The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-06-18
HIGH HNANCIERING WAS
PRACT|CED ON THE
INTERURBAN

With the sale of the Idaho Railway,
day in Boise for $4,542,7sO, closes
practically one of the most amazing
chapters lof high finance that the
State of Idaho will ever witness.
The price of the bid by w. ]. Faris,
former receiver of the Idaho-Oregon
interests and now vice presendent and
general manager of the Electric In
vestment Co., which bought the Ida
ho-Oregon and will complete the mer-
ger of all the electric interests of the
state, was the minimum or upset"
price put upon the properties by Judge
Dietrich-the actual physical value.
The property was bought subject
to the bonds of the Traction COM
pany, 81 100000, which when added to
the purchase price makes total of
$5,ol5 $3.50; as the group of FIVE bank
erS OF New York City associated with
| S. L. Fuller, who was back of the Ida
no Railway, Light & Power Co., held
in their vaults bonds ofthe company
to the amount of %,225, 000-these
gentlement pocket clear loss of
some $l,60o.2S0.
in Idaho is series of amazing errors,
intricate deals" and unfortunate blum.
ders. In 1911 the Mainlands in handl-
ing the Idaho-O Oregon got into fnan-
cial difficulty. S. L. Fuller of New
York was interested by the Mainlands
and finally took over the issue of ST.
100000 bonds, subject to the first is
sue, at 80 per cent After he had
gotten his feet wet. he discovered that
the interest on the first bonds, $780,
900 annually, had been met for some
four years by charging off this amount
against construction" By some I'M
heard of manipulation the accounting
firm employed by Mr.. Fuller had fail
ed to discover this very important
tenor had disregarded it entirely,
a still more amazing thing.
In the fall of 1911 the Kuhn Bros,
entered the field and bought the Swan
| Falls plant and the Boise & Interur-
ban railroad. The Kuhn interests
now dampened the soles of their feet.
There was a bond issue of $l,323,OOO
outstanding The Kuhns bought the
railroad for a cash consideration OF
$793,80O and left the property subject
to bond issue of $l,073,0
Mr.. Fuller found himself in a cor
ner. He stood to pocket a complete
loss of his 81, 100000 second-mortgage
bonds if the Kuhs crowded the Main
lands to the wall Rather than lose
he approached the Kuhns and after
long negotiations got their promise to
quite the territory, he taking all OF
their holdings at the price paid by
them
The Idaho Railway, Light & Power
Co., was then formed and the trans,
fer partly made.
The Dewey plant at Nampa was
bought at somewhere near $250,0OC
about $ZZ5,OOO-more moisture on the
pedal extremities of the electric mag
mates
During the fall Of 1912 the Num- in
terests entered the territory to make
things more interesting and brough
matters to a head.
The Mainland interests had balkeC
on complete transfer of properties
and received further help from Mr.
Fuller in the way of interest-pay
ment advances to protect his ST 500,
200 second-mortgage bonds. Mr.. Full
Ter threatened to refuse to put an,
, further money, and the committee il
charge of the 1daho-Oregon retaliateC
{ by applying for receiver-making hi
loss sure.
A receiver was appointed for tn,
+ Idaho-Oregon December 10. 1913. TIL
Idaho Railway, Light & Power Co.
could not stand the loss of the 81 500,
900 represented by the second-mort
gage bonds-and a receiver was ap
pointed for that company Decembe
%, 1918.
) In among these deals were inter
sperced hundred others of like char
acter. A most amazing skein of mat
, tiers to be adjusted met the receiver
r and had to be Strengthened out
I Finally the present group of capital
y lists back of the Electric Investmer
Company decided to take over tn
whole business. reduce the valuation
+ to net physical basis-and start owe
: 1t is understood the new compan
when all matters are Strengthened on
will honestly strive to give the peopl
\ of Idaho the best service possibl,
Y They are all men of highest standin
y financially and are determined on
q policy broad and progressive.