The Streetcar Combine That Built North Seattle

One of the largest business deals ever consummated in this city was concluded yesterday by the transfer of a controlling interest in the Consolidated Street Railway Company to D. T. Denny and his sons, John B. Denny and D. Thomas Denny. These gentlemen constitute the Rainier Power Railway Company, which owns and operates the Third Street electric railway, and the object of the purchase is to consolidate the two systems, this being the first step in the direction of consolidating all the street railway lines leading to the north part of the city.

Several months ago representatives of the Thomson-Houston Electric Company, of Boston, came to this city and tried to secure the controlling interest in all the street railways of the city if they could be consolidated. Owing to the price put by each company upon its property no satisfactory arrangements could be made and the idea was abandoned for the time being. Owing to the construction of new lines in all directions the operation of all of them became comparatively unprofitable, and in seeking to improve their business they began to intrude upon each other's territory, and a ruinous street railway war became imminent. A new board of directors for the consolidated company was chosen a few weeks ago and H. T. Blunck, a leading capitalist of Davenport, Iowa, and one of the largest stockholders in the company, was elected president. He at once set to work to improve the company's lines and get them in shape to maintain a serious competition. The Rainier Power Railway Company, having just completed its main line to Ravenna Park, was also preparing to build branch lines into the territory of the consolidated company. By the deal now consummated this species of warfare will cease and only such branch lines built as will connect the two systems and facilitate transfers from one to the other.

The negotiations for the consolidation have been pending for several months. The Consolidated stockholders who disposed of their interests entirely are H. T. Blunck and L. H. Griffith, who owned a controlling interest. Besides these gentlemen options were secured upon the interests of other stockholders, and the deal practically amounts to a sale of the system, as in addition to the stock a transfer is made of all the outstanding bonds. The terms of the sale are private. After the two systems are consolidated, necessary branch lines built, the roadbeds and rolling stock put in first-class condition and the service generally improved a new issue of bonds will be made and placed on the market, arrangements for which have been made with Boston capitalists. Before this is done, however, a further consolidation may be effected with the Front Street cable and West Street electric roads, the leading spirits of which have assisted to bring about the present deal.

John B. Denny, speaking of the matter last night, said:

"The systems consolidated now embrace over thirty miles of track, and new branches will be extended in various directions. The roadbeds will be ballasted and lined up and brought into first-class shape, as will also the rolling stock. The public service will be improved in every way possible. The schedule running time will be so arranged that cars on the parallel lines will alternate with one another, practically amounting to an increase of cars, and as fast as they are needed new rolling stock will be added. A system of transfers will also be arranged for the convenience of the public. The dominating idea of this enterprise is to effect economy in operation without impairing the public service, and this economy will be attained directly in three ways: First, by a practically free supply of fuel, as the power for both systems will be generated at our lumber mill on Lake Union, and there is sufficient refuse fuel there to generate power for two or three more systems; second, by this central location of the power station, which enables us to distribute power to all parts of the system most economically; third, by the fact that the only expense of obtaining pure water for the boilers is that of pumping it from the lake. Of the branch lines which will be built in the near future the consolidated company has a franchise for one from Fremont to Ballard; the Rainier company has a franchise for a cross-town line near Lake Union, extending from Albert on Republican to Temperance Street, and allowing passengers to cross between North Seattle and the Lake Union district without being obliged to come down town to Pike Street. We also have a franchise for a line from Fremont to Latona along the north shore of Lake Union. Then the Cedar Street line will be extended down Fifth Street to a connection with the Lake Union lines at Pike Street."

D. T. Denny, the principal purchaser of the consolidated system, is one of the earliest pioneers of Seattle, having come here nearly forty-two years ago. He is one of the largest real estate owners in the city, and pays more taxes in this city and county than perhaps any other individual. He owned at one time nearly all of what is now North Seattle, and the entire eastern frontage along Lake Union to Lake Washington. He has always had great faith in the future of this city, and as most of his property lies in the region through which the electric roads run, it is to be inferred that they will be operated to the best advantage of residents in that section of the city. He was one of the original incorporators in 1875 of the Seattle horse railway, which ran on Second Street to North Gentile, at which time there was scarcely a house north of Bell's Hotel. Besides subscribing to the stock of this company, he contributed a large subsidy toward building the line. In 1887, when electric cars were first used, the West Street, Lake Union and Park Transit Company was incorporated for the purpose of building a line on West Street via Cedar to Lake Union and thence to Fremont. The Seattle Electric Railway succeeded to these two companies in November, 1889, after which Messrs. Blunck and Griffith purchased a large interest from the Seattle stockholders. Mr. Denny served as a director in the new company for five years and was for a long time its vice president. In 1890 the Seattle Consolidated Railway Company was organized and acquired the property of the Seattle Electric Railway, the franchises of L. H. Griffith and other extensions then in course of construction, which now passes into the hands of Mr. Denny and his sons.

John B. Denny, who successfully conducted the negotiations for the consolidation, is a member of the law firm of Lichtenberg, Shepard, Lyon & Denny. He has made a special study of the law relating to street railways and electric companies, and has represented most of the other companies besides his own before the city council.

D. Thomas Denny, the superintendent of the Third Street line, is an expert electrician and street railway manager, and will, no doubt, be the general superintendent of both systems.