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Show $7,500,000 "LOAN" IS BASIS OF SUIT NKAV YORK, Feb. 2. Suit was filed today in the supreme court to recover $7, 500, 000 from Daniel G. Reid, W. H. Moore and their associates, alleged to' have been diverted as a "pretended loan" from the treasury of the Chicago, Rock. Island & Pacific railway company with no benefit to the company. Tiie suit is brought by N. L. Arnster of Boston and eleven other stockholders, who together ho id 7-10 shares of tlie company's com-pany's stock. The papers charge that tlie 'money was diverted to the Chicago, Rock Island & Pacific Railroad company, the so-called Iowa holding company of the Rock Island system, for the purpose of effecting a sale by the latter company of some $29,000,000 stock of the St. Louis & San Francisco railroad. It is alleged that in carrying out the transaction the holding company gave the railway, or operating, company worthless debentures which have since been wiped .out in foreclosure fore-closure procedure. |