The sun., 1915-02-27
REID SAYS HE'S HEAVIEST
LOSER IN ROCK ISLAND
continued from FIRST Page.

IN l|Us, Sl.lNJ IN lHOd, s'-- : III lJ'''
s90S in 1905. s7Gs
How is II tha, IL went steadily
down There was not much in the way
OF n railroad prior to the time we
started The Rock Island was joke
In the West among railroad men.
q 1t was paying good dividends?
\. Yes sir.
O. You spoke " il being Joke Why
lid YOU spend $1,000. 900 or S6.000.000
on a Joke? \ To be frank, ! was fool
ish.
MIR Reid said William y Leeds in
duced him to go into H. lie also ad-
mtted that AT the time control was
obtained the railway company had
surplus OF tS000.00o.
Mr. Folk asked him why. instead OF
paying dividends on the stock deposited
in escrow, this had not been put to
maintaining the property Mr. Reid
maintained that from 1902 to 1914
s2OG, 600 600 was put into the proper
ties $26.000.OO0 of which came from
earnings.
Mr. Reid admitted that. when he as
sumed control Of the railroad. II had
outstanding bonds or $4,000. 600 and
that now they amount to s23j,00o. 900.
tie insisted. however that there had
been a largo Increase In mileage and
that the property had otherwise been
improved
The witness was asked II AT one time
he had purchased stock of the New
Jersey company upon the advice OF
James sreyer. He did not recall.
"pid you md that Mr. Speyer had
unloaded his own New Jersey stock on
YOU after YOU had purchased IL upon
his advisc?'
"oh. would not say that" replied
Mr. Reid
who benefited the most through the
I payment OF dividends and who lost
/ through the failure to put money into
/ the property" asked Mr.. Folk.
/ u lost the most of any one person
/ that know Of" was the reply.
l Mr.. Reid dlsclalmed any connection
with the bondholders protective COM
mttee or the foreclosure proceedings
/ brought in New York b. tho Central
/ Trust Company
/ When NJ Loree took the stand he
said he was 10 receive $4,000 a year
I for five years under his contract with
the Rock Island and $500, 600 at its eX
pira lion
For the first time the commission had
an opportunity to ask Mr.. Loree why he
left the Rock Island after ten months
service
The immediate circumstances were
that | had talk with Daniel g.. Reid
MIR Loree He thought things would
eventually lead TO the necessity on the
part OF the executive committee of de-
Gliding whether they would sustain me In
+ the discharge OF my functions or part
with the services of other officers OF the
company who had been long IN tho SER
vice. He said they would prefer to
sever their arrangement with me"
Mr. Loree declared that he had had no
friction with Mr.. Reid or with any of the
subordinate officials of the road and that
he did not know what was in Mr.. Reid $
mind when he virtually asked him for
his resignation.
Did you not have any curiosity as 70
why they wanted YOU 70 GO" asked Mr..
Clemens
1T did not interest me" replied Mr..
Loree
tie added that he had TOO much self
respect 10 stay after he discovered that
his services We're no longer agreeable to
his employers. He said he drew no in.
ference from Mr.. Reids action.
Mr., Lorce said the conference he had
with Mr.. Reid. at which tho agreement
was reached To- settle his contract by pay
.ng him s,5O.OO0 IN bonds. lasted only
fifteen minutes. He did not know tha;
Mr.. Reid was going to put the matter up
10 him and when Reid virtually asked
him for his resignation he said he ;old
Mr. Reid that Is perfectly agreeable
TO me"
Further que-'loning by Commissioner
Clements failed TO get any additional
l!ght on this phase.
Il \. Jackson testified that he entered
IN. service of the Rock Island IN August.
lao2, rs genera! attorney and when he
resigned in January. 1910, he was gen
cral solicitor lie is now general coun-
sci of the Great Northern.
Mr.. Jackson entered the Rock Island
service az a salary OF $4,000 n year
This was later raised TO t25. 200 and
then IL was boosted To- $4,000 Mr.
Reid asked him TO resign, but he dil
not know the reason why. lie received
Sl00.000 in cash from the company
when he left
The voucher covering this paymen,
read that 1t was for past services
Jackson said Reid told him at the time
he resigned that his s.r''iers were
being discharged satisfactorily. lie
had no friction with Mr.. Reid or any
one Else.
1T came Ike clap OF thunder out
Of a clear sky, them asked Mr.. Folk
MOT SO loud as that replied Jack
son with smile.
The witness said he mad known Mr.
Reid since boyhood and was associated
with him in organizing tin plate com
panies, but it did no; surprise him wher
his lifelong friend asked for his
resignation,
And you assure us under oath yor
have told the entire truth" said Com
missioner Clements.
Certainly / have replied Mr.. Jack.
! son
Mr. Jackson contended that he did
not know anything about tine allogel
. payment of S2J0.O00 TO Clarence II