The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-05
Disclaim All knowledge of
Who Boosted Stock Be-
fore Rcceiycrship.
NEVER AUTHORIZED
THE LEGAL ACTION
Reid and Moore Not Blamed
in Hearing Before Com
mcrcc Board.

W,suINGroN. June 4.-The recent
Rock Island incident In the stock
market was aired before the Interstate
Commerce Commission to-day.
Samuel Untermyer. counsel for n.
NJ Amster Of Boston. one of the Rock
Island directors supposed to be oppos-
ing the Reid Moore group. tried to
show that the market for Rock Island
was rlgged by insiders. the price being
boosted from 20 to 80 In a few days,
only to collapse with the filing OF an
Application for a receivership.
The plain intimation conveyed by
Mr.. Untermyer's questions was that
the insiders manipulated the market
with the full knowledge that a re-
ceivership application was about to be
filed
This charge was emphatically de-
MED by the witnesses to-day. some of
whom-as did Ogden Mills-plainly
acknowledged that the market had
been artlficially inflated.
Mr.. Mills said he had no knowledge
who the guilty persons were, but he
did not believe that Daniel G. Reid and
Judge William II. Moore had anything
10 do with It. Mr.. Mills himself ad-
mtted he had taken advantage Of the
pyrotechnics in Rock Island to sci!
5000 Of his 10000 shares. He parted
with It at 81, just points from the
toy.
F"rrk now ledge Denied.
II deni,d cmphatically that he had
my hnow'edse a. director OF the
fo,N Island that the receivership was
about 10 hr flied. but he was aware
lint TIE financial conditiosref. the road
made this probable.
There was an artificial condition of
Ire market created In perfectly crazy
way" was the way Mr.. Mills described
The situation.
Facts vcrcins on the sensational were
brought out in regard to the filing of the
rtccivership application. It developed
that this action affecting this great
railroad system was taken without even
formal authorization on the part OF the
board Of directors.
Furthermore the application was filed,
according TO the statement Of Some wit
nesses, after Mr., Amster mad complete ed
Hrancemcnts to provide the $4,000. 900
Necessary for the immediate needs Of
IRE road Mr. Amster himself. II was
asserted, know nothing OF the receiver
snip application until he had read II in
the n,Nspapers.
Arthur Curtiss James Of New York.
another director. testified that he had
no Information of tho receivership pro-
eeedinGs until o'clock In tho afternoon
of the day before the application was
f'ed. He described his own anxiety over
The development and the efforts that
were made by him and other directors
70 learn what was going to be done.
General Counscl's Step.
Roberts Walker. general counsel for
ne Rock Island. assumed responsibility
'or the rccelvershp proceedings, Ef-
forts 10 obtain from him "A flat state
men' ~ to who had issued instructions
i'r the filing OF the application were
futile
He said he had discussed the matter
WITH Daniel q. Reid. W. IT, Moore. G.
u Hayden and other directors. lie was
quite certain that he had talked with
h'e directors and knew that the general
S-h'!n"nt of the board was in favor OF
tNe action.
The rccciycrship papers II was shown,
we're drawn on March 90, hut the appli-
cation was not filed until April 90. In
'h's interval, with the receivership papers
already IN tvpewritten form. the sky
ro'H''ns movement in Rock Island took
Place, followed by the collapse after the
stock reached 80.
Tne 'tct was also brought out that the
Min Who filed the receivership applica-
non against the Rock Island did so at
ile Instance Of Mr.. Walker; that Mr..
walker drew both the creditors appli-
oatlon and tho reply by the railroad
Tae plan was to have IT. L, Nudge, pres
aeni ~ N" EocE Island, and J. T.. Cor
nan ''oo-prcSident, appointed receivers,
.r Judge Carpenter selected Jacob NJ.
prh.nspn 10 serve with Mr., Nudge.
hph" y, Lamont of Chicago. presi-
Nao made the application for the re-
'eNershp. disClaimed responsibility for
,"e proceedings lie said he never would
nav" ihongh' Of making application for
receiver had he not been asked to do
% ny Suas n. Strawn, an attorney OF
,W'dgJ "i'h whom he had close rela-
ions
Hri"u came 10 him and said that
w. Sriwn, had been asked by Roberts
"dlN'r the Rock Island counsel to pro-
"e some creditor OF the Rock Island
'sgH the bin for the receivership.
Assumes RcspOnsibiiity.
r.ht"r M I.amonts testimony Roberts
"alN'r TOOK the stand and promptly
assumed iull responsibility for insti-
lung tho lcceivcrship. He admitted
va, nat n" had prepared the bill for the
ownership on March 81.
- siAo admitted that he had not
,se.eh mo formal authorization OF the
60, of directors to apply for a re-
,eNer hut insisted that he felt author
"If'i 10 tdk" tho step because individu-
~ 'ho Informally the directors had
Ev,o'rl oi tho proceeding IN advance
81 'n'rrny6r and the witness mad
t,tH,n' ,ihHhcs The attorney drew
"om Mr., Walker the statement that he