The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-10-17
D. G, REID PULLED
Continued from Page One.)

edness incurred by its interested hold
ing company, he said:
surely the commission has not
overlooked it, if we are charging un-
reasonable rates"
Benjamin ]. Yoakum was the next
witness.
What was your dream of consolida-
ton. when you bought the Chicago and
Alton for the Rock Island?" asked
Counsellor Folk. II was not a prin-
cipal party to that dream" replied
Mr.. YOakum. Il merely acted With
| others in gathering in the stock"
Explains Purchase.
Folk questioned the witness as to
the purchase and Yoakum said that
the Missouri division of the Rock
Island. which ran from Chicago to St.
Louis and Kansas City. was weak
physically, that the route was longer
than that of the Santa Fe and other
competing systems, and that the d.
vision was in poor physical shape
for the operation of fast and heavy
trains. He said it would have boosted
the price of Alton stock had President
Reid of the Rock Island given a
single order for the control of the
stock. So Reid, Yoakum, Leeds, Judge
Moore and others gave widely scat
tered small orders to many brokers
to buy up the control in small lots.
Did the fact that Z. H. Hartman.
the owner of the Alton, was in
Europe then, have anything to do with
the purchaser" asked Folk.
We'll, it was propitious time"
answered the witness.
Did you take advantage Of Harri-
mans absence to buy the road?"
Il would not say that 1t happened
that Hartman was in Europe; it hap
pened that the Rock Island wanted the
Alton, and it happened that We bought
it."
Reid on Board.
Folk developed the point that Lea.
Yoakum, Moore, Reid and other gov
erning directors all were serving on
the Rock Island. Frisco and Alton as
we'll as the subsidiary company boards
simultaneously.
The inquiry then turned on the pur-
chase of the Frisco. Yoakum said he
sold the road to the Rock Island In
1903 at 120 and bought II back In 1909
at 37k. Folk asked him why he
bought back the road. II believed in
it, said Yoakum, land l still believe
in it,
Folk asked the witness If the con-
nection of the Frisco with the Rock
Island was successful. Yoakum was
doubtful At least. he said. the Rock
Island was glad to sell it back to him
and he negotiated the resale with
Daniel G. Reid.
To do this Yoakum said he went
among the st. Louis men who were
interested in the Frisco road and in
duced them to agree to buy blocks Of
stock. He himself bought $1.500,O0O
of stock. and on an agreed date all
called for their stock. protected their
money and took their stock.
Did you get the actual stock when
You bet" said Yoakum
Folk asked him if he had known it
was necessary for the Rock Island
Railroad company to get the Rock
Island Railway company to obtain
from the First National Bank of New
York a loan of $500, 900 before the
resale could be completed. Yoakum
said that was none of his business
Counsel Walker for the Rock Island
brought from Mr.. Yoakum the state
ment that the Rock Island and Frisco.
Leeds, Reid and Yoakum to combine
other carriers from disputed terri
Tory. Yoakum said that after his
resignation from the Rock Island
directorate he had left the room in
which the board was meeting before
he matter of the s7,5O0,OO0 loan was
discussed.