Evening Republican, Volume 19, Number 175, Rensselaer, Jasper County, 26 July 1915 — PROPOSED TRACTION LINE INVESTIGATED [ARTICLE]

PROPOSED TRACTION LINE INVESTIGATED

Lafayette Journal Correspondent Charges Brown Concern With Some High Finance. As stated recently in this paper the promotion methods of O. L. Brown and his associates in the Lafayette & Northwestern Railroad Co., are being investigated by the public service commission. The investigation was started by The Lafayette Journal following an effort made by Brown to get the West Lafayette Chamber of Commerce to endorse the plan of the company for a subsidy in West Lafayette. The information supplied to the commission is being furnished by Henry W. Marshall and the following article from The Journal was written by W. P. Clark, a staff correspondent. Only part of the article can be publ lished owing to the lack of space. Last week when some of the officers and stockholders of the company were in Rensselaer the investigation was menl tioned to them and the ystated shat there was nothing on the part of he company that would not bear the blosest investigation. The article as printed in The Journal is apparently directed with a view to putting Brown and his company out of business and until the investigation is finished and the report of the findings are made public The Republican suggests that nothing further be done toward the proposed subsidy for the road. In part the article in The Joumal is as follows: The proposed Lafayette and Northwestern railroad was given an airing yesterday before Judges McClure and Edwards, of the state public service commission, who were delegated by the commission to investigate the transactions of the company. The hearing was held in the offices of the commission, and was attended by Charles Stockton, of Round Grove township, whitd county, who is president; Orin L. Browm, of Lafayette, general manager; Dr. A. P. Rainier, of Remington, a former officer and director; G. I. Thomas, also of Remington; Edgar D. Collins, of Lafayette, attorney for the company; Henry W. Marshall, executive editor of the Journal at Lafayette, and John Wagner, president of the Lafayette Cham>er of Commerce, all of whom had >een summoned to appear, and relate what they knew 61 the transactions of the company. The finances of the proposed road and the finances of the Tippecanoe Construction company, which it developed at the inquiry was to build the road, and in return was to take over all the stocks, bonds and assets of the Lafayette and Northwestern railroad company, and become owner of the road, were given a severe probing. It was a wield story of high finance, unknown to the members of the service commission, except such as they have read in fiction, perhaps in George Randolph Chester’s tales of “Get Rich Quick” Wallingford, and his arch associate, Blackie Daw. According to the testimony given before the commissioners some who are interested in the proposed road have poured their money into the coffers, like a child pouring sand in a bucket, never receiving any more in return, not even the scratch ola pen to show that the money was ever turned over. Seack certificates have been issued in the Tippecanoe Construction company and real money has been paid by the purchasers, when it is questionable whether the company legally exists on account of its failure to file articles of incorporation in the county in which it was organized. O. L. Brown, of Lafayette, general manager of the railroad company, and who, it developed, is treasurer of the Tippecanoe Construction company, and the medium through whom all finances are handled, was the first witness. He stated in reply to questions that the Lafayette and Northwestern Railroad company was incorporated in April, 1914, under the interurban act. He also said that he was promoting tfce road which was to run from Lafayette to Kankakee, 111., via Rensselaer. He said no street railways were to be acquired. Mr. Brown sai dthat the company was incorporated with a capital stock of SIOO,OOO which afterwards had been increased by resolution, but not filed with the secretary of state, to $1,500,000. He stated that the construction company was incorporaed to raise money o pay the expenses of the road. When asked what had been done, Mr. Brown stated that engineers started everything on October 23, 1914, and that the work, which was completed about March 1, 1915, had cost about $7,000. In all, Mr. Brown stated, the expenses so far have been approximately $25,000. The road, he said, tun been voted in subsidies, $77,000, and there are pefiding elections that will raise the amount to $256,000. These;elections he stated will be called as soon as possible. When asked what stock had been

issued, Mr. .Brown said: “We have never had any railroad stock certificates printed. Neither have we had any bonds printed and no notes have been issued, except by individuals only. Cnarles W. Stockton, of Round Grbve township, White county, is president. He has some 500 acres of land there and owns a large.tract in Texas, and is worth about $200,000.” The article shows that the construction company was not authorized by the state although certificates of stock had been issued sating that it had been sq incorporated. It showed that Chas. W. iSockton and Perry O’Connor had each subscribed for stock and that Stockton had signed notes for power to procure money. Dr. Rainier, of Remington, told about the manner in which himself, G. I. Thomas, Bert Sheetz and G. T. Elmore had been interested and later dissatisfied with the manher in which Brown was conducting the business and had consulted Lafayette attorneys and, had withdrawn as officers of the company. G. I. Thomas told about investing S6OO. He had subscribed for $2,500 worth but after consulting a lawyer did not pay in any more than the S6OO. Judge McClure, of the utilities commission, stated that he did not regard the transactions between the railroad company and the construction company regular, but that this was only his opinion and that the whole affair would be discussed by the commission and a decision rendered this week.