Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-02-26
Head of Rock Island Con-
troll Declares ''Watered"
Stocks No Burden.
PUTS BLAME ON
NEW CONDITIONS
Organization Of Two Holding Com
panies and increase Of capitalization
to $3.50. .ooo,0 900 Declared to Be Un-
harmful to RaiIroad-Rate Fixing
and Increased Taxation Harmful
Conditions Complained Of.

Washington. Feb. 26.--Daniei &c
Reid, head of the group which took
control of the Rock Island railroad
system In 1891. declared today at the
interstate commerce commissions in
vestigation. that organization of the
two holding companies pu, no addi-
tionaI burden on the Chicago, Rock Is
land & Pacific Company.
Mr.. Reid's examination was cDnclud-
ed and his assertion that holding com
panies with a total capitalization of
s350,000, 900 had no: added to the
burden of the operation concern, came
during his cross examination. which
was very brief
During his direct examination, Mr..
Reid asserted that conditions had so
! changed in the railroad world Of re-
cent years that he would not now ac-
cept as a sift control of any western
or southwestern railroad.
"When you cut the earning powers
of railroads by fixing rates and every
| thing goes up in the way of taXes. CON
| ditions are worse" he said. Il am not
complaining of the wages we must pay
but of what we get 20 pay wages with
OntCIaIS Earned Salaries.
! do you complain of high salaries
! Of officials? ?" asked Mr.. Folk.
| '"There was not a man there who
| was getting more than he earned" said
| Mr. Reid.
| Mr.. Reid said the purchase of the
| Frisco lines had cost the Rock Island
! SO 900, 900. and described 1t as a re
gretable mistake
Purchase of the Chicago & Alton. h
would not admit. had cost the com
| pany another s6,000,0o0 SAYING tht
t! Glover Leaf bonds while mot now in
| the market" might work out under the
| recciveIhip.
| The Alton deal had been suggestet
| by William b. Leeds now dead. Mr.
Reid said, as had the holding company
| planned 1t was Leeds also he said
who had let him into his original pur'
chase of more than $4,000, 600 in Rocl
! Island securities.
Reid Was Greatest Loser.
ITO be frank. | was foolish" said Mr.
Reid. He added that he was himsel
the creates: loser in the whole Roci
Island transaction so far as he knew.
When he and his associates took owe
the lire, he said they found II to "b'
a streak of rust-a joke
Mr.. Folk called attention to th'
| SIS 900, 600 surplus the road then had
That's all it had" replied Mr. Reid
1T had surplus but no railroad
On cross examination he said Davit
Lamar had sought to reach him by tel
! ephone in 1914, but he refused to hav'
! anything to do with him. Later h
| heard Lamar wanted to tell him {
! speech would be made in conGres.
| against the Rock Island. The speech
! of Representative Green, of Iowa, wa:
| then put into evidence, in the congress
sional record, calling for the investiga
ton. Green sat with Mr.. Folk durins
| the hearing.
w. w. Stevenson, former controller
of the Rock Island. but who left tn,
company nine years ago, was also ex
amined today. He could throw no ligh
| on the alleged s25.oo0 campaign contri-
| button discovered by the commission:
experts and his recollections general,
as to items on the books were vague. :.