The sun., 1915-02-28
ROCK ISLANDS HEAD
SAYS ROAD Is GOOD
President Nudge Also Declares
Bonuses Paid to Retiring
Officials Not Excessive.
sPEYER REBrKES FOLK LOSES IN HOUSE TEST

WASHINGTON. Feb. 27.--James Spever.
Ogden Mills and Henry L. Nudge Of
New York appeared to-day before the
Interstate Commerce Commission IN the
inquiry into the financial and physical
operations of the Chicago. Rock isand
and Pacific Railroad Company.
Mr. Nudge. president OF the road.
testified that the Rock Island is in better
physical condition now than it ever has
been.
Mr. Mills. director of the Rock
Island. characterized the acquisition Of
the Frisco lines as "a rcgrettable mis-
take"
Mr.. Spcyer told OF the relations Of
Speyer n Co. with the Rock Island and
took occasion 10 say that bankers do not
make the big profits out of railway Sc
curities imagined by the public.
with the close OF the hearing to-day
the commission concluded its investiga-
ton of the Rock Island. The testimony
will be considered and a report will be-
made in the near future
MIR Mills did not appear to know
very much about the operation Of the
Rock Island and admitted that the pres
ent inquiry furnished him information
as to the roads AFFAIRS.
Mr.. MudSc's Testimony.
President Nudge said that the road
was being kept up well and would COM
pare favorably with other roads SINH
larry situated. lie maintained that re-
duction OF rates, increased rates of
wages. full crew laws and increased ex
penses due to legislation had more to do
with the failure OF the system to pay
dividends than any thing else. He ex-
plained that he was speaking of con-
ditions in 1914.
Joseph w. Folk, counsel for the com
mission. asked the witness If he knew
of the large sums of money and blocks
of stock given to officials of the road on
their retirement. The witness replied in
the affirmative.
Mr.. Nudge did not consider that
bonuses like $3.50, 600 to l.. r. Loree. for
mer president; 100000 to r. A. Jack
son, former general solicitor. 5000. 900
to Charles W. Warren, former vice.
president, and about 100000 to II. II.
Gable, former president and many others
were excessive.
Il do not think that any railroad on
cial gets any more out OF II railroad than
he is entitled to- said Mr.. Nudge
Mr. Mills testified that he had been a
director of the railway company since
paid TO Messrs. Lore. Jackson, Warren
and Gable.
"Then you. AZ n director OF the Rock
Island, have learned more through this
Investigation than ever before" asked
Counsel Folk.
81 have rs to certain things" re-
piled Mr.. Mills.
MIR. Mills said that he had made
no personal investigation of the acquisi-
tion of the control OF the Frisco lines
The Rock Island, II is charged. lost
between SlO,O0O,000 ana sll.0O0. 900 in
this deal. He said he was not present
when the Chicago and Alton acou!si-
tion matter came up. In this deal
the company lost about $4,000, 900, ac-
cording TO the evidence.
Mr.. Spcyer's Statement.
Mr.. Speyer then. at his own request.
made a statement He said that he
wished to say that Speyer 4 Co. have
not been the fiscal agents of the Rock
Island in the sense that Tat term
is used. Mr.. Speyer declared that
under the law he could not he COM
PEELED to tell what profits HIS Arm made
out OF their dealings in Rock Island
securities, but, he said. that nevcithe-
less he would volunteer to tell
He testified tina. from 1904 TO 1872
the total amount dealt IL. by his firm
was @li',fNt,N'' III ubU'ls ana notes,
and the total prufts ana commissions
were sl,43S,7i0, or about A-lO. Of |
per cent. on the. total Mr. Spcyer
said that the firm sustained losses in
some Of the securities. and he added
Il am not going to Disclose them, be-
cause my friends might think ! was not
good banker"
Mr.. Speyer protested against the
transactions Of Speyer & Co being
brought into the Investigation. He said
that In the case Of the Rock Island
securities he dealt with Robert Mather
and ID. q. Reid
Mr.. Speyer read Counsel .Polk's ques-
ton. put yesterday 10 MIR. Reid, asking
IL Mr.. Speyer had not advised Mr.. Reid
TO buy certain Rock Island securities
ard then had unloaded his, Speyer's
on Mr.. Reid.
81 think that question II insulting
said Mr. Speyer, glaring angrily al
Folk The banker added that II hs
had done such a thing II would have
been dishonorahle
George +. Johnson. president of the
Virginia and Carolina Railroad, testi.
fied that he recently examined the Rock
Island roadbeds and shops, on behalf
of kountZe Bros. of New York. and he
expressed the opinion that as n general
proposition the Rock Island line is !r
good shape and 1t is AS good to trave
On as other roads similarly equipped.