New-York tribune., 1902-01-03

Cleveland. Ohio. Jan. (speciaD.-The gen
eral public startled this afternoon when
the public announcement was made that the
Everett Moore Syndicate, which has immense
traction and telephone interests in Ohio and
Michigan. was unable to meet it's oblga-
tions.. and had turned its affairs over to
a committee of prominent Cleveland bankers.
The big syndicate, which is capitalized at about
$125,0OO,O0O, completed arrangements to-day
with the bankers committee in order that
settlement may be made with creditors and its
equities be saved. This turn of affairs, how
ever. does constitute an assignment The
committee will investigate affairs. and the man
agement of the syndicate properties will be con-
tinued by Messrs. Everett and Moore and their
associates under the direction of the committee.
In the mean time an extension of eighteen
months will be granted by the Cleveland banks
which creditors.
ANTICIPATED BY FINANCIERS.
Although the general public astonished
to learn of the trouble of the syndicate, men
closely connected with financial affairs not
surprised-in fact. they anticipated it. When
the fact announced in the newspapers this
afternoon there was much excitement on the
streets and among business men. run on the
Dime Savings and Banking Company. in which
Henry E. Everett, E. W. Moore and Barney
MAILER actively interested. Immediately
began. Several hundred depostors crowded
into the bank and clamored for their money
The bank paid out promptly TO all depositors
who appeared with books and met all demands
until regular closing time came. President NJ.
g. Waterson, when asked If the bank had plenty
of money hand said: Plenty. Lots and
lots of it. This excitement will soon die out
When the doors were closed it was announced
TO the forty waiting depositors that the bank
would open tomorrow morning al the usual
hour. further run is expected on Friday
morning. and tonight the Dime. with the
sstance of other Cleveland financial institutions
is preparing TO meet whatever demands are
made.
1t was learned that small number of deposit
Ors appeared at two other banks with which
some members OF the syndicate are connected
to draw out their deposits. but this furry quick
ly subsidized There has been apprehension in
financial circles for a week respecting the Sc
curities Of the companies in which the syndicate
is interested. A raid began on the stock of the
Federal Telephone Company. the controlling
company of the syndicate's telephone interests.
This stock, which sold at IL last March on
the local market brought only AZ yesterday.
There was also slump in Cleveland Electric
Railway stock and decline in Cuyahoga TeIe-
phone Company stock The bankers statement
lie at the close of the days trading. and there
fore did not affect the market
GREAT INTERESTS CONTROLLED.
The Everett Moore syndicate is comprised of
II. +. Everett, president of the Cleveland Elec-
trio Railway Company; E. W. Moore former
secretary and treasurer of the Dime Savings
and Banking Company; Barney Mailer and c.
w Wason. leading traction men, and twenty or
- ht,SiV
The syndicate began business about three
years ago by getting control of the Cleveland
Electric Railway Company. Then 1t extended
its traction operations. purchasing the control
of the street railways of Detroit. together with
suburban lines running into that city. The To-
ledo lines and suburban railways were next
absorbed. and the lines of Akron. Then trunk
line was built between Warren. Ohio and Port
Huron. Mich. together with the necessary con-
nectons and properties.
The syndicate began its telephone operations
by establishing the Cuyahoga Telephone Com
pany-an independent concern in this city with
a fine plant and eight thousand subscribers.
Then the syndicate went into the long distance
business and organized the United States Tele-
phone Company. and acquired exchanges In
Toledo and other Ohio cities. To
control all its telephone properties. the Federal
Telephone Company then organized
Stringency of the money market precipitated
the trouble, as all the syndicate's properties
were either earning profits or were about IN
condition to do
The action of the Cleveland bankers in agree
ing to give an extension ii is believed, will re-
assure other holders of collateral. and no further
trouble of any kind is anticipated, beyond the |
run on the bank and ii is expected that this |
will be stopped tomorrow Cleveland bankers
have much faith in the syndicate.
OF BANKERS COMMITTEE. |
The statement issued by the committee this |
afternoon says in part:
II became apparent some time ago TO some of |
the members of the Everett-MOore Syndicate. so |
called that on account of the tight money situ- |
alton in the different centres where they were /
financing some of their enterprises, although IN |
their opinion they owned several million dollars
worth of property over and above their IiabiIi-
ties they would be unable without temporary
assistance to meet their obligations which were |
about to become due and the obligations of some
Of the corporations which controlled by |
them. Many of these obligations arose from |
The fact that the syndicate was engaged in the |
of a number OF enterprises which |
we're not yet fully completed. requiring large |
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