The Washington times., 1915-06-27

of the Alton are stated as ss,6Oo,o 900;
the Rock Island has since given UP
control of the Alton.
statements representing earnings and
expenses is charged, with much speci-
fcation and detail; and 1t is alleged
that these false showings were
ou,son sS tes s ,ss"ree. q The a'anE Ga
way company has paid out over forty
millions in dividends since 1902, and 1t
is declared that. rightly managed, II
would have been able to meet all
provement to maintain hrst class
system.
Paid No Dividends.
But In 1914. under .he load It was car
ryins. the Iowa company paid no divi-
dends: its collateral trust bonds de-
faulted. and foreclosure was started.
The S7o,ooo.ooo Of stock in the Rock
Island Railway Company, which Sc
cured these; bonds. ordered sold last
September. right in the midst Of the
worst times following the beginning Of
tho war. It Is charged that this was
tust what the insiders wanted. 1t would
help their plan to have the stock sold
In impossible times. for they wanted to
get conaSlete ownership and shut out
minority interests
A representative Of the minority. ".
L. Amster. started an action tn pro-
tect minority interests. He secured
proxies to have himself placed on the
elected. when he attended the meetings.
none of the other directors would have
anything to do with him; they would
not even speak to him.
Last March. as the story develops In
the testimony. the insiders decided on q
coup to throw the property into a re-
ceivership. A bill for a receivership was
drawn in blank: lawyer was engaged
hearing should be sprung. 1t is testified
that the bill was drawn in blank, with a
space to be filled In with the name Of d
complainant when one should be found.
Bill Was Completed.
This bill was completed March %, but
the fact was known only to insiders
That day a Wild speculation in Rock
Island shares began: in three week.
tho entire issue Is declared to have
been bought and sold one and one
half times over. 1t fluctuated between
20 to 3s points: the manipulators un.
loaded at high points, made big clean
up: and filed their receivership bill.
This is the story as It Is summarized
from the testimony taken. The stock
holders knew nothing OF the receiver
; ship move. 1t was hurried because. II
| OrQer 10 IOrestall Such an event, MI
Amster had perfected arrangements /,
Boston to raise 1000 900 to meet tn
immediate necessities of the company
The testimony tells that Robert Wake
attended a meeting of the stockholder
in Chicago and returned East witt
, the prepared receivership petition In hi
pocket; he travelled with Amster, bu
never mentioned the receivership move
Amster perfected his arrangements 70
! the money that was to tide the compan
over its crisis. and the fact becam
known April IS. There was a rush t
get the receivershlp petition filed. Wal
ker called up another lawyer in Chi
ca&o to have him file the petition; bu
l the Chicago man was at Springfield
l Called there, he said he would Ale
, as soon as he could get back to Chi
l cago. That was not going to be quic
enough; he was told to get somebod
: else to to It Immediately.
( Plan to Unload Stock.
The whole story will ultimately b
synopsized in a report by the Interstat
< Commerce Commission. That repor
i. 1t is understood. will charge that froI
the beginning there was a plan to UT
a load the stock on the public, then dc
press II, recover control at ridiculousl
l. low figures. take possession of the roa
n and restore II; making vast profits frol
o the maripulattons, and hen the re
storation OF the property after its cor
Z troll had been recovered at the To-
y: | figures.