Poor investments forced the Everett-Moore syndicate to sell its shares in the AE&C in mid-1902. The company had formed a telephone company, but struggled to compete with the Bell Telephone Company. In addition, one of their construction companies went bankrupt, spurring a credit crisis in Cleveland. Creditors demanded pay, and the Everett-Moore group sold off several assets, including their shares of the railroad company totaling $200,000. The Pomeroy-Mandelbaum group still held a large share in the company and became leaders in its operation.