Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-08-02
ACTON CREATES A STIR
Gov. Cummins Determination to
Probe Rock Island Matter
Attracts Attention.
Inquiries Received by Him From
Various States Turnout the
Country.
Looks Upon the Reorganization
Plan as a Bold Propo-
sition.
Special to Times Republican.

Des Moines, Aug. 2.-The announce
ment of the governors proposed in
quiry into the Rock Island reorganiza-
ton caused general excitement thru
out the country. There We're inquiries
for Statements from the governor from
New York. Chicago and other large
cities. The governor refused TO discuss
the question further than he had all
ready done about noon, for publication.
He said he did not want his attitude in
the matter to be regarded with exag-
gerated Importance, as legal proceed
ings had not been begun, and it was
impossible to say without an investiga-
ton just what should be done. The
substance of what is my position, said
the governor. lis that have concluded
to make an investigation. / intend to
go into the matter thoroughly. What
the result of the inquiry will be can not
Yet be foreseen.'
Governor Cummins is thoroughly inn
pressed with the belief that the COM
pany is acting against public policy,
and he will make a thorough inyestiga
ton to determine whether the state has
any power to prevent the reorganiZa
ton. In case the governor determines
the state has the power. there will
without doubt be a repetition in Iowa
of the struggle that occurred in Minne-
sofa between Governor Van SAINT and
the Hill merger interests.
AS Governor Cummins looks at it. the
Rock Island is entering on a course of
financing that will inevitably result in
a tremendous crash, he regards the is
suing of securities as proposed on in
fiated stock as dangerous. he doubts
whether New jersey corporation can
lawfully own and control the stock of
an Iowa, corporation as proposed. and
he is convinced ii is extremely doubtful
whether a railway company can pro-
coed To acquire an indebtedness far be-
You'd the value of the stock and do what
the vetoed Molsberry bill of last VIM
ter would have allowed had it gone on
the statute books.
The governor will secure the complete
statement issued by the company in
New York and study the objects of the
reorganization carefully. Just what
steps the governor will take further in
the Investigation he did not make pub
lie yesterday. He said his research
would be thorough. Ii was said yester-s
day the governor had called Attorney
General Mullan in and asked him to set
the investigation on foot. The governor
says however, he has not conferred
with the attorney general. In ease he
considers the state has power to pre-
vent the reorganization on the lines
Attorney General Mullan will
be directed to begin suit
Governor Cunmins made brief
statement in regard to the matter. He
said the questionable nature of the
Rock Islands transactions had been
called to his attention at once.
Until / have looked into the matter
l can not state just what
procedure will be necessary said the
governor. las l understand the stua-
ton, the inquiry will! be along two prn-
cipal lines. One is whether the great
of the stock of the Iowa COM
pany by the process proposed is legal. |
In other words, can a company issue
stock just for the purpose of giving it
away? The other is whether the laws I
Of Iowa will permit a New Jersey cor
poration, the stock of which represents
to own and control an Iowa |
in the manner contem- |
plated.
1T is the boldest proposition of the I
kind that has yet come to my notice. Ii
can do anything to prevent such q /
from being accepted / will
10 it. You can now readily understand |
Why there was such a desire last Win [
er to have the bill passed which | We
ced. If that bill had become a law the
ponds which it is proposed shall be is
sued could have been issued without
my increase of capital stock of the old
on a million dollars or 100000
worth of stock. Now the reorganiza
ion proposes to accomplish the same
hing in another way"
Discussing the plan. the governor said
lie thought it was as repugnant to hold
RS of large investments as to other
people. He said if imitation of this kind
vas to go on a financial explosion
would be inevitable.