Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-06-06
INQUIRY INTO
ROCK ISLAND s
TR0UBLESENDS
Little Effort Made by Officials
and Members of Board to
Raise Money With Which to
Meet Roads Obligations,
l.v uoasso JOURNAL SPECIAL LEASED w,sS

Washington. June 8. - The Inter
state Commerce commission eonciud-
ed today its inquiry into the financial
affairs of the Chicago, Rock Island 4
Pacific Railway Co., which passed
into the hands of receivers six weeks
ago Officials and stockholders of the
company and others were examined as
to their knowledge of recent transact
tions leading up TO the receivership
Nathan 4. Alnster. elected a diree-
tor by minority stockholders. declared
he was the only member of the board
who seriously endeavored to raise
money to meet obligations of the road
falling due May /, last. He returned
to New York to report his success, he
said. only to find that the company
was in the receivers hands.
First Learned of Receivcrship.
"I went to the Rock Island offices,
he said, but there was nobody to say
anything to me except some people
moving about. / went out and saw
6n the ticker that a receiver had been
appointed for the company in chi
caeo. That was the first that /, as a
director, heard of the receiver going
to be appointed"
Amster produced a statement issued
by the receiver which he declared
showed that there was an excess of
earnings over fixed charges for the
remaining eight months of the calen-
dar year amounting to between four
and five million dollars, bearing out
his assertion that there was no neees-
sity for the receivership.
Statement by Nudge.
President II. L. Nudge Of the com
pany, who Is one of the receivers. de-
clared that the statement was not a
report of earnings, but a forecast Of
cash. showing the money the receivers
would need.
In view of the fact that the re-
ceivers contemplated asking the court
for permission to borrow two or three
million dollars to meet obligations
about July 1. he said, Il feel 1t un-
fair for the public to get an impress
sion TO the contrary,
Amster explained his sale Of 1900
shares of Rock Island stock tour days
before the receivers were appointed
bv saving that he had had a difference
with the broker in whose hands these
shares were and closed out all busi-
ness with him at that time. lie said
he owned over 1000 shares of the
stock.
Denver Post Figures Heavily.
Joseph W. Folk, counsel for the
commission, put an expert account
ant on the stand to testify as to any
"unusuar vouchers found in the Rock
Islands reports. The accountant
testified that he had found vouchers
on which $4,000 had been paid the
Denver Post for advertisements in
the editorial and news columns dur
| ing 19O5-1909. and that on the
vouchers for the first year were no
/ tations that there had been refund
to the Post of % cents per hundred
on paper shipped to it from Wlseoh7
| sin.
Two clerks of the First National
bank of New York, testified that each
| had held about $500 worth of stock
| of the Rock Island in January or
February, and that they had been
/ told they were holding 1t as dummies
for William II. Moore. Both assigned
! their stock in blank.
| Mr.. Folk presented also a partlai
stockholders list, which he said snow
! ed that some twenty clerks IN this
bank held 100000 worth of the
stock.
other witnesses heard today were
| Thomas NJ. Schumacher, chairman OF
the Rock Island executive commit
tee: J. Horace Haring, New fork
stock broker, and Silas II. StraWh, q
Chicago attorney.