Newspaper Page Text
GREAT WAR IN WALL STREET
OVER FRISCO SYSTEM WRECK
AND ITS $510,000,003 DEBT
Yoakum, Its Builder, and Spey
er, Its Financier, Now Lead
the Opposing Forces.
ITS CREDIT ALL GONE.
Final Clash When Railroader
Has Receivers Appointed
Thle a tka rr of hureang af
Mlllmt kekhls of reJlreea esplol
talion that la breeding war among kings
af kick t aa Tka at. Lamia o
aVraaoaaoo Bailraag Company, uaually
eaU4 Ik Fliaaa gystsm, waa placed
la tka kaage at reossvsrs tkraa days
anil it- Laala aaea motlaa oc lu
tka tma af
. 9. Taakaa la a aoa of Taaaa.
a kegao llfk la that State la humbla
Bajaai and eventually drifted lalo rail
roading. naatoplM treat aotlvttr
aaaaattoaaj akwuraaaa, ka keoame presi
dent af a amaU Uaa aaase tka Baa
Aatoele at Araaaaa Paea to tka slang
partaaos at Taaaa. tkap aay that Mr.
Tealum gat kki atari on tka "dap" road.
ajkapa la aaajaaatlaa with
I toeal baafcara, af whom
Caajajkaii waa tka p.::-.-!pl. Mia
ij slant was oaacarvsd and a-
a reorganisation 01 an
t, Laala A kaa Sea rraaolaoo
MUD MIAVILY "Oft BXTBNSION
Or TMI BVSTIM.
VUh thai founaatlaa Mr. Teaks De
ans, Ma empire buiidlee Ik tka states
af Man uaa I. Arkaaeas. asanas. Okia
kaata aad Taaaa. With great daring
tet MM af iibbH ha raackad aat to
aaaara tkraa toaa araad aataaslaaa ta
tka avataat. At araat oast ha abaorbad
tka Ghloago urn Illinois Road to
fltoa klsj a Ikbk batwaaa kt Laala aad
Cklaeee. Tka burden af Ikla purohaM
' war ooatrtbatla. eauaa ta kaal failure.
Aaatkar MM Una waa tka Naw Or
laaaa. Taaaa Mas lee, wkkk aklru
' Ma (Palf af Maatoo (tarn Maw uriaani
all Ma way ta arawaavUla. ua farthest
town alooc tka eoear. Tkla
aaneaed waa tha Kan
aka City, rt Matt Mampjua. running
fiwa tha trat elty aayjaj to Blrmlng-
whlch la fairly profit-
Aa a result of these oonquaata, Mr.
Taakuai attained control of a railway
awtaaa Ijm mUm law aa which there
kaa keea piled ths amaslng sum of mare
Ikaa Ave hundred ItUeaa af dollars of
taeeatloaai faatara af this capl-
waa the proportion at bonds
to atook, tha reverse of customary
ratto. Tke Prlaoo waa tap heavy with
' head. Ita fixed ohargee ware anor
xsaua. It waa h aad ad oat of all propor
Uaa to ordinary practice, while It
atook was far below tka mileage allot
aat af moat railroads,
ka tka balanoe sheet far 1M1 there la
a grakd total af t4M,M0,eM of
far tka entire syatam, with only
HaVMIltM af atook, af which a little
mere tkaa half ta outstanding In hands
of tka PUbUc Tka Prlaco lines propsr.
aat Including some of tka braachaa. ur
headed at tka rata of Ml.tw per mile
aad a tasked at only tio.ooo par mils.
The total liability of stocks and bondi
fat tka entire syatam la more than
ITl.aw par mile.
