New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-06
DENIES R. |. NEEDED
A RECEIVERSHIP
Director Amster Testihes
Board Did Not Try to
Raise Funds.
COMMISSION ENDS
FINANCE INQUIRY
Bank Clerks Held Stock for
w. II. Morse. Polk
Shows.

Washington. June ,. The Interstate
Commerce Commission concluded to-
day its inquiry into the financial affairs
Of tho Chicago. Rock Island Pacific
Railway Company. which passed into
the hands OF receivers six weeks ago.
officials. stockholders and others were
examined rs 10 their knowledge Of
recent transactions leading up to the
receivership.
Nathan 4 Amster, elected director
for minority stockholders. declared he
was the only member Of the board who
seriously endcavorod TO raise money
10 meet obligations % the road falling
due May last. He returned 10 New
York 10 report his success. he said, only
TO find that the company was in the
receivers hands.
Il vent 20 the Rock Island Offices"
he said. but there vas nobody to say
anything 20 me. went out and saw
on the ticker that receiver had been
appointed for The company in Chicago
That was The first that /. as a di-
rector. heard Of the receiver going to
be appointed
Mr.. Amste~ produced statement is
sued bv IT," receivers which he de-
clarcd showed that there was an excess
Of earnings over fixed charges for the
remaining 'oht months Of the calen-
dar year amounting to between $1,000
COO and S5.010,000. bearing out his as
scr'lon that .hore was no necessity for
the rcceiycrshin
President II. l.. Nudge Of the com
clarcd The statement was not a report
Of the earning but n forecast Of cash.
showing the money the receivers would
need
IN view Of the fact hat the receiv-
ers contemplate asking the court for
permission 70 borrow two or three
million dollars 20 meet obligations
about July l." he said, 81 feel it unfair
70 tho public to get an impression to
, the contrary"
Amster explained his sale Of 800
shares Of Rock Island stock four days
before the receivers were appointed by
saying that he had had a difference
with the broker in whose hands these
shares were, and closed out all business
with him at that time. lie said he
owned over 1000 shares Of the stock
Joseph W. Folk. counsel for the COM
HlSSloH' put All expert accountant on
the stand TO testify as to any unusual"
vouchers found in the Rock Islands
reports. The accountant testified that
he had found vouchers on which S44,066
had been paid The Denver Post" for
advertisements in the editorial and
news columns" during 1909, and that
on the vouchers for the first year were
notations that there had been refund
to THE POST OF % cents n hundred
on paper shipped to it from Wisconsin.
Two clerks OF the First National
Bank Of New York testified that each
had held about $500 worth Of stock
in the Rock Island in January or Feb
ruary and that they had been told they
were holding il as dummies for Will
lam H. Moore. Both assigned their
stock in blank. Mr.. Folk presented a
partial stakeholder list. which he said
showed that some twenty clerks in the
bank held 100000 worth of the stock.
Other witnesses heard to-day were
Thomas VI. Schumacher. chairman Of
the Rock Island executive committee:
J. Horace Harding. a New York stock
broker, and Silas II. Strawn. a Chicago