Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-04-01
ROCK ISLAND MEN
IN FEAR INQUIRY?
Reid and Hine Sail for Europe
Moore Also Planning
Trip There.
SOME MAY LOSE HEAVILY
UnfriendIy. Receivership Would Not
InJure Financiers Who
Have Left.

The Chicago Tribune prints the fol-
lowing dispatch from New York:
Around noon last Tuesday Wall
street was completely surprised when
the news tickers printed brief an
nouncement that Daniel G. Reid was
aboard the Kronprinzessin Cecilie.
which was then miles out to sea head
ed for Bremen. 1t is almost impossi-
BILE for an active Wall street man to
sail for Europe and keep his plans a
secret.
"Reid's sudden departure was still
being discussed in the financial dis
trict when it was learned that last
week Francis L. Hine, president OF
the First National bank, had secretly
sailed for London. Then it was learn
ed that William H. Moore was plan
ming to take his horses abroad.
Before the close of business Tues
day Washington dispatches told of the
renewed efforts of Congressman Green
of Iowa to pass a resolution calling for
thorough investigation Of the In
pending receivership for the Chicago,
Rock Island & Pacific railroad, the
Iowa holding company. Reid, Hina
and Moore are the only men who can
tell what has been going on in Rock
Island since the readjustment of 1902.
Can't Declare Dividend in Time.
Under the rules of the stock ex-
change regulating the closing of stock
books before payment of dividends, the
day has now passed when the old Chi
cago, Rock Island & Pacific railway
can declare a dividend in time to en-
able the Chicago, Rock Island & Pa
cific Railroad company to meet the
May 1 interest On its ST. ,353, 900 out
standing collateral trust 4 per cent
bonds.
Default of interest will mean re-
ownership for the railroad, either
friendly or unfriendly. In case of
friendly proceedings, the holders, of
Rock Island company's $90,SSs,OOO
common and s49,947,000 preferred
stock will put up an assessment in re-
turn for securities Of the old railway
company.
IF the receivership proves to be I'M
friendly, holders of Rock Island COM
pany's common and preferred stock
will be wiped out. Then, the holders
of the 81, $685. 900 outstanding per
cent bonds of the railroad will become
the holders OF the s71.353, 900 stock of
the old railway, now deposited as col
lateral. Reid, Hine and Moore are
large holders of those bonds. Rock
Island company's stock is held by the
public.
Many Conflicting Developments.
There have been sc many conflict
ing developments in Rock Island dur
ing the last few weeks that even old
timers in Wall street are amazed. In
the first place, UP to the third week of
January, T. NJ. Schumacher, who rep /
resents the Phelps-Dodge interests, |
continued to state publicly that care |
full inspection of the Rock Island show |
ed that the property was in good shape |
and in need of no funds.
ION those official statements de |
cided advance occurred in the shares |
of the Rock Island company. Then 1t |
was stated that Rock Island would |
have to be reorganized. and Schu-
macher went on record as saying that |
S5O, 10000 had to be raised within
the next five years, s2O,OOO,0OO before
July 1.
THE next important development
was the appointment of protective
for Rock Island COM
pany's stock and the holders Of the 4 |
per cent collateral trust bonds. The
Immediately employed in
dependent experts to check up the
property and books to show
he need of reorganization.
No independent Inspection.
1.-The so-called shareholders protec-
i've committee announced at that time
hat 1t, too, would employ independent
and experts. In view of
he situation that confronted the share
holders, that announcement seemed
Since then, however, weeks have
and as far as is known not a
iingle step has been taken towards
making an Independent inspection or
in any way the interests of
he shareholders
an fact since Schumacher made his
pectacular turn in midair. every Of
icial statement and development ap
'ears to have been carefully planned
" insiders to disturb the confidence
+ Rock Island investors.
'In the resolution proposed this week
Green said that in his
pinion it would be possible for the
took Island company stockholders 10
ring suit and recover damages from
he Reid-Hine-Moore crowd Similar
Jews are held by important banking
eople in Wall street who are familiar
nth Rock Islands Alton and Frisco
Those bankers point out that Reid
nd his associates cannot stay abroad
definitely, and in the meantime legal
teps could be taken TO prevent the in
lders from carrying out their reorgan.
.ation plans"
Uruguay has enacted law where
Il