Tka roe alt of this wag to Impose a
baok-braaklag burden of fixed charges
far bonded Interest A railroad com
pany guy stop paying dividends on
atook aad atlll continue doing business.
and Happy ga a
ajeksal gay kind al weather:
Csscasa against skocki to the seine by
ayrtod wkkk I adjustable to baby a
I ilia waighi. Tka high sidss
axwka Pal aattlaas a est crib, aad ik
TWO rial CUAMAHTU '
NtOTtCn INK PAAaWrS
We replace free al charge aay aorta thai
er aat ar break ia two years, because
waaattd this csrrisle of saacial materiak
an aaa Sua resteer real rubber ilrea In.
attad af loataaalliaa, apecial quality
Fatoikaid leather, etc. "
at sad will alas esad sea e
Tke M man at tats aetata to
ataeft kite ita a. 9. tiikM, aaa
at tka fltirt kgaiaa la tka rait-
at ba laMaen af tka taUUf
"Sb MM NMH to a ftataat af
ntnek aaakava aaa taveatore
UMTawtttM, wlUak wlU flvs a
Maak are a aaa aaaJH aaa tatee-
flMal Went AbR4M(1
w w. u
but If It fail la to t'v Inlcraat on Its
bnnda thin l a aUnnl for liatikruptry
prorretllnta. The Krlsro'e Interest
charge sts up everything It could
aarn, leaving not penny, for stork
llvldcmla and, what (raj Aorac acarrely I
anything ga k nj ami aktaajdlM 1
tha property. Ita Internet rhartes last I
year were ll.'.IWn.nnn. wlilrh Juat aboil
equalled the net Inrome.
INTSREST ON BONUS WAS BACK
It aa a strange hond laaiilnK policy
nilopteil by Mr. Yoakum and hla aean
elataa In financing their building opera
tluas. They did try tha af heme of atock
laauai. The parent company capltallioal
llaalf for P,uoo,ngo. i.ut waa abla to aell
only tto,OW).ono of iharei.
One of thea- laauea waa thirty mllllona
of I per cent, aacond preferred atock.
After It waa prlntad they found that
under Ilia lawa of Mlaaourl tnav could
not dlapoaa of It for leaa than par. Fif
teen million of the issue atlll remain
unaold In tha company's treasury
worth acarcely anything to-day. Tha
traaaury alio holda thirty million of
Ita won unaold common stock.
It brnmo apparent that the only way
to build a Southwesltern Umpire waa
with bonds, so there waa piled up a
pyramid of kaleidoscopic lasues that
'quired th blgheal Ingnu1ty not only
to davlae but cvan to name.
Tha Frisco sysUm has fifty dllferant
klnda of bonds of Ita own Issue, ls
klnda of bond of ottajr companlea guar
aatead, and thirty-one klnda of equip
ment bnndi and notea, making a total
of alghty-aavan laauea of in t,-rai-hearing
ecurltlea, each onu bearing a dla
With these bonded mlllatone weight
ing It down the Frisco Nystem entered
the year luu. a period when operating
charges for all railroads Increased and
freight rates elthsr remained stationary
or wer forced downward. A with
other roads, there wss Imperative de
mand for more capital to finance not
inly ordinary needs but particularly
Ike ensplr project.
TMt WHOLI OUTFIT MORT
GAGED TO THE LIMIT.
vary available lece of Dronertv had
been mortgaaed almost ta tha limit
Thb price of the preferred and common
atock waa so low on tha atook Exchange
taat it waa hopeleaa to try aelllng any
more of that kind of aecurlty. Kven tha
abort term note market waa exhausted
aa no good collateral remained to put
as aa aeeurlty. An outstanding Issue of
eS.gtt.aoa, Una need throng (he Hoaton
banking house of K. a Moaeley A Co.,
waa due June t IMA and It waa this
relatively small debt that proved tha
laat straw to break tha eamsl'a back
and compel a receivership.
