Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-01-03
FINANCIAL CRISIS
In Affairs of Everett-Moore
Syndicate, Cleveland.
Suspicion as to Soundness Of the
Flynn Causes Furry.
Engaged In Many Enterprises and Capitalized
Tor $780, 100000.

oial affairs Of the Everett-Moor Syn
dictate, owning or controlling a num-
Der Of urban and intern urban 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 temporary fl
nancial 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 ana express the belief that
the concern is entirely solvent and that
its embarrassment will be only tenn
porary.
The Everett Moore syndicate is &C
redited with controlling more than 1900
miles of urban and inter urban electric
lines in Ohio and Michigan, with many
new extensions still in course Of con-
Structicn.
Among the telephone properties
owned outright or controlled by the
syndicate are the Cayahoga Telerhonc
90. of this city with upwards Of 10
600 subscribers: the United States Tcic-
phone Co. dong distancc); the Federal
Telephone 60. the Stark County tOhioj
Telephone 60; the Columbia County
(Ohio) Telephone Co; the Peoples
Telephone Go. Of Detroit; the Wood
County (Ohio) Telephone CO.. and a
numbe of others, in which the Federal
Telephone 60. is the controlling factor.
Among the more important street
electric road properties in which the
syndicate is largely interested are the
Cleveland Electric Railway Co, the
Detroit United Railway Co., the Toledo
Railway and Light Co, the Northern
Ohio Traction Co, the Cleveland.
gainesville e Eastern Railway 90. TIA"
Detroit & Toledo Shore Line Railroad
co., and the Lake Shore Electric Rail
road co.
All of these lines are declared by the
committee to be with scarcely an OK
ception. in good physical condition, per-
fectly solvent and in no wise embar
raised. The aggregate capitalization
of all the various companies owned or
controlled by the syndicate, are said to
he about $3.50. 000,O00
Expert accountants have been en-
pIoyed to examine and report upon the
conditions of all the constituent com
panies. No statement has, as yet. been
given out indicating the liabilities.
The following statement was, today.
given out by the committee:
It became apparent some time ago to
some of the members of the Everett
Moore syndicate, so-called. that on ac-
4, TO-. IL
the different centers where they were
financing some of their enterprises that
although in their opinion they owned
several million dollars worth of prop
erty over and above their liabilities
that they would he unable without
temporary assistance to meet their OBJ
legations. which We're about to become
due and the obligations of some of the
corporations which were controlled by
them. Many Of the SO obligations arose
from the fact that the syndicate We're
engaged in the construction of num-
Der of enterprises which were not yet
fully completed. requiring large
amounts of money to pay for labor and
materials in the construction.
The syndicate were also recently dis
appointed in being unable to complete
the negotiations for the raising of q
large sum of money upon certain bonds
and stocks belonging to them which
would have furnished them with ready
funds and which negotiations they had
reason to believe. until 10 days ago.
would result favorably.
Some of the members of the syndi-
cate. when it became apparent TO them
that many of their liabilities which
were coming due about the first 81
January could not be met. called to-
gether some of their personal advisers
to advise with them as to what was
hest to he done.
These gentlemen examined very
fully into all of the affairs of those
composing the syndicate and were fur
nished with very full and complete in
formation.
.'Thev found further from their In
ycstiratinns that in the telephone SIT
nation. while among its different elc
ments. it had many companies tina
had fully completed their equipmen
and were on paying basis, that there
were others that needed material as
sistonco. They also found that so fa
as the personal affairs of the members
their equities were. in their PiNiion
largely in excess of their liabiliNesl ano
that i'm their judgment all of the r@f|
sonal creditors could be paid without
Doubt from the assets and several hun
drcd thousand dollars put into the com
plotting Of the properties.
"Thcy found that there were IL
Cleveland upwards Of 80 banks tina
were their creditors and that thos
banks held the choicest of securitie
and the most equities.
.'Messrs. Everett and Moore. state
that they were prefectly willing to turl
all of their matters and properties owe
to committee that should be appoint
2 ed to handle them in connection wit
themselves to preserve the most equi
tics. with the belief that when thei
properties were developed and creditor
paid there would be n substantia
amount to retun to them.
AT the meeting held at whlc
Messrs. Everett and Moore were pres
ent. more than five-sixths of all tn
Cleveland Indebtedness was represent
ed The parties attending the meetin
2 EXPRESSED themselves unanimously