The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1926-05-07
PLUMBER BROKE THE ST. PAUL ROAD
By Leland Olds

Testimony before the interstate commission
investigation of the Chicago Milwaukee St Paul receiver
ship is ping up overwhelming evidence against continued
control of the railroads by irresponsible private wealth. Facts
developed from the testimony of the directors themselves IN
dictate that the wreck of the road due IN considerable
measure to Rockefeller control through dummy directors
Some of these directors apparently had no qualifying interest
in the road and paid scant attention to its conduct
Millions of dollars of ST. Paul money wasted in buy
the Chicago Terre Haute Southeastern and the Chicago
Milwaukee & Gary Tens of millions poured into cleo
yng the Puget Sound extension to the prot or
the Rockefeller Anaconda Copper interests.
Percy Rockefeller formerly ST. Paul director admitted
that he continued to sit in at board meetings after ne had re-
signed the requirements of the Clayton act he ad
mted family conto of at least 10000 shaes oS Paul stock
and could recoect important instance in which the board
of directors had opposed his wishs In 9Z3z4 ne was
director of SO corporations including Anaconda Copper Beth
lehem Steel National City Bank Remington Arms and the
United Electric Light Power Co., the Anaconda-controed
company fom which the St. Paul purchases power.
Rockefeller the climax of hours of questioning adj
mted that through the OwenOke Corporation private fl
company he received $4,000 of bonds his share of
the commission of Samuel Pryor for selling the Gary road to
the St Paul. He had previously denied prOtng any way
from the purchase of this road by the ST. Paul. although adj
hitting that he favored it. He had told Pres Byram of
the St Paul to buy the Gary road but merely look into it,
he said Apparently Byram understood for although the
Gary securities selling below par they taken
and guaranteed par The result of the purchase has been
loss to the St Paul estimated by the c. c. than 3d.
100000. Combined with the Terre Haute this meant an
added burden the ST. Paul of than 100000 and
$22,OO0,000 added to its liabilities
Samuel Pryor. partner in the OVenoke corporation pre-
sented long statement Rockefeller the $50
OOO commission The statement had been passed by Roce
Pryor admitted looked rather queer Pryor Rookie
teller director of 3 corporations including American Brake
Shoe Foundry Baldwin Locomotive Mechanics & Metals
National bank Nash Motors and Remington Arms His test
revealed the private finance corporation as merely
Rockefeller tool for masking control of industry
John d. Ryan, copper king testified that while he was
director of the St Paul and the time chairman of the
Anaconda Copper Co. the ST. Paul had purchased from the
anaconda $55OOOOO of "copper" through the United Metals
o. selling agency for the Anaconda. Rockefeller director
OF United Metals had prevosuy testified that ST. Paul pur
chases from Anaconda had been comparatively small Ryan
admitted that director of the Montana Power Co. and the
rea Falls Power Co he had favored elecying the ST. Paul
as great thing for his power This said to have
cost the St Paul about 5000 900 OOO
Lesser directors admitted they had little or no financial
interest IN the railroad Pres Mc4ugh of the Rockefeller
Mechanics Metals National bank testified he was made
director when he owned share of its stock although this
Is contrary to law The statement of the ST. Paus attorney
indicated that this directors qualifying shares had been pur-
chased tor him by the company without his KNOWLEDGE
Hardness one of the largest bond and shareholders admitted
very limited knowledge of the management He knew the
erre aute not paying proposition when the St Paul
eaSo ana that ITS acquisition due probably bad ud
ent he also testified that had he known certain facts about
eecyyng the road particularly figures puon which copar
costs OF operation had been based he might have formed
different opinions
Such testimony shows that under private control the
raoad dominated by other interests than those Of small
sockhoders shippers the workers engaged in producing
transportation -