Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1915-03-10
DENIES
STOCK HURT RAILWAY
Could Have Worked Scheme II
Rates Had Been Boosted
Accordingly, He Says.

Washington, II. c.. Special-Daniel
G. Reid. head of the group which took
control of the Rock Island railway sys-
tenn in 1901, declared at the Interstate
Commerce commissions investigation
of the roads financial affairs. that or
sanization of the 1--WE holding colnpa-
MES. With total capitalization of $3.50
O00, 600. put no additional burden on
the Chicago. Rock Island Il Pacific
Railroad company.
Mr.. Reid's assertion ann on cross
examination. During his direct exami-
nation Mr.. Reid asserted that condi-
tionS had SO changed in the railroad
world of recent years that he would
not now accept as a gift control OF amy
western or southwestern railroad.
"When YOU CT the earning powers of
railroads by King rates. and every
thing else goes up in the WAY of taxes.
conditions are worse he said. II am
not complaining of the wages We must
pay, but of what we get TO pay wages
with"
Let us look al the wages at tis
other end of the line said Chief Coun,
sci Folk FOR the commission He pointed
out that officers of the had
received during the period under i'm
vestigation. salaries ransing FROM
S125,OOO down to $25, 600 Il year.
DO YOU complain of these high SAL
aries?' he asked.
There was not a man there who was
not worth What he was getting SAID
MIR. Reid, adding that men capable %
operating m 5000 mile railway system
were entitled to :ul they could get,
even if it was 81 1000, 900 a year"
MIR. Folk pointed out that r. A. Jack
SON. a retiring director, got II present
of 500. 900 from he company in adj
dition to u salary of $4,000. Mr.. Reid
said Jackson had been paid $5O,O00 q
year. not $4,000. and that 100000 was
for services rendered"
why didn't you give him more?'
asked Mr.. Folk.
Because he did not ask for it,"
snapped the witness.
Later Mr.. Reid said that what the
railroads needed was more rates, more
traffic and less legislation"
Commissioner Clements interposed
| with the observation that possibly what
was needed was more legislation ia
protect the public from security issues
devised by lawyers
Mr.. Reid said that the purchase OF
the Frisco lines had cost the Rock
Island $40. 600. 900 and described 1T az
a "regrettablc mistake
Purchase of the Chicago & Alton he
would not admit under questioning had
The Alton deal had been suggested by
William p. Leeds, now dead. Mr.. Reid
said, who had led him into his original
purchases of more Sc, 000, 900 i'm Rock
| Island securities.
ITO he frank. i was foolish" said
MI. Reid. He added that he was
himself the greatest loser in the whole
Rock Island transaction, SO far as he
knew. When he and his associates
took over the line, he said. they found
it to be n "streak of rust. a joke"
Mr.. Folk called attention to the S.
600, 900 surplus the road then had.
.That's all it had replied Reid. 1T
! had a surplus, but no railroad"
L.. r. Lore, former chairman of the
executive committee of the Rock Is
land Frisco system said that he was
| asked to resign after 10 months of ser.
vice and h he received S450.00O in
settlement with The directors. He
asked no explanation. r. A. Jackson,
general counsel. also was asked to re-
sign. lie received 100000 in settle
ment.