The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-06-04
RAILWAYS TO
Be SOLD JUNE
TWELFTH
FORECLOSURE SUIT is CLIMAX
OF A SERIES OF OPERA
TIONS IN HIGH FINANCE
AND COMPLICATIONS
Process of Consolidation in Progress
For Two Years-Sidelights Add a
Thrilling Interest - New York
Crowd Will Turn Boise Lines Back
to Pittsburg Crowd.

Boise, June 2.-The electric rail-
way lines operated by the Idaho Trac-
ton company are to be sold under
foreclosure proceedings on June ID.
This is in pursuance to a decree issued
from the United States Court for the
District of Idaho. This sale includes
the electric roads formerly known as
the Boise & lnterurban. the Boise
Valley Railway and the Boise Railroad
company. The sale of the latter road
is subject to lien of $l80,000 There
is also included in the property that
goes under the hammer the electric
light and power properties formerly
known as the Idaho-Oregon and the
plants at Caldwell and Nampa. The
81, 542, 5000 shall be the upset price
or minimum bid that will be consider
ed.
This foreclosure sale, a notice of
which is running in The Tribune, oc-
cupying some twelve or thirteen col
umns, is the climax of series of
operations in high finance. These op-
erations have been heralded in the
public press from time to time, but
have become so complicated that the
average citizen has long lost track of
the relations of the various companies,
and it took strong array of legal tai
ent to make the situation clear to
Judge Deitrick. 1t appears. however,
from the decree of the court, that the
Idaho Railway, Light & Power COM
pany is the parent Organization own
ing the electric railways and power
plants above mentioned, at the pres
ent time, and that the Idaho Traction
Co., is a subsderary company operat-
ing the traction properties Of the COM
pany. The electric railways and the
power companies have been in process
of consolidation for a little over two
years.
The name Of the Kissel- Kinnicutt
Co., of New York first appeared in
these consolidation movements. These
wealthy capitalists organized the Ida
no Railway, Light & Power Co.. and
the Idaho Traction Co. Then the
| appeared in the transactions. 1t ap-
pears that the Guarantee Trust peo-
pie handled the bond issues and ad-
vanced considerable money and that
the Idaho Railway Light & Power Co.
has defaulted in the interest due the
trust company, the default extending
over a period of two years, and so
they went into court and secured an
order of sale of the various proper
ties.
The court transaction appears upon
its face like an ordinary transaction
but there are many sidelights that add
thrilling interest. For instance. it
is alleged that officers in the Idaho
Railway, Light & Power company are
also interested in the Guarantee Trust
Co. of New York and that the plaintiff
and the defendant in this big suit are
very closely related. and that the ORR
ginal object of the suit was to freeze
out some of the small interests. This
is especially charged in the case of
F. H. Jennings, the Pittsburgh banker,
who with w. E. Pierce of Boise, pro-
NOTED the Boise & Interurban Rail-
way. Jennings. Pierce and associates
came into ownership of the Boise Rail
Dad, the Boise Main Street line, which
they sold to the New York syndicate.
) Jennings did not receive his payment
in cash but took what he presumed
was sufficient stock in the Boise road
to secure him for the $4,000 still
due. but he made the fatal mistake OF
allowing the syndicate the board OF
! directors. Jennings's friends claim
that the New York crowd through
this board of directors sold the Boise
& road for the sum Of $40 and attempted
to leave Jennings holding the sack
The jennings claim was a holly con
tested point in the recent court pro
ceilings, but the Judge appears to have
: recognized the jennings claim a.
. valid, and the attempted sale as in
!. valid
Another interesting sidelight is tn,
; proposal of the New York crowd t
4 turn the Boise Railroad back to tn
: Pittsburgh people, The Traction com
{ pany has within the past ten day
: put in a switch at 18th and BannocI
streets, so as to get into the down
town district with their 18th stree
c line without having to come in owe
the Main street line. the latter belong
ing. to the old Boise Railroad com
:. pany. They have also disconnecte
. the 18th street line with the Boise lr
= terurban, the former also belonging t
:. the old Boise Railroad company.
i is said that the actual turnover was I
= have taken place last Monday. but
:. court order was obtained temperate
Il restraining the change. which will DE-
a. lay the program at least 30 days. On
Il reason advanced for the surrender {
a the Boise Railroad which include
l. Natatorium proprtv is the fact that
Is does not pay dividends. Interestin
developments are yet to be expecte
"a Whatever may be the allegation
n floating around. true or untrue, it mu
~ be conceded that the electric lint
~ under the management of Mr.. Dick
~ i general manager of the traction con
pany. and the light and power servi,
n under the receivership of Mr.. Marku
70 has been very satisfactory to the p
m irons.
OF
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