Image provided by: University of Oregon Libraries; Eugene, OR
About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Aug. 11, 1912)
13 THE SPDAY OKKGOITIAJT, rOKTLAJfD, AUGUST 11, lTHST. JOSSELYN - REPLIES 10 FLEiSHHAGKER Letter to Mayor and City Coun cil Tells of Previous Firms Promoted. EXPLOITATION PLAN HIT gg c President of Portland Railway, Light & Power Company Says He Has Information "VVliieli Leads to Hope in Bond Issue. In answer to the communication sent to Mayor Rushlight and the City Coun cil recently by I'resident Herbert FlelshhacKer. of the Northwestern Electric Company, in which the pur poses of the Northwestern Company in seeking a franchise in Portland are set forth. President B. f. Josselyn, of the Portland Railway. Llcht & Towe Company, has sent a communication to the Mayor and Council, setting forth matters relative to past transactions of the Northwestern Company. In the communication President Jos selyn says lie lias received information through private sources to the effect that the new company hopes to bond its proposed improvements to such an extent that the cost of the physical nrnncrtv will be provided for in the bond issue, thus leaving the stock for f-titlnitntion and nrotit. He recites a number of instances of similar transactions in which he says the information he has secureu Indl rclps that nromoters of the Northwest orn Pnmmnv were interested. The communication follows: Progress SIku Seen. "Portland. Auk. 9. (To the Hon Mavor, City Council and the Citizens of "the City of Portland.) It is a good sign of progress and development, when matters of vital Interest are freely discussed before the tribunal which determines the issue in ques tion. Therefore, it is with pleasure that I take this opportunity to call your attention to a number of facts pertaining to the applicaion for a franchise for light and power by the Northwestern Klectric Company, which is now before you. In a recent com municatinn to you gentlemen, the pro moters .of the Northwestern Electric Company outlined their views and de sires. Among other things tney staieo in vou the following: "'It must be remembered that the franchise the Northwestern i,ieciric is so to speak, our title and a basis upon which we will have to go to the bond-buvine nubile for money. "In other words, it is desiKed to have you loan the credit of the city to con struct a duplicate electric light and power system in Portland. Just where thev expect to make their money might not be clear, but it is assumed that a large stock issue would take care of that feature. If the information which has been given to the under signed from private sources is any cri terion of what these promoters desire to accomplish. It is evident that they hone to bond their proposed improve ments to such an extent that the cost of the physical property will be pro vided for in the bond issue, thus leav ing the stock for exploitation and .profit. This stock issue has been variously suggested as being from I5.0UU.0U0 to $10,000,000. Other t'nmpaniea Promoted. "The information which has been re ceived indicates that some of these promoters have been actively interested in the following companies: "American River Klectric Company, Stockton. Cal. Truckee River General Electric Company. Reno. NfV. "City Electric Company, San Fran cisco. Cal. "The Sacramento Valley Power Com- n:mv. Redding. Cal. "In all these companies the plan of financing, of operating, and finally the sale of the property, was accomplished larirelv through the same meinou. "In the case of the Truckee and San Francisco companies there was some difference, hut it is fair to state, if our information is correct, that the bond issue in each case represented the reproduction value, and the sale of the stock the profit. Morktoa InKtnnre Cited. "For instance, in the case of the American River Electric Company of Stockton. Cal.. bonds were issued to the extent of J612.U00. This, It Is said, was sufficient to construct the plant. It was then placed in active competi tion with the older company, the Stock ton Gas & Electric Company. Two years ago the older concern was sold to Eastern parties, who, a few months later, bought the American River Elec tric Company, thus depriving Stockton of competition. Some of the interests in the American, when the sale was made, were the same as are now in the Northwestern. They owned or con trolled the company. It may be that the majority of the stock was not in the name of any one person, but these same promoters operated as a syndi cate. My informant states: "I may say the competition In Stockton never reached an acute stage. There was a tacit understanding by which each company should maintain the rates fixed.' "The bond Issue of the American River Electric Company was generally regarded as sufficient to cover its re production value. For the stW-'k of the American, it is stated that the owners secured something over $1,000,000. which necessarily would represent the profit, at least in part from selling out to the competing company. "In the sale of the City Electric In San Francisco to the Great Western Power Company my Informant states the following: Another Sale Mentioned. " "The Great Western assumed $1. 