The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-26

terest on the Iowa ~company's bonds.
Al this Juncture adjournment was
taken until tomorrow morning. when
Mr.. Reid will continue his testimony.
Frederick q. Sharood. an accountant
OF the commission. who has rlaue an
extended examination OF the affairs OF
the Rock Island companies. was on the
stand nearly all day and 1t was dur
ing his testimony that 1t developed
that Clarence II. Nenne received $3.50
600 and stock from the Rock Island
Railway.
You were asked about some sum
being paid to Nenner to get rid OF him.
sad Commissioners Clements. Give u
a little more detail"
From the books of the railway COM
pany | have The Information that the
journal entry In April. 1904. records the
acquisition by the railway company of
securities of the zebra X Companies
and that these securities were received
in a settlement with C.. II. Venner,' said
Mr.. Sharood.
Then Mr.. Sharood exhibited a copy
OF the receipt signed by G. II. Nenner
Company n also &. II. Nenner for
$4,000
so the railway company, 70 get rid
OF Mr.. Nenners suit t. prevent this
consolidation or formation OF these two
holdinS companies, paid Nj. Nennc
$25O,000 and in the transaction received
from Mr.. Nenner the worthless stocks
of the Nebraska Central Railway Com
pany and the Nehra ska Construction
Company. which stocks the railway com-
pany carries on its books as assets
worth $500, 0O0?' said Mr.. FOLK.
Yes. SIR replied Mr.. Sharood.
The witness said that he could not
find that these companies had any ian
eible property and the railway wa not
even mentioned In railroad publications.
On CONTAMINATION by Robert ".
Walker. representing the holdins com
panies. II developed that James Hamil-
ton Lewis Was Mr.. Venner's solicitor In
the suit which was filed in Cook county
The money was paid through b. r. Yoa-
kun and Robert Mather.
Many Assets "worthi-ss."
Mr. Sharood covered the financial
transactions OF the Rock Island com
paules from June, 1901. to June, 1914,
ana declared hat many Of the assets
carried 10y the Rock Island Railway on
its books are worthless. lie said the
total assets {, the New jersey COMPANY
carried on it's BOOKS. a~ggregating Sl5O,-
100000. have a book value OF $40 900,
as the only assets behind the New Jer-
sey company asgregate x26. 900.
He testified regarding losses sustained
by the companies In the Consolidated
Indiana Coal Company and in other
directions. In reply to a question from
Mr.. Folk as to what effect the reduction
OF the assets to the actual value would
have on IN" present surplus of the rail
SaS company. MIR Sharood said that
after proper deductions were made. in
stead OF a surplus of about $4,000. 900
there would be - deceit of about
81. 600. OOO.
Mr.. Sharood sand that from 1902 10
1914 the total increase IN indebtedness
including bonds and notes. aggregated
sl1H, 600. 900. about $50. 900, 900 IN value
being secured, The money WAS raised
through the First National sank of New
York, Speyer a Co, william \. Reed q
Co. Whitewell q Co. and Brown Bros,
but Speysr y Co. did most of the bust
ness. getting sl,2So.l9 in commissions
and dealing in about $3.50 0O, 900 OF the
securities.
Mr.. Sharood said that from June. 1901,
20 June. 1914. the total commissions PAID
bankers amounted 20 81 ,6l9.372. and tina,
there was "A discount OF Sl3,.+6,sa7 paid
on the security issues.
Mr.. Sharood also sad that X. A,
Jackson while general counsel OF the
Rock Island Railway was voted by the
board a bonus OF $40. GOO for ~organizina
the Consolidated coal Company. IL
declared that everything had been wiped
ont by the recent foreclosure proceed
,ugs except the original stock Of the
Rock Island COMPANY
William II. Moore. Ogden Mills, former
directors. J.. i. Lorec, former president
of the Chicago. Rock Island and Pacific
hallway !. NJ. Schumacher, chairman
OF the present board. and II. l., Nudge
president, Will be called TO the stanc
tomorrow.
All we're present in the hearing room