do the work and was not to receive
pay until he had completed the work
section by section. After he had in
vested S5OO,OO or more in the work,
and the bond issue was held up and
the time limit for the work had ex-
Dired, he experienced difficulty in OBJ
tanning funds to prosecute the work.
Troubles Over Franchise.
Then followed successive defeats of
he bond issue In St. Louis TO com
Dlete the bridge. and the climax came
when the city council passed an ordi-
nance cutting the life OF the franchise
rom so years to % years. The house
II delegates killed the bill only to pass
mother repeating the franchise totally.
-his bill was in turn killed by the coun-
III, but another repeating ordinance
las been introduced in the house OF ,
delegates. Il IS now pending. :
While the road has been completed I
,etween East St. Louis and Belleville
or several months. IL has not carried
much traffic. Recently a small guam ,
fly Of coal has been carried, but no ef- I,
ort has been made TO transport pas ,
engers.
Howe Discusses Middle.
II don't know that the Southern :
'raction company had anything to do X,
nth the I>orimer financial muddle." ,
lowe said today. Il know Lorimer
as no interest in the Southern Trac-
ION other than that he was the con- ,
-actor.
HE has put in 100000 or 100000
! cash for the work OF construction.
ut aside from that he has not been
nanciaIly interested. So far as
now he does not own any bonds or
Lock in the company.
The road has ben completed TO
elleviHe. and four miles beyond. We :
re now hauling coal over the road.
nd by September we will be nauiing p
assengers." "