The Sentinel=record., 1913-11-20
FRISCO SYNDICATE ALLEGED TO HAVE MADE $7oo0 900 SELL
 ING SUBSIDIARIES.
NINETY IN THE SYNDICATE
Claimed Treasurer of One Line Want ed to Make a Big Loan Just in Ad. vance of the Receivership Provided it Was Tipped oH"

St. Louis. Nov 19.-O IT. Nance treasurer of the St. Louls. Mexico and Brownsville railroad subsidiary Of the St Louis and San Francisco, tele- graphed to the treasurer of the latter road that the Brownsville road could borrow from bank in Kingsville, Texas. if he could be assured that the treasurer of the Frisco would tip off Nance seventy two hours before any recevership proceedings were instituted against the Browns vile railroad
 This evidence was brought out late today at the interstate commerce. commission investigation of the Frisco receivershinp. Frank H. Hamilton treasurer of the Frisco was on the stand and was asked about telegram which Nance was alleged to have sent.
 In the telegram Nance asked per. mission to make an overdraft of $l5.- 900 against a kingsvlle bank. Hamil. ton, in his testimony said he did noe remember whether he gave Nance the advance tip on the receivership proceedings against the Brownsville line, but D. E. Brown, special exami- ner showed from telegrams that Nance borrowed $z50O0 from bank in Kingsville. on June 12. 1913. and repaid it on July | The receivership petition against the Brownsville line was filed three days later.
 The names of five promoters who were members of the syndicate that made S900, ,0V0 out of the sale of land donated by citizens and towns of Texas 10 aid in the building of the Brownsville road were given to Conn missioner Clark today by A. r Per- kins, syndicate manager
 The men were E J. Yoakum. chair- nan of the board of directors of the Frisco; Samuel W. Fordyce, St. Louis 'apitalist; Robert s. Brookings, presl. lent of the board of trustees of Wash ngton University; Thomas H West. chairman of the board of directors of he St. Louis Union Trust Company. md now Frisco receiver, and Ed yard S Whitaker. broker
 Mir Perkins testified the total pro it of the syndicate that sold the road to the Frisco was B 900, 900 eaCh subscriber to the yndicate realizing about 75 percent ,rofit There were % persons in tho yndicate. Among them. according 10 he testimony of Perkins were 5 NJ. 'elton, of Chicago David R. F'rancrs. ,f St. Louis the St Louis Union Trust Company, the Mercantile Trust Jom 9any of St Louis and E. c. Sim mons. of St Louis
 According to the evidence brought out at the hearing yesterday and .Oday the syndicate pprofits made by -he construction of subsidiary lines and their sale to the Frisco now to- rals $7,03S,0 ,000 In many of these, it has been brought out, syn cate offi- cers of the Frisco were interested
 Treasurer Hamilton testified thatt the Frisco borrowed on shorS time notes in 1911 six million dollars, nine million in 1912 and ten millions in 1913 In April 1913, the Foad sold to Speyer and Company of New York $3 GOO 000 general lien bonds. These bonds were sold by Speyer and Com pany to French investors. He said that when the reeeiyership was in- stituted against the Frisco the road had between $2,5O0,000 and $S,00o,o0o of unpaid vouchers for general ex- penses, such as coal, etc
 Treasurer Hamilton testified that regarding the 100000 loan made oy the North American Company 10 the Friseo-tihe loan on which the re ceivership proceedings were based the loan originally was for S625,0oo according to Hamilton, and the origl- nal Security was $S,000,000 of the bonds of the Arizona and New Mexico Land Company After the loan hat been reduced to si00.000 James Camp bell of St Louis, president of the North America Company asked for additional security The road then put up s500O.0O0 of the capital stock and S250000 of the bonds of tue New Orleans and Texas railroad
 -------- O-------------