The Lamar register., 1919-03-26

DETRACT FROM
The ads of the Inter1nountain Company in the Daily
Gmmer fearful and touching pleas to the of
Lamar not to inure their credit they can't get any
money to spend in Lamar No taxpayer need have the
slightest fear that 1t is impossible for them to
njure the ntemounain credit in the slightest degree for
the simple that there amt such animal. What
of credit the company may have had before Mr.
Dest himself testified in the hearing in Lamar had been
utterly destroyed by his act in giving first mortgage
the concern to of bankers who were either
unable unwilling to continue their credit and that no
other ban ing firm would think of extending credit
long that firm held prior claims In this connection
offer the senographic report of Mr.. Dests
testimony the subject of ntemountain financial affairs
Every taxpayer by it that the lnermountan has
had credit for past and prospects for
future improvement In fact if people listen to their
false plea there will be no hope for Lamar securing relief
from the unbearabe conditions for to
Read what Mr. van Diest said under oath:
Mr.. Holland: So you have 81 lsOO,ooOOO authorized
but issued?
Mr. van Diest: Yes sir
Mr.. Holland; Has effort been made in the last
Mr.. Diest: Yes sir, effort made to sell the
bonds We had contract with firm of bankers in New
York formal contract for the purchase of the bonds This
contract made in l914I think the date December
til May-Aprl May-of 1917 and shortly after the
themselves in position they these
agreed upon and did for short time thereafter take
period of approximately four five months thereafter
could not give the exact date From that time on mat
large block of bonds taken with the Electric Secr
tiles Company of Boston and New York. and after much de
lay, three months they found they could not dispose
of their securities. The the Electric Securities
Company in the purchase of securities for other
companies they purchase blocks of securities and then
those securities collateral for the issuance of their
securities until those purchases become mare and reach
where they be resold and their securities
issued against them qudaed and they found after
three months of effort that the companies who had been
putting out their securities refused to take more of
their securities account of conditions and the fact
utility longer saeabe consequently they
finally decided they could not take ours we were at that
time only of six companies that to be
taken in issue of securities issued in lots of $780,
10000 a million dollars at time
Mr.. Holland: What the name of the firm that The
ntermountan Railway Light and Power Company had this
underwriting agreement with which you refer formal
contract?
Diest: Liggett, Drexel and Company; that is
the present of the firm The original Lig
gett, Hichbon and Company.
Mr.. Holland Was that at that time considered good
firm?
Mr. van Diest They complied with their contract grad
uay to extent of purchasing something over million
dollars of our bonds.
Mr. Holland: And that company refused to carry
its agreement?
Mr.. van Diest: Yes sir.
with the company offering its securities elsewhere?
Mr. van Dest: Yes sir, naturally.
Mr.. Holland Explain why?
Mr.. Diest: Because of bankers will
undertake the sale of securities of corporation in which
of bankers holds block of securities because these
lower price than they contemplated retailing them for and
that would necessate agreement between the
other agreement.
Mr. Holand So the ntermountain Company
fectivey blocked SO far financing concerned?
Mr. van Diest Except in small way and such
sstance could be secured from local bankers.
From the above it will be why when Judge Hilyer
asked Mr. Dest the direct question: Have the funds
the Improvements been secured? he parried
question repeatedly and when said hoped
able to get the money.