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LET COUNCIL FIND OUT WHO OWNS THE BONDS
OF THE CHICAGO TUNNEL CO.
BY N. D. COCHRAN
In their brief submitted to the Council Committee of Oil, Gas and
.Electric Light, Schuyler, Ettelson & Weinfeld, attorneys for the Chicago
Telephone Co., said:
"We are here for the purpose of furnishing this committee with any
and all information that may be in the possession of the Chicago Tunnel
Company, or which it may be able to procure for the Committee, and we
are asking at this time only that the ordinance of the Chicago Tunnel
Company be given a full and thorough hearing."
I'm f6r that And I have a suggestion to make to the committee.
First, however, I'll go back to a statement made by Attorney Ralph M.
Shaw for the bondholders. Shaw said:
"The Chicago Tunnel Company has fourteen hundred and, sixty-three
(1,463) bondholders, owning bonds of the par value of 5,025,900. Five (5)
persons hold bonds of the par value of $1,722,000, and fourteen hundred
and fifty-eight (1,458) persons hold bonds of the par value of $3,302,900.
"Under the provisions of the mortgage securing these bonds, if the
automatic telephone system of the Tunnel Company is sold, the proceeds
of the sale will be available for the payment of these bonds. For this rea
son the bondholders have a vital interest in this proceeding and this argu
ment is submitted on their behalf."
My suggestion to the Committee on Oil, Gas and Electric Light is
that it call upon the Chicago Tunnel Company, or its attorneys, Schuyler,
Ettelson & Weinfeld, to make good on their promise to give any informa
tion the Committee wants and GIVE- THE NAMES OF THE FIVE PER
SONS WHO HOLD BONDS OF THE PAR VALUE OF $1,722,000 as well
as the largest holders of bonds among the other 1,458.
As the City can't possibly benefit by Council consenting to the sale of
the Automatic to the Bell phone trust, and the bondholders will benefit to
the tune of over $5,000,000, the people of Chicago would naturally be very
much interested in knowing who is going to get the big end of this
I don't know much about the internal financial workings of the Chi
cago Tunnel Co., but the Investors' Section of The Economist for June 20,
1914, says that the Chicago Utilities Company has acquired all the capital
stock and mortgage notes of the following companies:
Capital Mortgage Notes
Chicago Tunnel Co $100,000 $24,448,331
Chicago Warehouse & Terminal Co 100,000 6,178,144
10. Telephone & Telegraph Co 5,000
The directors of the Chicago Utilities Co. were given as follows: F. S.
Peabody, Spencer Otis, Samuel McRoberts, Irving T. Bush, Robert J. Dun
ham, C. W. Hotchkiss. Robert J. Dunham is vice president of Armour &
Co., and Samuel McRoberts of New York is a director of Armour & Co.
It may be that the Chicago Utilities Co. is an Armour concern, and J. Ogden
Armour may be one of the bondholders who will benefit by this $5,000,
Anyhow, it might be worth the city's while for the Committee to get a
lot of information from Schuyler, Ettelson & Weinfeld before going much
farther with this deals ,