750.0UI". or all the outstanding five per cent bonds of the City Electric Com pany, and paid $S0 a share, or $4,000,000 for $5.0011.000 par of stock of the City Klectric. It is also stated that the reproduction value of the City Electric has never been estimated as over 12. 000.000. and nearly all provided for in the bond issue. Therefore, the profit must have been ssveral millions. ""It is not assumed that any partic ular person of this band of promoters held a majority of this stock, but they rnd their friends formed a strong op erating syndicate, which in effect was the same thing.' "Probably tiie most interesting fea ture in connection with the operation of these individuals is observable In their dealings with the Northern Cali fornia Power Company. In speaking of the operations In Northern California our Informant states: " The Sacramento Valley Power Com pany was the instrument used to se cure enormous profits by selling out to the Northern California Power Com pany, a. competitive concern. The cam paign was started by "The" Sacramento Valley Power Company taking over the assets of the Sacramento Valley Power Company. The only difference in the names of the two companies being the word "the." In the new company an agreement, the character of which was jiot spread upon the minutes, was en- There is a reason for rt this sale. :j We must raise 1 $100,000 out of this Steinbach stock. Another Deep Cut in WARNING Young Men's Suits Blacks and" cheviots; single and double - breasted. Stein- &A of bach's price $10 to $22.50. Sizes 30 to 36.' Reduced by us to only. "Young Men's Suits Two-piece; there are only a few of these left; they are a &A QC broken-lot and are priced ridiculously. Must sell them at once for. . r5r-,-' Men's and Young Men's Suits An immense lot; some 1911 models; single and je OC double-breasted sacks. Black, blue and others to $20.00. Reduced to p-J.O-J Young Men's Suits Regular 1912 models; Cracker-jack school and high school OC clothing; these are the regular Steinbach standard. $12.50 and $15.00 now Pu,OJ Young Men's Three-Piece Suits Single and double-breasted. Steinbach 's every- frtj day price ranged from $12.50 to $25.00. The same suits now for P OiJ Young Men's Suits Very fancy suits and all hand-tailored; made especially to dQ a give real service; no better value in America than this; to $20 p Young Men's 1912 Suits College Brand and Garson, Meyer; English and snappy; single-breasted; new fabrics and latest color- d1 1 ?C ings; to $25.00, now for P 1 A.UJ The Above Prices Prevail as Long as Stock Lasts We know that this sale is creating quite a stir among the merchants of the city. They all know, however, that there is a genuine purpose be hind this ale. We do not blame others for attempting to duplicate our . ttt -i i : 1 -J.- n i.1 1, v. prices. W e CLO noi ODjeCX to your Visiting ail Liie rest ux me swics utu; I We do not care what former prices were. 9 lyfjr d& M aa .. wrfitMT - rtjf4 -j .v. wc m -i..r- xi . ' i wmrwm m s ww m-w v. jrzr mm w jpw v- rrr. m i i nil i mr 4 mm m d h i a e a ma b i t mm We are actuated by one purpose only. That is to get the cash. That's the ., -'.'l reason why you get advantage of the prices we are quoting. BETTER BUY NOW city before buying, providing you will include this store in your rounds. Once you see what we are doing with high grade merchandise, for. which Steinbach was famous, .we believe you will buy your clothes here. Jmk $2.00 Shirts reduced to $1.05 $2.50 to $3.50 Shirts, now. $1.65 $3, $4 and $5 Derby Hats, brown. .95 10 dozen Brooks Hats, broken lots. 85 $2 to $2.50 English Cloth Hats. $1.35 $2 to $7 Silkand Wash Vests. . . .65 $1 Pongee Shirts, extra collar 65 $2 3Iadras Shirts, extra collar . $1.05 $3 Flannel Shirts, extra collar. $1.35 $4 Sweater Coats, l't and h'vy. .$2.15 $6.50 Ramir Und'wr, linen, gar.. $1.85 $5 Rattan Suit-cases, bound. . . .$2.85 $2.50 Matting Suit-cases $1.35 $1.50 Ladies' Waists 65 $2.00 Ladies' Waists. . .. . . ... . . .85 To $3 Ladies' Waists .$1.35 To $5 Ladies' Waists. $2.30 To $5 Steamer Trunks . ... . . . . $1.95 $75 Wardrobe Trunks.., $37.50 To $30 Trunks. .$12.65 Boys' Knickerbockers to $9 Y2 Caps, odd lots, to $2 45 All Bangkoks and Panamas Y2 Straw Hats, broken lots, to $3. . .45 Top-Coats, silk lined, to $20. . . .$5.85 Higher grade of same to $35. . $9.35 $4 to $5 Men's Extra Trousers $3.15 $5.50 to $6.50 Extra Trousers. .$3.85 $7 to $8 Men's Extra Trousers. .$4.85 $8.50 to $10 Extra Trousers $6.85 To $2.50 Young Men's Trousers .. 85 To $3.50 Young Men's Trousers $1.15 To $5.00 Young Men's Trousers $2.35 All 75c Eour-in-IIands. 