There remained, however, one open ac
count. In lhW the Prlaoo system man
agers had devised a grand nortgage
bond laaua. that waa to cover all oapttal
requirement for years to come. It waa
called general Ilea U-M year i par cant,
gold Aonds." Amount authorised. flaV
la,sf About tan million of these ware
o refund certain underlying bonds, leav
ing a elaaa one hundred millions for
empire building. Thess bonds were ae-
vr iwpuw.iuia m ui at i.iui iaa'
bona or cettain original lines and built
branches 1.071 miles In length Bd sec
ond mortgages on 2,700 miles mors of
Pimples, blackbrads, rashes, ring
worm and, worst of all. that red, itch
lag, scaly torment, erietua, vanish
warn you use Rrniaol Ointment aad
Rcilnol Soap. Even though 'your akin
is so unsightly wit, eruption that you
shun your friends and your frirnds
shun you. Rrsinol is almost sure to
make it clear and healthy, quickly,
easily and at trilling roit. When you
are tired of wasting lime and money
on tedious rxpenslve treatments, get
Keainnl Ointment and Rcainol Soap
from the nearest druggist and you will
?uicxly see why it has been prescribed
or eighteen years for just such trouble!
The Krsinol treatment wnrkj yea gent
ly, and la so absolutely free from any
thing that could injure even the tenil
ereat skin, that it is eaucciallv vulintM
for healing the akin troublt-a of infanta
and children. You can trat Heaiuol
Ointment and Rrsinol Soap at our age 1
Krnse. Writ, to Dept. KH-tt, Keainnl,
altimore, Md., and we will send you
a generous trial.
al Bar waai .
Bal Ba BSaBBitak.
Bkl BBJv gaawga n L
BaraVJraV -AHtxjfm y a
sm g i vaxaxa bbbsbb. ,n
lalhW track, heatdea which there was
j thrown In toaaakaMg SWVartafl .m mllea
I of mortgagrd stage! In other lines
I DETAILS OF THE TRANSACTION
THAT FOFTMS THB HUB.
H la Important to go Into detaila of
lh"e ueii,Mal II, ii 1, 30 vest gold bonds,
bevaaa m.l (h, tn will be waged the
I controversies that are arlalng out of
, the bubble's collapse.
1 Up tn the year I'M.'i MR.HM.OOO of theas
MkM had been sold monthly through
the New York banking houas of Hpeyer
A Co., principal flscsl sg'nts of -
railroad. Twsnly millions of them had
been sold to French Inveator.
A few months sKo the Frisco system
WSI In urgent need of more funds, o
.Mr. Toakum negotiated with Mi Speyer
for floating out g,MM,Atin more of this
blanket laaue. Now the credit of Ihe
rrigag was not at par. The banker drove
a bargain. He oflered Mr. Toakum leas
than sv cents on the dollar for ths
onda. V.'ell, that Is banking business
The hard preaaed borrower must not
espect premiums, particularly when
the money market la growing tlghtv
M Hpcycr A r'o undertook to get the
three millions out of the cracked jars
and the stockings of tho frugal French
Beaaaata on March IT laat an agree
ment waa entered Into between the rail
road company and the banker for thla
relatively email supplementary laaue,
and the rash eventually came out of
France, less of ooursa the discounts and
firnimlsstona. Although the bonds are
listed ss ft per centa, they land the
railroad company 7H per cent on ae
aawkl of these Intermediate discounts.
Altogether ths Fre.i n Investors have
mOVMaX of these general Ken bonds
and 4.',.noo.0 more of other klnda of
boi.de. placed through various bank'ng
houtrs. Now, hers omea the point of
coi.troversy and troubles that will pro
dino some aeneatloiial explosions In
FRENCH PURCHASER! ARE
RAISING A ROW.
Brecr & Co. are receiving messages
from their banking connectlona In Paris
that purchasers of bonds are raising a
grout tow. What do you Americana
mean, they say, by selling us bonds or
a mad on the vergo of bankruptcy?
