Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-15
INQUIRY INTO ROCK
ISLANDS FINANCES
STARTS TOMORROW
Railroad Officials Generally
Interested in Government S
Contention That Road
Was Looted of $200,OOO,-
900.

Investigation of the financial history of
the Rock Island Railroad will begin be-
fore Commissioner Clements, of the In
terstate Commerce Commission, in Wash
ington tomorrow. Railroad officials in
this city are very much interested in the
investigation in view of the fact that it
Is reported it will show how the railroad
was looted of more than S2OO,OO0OOO
1t is said that the Investigators have
evidence that the "tin plate syndicate, "
which the Rock Island acquired control
of for about S9OO00.0O0, through manipula-
tton of stocks of holding companies in
much the same manner as the New Ha-
ven. was later sold for $500, 100000.
Edward I. Morgan, one of the account
ants OF the Commission. will be the first
witness called Mr., Morgan, with other
accountants of the Commission, have gone
over the books of the railroad. securing
information for the hearings, which will
be public. The Commission will be rem
resented by Ex-Governor Folk. it's chief
counsel.
OBJECT OF INQUIRY.
The Senate resolution, under which the
investigation will be conducted, called for
the following information:
Ihe tactS and circumstances showing the
nature of the transactions whereby the hold
ing companies known as the Chicago Rock
Island and Pacific Railroad Company and the
ROCK island Company were organized: the ma
ture of the control exercised by said holding
companies over the Chicago, Rock Island and
faclnc Railway Company: the amount of
proht made by the promoters OF said transac-
tions and banks or financial institutions con-
pected Herewith, and the effect of these
transactions upon the financial status OF The
said Chicago, Rock Island and Pacific Railway
Company
The nature of all properties acquired by any
OF the companies named above after the or
ganization Of the said holding companies in
addition to the properties then owned by the
Chicago, Rock Island and Pacific Railway
company; the cost OF the same and II any
portion thereof has since been sold the price
such properties has been 10 the financial BEN
eit OF said company or otherwise. and in gem
eral how the public has been affected thereby.
THE COMPANYs FINANCES.
The amount annually expended by the said
railway company after II came under the con
and maintenance of way and what proportion
the amount SO expended by other railways
similarly situated for the same purpose; the
condition OF the equipment Of the said railway
company and quantity thereof in proportion 10
the needs of the said railway company for
proper service TO the public: also the owner
and way of said company. and whether the
same Is reasonably safe for travel,
The increase in the funded and other inter-
est bearing debt of the said railway company
for each year since It has been controlled by
said holding companies; also the amount Of
net earnings, hxed charges aRl capitalization
per mile for each year during the same period.
What interest, IL any, persons connected
with the promotion OF said holding companies
the properties purchased for the Chicago, Rock
Island and Pacific Railway Company subse-
quent TO the time when control thereof was
acquired By the said holding companies.