Evening star., 1902-01-03
BIG SYNDICATE IN TROUBLE
THE EyERETT-MoORE COMPANY IN
HANDS OF BANKERS.
Extension of Eighteen Months ol
Some of Its Obligations Due
and Unpaid.

A dispatch from Cleveland, Ohio. yester-
day says: The financial affairs of the Ever
ett-Moore syndicate. owning or controlling
a number Of urban and interurban electric
railways, and an extensive system OF local
and long distance telephone lines in Ohio
and Michigan, passed into the control Of a
| committee composed of seven prominent
| bankers of this city today. This action was
taken, it is stated, as the result Of tenn
porary financial embarrassment on the part
Of the syndicate, which has for some time
past been affected by the stringency In the
| money market
The committee chosen has been at work
Investigating the affairs of the syndicate and
| expresses the firm belief that the concern
is entirely solvent, and that its embarrass-
| ment will be only temporary. The Everett
Moore syndicate Is accredited with con-
trolling more than LOO miles Of urban and
interurban~ electric lines in Ohio and Mfchi-
gan, with many new extensions still in
course of construction.
Among the telephone properties owned
| outright or controlled by the syndicate are
the Cuyahoga Telephone Company of this
city, with upward Of 0,O00 subscribers; the
United States Telephone Company Gong
| distance), the Federal Telephone Company,
| the Stark County (Ohio) Telephone Com
| pany, the Columbiana County (Ohio) Te1e-
phone Company, the Peoples Telephone
| Company of Detroit, the Wood County
| tOhio) Telephone Company, and a number
| of others in which the Federal Telephone
! Company is the controlling factor.
| Among the more important electric rail-
| road properties In which the syndicate is
| largely interested are the Cleveland Elec-
| trio Railway Company, the Detroit United
| Railway Company, the Toledo Railway
and Light Company, the Northern Ohio
Traction Company, the Cleveland. Paines-
Vile and Eastern Railway Company, the
| Detroit and Toledo Shore Line Railroad
| Company, and the Lake Shore Electric
! Railroad Company. All of these lines are
/ declared by the committee to be, with
| scarcely an exception, in good physical con-
dition. perfectly solvent and in no wise en-
| barrassed.
| The aggregate capitalization Of all the
| various properties owned controlled by
| the syndicate is said to be about $130, co.,,
600.
The committee of bankers organized by
electing H. r. Newcomb as chairman and
| E. c. Tilotson secretary.
| The following statement was today given
out by the COMMITTEES: 1T became appar-
ent some time ago to some of the MEM
/ bers of the Eyerett-Moore syndicate, SO
| called, that on account of the tight money
| situation in the different centers where
| they were financing some of their enter
prises, and although in their opinion they
| owned several mi1ion dollars worth of
| property over and above their liabilities,
they would be unable without tempo
| Many of these obligations arose from the
| fact that the syndicate was engaged In
| the construction of a number of enterprises
| which were not yet fully completed. re-
| quiring large amounts of money to pay for
| labor and materials in the construction.
l. 1T was found that there were in Geve-
| land upward of thirty banks that were
| their creditors. and that these banks held
| the choicest of the securities and the most
| equities
"Messrs. Everett and Moore stated that
| they were perfectly willing to turn all their
| matters and properties over to committee
| appointed to handle them, in connection
with themselves to preserve the most eQui-
ties. with the belief that when their prop
| critics were developed and creditors paid
there would be substantial amount to re-
turn to them. The personnel of the COM
4 mittee is as follows:
r; r. Newcombe. Myron T. Herrick, ].
j. Sullivan, Calvary Morris, Kaufman
Hays, and E. G. Tillotson and w. c.
Mather. These gentlemen were selected.
not especially on account Of any interest
| directly involved but because OF their we'll
known ability and integrity. =
AT a meeting held. at which Messrs.
Everett and Moore were present, more
than ilve-sixths of all of the Cleveland in
| debtedness was represented. The parties
| attending the meeting expressed them
selves unanimously in favor of recommend
ing to their institutions that they should
| extend the Indebtedness of the Everett
| Moore syndicate and It's allied interests for
a period of not exceeding eighteen months
| conditioned upon the committee named
having entire charge Of all the affairs con-
| nected with the syndicate and it's various
| interests :
Colonel Myron T. Herrick tonight gave
| out signed statement relative to the
| affairs of the Everett-Moore syndicate in
| which he said he had no connection with
| the syndicate.
AS a result Of the announcement of the
financial embarrassment of the Everett
Moore syndicate. run was started on the
| Dime. Savings and Banking Company of
which Messrs. Everett & Moore are direc-
| tors, late this afternoon. All demands were
| promptly met, and President Watterson
said the bank had ample funds on hands
| to pay all depositors who desired their
| money.
| The institution Is one of the city depos-
tories When it's last report was issued, in
October, the banks total resources were
placed at S0.762 ,0O7. including a surplus
fund of $685.. eco.
A dispatch from Toledo. Ohio, yesterday
says: The EverettMoore syndicate,
through the Maumee Valley electic road
Is the plaintiff in three of the biggest suits
ever brought in the local courts. in which
1t seeks injunction to restrain execution
on three cognovit judgments in favor of
King q. Tracy for 81. 1914; 20. of the Toledo
Holcombe National Bank for 1896 81.
The suits are the starters of big litiga-
ton. The allegations are sensational, al
ieging fraud, conspiracy and double deal
ing. 1t Is claimed that King took out the
judgments while his partner, Tracy, in his
| capacity as director, was attending the
meeting Of the directors. and that the COM
pany had no nSt!ce of the suit, though an
alleged answer was filed on it's behalf
| King Tracy acted as attorneys for the
company, and. it is claimed in the petit
tions. were looking out for their own in
| terests. rather than that of the plaintiff 1t
| is further claimed that Mayor s. NJ. Jones'
| A. j. Detweiler, G. K. Detweiler and
George Metzgar, as directors knew of the
| sale to the Everett-Moore syndicate at the
i time the cognovit notes were issued but
concealed their knowledge. and that plain
tiff was not aware of the existence of the
notes until judgment was taken on Decem-
Der p last, when the balance of the pur-
chase price was paid and the stock turned
| over to the Everett-Moore syndicate
| ROCKVILLE AND VICINITY
General and Personal News From
Montgomery COunty's CaDitaI