The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-05

'He MOCK sIanu. the Wltness replie0.
IF ] had been consulted l would not
have done II the way 1t was done"
Ogden Mills. a director OF the Rock
Island. was the next witness. and when
questioned by Solicitor Folk admitted
that he was not present at any meet
ing OF the directors that authorized re-
ownership proceedings.
Was any receivership action author
ICED by the board of directors to your
knowledge?'
Not formally" was the reply.
Mr.. Mills testified that on April is
last he held 10000 shares OF the stock.
but that later-before the petition for
a receiver was nled-hc sold 5000 sha res
In the neighborhood of SO. which was
within 3 points Of the top
Mr. Mills Seised the Chance.
There was an artificial condition OF
the market created in a perfectly crazy
way. not founded on reason" said Mr..
Mills. some influence was pushing the
STOCK up. II was manipulation. I
thought l was entitled to take ad-
vantage OF the situation
Mr. Cntermyer asked Mr.. Mills
whether or not when he sold he knew
OF the fact that the petition for the
receivership already had been prepared.
WV TtDlltu he ulu not nave
this knowledge, but that the financial
, condition of the road was known on
April !. that all the banking houses in
New york knew of 1t and that every
pody mould have been aware that the
stock was not worth the price at which
1t was being bought.
DC you want us to understand that
YOU had no intima lion OF the receiver
snip proceedings" inquired Mr.. Unts.-
myer.
Mr., Mills replied that he had ,yu,.
out that he had the benefit of the inan.
cial statement, which was common
knowledge.
Mr.. untermyer called the witnesses at
tention TO the range of prices of Rock
island stock. which on March 30 was
selling at about 20 and which ran up
to 80 just before the receivership papers
were filed.
The witness admitted that he knew
or this range Of prices and that he felt
the market was being rugged. but that
he did not know who was rigging IL
and that even now he would like to
ind out.
Mr.. Untermyer asked II the witness
was aware that from March 20 to Aprn
20 more than 1000. 900 shares of Rock
Island stock were dealt In. Mr.. Mills
suggested It was part OF "a general in
fiation." but Mr.. Untermyer questioned
this and MU Mills admitted that there
had been no general upward tendency
OF stocks at that time.
"Messrs. Reid and Moore were associ-
ates Of yours was the next question.
The witness replied In the affirmative
and then Mr.. Untermyer asked him II
they were responsible for the manipu-
lation.
Exonerates Reid and Moore.
IT nave never heard that they were
and l do not believe that they were,'
was the reply.
.. Did you sell because you had al
vance information OF the receivershipc
A. l did not "a advance Information
OF the ~receivership. sold because I
did not think the stock was worth Tho
price being bid.
q. Did you think you had a right to
sell on inside information you had as
nation that was not available to all.
ID you mean to say that people
traded so extensively In this stock with
the knowledge that a ~receivership was
to he asked for?"
MIR. Mills repeated that the financial
condition Of the company was known.
He said he was In West Virginia whom
he first heard Of the receivership and
that he had obtained the Information
from Z. G. Hine. who wrote to him.
Solicitor Folk asked Mr.. Mills whether
or not he believed that II the directors
OF the Rock Island company had made
the same intelligent effort that was put
forward by the directors of the Missouri
Pacific they could have voide the re-
ownership.
Mr.. Mills replied that some things
had been expected OF the new directors,
but they had failed to come across"
Referring &c rumors that filled the
street about the rosy future OF the Rock
Island company. Mr.. Untermyer asked
the witness who set them afoat. whether
the directors were not in a Measure re-
sponsible.
II never heard II from but one d.
rector" was the reply.