The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1915-03-04
LOREE GOT S450,ODO.
Ex-HEAD OF ROCK ISLAND AND
FRISCO COMMITTEES TELLS
OF DUAL PAY AND BONUS.
"FIRED" AND GIVEN CASH
Purchaser Of Line UphoIds million
Dollar" Salaries, But Wouldn't Own
Road NoW-others Tell Of Gifts
Less Legislation Needed.

Washington, March IAN annual
salary Of $37,50O as chairman Of the
executive committee of the Chicago,
Rock Island & Pacific railroad, the
same amount for serving simultane-
ously as chairman of the executive
committee of the Frisco system and q
guarantee of $500,000 additional con-
stituted the compensation pledged to
L. F. LOree when he left the presi-
dency of the Baltimore & Ohio road
to join the Rock Island forces. He
held the new places ten months in,
1904 and then was asked by Daniel G.
Reid to resign.
Complying, he received in settle
ment of his agreement with Mr.. Leeds
$3.50, 900 in Rock Island railway bonds.
Mr.. Loree testified to this effect on
Friday at the interstate commerce
commissions investigation of the
Rock Islands financial affairs during
the Reid-Leeds-Moo control from
1901 to 1914.
Criticizing payment to c. H. Venner
of $25O,O00, J. w. Folk, counsel for the
commission, brought out the fact that
Rock Island people did not like this
transaction. r. A. Jackson, then gen.
eral counsel for the Rock Island, sent
this telegram to Robert Mather, presi-
dent:
United States circuit court at
Springfield, ILL.,, has just committed
Venner to Jail for six months and fined
him $1,000"
Mr. Mather sent this answer to
Jackson: Message received. Couldn't
We intervene and ask the court to
send Jim Ham with him."
James Hamilton Lewis, now United
States senator for Illinois, was counsel
for Venner in his suit against the
Rock Island.
Another witness was Mr.. Reid him
self, who defended the big salaries
paid to Rock Island officials, declared
that he would not now accept as a
gift the control of any western or
southwestern railroad and that when
he and his associates took over the
Rock Island it had a surplus" of
$8,O00,000, "but no railroad" being
merely a "streak of rust He said
also man capable of operating an
S,OO0-miIe railway was worth $1,000
600 a year.
The commerce commission itself
was held responsible for the financial
troubles of the Rock Island railroad
by Mr. Reid, who contended the trou-
BILE was not caused by the taking over
of bad securities or by payment Of
heavy salaries and bills, but by the
rulings of the commission, which pre-
vented advances in rates to meet
higher wages and costs of improve
ments.
r. A. Jackson, general counsel for
the Rock Island from 1902 to 1910, also
told the commission he had been asked
to resign by Mr.. Reid and had no
knowledge of why. While he had no
agreement, he had received 100000,
c. H. Warren assistant to President
Leeds in 1902-4, said he had been in
duced to go to the Rock Island under
an agreement that he receive stock
worth a minimum of $150,O00 at the
end of two years. When he left the
company because the situation be-
came unsatisfactory he was given
$5O,OOO cash and New Jersey holding
company stock having face value of
$205,OOO.
Mr.. Reid said what the railroads
needed was more rates, more tariffs
and less legislation"