Norwich bulletin., 1914-10-17
Disclosures in
 Rock Island Case
APPARENT LOSS OF s7,5oo,ooo IN
 ONE BOND TRANSACTION.
HIGH SALARIES PAID
Index Shows s25,ooo Was Paid for Campaign Purposes, but the File Had Disappeared.

Washington. Oct. 16.-An apparent loss of S7,500,000 in one bond trans action; losses, indefinite in amount, but aggregating many millions, in the acquisition of the Frisco lines and the Chicago and Alton road, and a loss of SI56,000 on the stock and bonds or the Deering Coal company were disclosed today at the hearing of the interstate commerce commissions investigation of the financial operations of the Chi cago, Rock Island and Pacific railway. Only two witnesses were examined.
 Frederick c. Sharood, an examiner for the commission, gave in detail the results of his investigation of the books of the system, consisting of the oper- ating company and the two holding companies.
 "Some" Salaries.
 MT. Sharood testified as to the sal- aries received by various officers. As chairman of the board, R. R. Cable re- ceived annually varying from S24,OO0 to $32, ,000; w. B. Leeds. as president, received also s24,000< for a time. and later S32,000 year. B. l.. Winchen, as third vice president. was paid s25,- 900 a year and as president 4O,OO0. B. F, Yoakum, as chairman of the board, was paid $30,000 a year. and l.. F. Loree received $37,5OO.
 Campaign Contribution.
 A voucher for $25.OO0 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 I was unable to find the correspondence file respecting the matter. The file had disappeared"
 Two other vouchers for $1O,000 each also were offered in evidence No in- formation was obtainable as to the use fn xxyI1i ha had haPn mt Sharood said.
 Acquisition of St. L., K. C. & c.
 Describing the acquisition of the St. Louis, Kansas City and Colorado road by the Rock Island in 1902, Sharood said David R. Francis and John Scullin of St. Louis gave S2,000,000 in, Rock Island stock for sS.030s000 in St. Louis, Kansas City bonds. and that the Rock Island also assumed an indebtedness of $4, BOO, 900 from the absorbed road Cost s57,ess Mile. "The average cost of that line to the Rock Island" he added. was s57,9sS a mile."
 That, of course, includes St. Louis terminal facilities and trackage faciE- ties over the Wabash?" suggested counsel for the Rock Island. "Of course" said Sharood: F. L. Hine. president of the First National bank of New York, a director in all three Rock Island companies, was the only other witness. He said he became a director of the Rock Isl- and railway in 1902 on invitation of William H. Moore and admitted that the stock which stood in his name actually was the property of Judge Moore.
 MT. Hine said he heartily approved of the sale of the Frisco stock to B. F. Yoakum and his associates. al- though the transaction entailed con- siderable loss. He explained the transaction by which a loan of sT,500.- 900 was obtained by the Rock Island of New Jersey through the First Ma | tional bank of New York, the bank | participating to the extent of $1,250,- | 900.