Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-09-20
Commerce Go m mission
Goes Into Roads FL
nanciaI Status.
PUTS SOME POsERS
Shown Graft Cost as Much
as Increase in Wages
Double Dividends, Too.

Chicago, Sept. 20.-Controller Blau-
velt of the Illinois Central again was
the target of questions relating to al
legged manipulation of stocks and bonds
of his company when the interstate
commerce commission resumed the
rate hearing today. The questions
came from attorneys representing var
1ous shippers organizations. The at.
tack OF the shippers was made on the
company's statement of capitalization,
dividends and bond interest.
Questions Reports.
Attorney Lust, representing the
Illinois Manufacturers association
sought to show discrepancies between
the roads reports to the interstate
commerce commission and those to the
Illinois grain and warehouse commits
sion.
From Another Angle.
Attorney Lyon Of the interstate COM
merce commission questioned the cor
rectness OF several items given by
Blauvelt OF the cash expenditures by
the Illinois Central by which the wit
ness in part seeks to show a disprO-
oor;ionate drain Of revenues and the
justice Of the proposed advance in
freight rates. Attorney Lyons inter
rogations brought out a mention of the
car repair graft" for which three for
mer officials Of the road are now on
trial in the municipal court.
Accounts for Increase.
The lawyer referred TO a statement |
that during the fiscal year 1910, $4,000 /
cars of the total of $4,000 were "re- /.
paired" and the discovery of the al /
legged swindle would probably take care |
OF the normal increase in wages in |
the present fiscal year.
do you expect the cost of car re-
pairs to be less this year?" was asked !
I'VE certainly do. by about S1,O00.0O0 |
or $1.600,0Oo." replied the witness. |
THAT is about the excess we paid last |
year by reason OF deferred mainte- |
nance and-er-er-other reasons" he |
added alluding to the alleged graft" |
and smiling grimly.
Not More Than IL Reasonable.
Commissioner Clements asked the
witness (Blauvelt): do understand
you to say that q railroad should be
dllO"6u W CldI &c uOEO lAdu q I6dSOI-
able rate in order to secure surplus?"
"Oh, no, not more than a reasonable
rate"
'If the Dubuque & Sioux City road,
although a subsidiary line OF yours
should have a rate controversy" the
commissioner resumed, 'it would claim
the right to earn per cent dividend,
wouldn't it?"
YES" admitted Blauvelt.
Points to Duplication.
"And you say the Illinois Central
owns about $11, 500, 900 Of the S12,000,-
600 stock of the Dubuque & Sioux City.
having paid, well, say about sS,0oo,OOO
of its own stock for it?''
"Yes"
'"Then, do you maintain the Illinois
Central should earn per cent of the {
$S,000,000 of it's stock and also per !
cent on it's Dubuque & Sioux City I
stock?" s
mot at all; there should be no du-
plication," replied the witness. t
William L. Park, vice president and 6
general manager of the Illinois Cen 1
trail, was the next witness. He testi- +
fed as to increased expenses. ]
Mann at the Hearing.
Congressman James R. Mann, chair
man of the house committee on inter
state and foreign commerce, heard
most of the morning testimony. He
had charge of the rate bill in the house
at the last session Of congress, and
took a number of notes on the near1ns
today. He heard, incidentally, legisla-
tion sharply criticized by Vice Presi-
dent Park, because it imposed new
burdens upon the railroads in the way
OF safety devices upon the investment
in which, he said, the company would
get no financial returns. s
Defines "Fair'' Rate.
The commissioners listened with in .
terest to Parks definition Of proper I
freight rate" which vas: "a proper
freight rate is one that is fair return
in proportion to the service rendered."
which, he said, should be without re-
gard to how large a dividend the COM
pany earned thereby
Used subterfuge. d
Chicago, Sept. 20.-AIleged stock in e
fation and manipulation, designed to A
turn over to the stockholders large C
sums of money without putting in the b
company's record any evidence of more ri
than passing fair dividends, was the n
subject which was delved into yester- d