Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1899-05-24
STIRS UP SENSATION.
President Truesdale Exposes AL.
legged Irregularities on the
lackaWanna.
HIGH OFFICIALS ARE IMPLICATED

Several Million Dollars Said to Have Been
Diverted From Golfers of the Corpora
tIon to Private Pockets-Purchase of tn
st. Louis Short Line by the Alton-An-
nuaI Meeting OF H., C. r. q y.
President W. H. Truesdale. who
went from the Rock Island to the Del
aware. Lackawanna & Western, has
startled the management and stock
holders of the company by exposing
alleged wrong-doing in which the first
and second vice presidents, the gener-
al manager and one of the division SUI
rerintendents, the latter the son of
the former president, are the leading
figures. 1t was disclosed that the
Pocono Ice company which shipped
hundreds of thousands of pounds of
ice to New York City and sold much
below the lowest margin other dealers
could supply it. was composed wholly
of officers of the Lackawanna COM
Tany, and that they were paying only
co cents per ton for transporting it
from Scranton to New York, while
ether shippers were charged 80 cents
FER ton for shipping ice half the dis
lance. When President 1ruesdale dis
the rate advanced on the company's
5 shipment to 80 cents per ton. The
made are said by the
crantonian, one of the local papers,
TO have very seriously compromised
the first and second vice presidents
and the general manager, all of whom,
when exposure was assured, attempt
ed to escape by resigning. President
Truesdale refused to accept the resig-
and it is limited that prose
cutions will be commenced to recover
to the company about So, 600, 600 al
legged to have been diverted from the
he Golfers of the corporation to pri-
vate pockets.
Sale of short Line.
One of the cleverest railroad deals
worked IN years has been consummat-
ed in the forced purchase of the st.
Louis & Northern Short Line. formerly
known as the St. Louis. Peoria ~
Northern, which is building toward
Rock Island, by the Chicago K Alton
That this road was to he taken into
the Alton fold has been published sew
eral times, and as the facts begin TO
come out the magnitude of the Origi-
nal Alton deal becomes greater and
another link is forged in the chain of
systems planned by 4 coterie of east
ern financiers who would form n III il
road trust in the middle west. BY a
deal that was closed Yesterday the
St. Louis Il Northern Short Line be-
comes the property of the syndicate
that bought the Chicago & Alton and
that later was represented in the COM
bination that purchased the Monon.
Just what was paid for the St. Louis
line cannot be- learned, but it is said
that about S13, 900, 600 was involved
in the transaction. ..
b, II. & n. Meeting.
The annual meeting of the Bur-
lington, Cedar Rapids IL Northern
railway was held in Cedar Rapids
and resulted in the election
of the following directors and officers:
Directors for three years, X. X. Gable,
of Rock Island; c. Z. Squires, of Bur-
lington; +. II. Griggs of Davenport;
A. Ktmball, of Davenport; William
Carson, of Burlington; chairman of
board, K. L. Gable; president, G. j.
Ives; vice president. Robert Williams;
treasurer. III. II. HOLSTER, New York; |
secretary and assistant treasurer, S. |
5. Dorwart; general auditor, j. C. |
Broeksmit. The report of President |
Ives showed net earnings of 81, 49,,
S21.31.
j. Ct. Sickles, trainmaster of the |
division of the Rock Island,
mas resigned to enter the employ of
he Lackawanna. w. S. Tinsman, for
nerly trainmaster at Horton. KaS,