Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-08-11
ASKS FEDERAL
GRAND JURY IN CHICAGO TO
INVESTIGATE FlNANcIERiNo.
AskANcE AT METHOD OF
GETTING RECEIVER NAMED
Moore.Re Board Of Directors Held to
Blame For Shady Transactions in
Manipulating Railroad DeaIs-con.
spiraey May Be Charged by Govern.
ment-Attornsy Walker Accused.

ment of justice has instructed Charles
F. Clyne, United States district attor-
ney at Chicago to request the federal
grand jury to indict directors and Of
ficers Of the Chicago, Rock Island and
Pacific Railroad Company responsible
for throwing the road into a receiver
ship last April, according to a state
ment made by prominent government
official.
The statement followed an all day
conference between District Attorney
Clyne and Assistant District Attorney
General Underwood, who is in charge
OF railroad affairs In the department
of justice.
Mr.. Clyne came to Washington yes
terday morning. He left last night for
Chicago, after declining to discuss his
visit further than to say he had con-
ferred with Mr.. Underwood on rail-
road matters
Will Blame Directors.
The prediction that the government
intends to prosecute the persons re-
sponsible for the Rock Island receiver
ship was followed closely by intima-
lions from the interstate commerce
commission that it's report on the Rock
Island probably would be made public
this week.
According to persons high in the
confidence of the commission the Rock
Island board of directors, which was
under the domination OF W. H. Moore
and Daniel G. Reid. will be blamed for
the financial plight of the road.
It Is predicted that NJ. Moore and
Robert Walker, general counsel for the
road, will be held responsible for the
receivership which was made effective
on April 20 last by Judge Carpenter in
the district court at Chicago. Mr.. Reid
had retired from the board in January
and was not officially connected with
the road when the receivership pro-
ceeGtngs were started.
Conspiracy May Be Charged.
While the interstate commerce COM
mission in its report will review the
history of the manipulation of this
Rock Island by the Moore Reid inter-
ests, 1t is understood the department OF
justice will base its prosecution, il Mr..
Clyne should be able to obtain the in
dictments, on charges of Conspiracy to
throw the road into a receivership at
a time when its gross income was
greater than ever before in its his
tory"
It is said Samuel Untermyer, of New
York. may be retained by the depart
ment of justice to handle the case in
conjunction with Mr. Clyne. The de-
termination to prosecute those respon-
sible, for the receivership is said to
have been reached largely as a result
Of Mr. Untermyer's efforts in behalf of
=. T. AHstez. CO Boston. minorii,
director who complains that he was
not informed of the receivership pro-
ceedings until after they had been
made effective by Judge Carpenter, of
Chicago.
Walker Feared Double?
That the directors and Mr. Walker
had some fear of prosecution on
charges of collision at the time they
took the road into court was indicated
by Mr.. Walker during his testimony
before the interstate commerce com
mission on June last.
| According to his story, Mr. Walker
drew the petition asking for receiver
after a personal canvass of the board
| OF directors which showed him that
those led by Mr.. Moore were favorable
to the receivership. He is said tc
have held 1t in his office for three
weeks, awaiting the most suspicious
occasion to present it to the fedora
court without attracting undue atten
ton beforehand.
| During that three weeks Rock IslanC
stock rose from $40 share to s3s a
share on the stock exchange and thu
records Of the exchange show that tn.
stock Of the company was bought ant
sold more than one and one third time.
over.
Hitch in Arrangements.
When Mr.. Walker decided the tim,
had come to put the road into tn,
courts hands he telephoned instruc
tons to NJ. L. Bell. general solicitor o
the Rock Island at Chicago. The pc
tition asking for a receivership wa.
turned over to Silas H. Strawn, at
torney for the American Steel Foun
| dries Company. who had previousl,
consented to file 1t with the court.
| Acting under instructions from MI
Walker. Vice President Ridgway OF tn,
Rock Island assumed to give tn,
roads consent to its being placed in ;
receivership. Mr.. Bell, the solicitor
was on hand in court to see that thing
moved along smoothly, as Walker de
sired.
A hitch came, however. in the ap
pointment Of receivera It was tn,
hope Of Mr.. Walker to have H. U
Nudge. president Of the road, and j. E
German, IN operating official. selected
The court, however. chose former SEQ
rotary Of War Jacob M. Dickinson, wht
happened to be paying him q call q
the time.
Refuses 70 Appoint Gormon.
/ Bell managed to have Nudge named
but Judge Carpenter declined to ap
point German, as he insisted that tw.
receivers would be sufficient.
All OF the proceedings pertaining t
1.-THE receivership were taken at the di
ERECTION OF Mr.. Walker. who admitte,
during the commissions investigatio,
that he was acting at the suggestion
LOT Mr. Moore. It is said Presiden
Ridgway had no authority from TIN
Hoard of directors to consent to the re
ownership. but acted solely on Nh
Walkers directions
J According to Mr. Walkers admission
before the interstate commerce com
!! mission, the matter never was formal
ly before the board Of directors AM
he did not seek to obtain that body