Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-11-19
BEGIN PROBING Of
THE FRISCO affairs
hOAkIM TELLS or FINANCINI
MATTERS RETORI INTER-
SIhTE COMMISSION.
PROMOTE SMALL RAILROADS
Oflicial of Frisco Promoted small
Branch Roads aud Then sold
the Frisco at "A Profit.

ST LOUIS, Mo, Nov. IS The At.
legged partnership Of officials OF tho
St Louis q san Francisco railroad In
syndicatcs promoted small railroads
which later were sold 10 the Frisco.
was inquired into at the hearing bo.
fore Interstate Commerce Comma.
sioner Clark here today as to he
causes OF the present reccNership OF
: line Benjamin IT, loakum.
Sirmau Of the Frisco board Of dl-
tors when tho road went into ro-
,crship, was the only witness. d.
Brown was examiner for the COM
ssion
: he syndicatcs that built various
j, sidlaD lines were promoted by
St Louis Union Trust company
In answer to many questions Mr..
= kum referred his iuterrogators to
records Of the trust company.
, mous the subsidiary lines con-
-llng which questions were asked
were the St Louis ~ Oklahoma city.
the Iberia ~ Northern. the st. Louis.
oklahoma ~ southern. and the st.
Louis a Gulr As To the Iberia X
Northern syndicate, Mr Youkum tes-
tined ne transferred his interest in
that road to the Frisco for what it
cost him, plus six per cent interest.
Profit Of S3S,OOO
Mr. Brown said that the record
showed $2l2,0O0 was paid to Mr..
ioakum, who replied that II that
pt.nrAlttftf.. f..I
six per cent interest ON several
other roads MI Yoakum could not
remember the proht He said ne had
an interest In the St Louis Il Gulr
but did not remember whether his
prott was $4,000. as Mr.. Brown
said the record indicated This &C.
ord AS cited by Brown showed that
loakum Invested $4,000 and recelv-
ed $4,000.
other syndicates concerning Which
Brown questioned the witness were
the oklahoma city N Western. On
which, according TO the records, tho
syndicate had made 1888. 900 on an
Investment of $2,279,O0O and the
Arkansas valley q Western, in which
"a Frisco official without a voice ia
the acquisition Of new lnes' made
$4,000 on an Investment Of S1l8.O0O.
It was stated that 81 men were In
the first syndicate and 81 In the sec
ond
on the St Louis, oklahoma Il
southern. according 10 the record
quoted by Brown. the promoters
made $4,000.
Reasons for ReCriNcrship.
Mr.. Yoakum gave his reasons for
the receiyership as follows:
"One-The failure Of the road TO
sell Arizona and New Mexico lands
for S6,0O0,00O or sIOOOOO0 BY this
deal the Frisco hoped to get enough
money 10 meet pressing obligations.
Mr.. foakum testified that James
Campbell ~ 81 Louis. director Of
the Frisco, and head Of the North
American company, insisted on tho
land as collateral for a loan which
the North American company had
made TO the Frisco At le time the
demand for the additional collateral
was made. Mr. Yoakum Ia the loan
had been reduced TO 100000
Two The loss sustained by tho
Frisco ON an investment in Texas and
Louisiana pine lumber property.
Thrce-A loss OF more than $780,
600 on the ownership Of the Chicago
q Eastern Illinois This ownership
extended over II years. The two
roads have been severed under the
recelvership Before the reclvershlp
the Frisco failed In an effort to sell
a half interest in the road
Mr. Noakum explained the lumber
deal at length By this deal the
Frisco acquired large interest in
the Kirby Lumber company Of Texas.
he said Those were the days ~
combines and mergers. The Santa
Fe and other roads had carried out
such deals SUCCESSFULLY 1t was i'm
portant 10 get control Of the last big
patch OF pine timber in the United
states II was part OF a big plan to
make the Mississippi valley the high
way OF great traffic TO the Gulf.
other railroads had their eyes on tho
same opportunity Several things
combined to prevent our success. II
We had met SUCCESS the receivcrship
never would have been necessary"