The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-10
GRAND JURY TO HEAR
ROCK ISLAND CASE
L. :. Attorney at Chicago Or
dcrcd to Inquire Into
Roads Rcccivcrship.
CONSPIRACY Is HINTED AT
Interstate Commission En-
pcctcd to Issue a Drastic
Report soon.

WASH NGroN. Aug 9-The Depart.
ment of Justice has instructed Charles
j.. Clyne. United States District At
torney at Chicago. 20 lay before the
Federal Grand Jury the facts relating
to the throwing Of she Rock Island
Riil:cad into Il q hands IF receiver.
This statement was made here tonight
by Government official
THE SrN told several days ago that
the Interstate Commerce Commission
had decided to lay certain evidence col
lcctcd by ~ IN the Rock Island inquiry
vestigattcn as 30 possible grounds for
criminal proceedings Action was not
expected so quickly. bu: il was learned
tonight tha; Attorney Clyne had been
instructed to proceed with a Grand Jury
investigation.
The statement followed an all day
conference between District Attorney
Clyne and Assistant Attorney y-General
Underwood. who Is in charge OF the
railroad affairs in the Department oil
Justice MIR Clyue started for Chicago
Tonight. after declining to discuss his
visit further than to say that his con-
ference related to railroad matters.
Commerce Report 40 Follow soon.
This move by the Government will be
followed soon by the publication OF the
, Interstate Commerce commission re-
port on the Rock Island 1t is under
1 xsstn h,4 tlf
the severcst ever handed down by the
commission and will be unsparing IN
condemnng those who. in the commits
sion's opinion. are largely responsible
for the plgh, Of the road.
IL is the understanding In Washington
that District Attorney Clyne's inNest!-
cation in Chicago will be conducted
along the line cf ascertalning Wnether
or not there vas conspiracy TO throw
the road into a rcCeiNership at time
when its gross income was greater than
/ ever before In its history.
As to who was actually responsible
I for tn. Rock Island receivership seemed
A matter Of doubt In the minds Of the
| commission when the inquiry was being
! conducted. Robert Walker. general
counsel OF the road, voluntarily assumed
responsibility for fling the papers, but
IL was not clear To- what extent the dI-
/ rectors had participated in the decision
to begin court proccedlngs
Walker acknowledges that ne had hol
received the formal auu utization OF
th, boa,d to apply for u receiver put m
. sisted that he felt authorized to take
| I'M. step because individually ana M
| formally the directors had approved IN
advance Some of the directors testihed
/ that they knew nothing oi the receiver
,hlp proceedings until the night ueiorr
the bin was filed. and then they learned
OF il from runp-Is,
Mr.. Walker acknowledged that the re-
ceiyorship bill vas drafted with the
knowledge of Daniel q. Reid, who' WIN
Judge Moore. was long the dominant
/ factor In the Rock Island. Mr.. Reid was
not "A director when the receiNershil
! nroceedings were begun, as he had re-
/ tired a shor, time previously.
/ IL was brought out in the Interstate
Commerce Commission inquiry that the
receivership papers were drawn thr'e
weeks before they were filed in court
During that period Rock island stock
was boosted from 20 to 80, only 10 col
lapse with the flng OF the receivership
papers.