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The day book. [volume] (Chicago, Ill.) 1911-1917, July 09, 1915, NOON EDITION, Image 4

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Persistent link: https://chroniclingamerica.loc.gov/lccn/sn83045487/1915-07-09/ed-1/seq-4/

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FORGAN, CHARLEY DAWES AND JIM MEAGHER
DRAGGED INTO THE TELEPHONE MESS
nel company to build up the number
of subscribers to the automatic phone
system till the company would have
20,000 subscribers, "in accordance
Points from argument of Stephen
A. Foster, special counsel for gas-oil
committee, before committee last
night;
What property will the city get in
the event of a forfeiture? 1 reply
that: The city will get the plant and
equipment of the company for tele
phone purposes.
The American Telephone & Tele
graph Co. (the Bell interests) own 95
per cent of the stock of the Chicago
Telephone Co. When they propose
to sell out the automatic system for
$6,300,000 to the Chicago Telephone
Co. it should be understood the sale is
actually to be made to the national
telephone trust.
The city has the right under ordi
nances granted Illinois Telephone &
Telegraph Co., Feb. 20, 1899, to now
pass an ordinance declaring a for
feiture of the rights of that company
and of the plant and equipment.
The total tunnel and telephone
properties of the Chicago Tunnel
company are rated at $30,000,000
and it is proposed to forfeit the tele
phone plant property alone which is
rated at $6,000,000.
Dave Forgan and Charlie Dawes,
two of our biggest bankers, were
dragged into the automatic phone
case yesterday as witnesses in favor
of forfeiture. Jim Meagher, one of
our best corporation lawyers and a
pal of Roger Sullivan, was dragged in
as a witness in favor of forfeiture.
Stephen A. Foster nearly took the
breath away from the three corpora
tion lawyers who had talked nearly
all day to the gas-oil committee when
he read from a petition filed by For
gan and Dawes, receivers for the Illi
nois Tunnel Co. before U. S. Judge
Kohlsaat, March 16. 1910. They asked
the court to let them raise $3,500,
000 through receivers' certificates.
And they wanted this $3,500,000 for
the use of Joseph Harris of the tun- 1
with the provisions of the ordinance."
Time after time, over and over
again, in one clause after another
Dave Forgan and Charlie Dawes ad
mitted that unless the company had
20,000 subscribers it was not living
up to the franchise ordinance grant
ed by the city and would be liable to
forfeiture.
Standing back of -his petition and
saying it's good law and will stand in
any court was the law firm of Sears,
Meagher & Whitney.
"This throws a clear light on what
some good business men thought of
the forfeiture clause of the ordinance
at that time," said Foster. "It is the
clearest possible admission. Do you
think the receivers would for a mo
ment consent to the squandering of
$3,500,000 unless they had a good
reason? It is not probable. David
R. Forgan and Charles G. Dawes are
not that kind of busines men."
o o
TODAY'S ODDEST STORY
Lorain, O., July 9. Milk direct from
the cow to the kitchen, with all the
lost motions eliminated, is. the chief
feature of a dairy operated here by
Julius Binder. With the permission
of the city board of health, Binder
drives a Jersey cow about the city,
milking her at the door of his cus
tomers, according to their needs.
Bender was required by the city to
wear a white suit, put a bell on his
cow, and to keep his dairy at all times
in a sanitary condition.
- oo '
RUSS BORROWS BIG MONEY j
Bucharest, July 9. Roumanian
government has contracted through
National bank a new loan of $20,
000,000 at 3 per cent, payable in two
years. No explanation of use to which
funds are to be put made public.

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