Valdez daily prospector., 1914-03-16
MONDAY, MARCH 16, 1914.
LOOPING THE FRISCO.

ency. The difficulties of the 'Fris- CO.," says the Interstate Commerce Commission, in reporting to the Un- ited States Senate the results of Its recent investigation, "were of finan- cial and not of an operating charac- ter"
 This railroad was doing good bus mess. It traverses the rich and de- veloping great Southwest. In the fif- teen years between 1897 and 1913, the gross earnings per mile of road operated increased from $5, 157 to $8,- 3O6. The net earnings per mile in creased during the same period from $2,159 to $2,633. Yet in these fifteen years a surplus of $331 ,065.94 that was available for dividends was changed into the huge deficit of $1,069, ,915. .6O. In these fiften years, the interest on funded debt had increased from $l,- 994,488 to the enormous sum of $10,- 684,78855 Reports the Commission: An increase in traffic and operat- ing revenues had been secured, but the benefits thereof had been absorb. ed by increased interest charges
 High finance did it. A horde of railroad magnates, bankers, promot- CTS and their inside" friends, swoop- ed down upon the treasury of the un- fortunate Frisco and turned it's mon ed into speculative enterprises, plac- ing millions upon millions into their own pockets in the proceeding
 They organized syndicates to build small lines of frailroad which were later "unloaded" upon the Frisco at an excessive cost There was taken from the treasury of the Frisco, in this way, the pretty sum of approx imately $62,00o,000. For putting it over, these railroad officials, specula- tive bankers and promoters Gnclud- ing Chairman B. F. Yoakum of the Frisco board of fdirectors himself, and other directors and employees of this company, took out as their private and personal profits the huge total of $8,444, ,79651.
 They strapped onto the back of the staggering Frisco the stock of the Chicago & Eastern Illinois railroad. This resulted in net loss to the Frisco of $1.71o,38s.
 They proceeded to acquire control of the South Texas Lines" which the '. Interstate Commerce Commission says was "a disastrous move for the Frisco" It meant loss to the Frisco of over $S,OOO,OOO.
 They gave financial assistance to the North Texas Lines" by permit ting them to retain freight traffic bal ances due the Frisco Since the Com mission reports that there is but lit tie promise that the Frisco can col lect these amounts" it appears that there is another dead loss to the Frisco of over $2,00O,000.
 They invested" $1,248,750 of 'Fris- co money in the Kirby Lumber com pany-another loss to the Frisco of about $50o,00o.
 They stuck" the Frisco with a contract with the Crawford County Mining Company. under which the railroad was required to pay the min ing company certain rental for the mere privilege of placing cars at the mines and taking them away! Anoth- CT loss to the poor Frisco of more than $125,000. (Note: the Inter- state Commerce Commission reports that 'it is understood that the entire capital stock of the mining company is owned by the Chicago, Rock Island x Pacific Railway.D
 They charged up to the Frisco $180,000 per year as an Investment" in the New Orleans Terminal Com pany; yet the Frisco uses no termi- nals in New Orleans and gets no ben eft from that investment"
 They paid dividends on Frisco se- curities when there was no money in the Frisco treasury available for divi- dends. This they did to fool the pub lie into thinking the Frisco was in a prosperous condition. They wanted to keep the way clear to pass off still further security issues upon the un- c,,cnocfinp investors
 They charged up to the Frisco, in the form of discount on bonds and