The Washington herald., 1915-06-06
AMSTER ADMITS
COUPIN STOCK
R. |. Complainant Says He
Sold While Prices SCARED =
Before Receivership.
DENIES SCALPNG CLAIM
Director Tells of Efforts to Raise Six
Millions to Meet Companys
Obligations.
DENIES SCALPNG CLAIM

Hearings before the Interstate Com
nerce Commission in the Rock Island
railway receivership were concluded
late Yesterday afternoon. Nathan NJ
Amster, Of Boston, a Rock Island d.
rector and the client Of Samuel I'm
termyer, who has been complaining
of the manner In which the receiver
was applied for without consultation
with the directors, was cross-examined
and admitted that he sold 1900 shares
of the common stock while the price
vas soaring just before the receiver
shin He said that subsequently he
bought the same stock back at 81
following the appointment of re-
ceiver.
Silas Strawn. attorney for the
American Steel Foundries Company,
who cross-examined Mr.. Amster, sug
xested that Mr.. Cntermyer's client had
the suggestion He said he sold on
the strength of a telegram which he
learned had come over the private
wire of Clark. Childs. and Company,
brokers of New York. to Boston
hrm on April 10, which was signed
.'Pulsifer'' This telegram read. &C
cording to Mr.. Amster:
Rock Island securities are the best
kind of a sale. The jig will be up for
week"
Held Stock DUN mies.
T. L. Dooling and NJ. 7. Brown.
clerks in the First National Bank of
New York City, testified they held
l.re. blocks of Rock Island stock at
one time as dummies" Both ex-
pressed the opinion that the stock be-
lonRed to Judge William H. Moore.
Evidence introduced yesterday tended
10 show that there were about 10000
shares Of Rock Island held by clerks
in the First National Bank and the
report was general among the clerks
that the stock belonged to Judge
Moore.
H. L. Nudge. of Chicago. president Of
the Rock Island Company, testified that
he scented the receiverShip some time
before it was asked for. He was aware
of the conditions of the company's fl
nancee and at one time acting under
orders from the directors he tried to dis
pose of the one-third interest in certain
Chicago property owned by the Rock
Island Company to E. p. Ripley, presi-
dent of the Santa Fe. which company
held the other two-thirdS interests. He
said that Mr.. Ripley had made an offer
for this property a year or so ago and to
relieve the company of its financial en-
barrassments he decided TO offer him
the property at the price which Mr.
Ripley had offered for it. 81 coo 90. When
he approached Mr.. Ripley he found him
unwilling to pay the price he had form
erIy offered and the sale was not con-
cluded.
Nudge Questions Figures.
President Nudge took occasion to at
tack figures furnished by Mr.. Amster,
which purported to show from the re-
csivers' estimates that the Rock Island
would have enough money from net
earnings up to the beginning of next
year to- pay d dividend of over 4 per
cent on the common stock. after deduct
ing all charges and paying the July and
January interests. Mr.. Nudge declared
that application would have to be made
to the court for permission to raise
s.. coo on the first of July. and he de-
cared that the outlook for the Rock
Island was not so rosy Mr.. AmSter
and Mr.. Cntermyer had sought to make
il appear.
Two or three times in the course of the
hearing Yesterday Samuel lntermyer
,harced that the men supposed TO be in
friendly attitude toward the Rock
Island Company were TRYING TO depreCl-
ate the property. When j. Horace
Harding, of the firm of Barney & Co.
testified at the morning session that he
believed that y, the price at which Rock
Island is now selling. was too high. Mr..
I'ntermye- demanded saVagely whether
the witness was trying to bear the
stock
President Nudge explained that the
reason the plan for reCeivership was
SO closely guarded was TO prevent re-
ownership proceedings being commenced
in one OF the fourteen States
Says Money Was Available.
There was considerable interest in the
testimony given by Nathan W. Amster
of his efforts TO raise s600O.00 necessary
to meet the obligations of the company
due May !. This witness testified that he
was assured by Paine. Weber & Co. and
Fitzgerald Hubbard & Co. that they could
easily raise the money. His plan was TO