The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1914-10-20
MANY MILLION i.
DOLLARS LOST
IN OPERATION OF CHICAGO,
ROCK ISLAND AND PACI-
FIC RAILWAY.
DISCLOSURE. MADE
At Hearing of Interstate Com
mercc Commissions Inves.
cation.
DISCLOSURE. MADE
(Dy Associated Pres3.)

Wy ftooOSldlCO tGbS.J
WASHINGTON. Oct. 1G.-An appnr-
cnt loss Of s7.500,000 in one bond
transaction, losses indefinite in amout
but aggrcgating many niiilios in the
acquisition of the Frisco Lines and the
Chicago Il Alton road and n loss CT
S75G.000 on the stock and bonds of
the Deering Coal Company, were dis
closed today at the hearing of the In
terstate Commerce Commissions in
vestigatiOn of the financial operations
OF the Chicago, Rock Island d Pacific
Railroad. Only two witnesses were ex-
amined.
Frederick C. Sherwood, an cxamin-
er OF accounts for the commission.
gave in detail the results of his invcs-
tigation OF the BOOKS Of the system
consisting Of the operating company
and the two holding companies.
MIR. Sherwood testified as to the SAL
aries received by various officers. AS
chairman of the board, r. II. Cable re-
ceived annually from $4,000 to S32,-
900; w. B. Leeds, as president, receiy-
Ell also $4,000 for a time and later
$32, 900 year. B. l.. Winchell, as third
vice president. was paid $4,000 year
and as president $4,000; B. +. Yoak-
um, as chairman of the board, was
paid $4,000 year, and L. F. Loree
received $4,000.
voucher for $4,000, the proceeds
OF which were paid to Robert Mather,
counsel for the railway company, was
offered in evidence.
The index shows that the amount.
was paid for campaign purposes, said
the witness, but ] was unable to find
the correspondence file respecting the
matter. The file had disappeared"
Two other vouchers for $4,000 each
formation was obtainalJle as to the use
to which that money had been put.
Sherwood said. , RI
Describing the acquisition OF the st.
Louis. Kansas City & Colorado road by
the ROCK Island in 1902, S,,arood said.
David K. Francis, and John Sculiion. OF
st. Louis gave $2.0O0.00G in Rock Is
land stock for $1,000, 900 in st. Louis.
kansas City bonds and that the Rock
island also assumed an Indebtedness
or $4b0O.O00 from the absorbed road.
THE average cost OF that line to the
Rock Island. he added, - was $751;
9SS n MILE"
"That OF course. includes ST. Louis
Terminal facilities and trackage over
the Wabash?" suggested counsel for
the Rock Island.
"Of course. said Sharood.
+. L. Hinc. president OF the First
National Bank OF New York, a direc-
tor In oil three Rock Island compan-
ie9, was the only other witness. He
said he became director Of The Rock
Island Railway in 1909 on Invitation Of,
t:::s.. :.ee-s. eng; admitted; ina:
the vote that stood in his name ac-
sually was the property OF 6 Judge
Moore. + So, q = i
Mr.. Hins said he heartily approved
OF the sale of the Frisco stock to b.
+. foakum and his associates, al
though the transactions. entaiIed a.
ooh5idetupic loss. he explained the
transaction by which q loan of 81. .50O.-
600 was obtained by the Rock island
OF New Jersey through the First Nat
ional Bank OF New York, the HANK
participating to the extent of 81. .250.,
zee. Gee = :, =. yN'., 'e'>'.-'s
I'VE received" said the witness.
our pro rata share OF the S135. .060
paid for the loan. Our, hank could not
legally have made the entire loan of
$500. .O0O." 81: 8. 4, 4 :. s.
The only source of income OF the
two holding companies was tile Rock
Island Operating Company, the Wit
ness said. which !, had exchanged
through It's stoohholders about S7l,-
100000 OF stock for nearly I'VE times
that amount In securities or the hoiiIa
Ing companies. Stockholders owning
about $4,000 900 Rock rslEnd ,opcrat-
Ing stock refused ,S exchange 81 Is ts:s
IN hat confederation as a director.
did oug give those minority stock
holdt rs ~ impaired C0rnmisaf0nc Clea
ments ?: q s.; 5;
II never looked at the. matter from
tho viewpoint OF the minority stock
holders.''Sreplied Mr. tItne, ss;I regard
ed It from the standpoint OF ,96s per-
cent OF the stool :, s. q IS Is. 81,
Was the tra6sac lon trfmenfA to-.
or promotiva of the Interests OF lhei
DefeetIvet Teeth Cause DeaLrusiioIi 81
! 4 B0ST0N5 e Oct3 16 Defactiya teeth
cn,isn nnnre ilestrnction to tho aysteinI,
thnn alcohol. according to speakers
Of tho convention OF the Nprt theastefn
Dental Asscciat Hon tod ay.S DR. All