30 All $1.50 Silk Neckwear 65 To $3.50 Knit Ties, B. & P.... $1.15 To $2.50 Perrin and Adler Gloves 65 Silk Hats, Youman's, to $9 $5.95 All Straw Hats to $5. ... ,;. ...85 All 50c and 75c Silk Hose .....25 FOURTH AND MORRISON , V. il WWO W -v if JT FOURTH AND MORRISON LION CLOTHING CO., SUCCESSOR . j -ith the interests in control. At a subsequent meeting- of the board of directors a. new prw'" " elected. Competition immediately be- .1...1.U Ami .I-., violent came more mimrai". --- nd destructive, rrom tnm. u" " . 1. vA.th.rn c:aurornia ruwer pany purchased the Sacramento Valley r.,.. rnmnanv. Over one-third or th hares of "The" Sacramento Val ley Power Company were in the name of one of these promoters a.t tho time of the purchase. As to the statement that they also owned shares in the Northern California Power Company, a perusal of the index of the sharehold ers' records, either at the present time or at the time of the sale, does not disclose any stock in tfceir name or that of their associates, nor was the owners-hip of any stock evidenced by the attitude of any inainauu might be representing- them. Bonded Indebtednea Aiinme i. The sale of The' Sacramento Val ley Power Company in the midst of a competitive war resulted in tne iortn ?rn California Power company assum ng the entire bonded indebtedness of 1,000.000. which, by the way, is saia to be the renroduction value of the property, and paying in addition $867, 000 for the stock. In this' latter sum is to be found the profit. "The citation of these circumstances are merely given to show that our In formation indicates that these gentle men first secure a franchise, and then bond it for the cost of the plant. A competitive war Is then started, and ends when they dispose of their stock at a profit In this particular method much harm Is done a community from the consequent consolidation, for the consolidated plant must provide the in terest charge upon the duplication, even to the extent of the sale of the stock. l'rom their long letter to you, I quote: " 'It is said that we have sold out other companies in California in com petitive lines. This Is not true, as we have never been in stock control of any company that has sold out "It is needless to state that this Is a subterfuge, for they, their relatives and friends did control. "The position of the company that I represent oii the pending matter is not based upon the unusual method of operation 'indulged in by these promo ters, but upon a broader principle. We have said frequently that we favor, reasonable regulation. It is the only sound modern doctrine for the conduct of a public utility. It la in the hope of public regulation that we base the theory that, to duplicate our present plant Is a mere waste of money and a burden upon the consumer. Regard less of what these promoters may say, the position of the California Public Utility Commission is, that regulation is preferable to unrestrained competi tlon. The sale of the company owned and controlled by these promoters to the Northern California Power Com pany resulted In an application of the consolidated concern to the Commission for permission to raise the rates. This was granted, and in rendering their de clslon, they stated: DecUlon Is Given. " 'It is urged that the latter company (the Sacramento Valley Power, Com pany) was incorporated merely as a speculative enterprise for the purpose of later selling out to the petitioner and that in carrying on Its business it had little, if. any, regard for the econ omies and profits of the legitimate business which it was supposed to be engaged in. There is some ground for such a conclusion. "The above indicates that the Com mission of California does not- look with favor upon the methods utilized by these promoters. Further on in this report they say: 'As to competition within cities, we would earnestly call attention to city authorities of the dan ger. This Commission has already an nounced that it will not hereafter countenance wars in competitive terri tory under its Jurisdiction and the wis dom of that conclusion is borne out by the facts in the case.' "There must be strong reasons, when the Public Utility Commissions of New York, Massachusetts, New Jersey, Wis consin, Ohio, Kansas and California. will rule against the duplication of public utility plants of the same char acter and rendering the same service In the same community. Their reason ing, as applied to Portland, would mean that to duplicate existing conditions woald produce a yearly Interest charge of half a million dollars, coming solely from the duplication. In other words, Portland would have to pay a half million dollars more for its electric light in consequence of this increased investment. It does not matter what this theory eventually leads up to, the one thing which all citizens are inter ested in, is the cost of electric service, and no amount of figuring or sophistry can change the situation, that interest upon all investments will have to be paid by the public. Short