Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-11-20
Dream of Empire of Chief
Executive Brings on
Receiyership.
TAKE DOUBLE PROFITS
Manager for Buying-Selling
Officials Reveals TranSaC-
tionS at Hearing.

ST. Louis. Mo, Nov. 2O.-The story
OF how the ST. Louis * san Francisco
railroad was driven into the hands
OF receivers by a dream OF empire"
of its chief executive. the purchasing
OF feeder" lines from syndicates OF
which the St. Louis K san Francisco
officers were at the same time buyers
and sellers and general extravaganza
az the expense = stockholder. was
resumed this morning when the inter
state commerce commission opened its
third day OF the hearing OF the causes
Of the receivership. Examiner Brown
said he hoped TO end the hearing and
the two months investigation today.
Double syndicate profits, in which B.
= Yoakum shared. we're disclosed yes
terday at the interstate commerce
boards hearing on the cafes Of the re-
ceivership of the St Louis & San Fran
cisco railroad. Besides. the names OF $
". FELTON,. Chicago. David r Francis
and others were mentioned in the list
Of profit sharing syndicate members
VINO promoted and sold small lines TO
the Frisco.
s7.e3aooo IN Profits.
Altogether il was shown that 81
S3S 900 in profits was reaped by men,
bers Of such syndicates and that the I
syndicates were composed in the main 4
OF officers OF the Frisco. who appeared 4
as both buyers and sellers IN the /
1deaH
A. T. Perkins. syndicate manager,
IL
that citizens and towns OF Texas do
mated land to help build the St. Louis,
Mexico and Brownsville railroad. He /
named Mr.. Yoakum, Samuel W. For
dyce OF ST Louis. Robert 5. Brook
ings. president OF the trustees of
Washington university: Thomas II.
West. chairman Of directors OF the St.
Louis Union Trust company and now
one OF the Frisco receivers. and Ed
ward Whitaker. broker. as members OF
a syndicate that made 100000 through
the sale of that land
Part of the proceeds OF the sale was
used in making improvements in the
territory traversed by the road.
Afterward the improvements were
decided to the West Texas Abstract
and Guaranty company. which the
syndicate acquired.
After showing what became of the
land given TO help the Brownsville
road. Mr.. Perkins testified that an
other syndicate. composed of ninety
nine persons. sold the little railway
itself to the Frisco system at a total
profit OF S3.OOO.O 900. each subscriber
realizing about 20 per cent profit on
his original investment
Among the men IN this syndicate.
Mr.. Perkins said. were Messrs. FELTON,
and Francis r. c. Simmons OF St.
Louis and the St Louis Union Trust
company.
NJ. Perkins said the Frisco paid for .
the Brownsville line SI2.445.OOO. This
covered also a half interest in a bridge :
across the Rio Grande.
Treasurer Testifies.
Frank n. Hamilton. treasurer OF the ,
Frisco. testified that the Frisco bor-
roWed $4,000. 900 on short time notes in .
1911. $4,000. 900 in 1912 and SIOSOO.OO
in 1913. In April. 1913. the road sold
Speyer & Co. OF New York $4,000 900 +,
general lien bonds These bonds were :
sold by Speyer Co. TO French invest :
ors-
Mr.. Hamilton also testified that o. =
j. Nance. treasurer OF the ST. Louis, :
Mexico and Brownsville railroad. then r
a subsidiary OF the Frisco. telegraphed :
him that the Brownsville road could I,
borrow from q bank in KinEsville.
Texas. II he could be assured that the
Of the Frisco would tip
1ff Nance - hours before any receiv- :,
orship proceedings were instituted \
against the Brownsville
Charles ". HiIlard. for ten years !,
vice president OF the Frisco and since
S'7 vice president OF the Chicago and =,
Eastern Illinois. was questioned re
-1-cilc the Gulf Construction com
pay. OF which Mr.. Hillard was presi-
dent This concern vas one OF the
5y1dicatcs that built or bought lines
.-a- istar were sold 10 the Frisco
The construction company. accord
lE 90 -aEi-c- Brown. vas incorpo- A
----d g. 1895 20 build the Colorado
'cutEc--1. New Orleans and Pacific.
f'r- u-' 'scW Orleans line of the
SEQ 90. Eil-ard admitted large
-ai been made b. the Colo
- ----7--. S-E Orleans and Pa
.J l-c construction company. but Il
l9-VGt sic Gro3t vas moderate L
'---- iE-.c-e- Glars asked MT Hill Z
.e~ 0-c- ciai statements OF the q
30 s~5=..tcd II Speyer J;
b. ------ ~---5 Sclt CO; IN order o