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Show k 4V.J iU i m J State's Attcrncy-Gcncral . Chicago a' Alton to Act, Ilcve ver ; neciedy Exists. ; SPRINGFIELD, 111., April 8. Attorney-General Stead, in an opinion submitted sub-mitted to Governor , Deneen, expresses ex-presses doubt as to whether it is the province of the State of Illinois to proceed pro-ceed igaiost E, H. Harriman and his associates for the alleged manipulation of the Chicago k Alton railroad properties. proper-ties. If the State should revoke the eompauy's charter the loss would fall on the stockholders, the Harriman people peo-ple already having disposed of a large portion of their holdings. The Attorney-General concludes, therefore, that the best plan would be for the company itself to seek a remedy for the situation, situa-tion, or even for one or more stockholders stockhold-ers to act. At the same time Mr. Stead assures the Governor that should he become convinced, on further investigation, investiga-tion, that the State can relieve the road's conditions he will make the necessary nec-essary moves at once. Notwithstanding his convictions as to the wisdom of Immediate action, Mr, Stead insists there is not the least doubt but that a civil remedy exists against the "financiers who have wrecked this prosperous railroad company, com-pany, and, at the expense of innocent stockholders and bondholders, have fathered to themselves a harvest of mil-ions, mil-ions, of dollars." Attorney -General Stead reviews the testimonv given by Harriman recently before the Interstate Commerce . commission com-mission at New York, and from the records re-cords of the Illinois railroad and warehouse ware-house commission, obtained the various resolutions, certificates and documents pertaining to the Chicago k Alton Railroad Rail-road company, the Chicago k Alton Railway company, and the Consolidated company, all or which figure in the Manipulations. Tho profits made out of tbe Alton deals by Mr. Harriman and his associates are placed by Mr. Stead at $24,848,600. "As a result of this enormous profit to themselves," he declared, "the railroad rail-road companies are thrown into hope-'' less bankruptcy." Tbe indebtedness of the companies, as shown by the figures in the opinion, has been increased to a total of $80,646,-218 $80,646,-218 since they fell into Harriman 's hands. Of this amount, only $22,500,-000, $22,500,-000, according to Harriman 'a own testimony, tes-timony, says Mr. Stead, waa incurred for improvements, betterments or extension ex-tension of the roads. "Over $57,000,000 of this indebtedness," indebted-ness," concludes the opinion, "or more than 70 per cent of the entire indebtedness, indebt-edness, created by this syudicate upon the properties of these companies, were not created in furtherance of any legitimate legi-timate purpose for which a ' railroad company is or can be good under the statutes of the 6tate of -Illinois." Mr. Stead takes up the Alton deal in great detail, bringing ont the fact that in 1898 the company paid all its operating expenses and a 7 per cent dividend on its common and preferred stock and had $200,000 left. The company's com-pany's credit was good, and then the syndicate took hold, purchasing 34,722 shares of preferred and 183,224 of the common stock, distributed as follows: George J. Gould, 54,584 shares; E. H. Harriman, 54,535 shares; Mortimer L, Schiff, 54,535 shares; James Stillman, 54,535 shares, including small numbers of shares taken bv others. Mr. Stead dates the Alton's difficulties from 1899, when its new owners ordered the issue of $40,000,000 in 3 per cent bonds for improvements. Of these bonds $32,-000,000 $32,-000,000 were . subscribed by the new stockholders at 65 cents on the dollar, of which the syndicate received 97 per cent. Part of the bonds secured by the syndicate afterward were sold at 96, representing a large profit. |