Albuquerque morning journal., 1913-11-19
TESTIFIES
AS TO FRISCO
MANAGEMENT
Former President Of Big Rail-
road System Taxes Stand
in Hearing Before Interstate
Commerce Commission,

asr -os~'~s assss.. ref1.as lEssto -lsFi
ST. Louis NaE fk-Ihe alleged
lparrnershiu ~ cF.as ol the s.
Inls q saa Francisco Railroad BOZ
1ndicates uromotlle small railroads
E fEat latter uers sold f1 THE Frisco was
.r4urfl into at ihr hearing before
iutsrsfatc r1mmfra C1mmissllr
F Chairman CLARK here today as the
causes of TIE present neceivership q
Che lne
Beniam r Toakum chairman of
. fhe Frisco BEARD ~ directors. when
lhe road went into reesneuhip was
the only witness of the day
The syndicate that built var.nus
subsidiary lines was promoted by the
81 Louis un.an TRUST company, and
IH answer q many questions ST..
Toakum referred bic Hterrogators fo
the records of the trust company.
Among the subsidiary unes concern
ing which question were asked were
b. st Louis 4 Okl h8ma city. the
nefa & Northern the S. Louis
0khhoma q Southern. and the 81
Louis 4 GuiC AZ to the iberia 4
Northern syndicate. Mr Yoakum
testified be transferred bis interest In
that road to fhe Frisco for what t
cost him plus per cent Interest
u. r. Brown. examiner for the
Interstate commerce commission, said
the records showed $4,000 paid 20
Yoakum Mr Yoaflm replied that
Il that were true. lt represented no
profit over fhe par cent interest on
several other roads. SIR. Yoakum
could not remember the profit He
said be- had an interest in the ST.
Louis q Gulf but did not remember
whether his profit Eas f5s,00o. as
Mr. Brown said the record indicated.
This record. as cited ~ Brown. show
"a that Yoakum invested $4,000 and
received $4,000.
other syndicate concerning which
Mr Brown questioned Mr Yoakum
following the records were the Okla
hama city & Western ou which. ae-
eurding % the records, "a syndicate
had made s8f9.000 on an investment
of 32.087. .090 and the Arkansas VAL
ley q Western. in which "a Frisco Of
nelal without 8 voice IN thc acquisi-
tion of new lines" made $4,000 on %
sfls.DOO Investment IL was stated
chat nny-one men were in the first
syndicate ard .Nty-one in che second.
on the ST. Louis oklahoma q south
ern. according 90 the record quoted
is Brown. the promoters made {7tg,-
060
Air Yoakum gave his reasons for
the receivers. which may De sum
married ns follows
0nc-The ailure " the road 10 sell
Arizona and New Mexico lands for
$4,000 900 Or eT000.ooo. By this
deal the Frisco hoped 60 set enough
money to meet pressing obligations.
Mr Yoaum testified that James
Campbell. Of So Louis. a director Of
the Frisco and head of the North
American company. insisted on the
land as collateral for loan which tine
North American company had made
to the Frisco. At the time the de-
mand for the additional collateral was
made. Mr. Yoakum said. the loan had
been reduced to 100000.
Mr.. Yoakum was asked why il was
necessary for the North American 20
call for a "few additional millions
collateral" when the loan had been
reduced % 100000.
"WcH. ] don't know why AIT
campbell called for them" he replied
sunless ID was 60 get an the collateral
The could
Two-rhe loss sustained by the
FRISCO On an investment in Texas and
Louisiana pine lumber properties.
Three-A loss Of more than $780,
600 each year on the ownership oi
the Chicago & Eastern Illinois. Ihh
ownership extended over eleven years
The two roads have been severed
under the receivershlp. Before tn
receivcrshlp the Frisco failed IN az
effort 10 eelI a half interest In tn
road
E MR.. Yoakum explained the lumbe
: deal al length. By this deal the frisc'
& acquired q large interest In the KID.
, Lumber company of Texas
e Mr. Yoakum said.
"Thcse we're the days Of combine
and mergers. The Santa re and othe
+ roads had carried out such deals sue
eessfullv. ii was important 70 ge
. control Of the last big patch Of pm
. timber I'm the United states 1t We
i part Of big plan to make the Missis
i appi valley the highway Of srea
= traffic 10 the gulf other railroad
had their eyes ON the same oppofttn
i itv. Several things combined TO pre-
d vent our success. Il we had met spe
: Icoss. the recovership never Woai
have been necessary"
& Just before the hearing was ciosee
air fuakuu asked the indulgence z
the commissicu while he narrated ~
ndrenm of empire" He told Of plan
FOR water level railroad from 81
Louis to Tie Panama canal which. b
i said had failed Of matcrializatio
). only because Of the Mexican refolu
q uon
e He stated he had documents {
show that the Mexican government
e through senior Llmantour forme
s secretary Of finance, had lent It's ae
q live co-opetauon TO the proje
L Trains carrying tonnage create
( than anv 81 the steamships lcavin
Kew orleans could move easily an
swiftly 10 the canal zone on the pro
r posed road. he said 4 this line ha
{ been built ana operated undisiurhec
j ne said the prosperity 30 the Frisc
= ..oriH Hata haDn tfmeuaf4lfn1 Th