Time Yet Remains "Only 90 days remain before the peo ple will vote upon the new Public Utility Act. There may be some differ, ences of opinion as to the merits of this law. I have at no time been entirely satisfied with it, believing as I do that it is too severe upon the public utility companies. "For Instance, it provides that when the Commission fixes the rate for elec tric llghtservlce, it Is prima facie lawful, and goes Into effect upon the signing of the order; that if the public utility concern is dissatisfied it can seek redress in the courts, but the or der remains In effect until a decision is reached upon the case. This means' that, if an Injustice is done the com pany by the order, it will have to stand and bear it until the courts find other wise. Regardless of this, we believe in a regulative act. "For in this regulation comes secur ity to the investor in public utility companies and a formation of a forum for the company and its customers to adjudicate their differences. It will bring the two together in a closer and more friendly relation. With this in sight, it would appear that the wise and most sensible thing to do would be to wait until the people have voted upon this matter. The Commission once in effect, can investigate the ap plication before the Council and deter mine upon its merits. It can find out the method of organization adopted by these promoters, and can determine whether it will become a burden before the expiration of the franchise. "Very respectfully submitted, "B. S. JOSSELYN, "President Portland Railway, Light & Power Co. Estacada line, at 1:30 next Saturday afternoon. Professor Gardner, of the Agricultural College, and A. Dunn, as sistant in the poultry department at the college, will speak and give prac tical demonstrations on orchard and poultry work. Those who intend to take advantage of this work, which will be given free, should communicate with R. M. Stan- dish, secretary of the Estacada Com mercial Club, so that conveyances may be procured to- accommodate everyone. It will be necessary to leave Portland not later than 10:45 A. M. to be at the demonstration orchard on time. Bahal Assembly to Meet. The Bahai Assembly will meet to night in room 608, Eilers building. Dr. Davidson Buchanan will speak on "Science and Religion From the Bahal Standpoint." A general invitation has been extended to the public by the assembly. Attend Rosenthal's great shoe sale. Suit sale at Jimmy Dunn's. ORCHARDISTS MAY LEARN Demonstrations Will Be Given at Garfield Experiment Station. Demonstrations in general orchard practice will be given at the Oregon Agricultural College experimental or chards .sear Garfield station, on the THE DEAF CAN HEAR $20 FOR A 35.00 ELECTROPHONE 30 DAYS ONLY THOUSANDS SOLD at price of 35.00 Only a limited number to be sold at the price of 20.00. If you -have de ferred purchasing on account of price, SOW Is your opportunity to buy for 20.00. Call or write STOLZ ELECTROPHONE COMPASf V, 230 Lumbermen Bldgr', Portland, Or. For Impure or Change of Water Diarrhoea, cramps, cholera morbus, typhoid and all the other hot weather complaints, are ofttimes a direct result of impure drinking water, and, unfortunately, the supply usually de teriorates greatly towards the end of Summer, when the reservoirs run low. Also, water free from contamination may stilt be injurious to persons not accustomed to the peculiar mineral matter held In solution different from the water usually drank. Consequently it behooves every one to be very careful, especially at this time of the year, when so much water is used. Keep the system in such good condition that no germs will be able to obtain a foothold by the regu lar use of Duffy's Pure Malt Whiskey It tones and strengthens the system and keeps all the organs healthy and active and able to resist disease. It relieves dyspepsia and biliousness, aids digestion, brings restful sleep, stimulates the blood, Invigorates the brain and assists in freeing the entire system from the dread germs of malaria and low fevers. The best for all emergencies. UK SI RK TOr RKT TU FFY'S Sol, by druggist, grocer and denier In SEALED BOTTLES OXLY, price Ht.OO a large bottle, tiet the Kenulne and be sure the ral over the eork 1 unbroken. If you can't procure It, let um know and we will tell you how. Write for free doctor' advice and booklet of recipe for table aad alck room. The Duffy Malt Whiskey Co, Rochester, X. Y. WJ P T U W sesiey,.s?ermatic s&ieu Tras SprmiUo 8M1d M Co yop"BRUiiBro4mt Seeley's Spermatic Shield Truss, as fitted to the Czar' of Russia and now used and approved by the United States Government. will not only retain any case of rupture perfectly, affording immediate relief, but also closes the opening in ten days on the average case. If you can't come, send for descriptive literature. j LAUE-DAVIS DkUG CO. THIRD AND YAMHILL, PORTLAND, OR. Truss Experts and Exclusive Agents for Seeley's Spermatic Shield Trust, 109.2