The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1914-01-27
InciaI Operations, Not the
binary Railroad Difficult
q, Says Interstate Com
merce Commission.
MADE
IMMENSE PROFITS
cials of Company Con-
for Allowing In
vesting Public to Be
Fleeced.

AgHINGTON, Jan 26.-Fipancial
If1ons which included the acqui-
OF lines through syndicates which
! LA TO the extent Of moro than
y o.o00, some Of which was pocketed
ho roads own officers, are cited as
e the underlying causes for the
. xency of the st. Louis & San
cisco Railroad company in a re-
!, 10 the senate today by the inter
commerce commission on the
I b lines receivership.
i Recommendations are made by the
1iksiou, Z. E. Clark, chairman,
nR in a letter to the president
they were not called for In the
,ntion adopted by the senate last
nef directing the investigation,
u report shows that the funded
Of the railroad, May %, 1913,
The receivership was ordered,
1nted to 1858 per cent Of the total
~ liability, the total capital at
time amounting to $295,63 1892,
>hich only $5l, l,364,lo0 was capital
end S244, 269, ,s33.72 was funded
including equipment trust notes.
Y Showing Made.
.at the bearing liabilities
p Frisco system exceeded the stock
;tty by 375 per cent, and were
~ disproportionate when COM
a with the capitalization of other
rhrs, including those in the term
NEST of the Mississippi river, is
led by the commission, which sub
figures for eight selected railroads
Ing the average ratio OF funded
10 capital liability to be $3.50 per
q report declares that the inability
p TlSED 1c IllGcl o'''S"N'NAiS
lN to have been apparent for some
prior TO the application by its Of
: for a receivership; that strenuous
were made by its officers to tide
n financial difficulties from day 10
That money was borrowed from all
lole sources until every avenue oil
rance was exhausted, marketable Sc
y Xs being either sold or pledged as
;S<ral under numerous loans. and that
->[hstanding this exhausted financial
y IIon the Frisco sold through Speyer
. Of New York, So. 900 OF It's gen.
!, Nen per cent bonds, a transaction
9 1sInpat ton.
% mary of Causes.
= slmarized, the commission report
ls,Ntes the Insolvency of the Frisco
following causes:
. 1sproportionatc capitalization
tdpe acquisition OF new lines.
b ne financing by the Frisco OF the
"a Orleans. Texas 81 Mexican rail-
u tAund other South Texas lines.
i 5Ntled Information is given of the
Non of the syndicate formed TO
- The construction OF number OF
~ Ind the sale OF such properties 10
n Ilsco, aud Il summary of these op-
fpB, In which y. f. Yoakum and
DIofficcrs Of the Frisco participated.
4 ~ as follows:
N &nomn City q Western, amount
Il S2,oo7 ,O45.95; profits. sSe9.2I6,s2-
4 -cnis, San Francisco & New Or
Is mount paid IN, $500, 900; profits.
- sample Deal.
~ louis & Gulf. amount paid i'm, ST.
tH ~ profits. si.6s5, 1862.
LOUIS Oklahoma city, amount
% R,r Sl,ooQ.ooO, 900; profits, s55S. $50.
- Louis, Oklahoma & Southern.
g paid In. S,42s, 1910; profits,
- ps Valley e. Western, amount paid
y 1850; profits, $3.50, 1872.
. Iberia & Northern, amount paid
~ no: profits, $500 600
LOUIS Brownsville &. Mexico,
= paid IN. SS,9Sl.oo profits. S3,-
rir usao Southern. New Orleans &. Pa
er mount paid In. $4,000. 900; profits.
~ 49, 444. 1851,
S nous Profits.
: ~ announcements through a syndicat te
~ OF the st. Louis. Brownsville
,clco Railway company, the report
profit OF 1866 per
.etW tnc subscription OF each syDdi-
~ 2emper. The syndicate was com
IA .ninety mine members, who con-
~ Ss.sso, 1920 toward the constrnc-
IN .ne ranroad, and the report Hdds
00di erect OF the entire trsnsa ctIon
n 4t the syndicate secured q profit
IN 10, which included tho profits
y INC cash donations and syndicate
r..Qriginal Brownsville lno. 1at ,,,,os
T<ttn, WAS turned over for operation
IA ~, i'pf. and extended to santon
April, 1905. In 1909, the repori
.si a -o'nllhttec OF five was organized,
q o|kContinued n on Page Twot