The Washington times., 1915-02-27
OGDEN MILLS DENIES
GETTING GIFT STOCK
Rock Island Director Admits
Learning From Inquiry Facts
About Road He Didn't Know.
Continued from First Pags.)

Continued from First Pago)
head evidently found things different
ouixEed by Folk. he replied: II cer-
tsinlv should object II funds were
x,r,S1y rWhy at.a a.snt rG;S you investigate these
TT was not brought to my. knowledge.
The only one Of which had knowledge
was that to Mr.. Purdy. A considerable
time sfterward / heard Of the settlement
Ignorant Of Salaries Paid.
Didn't you think. AZ a director. you
holWder?." oWss.
"As a director OF the Rock Island. you
have. learned more Of Its affairs from
this investigation than you knew before.
have you not?'
II have as to certain things"
The witness declared he did not know
the salaries paid to officials that such
matters were not brought before the
board. He would not consider the execu-
the committee had a right to make any
donations, he stated.
rs 1t your opinion" asked Folk. that
other directors are AZ ignorant OF the
company's affairs as you are?"
II do not consider myself ignorant"
You appreciate that your name Is
known all over America and that con-
fidence Is given by ft?'
In reply Mills said 1t was impossible
for any director to have knowledge Of
every fact concerning a railroad.
He never knew Of the Venner settle
ment. he said. until It was revealed by
the present investigation.
AS to the deal with the Consolidated
Indiana Coal Company. he said, he did
not know Of the advances made by the
Rock Island.
Speyer Takes Stand.
James Speyer. head Of speycr 4 Co..
New York bankers. took the stand at
his own request. 20 explain that his firm
did not act as the Rock Islands fnan-
cial agent. but simply bought and re-
sold its securities, Us II would any
| others.
There is a great misrepresentation In
| the public mind as to the profits banks
make" said Speyer. There Is no un-
outstanding as to the work a bank
does"
Between 1904 and 1912. continucd7 the
| witness. the firm dealt in sl7Oi!o 800 Of
! the Rock Islands bonds and notes, and
| its profits were 'only sl,4as. 49," or
about eight-tenths OF / per cent"
Losses since 1912 Speyer would not dis
! close 'for fear my friends will think
We are not good bankers"
So much has hccn said about Wall
Street said the witness that he would
| like to make its operations clearer.
| There should be better feeling, he AS
serted. Questions asked Friday OF Dan
G. Reid. he stated reectad on himself
and affected his ability to sell securities.
Calls Question Insulting.
Did you Mt one time agree to take
! Rock Island securities at a certain
price and than fail to take them, and
did Mr.: Reid threaten to bring suit"
asked Folk.
Il think the question is insulting re-
Piled speyer. and he explained that he
only held an option on the securities
In 1907. and did not exercise it when
81 care very much what the public
thinks said the banker 1T Is neces-
sary that people should know-all
speyer said he was director of the
| Rock Island Company of New Jersey.
Answering Commissioner Clements, he
| stated that that company had nothing
back OF it except the original railroad
Some PERSONS who were induced to
buy this company.s. shares lost every
Well, you say induced to buy" re-
piled Speyer. There are periods in
this country when people will buy any
thinE" , ,
neer. told of having inspected the prop
| erty of the Toledo. St. Louis and West
| ern, and gave it as his opinion that the
company's bonds. held by the Rock
| lSldTi. nave Vd1us
George y. johnson. president OF the
Virginia and Carolina railroad. testi-
| fed that as result OF an inspection
of the Rock Island system. he consid-
cred it irr very good shape. better than
| the G. IL O.. on the whole. and about
the same as the Burlington.
| Henry u. Nudge. president of the
| Rock Island since 1905 defended tho
physical condition of the system, say
ing more ties had been put In in recent
years than had been the case with the
| Milwaukee line, and almost as many
| as the Northwestern line. The rail was
up to If not better than that of simi ar
lines
PASSENGER business had increased
from IL. 100000 carried in 1905, to 20 OOO, no
in 1914. ne said. and freight business
from 1850. 900 tons to 2l.6oo 900 tons. ~
| can't believe We've lost any amount Of
traffic as the result Of inefficient serv-
ice. he said.
A report on the St Louis. Kansas City
and Colorado. now part of the Rock
| Island system, made by his railroad
| commission to Joseph W. Folk when he
was governor of Missouri. was read.
The line was then one year old. The
commissioners praised it highly. par
ticulary as to its construction. Tho
line Is now in better condition than II
was then. President Nudge said.
58627 German Canfives