The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-02-09
ROCK ISLAND ROAD RECORD.

| ROCK ISLAND ROAD RECOHO.
| ". L. Amster, in the Investors
Record: Another chapter in the his
tory of the unfortunate Rock Island
recently has been closed with the
declaration of dividends on the two
classes of preferred stocks. And be-
| cause there has been some effort to
mislead stockholders and the public
as to the real nature of what has
| transpired in that connection it is
essential that the truth be told
The decision of the board of direc-
| tors on December %, last. to declare
dividends on the preferred stocks
was another decisive victory for the
stockholders.
! When stockholders completed the
payment of S30,000,000 for new pre-
ferred stock last July, and an addi-
tional $4,000 was paid in by the
old directors in settlement of the
suit brought against them by the
Amster committee, it was concluded
that the troubles of the Rock Island
at last were over With the promised
thought that the stockholders We're
about to take their property into
their own hands.
Had not a so-called harmony
board of directors been elected?
Had not stockholders been assured
that the old Reid-Moore control had
been endorsed? Was not the man
who had headed their fight chairman
of the executive committee, which
was to have charge of the financing
of the rejuvenated company?
But subsequent events-in fact
events which were in progress even
while the stockholders were congrat-
ulating emsevles-proved that the
, changing of the personnel of board
of directors sometimes is merely a
change in names-camoufiage 10
other words.
Chapters / and of Rock Isalnd's
history-the chapters dealing with
, I the manipulations and explorations
of the Reid-Moore interests. in the
: open, leading up to the receivershlI
need not be dwelt upon.
Chapter includes the shifting OF
directors last summer which was
, preliminary to the attempt to ellmi
nate Mr.. Amster from the board al
2 1.-THE annual meeting in November, bu'
the latter turned the tables and sue
cee.,ed in re-eiecting himself anc
S three others equally independent ane
staunch to the interests OF the STOCK
holders.
t Chapter may be given the sub
;. title of THE No Dividend" phase.
Shortly after the meeting IN NO
G yernber last which demonstrated
that hut for the failure of certain
= interests to fulfill pledges MADE e
:. the Arnster stockholders committee
and the apathy of other stockholders
: that committee would have elected
majority of the board there Degar
to appear evidences Of well planned
q attack upon the credit OF the com
! pany and it's securities.
There were differences that M
: dividends would be paid on the pre-
u ferred stocks. The Amster interests
knowing that the company was earn
ing twice the required dividend OF
the preferred stocks and was II
, splendid financial and physical posi-
: tion. paid little heed to these reports
Thev knew that the plan OF reorganl
: cation, which had been approved D.
the court, virtually made 1t oDngator.
1 upon the directors to pay prelerre'
: dividends, if earned.
The directors aligned against MI
D Amster and his minority of the boar
made it plain that they were OPPOSE
ia dividends, earnings or no earn
ines James A. Patten, former Chl
2 cago wheat Spectator whose piac
I on the board Of Rock Island was III
outcome of certain mysterious dires
: tors' meetings down in wall stree
+ last summer, in recognition OF M
!, friendship with old Reid Moore inter
u ests seemed to be the whip for III
! people whose tactics SO ciosey re
sembled those of the old regime
70 be identical. He did not hesltat
G 20 place himself on record 70 III
, effect that, should the company
tire to it's obligations. and shouid IN
board of directors give way 10 IN
nrgines of Amster, the ROCK islah
would be in receivership.
He declared for bght asalhs
g preferred dividends, no matter WIND
G earnings might be.
Came the day of the Decelhpei
= 1917, directors meeting Wnen ~
minority directors insisted that III
nsnaIly strong treasury assets, iarg
earnings and the provisions Oh u
t. reorganization agreement, deIiahue
II that dividends be paid on tne 'oi'
- nany's preferred stock.
At that meeting, while the ureih
~ tho minority group was faiiing
deaf ears, came the news lroi
!" washington that the interstate cor
MERGE commission had recommends ,ls
r., congress an increase In freigf
- ,ha federal financial aid nc