Within two montha afiar we take the
urllitia In good faith receivers are
appointed. We have been grossly ds
caivtd. And then somu of tbom add
Philosophically that this Is what might
bs expected of Americans and Ameri
can methods. It will be a vary cold day
when we take any m re of your aecurl
tlci. Ik banking, honor and Integrity arc
the principal aaaeta of a house, par
ticularly of an International houaa It
la the uuury or the French Invaator
anJ. Incidentally, American Invasion
who have many more millions at stake
If you love
liriuga you a $13 Victrola and
in Victoi Record of your own
lection. Remaining pavmontaonly
80 cant per week for 4f weeks.
4 dasklsg Walt gtiirwi Madras aiasaersd
aolUi -kssstlrsoyraasfor amerios'i fas
twioss insnis. Ths Beikskv la ths asw
Has ths asira atrsag Maoceri Uasraskakla
Baitonhulrs -oa lis Silver Collars eelr.
eao. . ma a oo.. tbot, a. t.
Uso IfiiHrrm of Itl HMrU
le almply dolloloua.
TRI EVENING WORLD,
tliat Is breeding the trouble thst la
According to Information In Wail
at reel ftpeyer A Co. wire not couswl'cl
hlx.ut the r Iverahlp. sltho-.igh the
weie fiscal ngents of tiie company. 11
Is maintained that when the contrv t
w.m algnetl in March for tha laat bond
laat Hn esamlnatlon or Ihe securities
and the books was made and there irsa
no doubt ss to the eompany'a solvency.
Fflends of the payers maintain thai
they are In no wise to blame for fie
' regrettable Incident" and furthermore
that ths particular property covered
by the mortgage for the general Men Is
all right part of the Frisco proper an I
not of deficit branch lines.
The flret direct move will be made
within a few days In HI. Louis. Appli
cation will be made on behalf af tka
bond holders for removal of the re
ceivers appointed and the substitution
of others, or at least for the appoint
ment or a third receiver to represent
the bondholders' Interest
ror some reason, as yet unexplained,
the Intimacy long existing between Mr.
Toakum and Mr Hpeycr waa not main
tained during ih past two cnenlha
Whan the railroad man found Mat It
would bs impossible to meet tatChort
term note coming due June 1, Ike did
not confer with his banker Mend. In
stead ha went to at Lsiula aad con
sulting with hla weetern associates ar
ranged for tha Prlsoo bankruptcy pro
ceedings and ihe appointment af two of
fill awn officers as receivers. Theae are
B. L. Win- hell, president of Ma road.
ana r. M. west director aa
of tha executive committee.
According to the statements Issued by
repreeentatlvee of bondholders, of wklch
numaroua protective commltteea are
forming, there waa no need far aueh
action. A tabulation of flnanolal oper
ations for nlna months ending March
U. laat. shows a surplus of fA.Ms.7gt.
"What has happened In two montha to
put tho company into baakruptoyT"
they ask. "Why tka hast aad eecrecy 7"
They criticise also the selection of rs
celvera, aaylng that Ma vary man who
ran tha road into tka dlteh are now to
Better than the imported
At half the price
Free from Capsicum
Sixth Avenue, 20th to 22d Street. New
music, you'll love your
is everything that s musicaJ-very-
s best in music.
Have a Victrola
The cost is as little or as
much as you like $15 to
$200. You can purchase
any style Victrola on
Developed T IXCaJL
. All slaa roll films developed
free of charge when prlnta are
ordered from ua. Work guaran
teed and finished promptly.
1'ru-sa for prims ars the very
lowest. Rrownie No. i prints,
lie each, other slsse In propor
tion. Mail Orders Filled
flhat $1 BuyA
V 1 KODAK
Bkyclat and Tennu Goads
4tS Broadway, below Canal St.
831 Breadwtt.bet. nth & lstb St ..
Health Hint for Women
poisons. Belter than
DoUanuua tablets or
llqulda. The Ideal houae
helil asrmtclda or wash,
if,, an il.no. an am.
lata. ItdDkl.t and asmpls Iras.
s. Tvar.r. rsetnl.l. Weinlasloa. D. v.
