Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-09-20
ILLINOIS CENTRAL REPAIR STEAU
BoBS UP IN RATE HEARING
AT CHICAGO.
QUESTIONS INDICATE
EFFORT TO REIMBURSE
Controller Rlauveit, Of Illinois centrakr
Closely Questioned as to Stocks and
Bonds Manipulation in connectioM
With Purchase of Dubuque & Sioud.
City Line in Iowa.
Special to Times Republican.

Special to Times Republican.
Chicago. Sept. 2o.-Con,roner Blauv-a
cit. Of the Illinois Central. again wass
alleged manipulation OF stocks and
bonds OF his company when the inter-s
state commerce commission rcsumetfl
~ rate hearing today The questions
came from attorneys representing var~
ious shippers organizations, The at
tack OF the shippers was made on this
company's statement OF capitalize ton.
dividends and bond interest,
ATTORNEY Lust. representing the Il>
linois manufacturers AsSociationr
sought to show discrepancies bctwcerI'
the roads reports to Interstate CONS
merce commission and those TO tho
Illinois grain and warehouse commis-,
sion Attorney Lyon, of the inter>
state commerce commission. guess
toned tho correctness of several itemG
given by Biuuvct of the cash expend.<
lures hy the Illinois Central. by which
Witness in part seeks TO show q dispro-'
portlonate drain on the revenues and
the Justice OF the proposed advance in
freight rates.
Graft as Factor in Expense.
Attorney Lycns' interrogatIona
brought out mention or the ear repair
graft" for which three former ofticals
OF the road are now on trial IN n mus
nicipal corvt The lawyer referred 10
n statement that during the fiscal year
1910. % 900 cars of total OF 60.o01
were repaired and that tho discov-
ery OF the alleged swindle would prob
ably take care OF the normal increasa
In wages during the present fiscal year.
DO Won expect the cost OF car re-
pairs 10 ne less this year. was asked.
I'VE certainly do. by about s1.o00.0oO
or Sl6o000o" replied the witness.
"'rhat was about the excess we paid
last year by reason of deferred mains
tcnance and -er-cr- other reasons. hS
added abiding to the alleged graft"
and smiling grimly
| Sharp Questioning.
I! Commissioner Clements asked wife
ness Blauvelt:
'po / understand Won 10 say that "
railroad should be allowed 70 charge
more than a reasonable rate In orden
20 secure n surplus
"oh no: not more than reasonable,
rate"
III tho Dubuque e Sioux City road.
altho n subsidiary line OF yours should
have n rate controversy" the commls-
sioucr resumed 1T would claim tho
right to earn per cent dividend.
wouldn't IT,
"Ycs." admitted Blauvelt
And You say tho Illinois Central
owns about s11 500 600 OF the sl2,ooo.-
600 stock OF the Dubuque & Sioux
city. having paid. We VIII say. about
IS 900 900 OF It's own stock for It
Yes"
"Thent do YOU maintain tho Illinois
Central should earn per cent on tho
! SIS 600 900 OF It's stock and also Z per
cent on Is Dubuque & Sioux Ci;y
stock?"
Not at all: there should hc no dup
| ,catlon." replied the witness
| William l.. park vice prcsidcn, and
general manage OF tho Illinois Central.
was the ncxt witness HI, testified az
To increased expenses.
Mann Tavycs Notes.
Congressman James X Mann. chair
man OF the house committee on inter-
state and foreign commerce. hcarl
most of the inopinG testimony. FIo
had charge OF the rate bill in the house
AZ the last session OF congress- and took
a number OF notes on the hearing to-
day lie heard. Incidentally legislation
| sharply criticised by Nice President
Parks because II imposed new burdens
upon the railroads IN tho way OF safety
devices. upon the investment III "hich.
he said. the company would get no
| adequate financial returns.
A New Definition.
The commissioners listened with In
tercst to Parks definition OF proper
freight rate" which was: ~ proper
freight rate Is ono that IS fair return
In proportion to tho service rendered'
which. he said, should be without re-
gard 10 how largo a divided the COM
pauy earned thereby.