The Topeka state journal., 1914-01-26
FRISCO TROUBLE
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vites and warrants the condemnation
such sale. "Speyer Company
should have been aware of the poverty
of the Frisco and Of its difficulties in
obtaining funds "The insolvency Of
the Frisco. the REPORT says, may be at
tributed to various causes. among
them "disproportionate capitalization.
The acquisition of new lines.
''The financing by the Frisco of the
New Orleans. Texas & Mexico rail-
way and other south Texas lines.
The desire for an entrance into
Chicago. Ill. resulting in, the as
the acquisition of the stock of the
Chicago & Eastern Illinois railroad.
RS, -, Sale of Securities.
''The sale of its securities at prices
SO how as to indicate a deplorable
weakened credit or an extravagant ar
rangement with bankers to whom
large profits accrued in the purchase
ofs.th bonds and the subsequent sale
of the same to the public.
Miscellaneous causes, among which
are the payment of dividends upon it's
preferred stock in spite of its weakened
credit and need of money.
Poor investments ana expensive
rentals, among which are the invest
ment in the New Orleans Terminal
company and rentals paid the Craw-
ford Mining company"
1T appears says the report,
through a statement secured from
the st. Louis Union Trust company
manager for syndicates. that financed
the construction of a number of pro-
pertfes, which were subsequently sold
to the Frisco and-which statement was
in part supported by the testimony of
witnesses, that a. number Of lines ac-
Quired by tne Frisco were purchased by
that cOmpal.y at prices which anord
large profits to the syndicate subscrib-
ers and trust companies. Among the
subscribers to these syndicates were
various officials Of the Frisco, including
B. F. Yoakum, chairman of the board
Of directors as well as officers of the
st. Louis Union Trust company
Syndicate Operations.
Descriptions of other syndicate
operations with respect to financing
the construction of q number of lines
Frisco. include names of officials of
the Frisco who were subscribers to
and participated in the profits of the
syndicate. A summary OF various
syndicate operations on properties sold
to the Frisco system and the profits
of subscribers and trust companies
was given in the report as follows:
'Oklahoma City & Western, amount
paid in $2.097.043.95: profits. $780,
27s.s2.
''St Louis, San Francisco & New
Orleans, amount paid in $5,3OO.0OO
profit $837.4OO.
'.St Louis & Gulf amount paid In
$2,7O0.00O; profit $1,385.6S6.52.
''St Louis & Oklahoma City, amount
paid in 100000; profit $556,150.
'sSt Louis, Oklahoma & Southern,
amount paid in. $s,423.4s2.1o: profit
$719.574.9O.
adkins Valley & Western, amount
paid in $3.O46s635: profit 5S9,767.32.
New Iberia & Northern, amount
paid in $2.o00.000; profit 100000.
est. Louis, Brownsville & Mexico,
amount paid in $3.ss1.o0o; profit $s.-
Colorado Southern. New Orleans and
Pacific amount paid in 8 900 900; profit
$375. 600.
Total amount paid in $2e. e.54s, Ill. .o5:
profit $S.444, ,79651.
For financing the construction Of the
leans with S, 800. 900 paid in, Nathaniel
Thayer, H. G. Pierce. Blair & Co.,
James Campbell, W. K Bixby and 9TH
| er subscribers profited $S37. .000.''
b. F. Yoakum, the report says, was
the only official of the Frisco interested
in a syndicate composed of fifty MEM
bers formed April 10, 1902, to purchase
the st. Louis & Gulf railroad with a
subscription Of s. zoe. 900. Yoakum. the
report says. subscribed $4,000 and re-
ceived $113, 1880 as his portion of the
dissolution In addition he obtained an
additional profit of $4,000 through the
purchase Of nine small properties con-
solidated with the st. Louis & Gulf
Syndicate profits for purchase of the
Arkansas Valley & Western amounted
to $5S9, 1872 in which one director and
! five employees Of the Frisco partici-