Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-10-11
Complications Threaten Publ
cation in Which Local Peo-
pie Are Interested.
Is QUEER TRANSACTION
Follows Transfer of HamptOns to the
Columbia-Sterlin Corporation
of Delaware.

merly of Galesburg, is in serious COM
phCations, and that the many here who
, took stock in the enterprise are likely
TO find themselves holding the sack If
these dispatches tell the truth there is
something peculiar about the whole
transaction that involves the transfer
Of the magazine property TO another
company. some of the promoters of
which are. to say the least. question
able characters. II appears that bank
ruptcy threatens the consolidated pro-
perty. that the government postoffice
officials are investigating the matter.
and that local subscribers are not like
" to get their November number OF
their magazine. unless things are
patched ND so that money to get the
periodical out is forthcoming.
NOW THE COLUMBIAN.
Some months ago the Hampton mag
aziue as consolidated with the Column
bian. and the new periodical was
known as the Hampton-Columbian. 1t
is this consolidated company that is in
sore straits The creditors are de
manding that the $50.000 necessary TO
get out the current number be put up
.
is alleged that two prominent mem
bers Of the former Columbian COM
pauy are missing and that s250.000 of
the old company's assets are also miss
ing.
Since the amalgamation things have
gone from bad 70 worse, and the pres
ent investigation is the result of num-
erous complaints from stockholders in
the original Hampton's that they are
losing their holdings. The stockhold-
ers in the Hamptons have been puz-
lied by the disappearance of their mag
azine They were asked to exchange
their preferred Hampton stock, which
they were guaranteed would bear a
good dividend for the common stock
of the amalgamated concern. 1t is re-
called here that when citizens of
Galesburg were canvassed for stock,
assurance was given that the maya
zine was stable proposition with
great prospects before it.
\ DELAWARE CONCERN.
The Column bian-S Sterling company is
Delaware corporation, incorporated
last May with a capitalization of s4.-
600. 600. 1t is a consolidation of the
Western Magazine Publishing company.
Hampton ;, and the Columbian com
panies.
stockholders in Hampton's, whose
Preferred stock was supposed TO be
entitled TO cumulative per cent div
idends. had hardly finished paying for
their shares at the rate OF s. par
when they were informed that the
control of their magazine had passed
to this new company. They We're then
asked 10 make an exchange of stock.
For their So = per cent cumulative
preferred stock they were told they
might have $3.50 worth of common
stock in the new concern, which, by
the way. so far has no preferred stock.
This didn't strike many Of the Hamp-
ton stockholders as tending greatly 10
their own financial uplift, however,
much the bigger capitalized company
might aid in humanity's upIift. The
result was that many Of them kicked
and kicked hard.
THEY ARE Ct EIOJS.
These perplexed Hampton's share
holders were also doubly curious to
know just why Ben Hampton. who
sold the control of the magazine 10
the Colum bian-SterIng company, was
so anxious TO get out of an enor-
nousIy successful enterprise" Some
Of them even had the hardihOod 10
ask how much Mr. Hampton. altruist
thought they knew him TO be, got OUT
of it.
Persistent questioning of this sort
finally drew from Mr. Hampton the ad-
n
fortunately, it was not much" Fur
Their and repeated inquiries induced
Mr.. Hampton TO admit that the cash
he received was only $4,000.
FIGHT on WALL STREET HURTS.
Hamptou's magazine Mr.. Hampton
said in a folder. had been in hand
20 hand fight with Wall street inter
ests since the last winter-a fight in
which the 'so-called curb brokers
had taken a hand as part Of CAREFUL
IL conducted campaign. II had fright
ercd many stockholders and had
made il hard 70 raise capital BY stock
sales
Three years ago" Mr.. Hampton
went on when We were just fairly
started in the magazine and when the
property was not worth one-ifth Of the
present value, We were able 10 borrow
plenty Of money at the banks In
three years we made enemies Of many +.
of the big interests and this spring,
when We needed a few thousand dol +
lars of capital 10 carry us through the /
summer Wall street influence had sue /.
ceeded in closing every bank against
us"