Ba Balra Ckaraje far N,
aiTSriiestasais far Tn. Woria ma ,ef,
i sub saassssssssa wsetriei
a ska alar aaaii sr..
FRIDAY, MAT 30.
be continued In power under appoint
ment by the court. Theee receivers
represent only the worthless atock.
While the bointiiolders. having four limes
at mu h at atske, have no voles st nil
In tin rccelversjhlp
On l.fhnlf of Mr Yoakum, it It said
thst ths bankers were fully aware o
the company's condition all the time
and thin the collapse has come through
the tightening conditions of the world'a
money markets. If It had been possible
to tide over the present stringency, ha
might have pulled through, but ovary
thing piled up against him. No stock
could b sold, no more bonds could be
floauJ and receivership waa Inevitable. I
VIVSIONt OP AN INDUSTRIAL,
I A man of boundless optimism and won
I derfully purauaslve Intlusnce ta R. P.
i Yoakum. Hla vidians were or a South
western Industrial empire as magnificent
aa that political empire which Aaron
Burr tried to found a hundred years
agoand failed. Me wa not content to
merely run a railroad system Ha
sought to develop Its unfilled area, to ,
drain th awamplands of the Mississippi ,
Valley, to build good roads through
every county In half a doaan Blatea so I
that farmers could haul their produce tu
bla railway stations
Ha surveyed and built llnaa Into new
territory trat produced small freight
revenue, but he magnified tha bounteoua
retumi of the future. Ha discoursed to
the bankers of tke East on tka rich pos
sibilities of tke Waal aad ka mad
speeches to farmers la Oklahoma. Texas
and Louisiana on tka hidden wealth to
be wrung from the aotL When one group
of bankers grew cool ha aought to Inter
aat another group. Ha brought delega
tions of farmers to tha Bast to show
them the automobile roads of Jersey and
Massachusetts His energies seemed
never to lire; his enthusiasm never
He raised millions In money, but at
rulnoua cost. Hs piled up a pyramid
of bonded lndebtedneaa with a confidence
that disregarded ths danger of collapse
fror- eheer topheavlneaa.
Tka returns did not come as soon aa he
expected. He waa tan year ahead of
you a $U Victrola and $
ia Victor Record of your own se
Rawtutiningr pa t man u otilw
per week for 40 weeka.
If a Me far Olive Tablets I
That I the joyful cry of thousands
since Or. Kdwarda produced Olive Tab
let, the substitute for calomel.
Dr. Edwards, a practising physician
far IT areara and Calomel a old-time
enemy, discovered the formula for Oliv.
Tablets while treating patients for
chronic constipation aad torpid livers.
Dr. Kdwarda' Olive Tablets do not
ooataia calomel, but a beating, eootbiug
No griping is the "keynote" of these
little aagar-roeted tablets
, They cause the bowels and liver to act
norasal. They aever are them to
Dr. Bdwards' Olive Tablets art so
easy to tab that children do not regard
them a "medicine" at all.
If you have a "dark brown mouth"
I tV.. . L.J l..,L . J..1I
wvw new hw m tMtit wim,m itwi,
tired feeling sick headache torpid
liver aad constipated, you'll find quirk,
aura and oaly aasanl results from one
or two little Olive Tablet, at bedtime.
They're perfectly harmless.
Thousands tale oas every night just
to ji right. Try them.
"Every Tittle Olive Tablet lies a move
meat all iti own." 10c aad (5c per box.
The Olivr Tablet Co., Columbus, O.
SUNDAY WORLD "WANTS"
WORK MONDAY WONDERS.
NEW MINISTER TO COLOMBIA.
far (he timet-
WAMCfNtrTUN, May M -Th-i.l V
Thompson, a we ilth and prominent
butlnean man of A istln, Tag,, baa been
selected for Pnltod Mat, Miniate,- to
I'olombla, to succeed Jsmes T. liubols.
