Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1903-07-30
CAUSE OF FAILURE.
Condition of Iowa Railways Stocks
Said to Have Ruined HooIey.

Condition of Iowa Railways Stocks
Said to Have Ruined HooIey.
New York, July 2S.-The failure Of
q. S. Hooley G Co.. which was an
nounced on the stock exchange yester-
day is of especial interest to Iowans as
the general opinion is that the drop in
Des Moines & Fort Dodge stocks is
responsible for the failure. L. B. Rol-
ston of the firm of Turner, Rolston 6
Horan, was made assignee for the fail
ed firm.
The firm of E. S. Hooley & Co., was
organized June 80, 1902. 1t is compos-
ed of Edwin S. Hooley. Frank E. Brum-
ley, the board member and Northert
Heinsheimer. Mr.. Brumley became a
member Of the exchange May IS, 1901.
The committee on securities of the
| New York stock exchange rules that
stocks in the name of Edwin S. Hooley
& Co., are a good delivery until August
10, If executed prior to July 81.
The members of the firm had no
statement to make today. The general
belief is that the failure of the firm
was due largely to the heavy drop in
the price of Des Moines G Fort Dodge
and Evansville & Terre Haute stocks
on Saturday. 1t is authoritatively stat
ed that w. L. Stow & Co.. had no in
terest in the Evansville & Terre Haute
securities, Of which company Edwin
s. Hooley is the president,a in which
| his firm has been largely interested.
Last year, Mr.. Hooley and Mr.. Stow
| bought control of the Des Moines &
Fort Dodge property and at the annual
meeting year ago elected three d.
rectors representing their interest and
at the annual meeting this year elected
| three more. The lease under which
the Rock Island operates the property
is still in force. The firm stated that
there was no statement of liabilities or
assets available at present The as
slgnment was made for the benefit of
its creditors
Situation of Des Moines G Fl. Dodue.
In view of the extreme decline that
the stock of the road has since suffer-
ed, the situation in Des Moines & Fort
Dodge is extremely interesting. The
capital stock of the company consists
of S763,500 preferred and S4,2s3 COM
mon. The rental for 1901, the last
year reported, was S207,573, represent
/ ing 80 per cent of the gross earnings
which is the rental charge per annum
| paid for the use of lab miles of track
by the Rock Island. The lease was to
run for eighteen years from 1887.
| The Rock Island showed a DISPOSE
tion at one time to acquire control by
stock ownership, but the attempt was
opposed by the Stow-Hooley syndicate,
and in June 1908, the new interests
erected board representing them. AT
| tho Tina of tho hoc Of optro1 ~,
this syndictlte,>a statement was issued
| declining to say in whose interest the
| purchase of control was made, stating
| that the road had not been allowed to
share in the general prosperity and in
timating that the Illinois Central, Bur.
lington, Great Western, Wabash, or
Minneapolis and st. Louis might find it
useful, and that it is was most vital
part of the Rock Island. 1t was added
that the stockholders had been most
patient up to that time. The preferred
stock has paid its full seven per cent
i since 1899.
/ No purchase of the road by any OF
the roads mentioned in the statement
has been announced, and the belief is
well founded that the syndicate still
has the stock.
AS Viewed in Des Moines.
Des Moines, July 2s-1he failure of e.
S. Hooley & Co. In New York yesterday.
is looked upon in local circles as signii-
cant of retaliation upon the part of the
Rock Island and also master move in
securing valuable acquisition. The fail
ure of Mr.. IIooley together Va. that of
Mr.. Stowe and company, allows the Des
Moines and Fort Dodge railway to revert
to the Rock Island
| Hooleys Coup on Rock Island.
1t will be remembered that Edwin S.
Hooley Co., by smooth manipulation
of the New York stock exchange two
years ago, secured controlling interest
Of the line which is being operated by
the Rock Island under lease which ex-
pires in 1905. The move on the part of
Mr., Hooley came unexpectedly to the
railroad company, as they were planning
), to quietly absorb 1t when the lease ex-
J, pred. With this end in view, they had
!; secured about S2,000.000 of outstanding
bonds against the road. They did not be-
lieve that anyone else desired the road,
and hence made no move to secure the
stock, which was worthless as an invest
ment, no interest being paid on 1t.
The line is valuable acquisition, ms
it is connecting link between the main
line and the part of the system in the
: northwest. 1t is the short route and
|, gives them n connection with the main
, line in Des Moines which is another de.
sirable feature. Mr.. Hooley, however
recognizing that the line was of great
value to the Rock Island, silently made
a coup of the stock and soon controlled
!, the vote. Two years ago. he elected
: three of his ssociates as directors of the
road and this year ousted the others fa,
, vorable to the Rock Island replacing
them with his own supporters. This en-
bled him to vote the sale OF the road
whenever they might have the opportun
| ity. The Rock Island had been circum
vented and at once set about to regain
control.
Dividends Small and Few.
According to the lease which the RocB
Island holds, so it is claimed, they are
. only responsible for the interest on the
Indebtedness and the taxes the question
} Of whether they pay dividend OH the
, stock being determined by the earnings OF
the road. The dividends have been small
and few Thus the road had one advan
tage over Mr.. Hooley. He has his money
tied up, about SS,0o0,000, and was getting
no returns. Although he was president OF
the Evansville and Terre Haute road
still his capital was limited According
to the story which is told here, the Rocl
; Island recently began secretly manipulate
!. Ing the stocks In which Mr. Hooley and