The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-06

figures furnished by Mr.. Amster. which
purported to show from the receivers
estimates that the Rock Island would
have had enough money from net earn
ings up to the beginning OF next year
to pay a dividend of more thar 4 per
cent. on the common stock after deduct
ing all charges and paying the July and
January interests Mr.. Nudge declared
that the outlook for the Rock Island
was not so rosy as Mr.. Amster and
the latter's attorney. Samuel Inter
myer, had sought to make II appear.
Bearish Action Charged.
Two or three times in the course OF
the hea ring Samuel U%ntermyer charged
that the men, supposed to be friendly
toward the Rock Island Company were
trying to dcpreciate the property.
When j. Horace Harding OF the Arm
OF Barney & Co. testified n; the morni lg
session that he believed that 81, the
Price at which Rock Island Is now seii-
ing, was too high, Mr.. Cntermyer de-
handed whether or not the witness was
trying to bear" the stock. and ques-
toned him or his reasons for estimating
he value Of IL so low.
At another time when Roberts Walker
entered an objection to the introduction
into the record by the complaining di-
rector, Mr.. Amster, OF what purported 10
be the receivers forecast. estimating a
net balance to the credit OF the common
stock at the end of this year OF nearly
5000. 900, Mr.. Untermyer exclaimed in
protest:
why try to depreciate everything put
n here watch tends to make a favorable
showing for this company? II is a des-
perate panicstricken attempt to keep on:
Of the record anything that makes this
property look we'll"
President Nudge explained that the
rea son the plan for a receivership was
so closely guarded was to proven; the
receivership proceedings being begun in
one Of the fourteen States through which
the company's lines run. He said II was
desired that the receivership bill should
,e filed In Chicago.
There was considerable interest in the
testimony OF Mr.. Amster as to his efforts
to raise the 81. 900 900 necessary to meet
the obligations Of the company due May
I This witness testified that he was as
sured by Paine. Weber & Co. and Fitz-
gerald. Hubbard & Co. that they could
easily raise the necessary $4,000, 600
needed.
Mr.. Amster explained that his plan
was to use a part OF the proceeds to re-
lease collaterals belonging to the Rock
'''h'i' ''ifIohN NhihNu ~ Fiis-oNs'N's
lie said that the brokers agreed to place
the loan In the form OF two year gold
notes at s per cent. and were to receive
l per cent. commission.
Cross-examined. Mr.. Amster admitted
that he was not aware that In order to
issue the gold notes It would have been
necessary for the Rock Island Company
to make n showing before the Public
Utilities Commission . in some OF the
States. which would have caused delay.
Thomas II. Schumacher. chairman OF
the Rock Island beard. denied hat there
had been any interference with Mr.. Am
ster In his plan to raise the money. lie
said he personally encouraged him In
the effort to raise the money. but told
him that when he. Mr.. Amster. returned
TO New York he would have to bring the
money with him. as 1t was imperative
that the funds be raised at once.
Mr.. Schumacher irtimated that he had
strong evidence than the receivership
was coming and that for some time he
had felt that II could not be avoided.
lie denied that the other twelve direc-
tors had shown any disrespect for Mr..
.Anster at the meeting of directors on
! April Is.