New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-02-27
ROADS OFFICIALS
GOT BIG SALARIES
Witness Blames Government In
reference for the Plight
Of the Railroads.

call off a Congressional inquiry Of the
roads affairs.
Lamar communicated 10 Mr.. Reid
through a friend, Mr.. Reid said, that
he had an advance tip that speech
was to be delivered in the House de-
handing adoption of resolution for
| investigating the railroad, and declared
he could stop such action. Three at
tempts to see Mr. Reid personally were
made by Lamar, il was stated. and the
witness said he finally told the medium
of communication: You tell Lamar |
don't care to speak TO him under any
circumstances, and kindly impress that
~learly on his mind"
Representative William r. Green, of
'owa, introduced resolution about
Month later instructing the Interstate
commerce Commission to investigate
the Rock Island. Mr.. Green took the
stand after Mr.. Reid and denied even
knowing Lamar, and declared no one
ever suggested his introducing the
resolution.
Senator Lewis's Name Brought In.
The name of Senator James Hamilton
Lewis, of Illinois, was brought into the
proceedings again through his connec-
IlOn Win y. II. NtHUtI, VIM 10 aALSSSN
to have sold S250,000 of worthless stock
to the Rock Island for calling of his
suit aimed against the formation OF the
Rock Island holding companies.
r. A. Jackson, general counsel for
the Great Northern Railroad and for
merlv general attorney for the Rock
Island, was asked about telegram he
sent to Robert Mather, general counsel
for the Rock Island, announcing that
the United States Circuit Court, at
Springfield, H., had sent Venner to jail
for six months and fined him $1,000.
Mr. Mather's answer read:
Message received. Couldn't we in
tervene and ask court to send jim Ham
with him."
A letter from Jackson TO Mather
read into the record stated that Lewis
was trying to associate with him as
Venner's counsel Edwin Walker,
prominent attorney, Ito give the case
responsibility it now lacks" Mr.. Jack
son merely acknowledged authorship of
the communications.
Paid Well for Services.
L. F. Loree, president of the Della
ware G. Hudson; Charles II. Warren,
president of the Mutual Life Insurance
Company, and Mr.. Jackson told how
they had been paid big inducements to
take positions with the Rock Island,
and then for some mysterious reason
were suddenly asked by Daniel G. Reid
to resign.
Mr.. Loree said he gave up his office
as president of the Baltimore Ohio
Railroad on December 81, 1903, to be-
come chairman of the Rock Island ex-
ecutive board at a salary OF $4,000
year He was to receive an additional
lonus If 100000 st the end Of five
years. After ten months had elapsed
Mr. Reid asked him to resign, and paid
him approximately 100000 as a set
Element
Efforts Of the chief counsel, Mr.. Folk,
and members of the commission to
draw from Loree the cause Cf the
breach with Reid were fruitless. he
would not even admit that there was
difference as to policy.
Mr.. Warren testified that he was in
duced to leave the New Jersey Central
vice-presidency for a salary of $4,000
and a bonus of Sl50,000. He received
100000 when he complied with Mr..
Reds request for his resignation.
Mr.. Jackson said he protested when
Mr.. Reid, his boyhood chum in Rich
mond, Ind, wanted to settle for $780,
coo, saying he thought it ought to DC
twice that much, and Mr. Reid agreed
with him.
Mr.. Folk called attention to the Rock
Islands complaint against the advance
in workmen's wages while they were
paying officials salaries ranging from
$4,000 to $4,000 year.
Mr.. Reid, who was the chief witness
to-day, said he would not accept as
gift the control of any Western or
Southwestern railroad if he had to OPP
crate it for ten years. He blamed gov
eminent interference for the plight of
the railroads.
"More tariff and less legislation is
what the railroads need" Mr.. Reid de-
clared.
"We1l go to the bottom of this, now
that this charge is made" said Com
missioner Clements. at may be that
there ought TO be some more legisla-
ton to protect the public from schemes
devised by lawyers to obtain the money
of investors through holding COM
panies."
Burned Stock Records.
NJ. REID said he, with w. II. Moore,
J. II. Moore and the late w. b. Leeds,
acquired control of the Rock Island in
open market in 1901 and 1902, paying
an average price of 175 share for
the stock. He burned the monthly rec
ords of the stock buying transactions.
The Iowa and New Jersey holding COM
panies were planned by Mr.. Leeds.
OF the S375,OOO,OO0 stock Of the hold
ing companies, Mr.. Reid testified, S22l,-
100000 had been kept out OF circula-
ton. A part of this had been paid
TO j. ?. Morgan I, Co. and B. +. Yoa-
kun in connection with the Rock ISL
and's purchase of the Frisco.
About hoJ much ?" Mr.. Folk asked.
"Oh, a very small remnant. | should
say about S20000,000 or $25, 100000"
Mr. Reid replied.
The witness defended the payment
of large salaries, declaring there
wasn't a man who wasn't getting less
than his due" The 100000 settle
ment he made with Jackson was not
enough, he -ontended, and the reason
he had not given more VI. that Jack
son had not asked for more.
Are you as liberal with your own
money as you are with the stockhold
ers'?" Mr.. Folk asked.
"Yes, sir. More So" was the prompt
answer.
Alton Purchase a Mistake"
The purchase of the Alton road was
a "regrettable mistake" Mr.. Reid ad
mitted. Leeds advised il and the wit
ness fought IT, but when il came TO a
"show down" all the Rock Island di
rectors voted for the purchase, he said. /
Mr. Reid told of the "gentlemen's |