Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1914-01-26

Washington Jan. 2g--Financiai
operations. not ordinary railroad iif.
hcultios were the cause of the ro-
ceiVership of the ST. Louis and San
Francisco railroad system, according
TO tho Interstate commerce commits
sion's investigation reported today at
tho direction OF the senate.
Although the report says the atata
resolution does not call for expires.
sion of opinion or recommendations.
" does declare. referring 20 the sale
Just before the recsiverahip Of 2R.-
600. .00O 0t ave per cent bonds. french
series, at ~ To- Speyer assd company
of New York. that the anle OF secur-
tiles tO the investing public through
bankers at a time when every appear
ance Indicated tho insolvency OF the
issuing company invited ana war;
rants the condemnation of an who
assisted or participated In each sale.
"sneyer and company should have
oeen aware ~ the poverty of this
frirco and of its difficulties IN oblaln.
Ing funds"
The insolvency Of the Frisco. tho
report says may be attributed TO var-
ious causes among, them.
"Disproportionate capitalization.
''rhe acquisition Of new lines.
The financing by the Frisco of the
New Orleans Texas ana Mexico rail.
road and other south Texas lines.
The desire for an entrance into
Chicago. H., resulting in the as
sumption OF heavy fixed charges In the
acquisition of the Chicago and East
ern Illinois.
The sale Of iis securities al prices
so low rs 10 Indicate deplorabB
weakened credit or an extravaRant
arrangement with bankers 10 whom
large profits accrued In the purchase
Of the bonds and tho subsequent sale
of the same TO the public.
miscellaneous causes among
which are the payment Of dividends
on its preferred stock In spite OF lie
weakened credit and need of money.
Poor investments and expensive
rentals, among which are the invest
ment In the New Orleans Terminal
company. stock In the Kirby Lumber
company and rentals paid the CFaw-
ford Mining company"
IT appears" aays the report.
Through statements secured from the
s. Louis Union Trust company, man
aHev for Fyndica,es that financed tho
construction of n number Of propeF-
ties which were subsequently sold 20
the Frisco. and which statements
were In part supported BY the testi-
mony of witnesses that a number Of
lines acquired by the Frisco were pur-
chased by that company al prices
which afforded large profits TO the
syndicate subscribers aud trust COM
panies
Among the subscribers 20 these
syndicatos were VARIOUS officials OF tho
Frisco, including n. 4. Yoakum.
chairman OF the hoard OF directors. ~
wcll ns officers Of the 81. Louis Union
Trust company"
Description Of other syndicate Oper-
ntions with respect 10 financing the
construction of a number % lines and
the sale of such properties 20 the
frisco system ana the profits OF sub
scubors and trust companies was
given in the report as follows
Oklahoma city and Western.
amount paid Ia s2,0e7.0ta.9si pFoat.
t360,2TaSe.
81. Louis and san Ffancisoo ana
New orleans amount paid In, 2S,.
M"Nf'NNt NNWNAr HnNNtHHNs
81, Louis and Gulf amount paid an.
&2.TO0,oOO; profit si,2A5,s96.5e.
81 Louis and Oklahoma City,
amount paid In, Sl,0O0.OOO; proht.
f556,150.
ST. Louis. Oklahoma and Southern.
ta,f2s,ts2tO; pfont t7is,STt.s0.
Adyins Valley and Western, tS.0eG.-
G3i; profit. sss9.T6Io2.
New iberia and Northern. amount
paid IN t2,00o, 600; proht, $500. O00.
ST. Louis, Brownsville and Mexico.
fa.aSi 600; profit. t3,0ii.s2s.95.
Colorado Southern, New Orleans
and Pacific, amount paid In. $4,000.
600; profit t8T5.000.
Total amount paid IN t26,Sts,-
liioSprohts. ss.fit,196.bl.'
For financing the construction og
me st Louis. san Francisco and New
Orleans with ts.s00Oo0 paid in.
Nnthaniai Thaycr. a. G. Pierce. Blair
and company. James CampbeiI W K