Mr. Thompson was a I'elesate to the
Haltimore Convention aad has been an
active worker In the Democratic rank,
lis Is a peraoAnl friend of Tostmastsr
The controversy between the United
Mates and Colombia over the partition
of Panama frpgt the latter country will
be a pmMecn Mr. Thompson will have
to handle Secretary Bryan declared a
re iv daye ago, after having had several
conferencee with Henor Retancourt, Col
nmhls'r Minister here, that negotiations
looking to an agreement with the fnuth
American republic would dot be begun
until a Minister had been selected.
field DnSt ia
The large package
uaa worn aTuas tar waakiag eletbee aad tlthaa. urahMag
aortealag haH wrtsTaoTlasing tka lEaeeT aaaa."
'Igst the GOLD DU8T
Special Values In
For Mea. Wetnea A ChUdrea
9 eatetfwant o. sfyfa m-
.., . wrvsieiwes tss
fsWoreepr Mmm,J moaes
ejeaafrte w thm nmg).
ef Mlftni 1$),
No Money $ A
Down 1 Week
STARTS AN ACCOUNT
Far Vow Whole Family
SIC West 125th SL.ar. 8th Av.
2858 3d Av aear 1491b St
'T. saratt creaffon in
WsVi40-eei wist stv or
FIRE PROOF STORAGE
ror rlousenoM Oooda
rounded tn loo3
The Sunday Worlds
GIRLS! GIRLS! SURELY TRY THISt
. DOUBLES BEAUTY OF YOUR HAir
All you need ii a 26 cent bottle of 'Dwderin''
Hair geti luttroui, fluffy and abundant at once.
Immediate? Yes! Certain? that's
the joy of it. Your hair becomes
light, wavy, fluffy, abundant aad p-
pears as sort, lustrous and beautiful
as a young girl's after a Danderine
hair cleanse. Just try this moisten s
doth with a little Uaaderiae and care-
.fully draw it through your hair, taking Danderine. when you will nrtuitllv i,
j one small strand at a time. This will new hair fine and downy at first -cleanse
thr hair of dust, dirt or excessive yes but really nrw hair growing pil
oil and in just a few moments you have over tha scalp. If yna care for prett
! doubled the beauty of your hair. soft hair, and lota of It. sorely gat i
' A delightful surprise awaits. particu-'t3 rent buttle of Kaowlton s Danderic
i larly those who have been careless, from any drug store or toilet count
i whoae hair lias been neglected or is and jtut try it.
Why not do it the Gold
Past way and save half
the time? A little Cold
Dust sorinkled in vour dish-
water will do the work in
half the time and make your
dishes brighter, sweeter,
cleaner than they can be made
by any other method.
AllV hfniMTJnfas nr tin isn't aaaseist
Gold Dost for washing
making twice as much
dish-waahing as she need
iaM in Rf anr! loT tt.l...
means greater economy.
THB N. E. FAIRS ANK COMPANY
TWINS do your work"
r $50 7Mr IN
75 io ua
1 AA A WEEK OfENS
O Sat M ACCOtNT
ersea FsrsUkcl Ceaaplele
1M " fttf
scraggy, faded, dry. brittle or thi".
Besides beautifyinft the hair, Danderirt
dissolves every particle of daadraf ;
cleanse, purifies and invigorates M.
scalp, forever stopping Itching an i
falling hair, but what will please ft,
most will lis fie, imm week.' . '
ri we eat, the
to be washed -that
meflns three times
a daw for 365 dava
or 1095 time a
year. That means
work, hard work and
lots of it if done in
I w I f 1 1 TA V I
5 T '75
II T 'ISO
A WEEK A
t Obcbs sb AeeeBBt
Open Monday and
59 to '500
makes more "Offers
oi Positions' ' than any
other two mediums
in the universe.
This iM-rtece Dtaawat Set wttk