Albuquerque morning journal., 1915-02-27
WAS PLEDGED A
HUGE BONUS, Mr..
L0REE DECLARES
Chairman Of C. R. 1. e. *
ecuiiye Committee Tells In
terSiate Commerce Com
mission AbOgt Old Regime,

81 4cHsiss srgsssL srarisl trsftr slsEs
Washington. Feb 2s.--I. r. Loree,
chairman of the executive committee
+ Il the Chicago. Rock Island and Pa
ciflc Railroad company and II the
+ Frisco system for ten months IN 1894.
testified before the Interstate Com
1 mffce commission a. 20 the investiEa-
ton n she financial affairs of the
Rock Island during the regime 81 the
Eeid-Lee1s- Moore group IN control Of
( the railroad from 1891 To 1919
MT Lpree said ne had been guar
anteed s5N0.na hy MT Leeds when
he left the presidency of the Ralti-
more and Ohio % take the new posi-
ilon. This was In addition 20 the an
nual salary of $4,000 he received
from the Rock Island and a similar
sum from the Frisco. At the end Of
ten months Mr. Reid asked him TO
resign, ghe witness said. saving that
the directors faced the Necessity Of
sustaining his actions and losing the
services Of several other officials. or
~ parting with his services Mr. Lo-
rec said be resigned on the spot and
In settlement on his agreement with
Mr. Leeds received &4so.000 IN Rock
Island railway bonds.
Asked what explanation Mr. Reid
had made Of his request, the witness
replied:
= don't know what was in Mr.
Reds mind. ! did not discuss II with
him. ! then and there resigned and
arranged terms with him You can
put IL on the ground Of self-respect.
J wouldn't want 20 remain in any en-
ploy Il my services were no longer
acceptable TO my employer
Mr. Loree insisted that he had had
no friction with any officer Of the
company and knew Of no proposed
policy Of the Reid group with which
he would not have been In sympathy
X. A. Jackson. general counsel for
the Rock Island from 1899 10 1910.
also told the commission he had been
asked 20 resign by Mr. Reid and had
no knowledge Of why. While he had
no agreement. he said he had received
100000 for past services and all
matters and things between himself
and various Rock Island companies
on his withdrawal
Mr. Reid has assured him. Mr.
Jackson said. II was not because OF
any failure in his official duties his
resignation was asked.
Didn't you ask for any further in
formation asked Chief Counsel
Folk for the commission.
= did not"
Didn't you think It strange that
Mr.. Reid. your lifelong friend should
ask you to resign S50,ee0 position?'
Folk asked.
Il did not speculate on that and
am not tying awake nights worrying
over the mystery" the witness said.
You assure Us under oath that you
have told the entire matter here?"
interyected Commissioner Clements.
Certainly / have"
You were not called upon to do
any act you didn't think ought to be
done 4"
Mr. Reid never asked me 10 do
anything / did not think was right,
was the answer.
r. J. Moore, a Philadelphia banker,
not related, it was explained, to W. H.
Moore Of the group controlling the
Rock Island. said he had attended a
stockholders meeting Of the Rock Is
land operating company in 1914 with
five shares Of stock TO present a res
oluti0n for institution OF a suit for
the recovery Of 81, 500, 600 against the
directors A representative of the
Central Trust company Of New York,
he said, had voted the majority Of the
stock and forced an adjournment Of
the meeting before the resolution
could be presented. second meet
ing went the same way. The trust
company representative. he said, had
stated that his proxy limited him TO
voting on adjournment only.
G. II. Warren, assistan; to President
Leeds Of the Rock Island during
10000. said he had left the company
because Mr. Leeds had not devoted
sufficient attention TO questions re-
lating to management of the road and
left him "up IN the air.
Il left he said, because the sit
uation became unpleasant and unsat
isfactory"
The witness explained that he had
been induced TO go to the Rock Is
land from the Central Railway Of New
Jersey by Mr.. Leeds on an agreement
that he should receive stock worth
minimum of s150,000 at the end OF
two years When he left the com
pany, he said, he was given 5000
in cash and stock in the New Jersey
holding company Of a face value Of
100000 in accordance with the
aHf
Earlier in the day Daniel @. Reid
was on the stand and testified that
the first intimation of the present in
vestigation had reached him from
David Lamar The message brought
him, he said was that a speech was
about to be made in congress on the
subject. Counsel then introduced the
resolution drawn BY Representative
Green Of Iowa, which precipitated the
inquiry.
Representative Green testified he
did not know David Lamar, and had
discussed the resolution with no one.
II was offered. he said, entirely upon
his own motion and personal knowl-
edge Of the condition Of the tracks
of the Rock Island in Iowa after the
holding company had obtained con-
trol of the system. The lines and
equipment had steadily deteriorated
under that management. he asserted. !
STRIKERS ARE ORDERED