The Elk Mountain pilot., 1924-07-10
. {. c. CONFIRMS ORDER OF
"LOOT'' OF THE RIO GRANDE

The interests which plundered the
Denver and Rio Grande Western Rail-
road have at last succeeded in induc-
ing the Interstate Commerce Com
mission to confirm their title to the
loot"
In the face of objections to the re-
organization plan vigorously present
ed by Governor William E. Sweet and
Attorney General Wayne C. Williams,
of Colo, the commission confirmed
its original order providing for the
reorganization of the road, accepting
some notifications which were calcu-
lated to meet the criticisms of the
Colorado authorities.
Three of the commissioners East
man, Aitchison and McManamy-unit-
ed in a dissenting opinion.
LABOR has repeatedly told the
story of the plundering of the Rio
Grande. The Gould interests, operat-
ing through the Missouri Pacific,
took control of the property years
ago when it was one of the most sue
cessful railroads in the country
They used the credit of the Rio
Grande to build the Western Pacific.
Then the Western Pacific and Mis-
souri, Pacific, under the direc tion of a
group of Wall Street bankers, so ma
nipulated things that the Denver and
Rio Grande was wrecked financially,
the stockholders losing every cent
they had invested-the total loss to
these unfortunate investors being
estimated as high as S2OO,OOO,OOO.
Under the reorganization scheme,
authorized by the Interstate Com
merce Commission, the new Rio
Grande Co. will have funded debt
of S16,445.600 and preferred stock
of S16,445 COO and total debt of
S131,S45 COO.
This is considerably more than the
value of the road as estimated by the
Interstate Commerce Commission.
Nevertheless, in addition to author
izing this inflated indebtedness, the
commission has directed the issuance
of 100000 shares of common stock of
no par value
This stock is to be divided between
the Western Pacific and the Missouri
Pacific Through the control of this
stock the two roads named will control
the Rio Grande, and the men and wo-
men who own the bonds and the pre-
ferred stock will have nothing at all
to say about the management. In
other words, those who have not a
penny invested will run the road while
the investors look on.
All these facts are vigorously set
forth in the dissenting opinion filed by
Commissioner Eastman.
with a ratio of funded debt to stock
1.-THE new company begins business
far beyond the limit which we have
been repeatedly told by railroad
financiers is safe and sound" said
Mr. Eastman.
He charges that the commission has
disregarded the welfare of security
owners of this road, who are likely to
be wiped out when disaster again
comes. as stockholders have on other
occasions been defrauded of their in
vestments.
81 can not escape the conclusion
asserts Mr.. Eastmen, his two associates
agreeing, "that the arrangement is
unspund and that the public interest
would be better served if the reor-
ganization of the Denver and Rio
Grande property were postponed until
such time as it can be reorganized in
the interests of its security holders
and the population which it serves,
Meeting lines, and upon financial
rather than in the interest of the con-
plan which will enable it to face the
future with a greater degree OF con-
| fidence."