New-York tribune., 1902-01-26
HARTMAN ON \. P. DEAL.
HE AND HIS ASSOCIATES GOT STOCK
FROM MANY HOLDERS-BOUGET
ONLY TO SELL AGAIN-COM-
MON INTEREST SUB
SERVED
SERVED.

Chicago Jan. 25.-When the second days in
uuiTy by the Interstate Commerce Commission
into the community of interest combination
OF the great railways Of the Northwest opened
to-day great interest was manifested. The
United States Court ROOM where the investiga-
ton was held crowded with well known
railway men from all over the country. all
eager 20 learn Of the details of the inner
workings OF the Northern Securities Company.
Much interest centred around f. H. Hartman,
svho organized the Southern Pacifc-Union Pa
cifc combination. and who WAS Mr.. Hills op-
ponent in the struggle for the Northern Pacific
Burlington control. Mr.. Hartman the first
witness. Other prominent railway who
gave evidence were W. s. Mellen, president of
the Northern Pacific. and George r. Harris,
president of the Burlington.
When Mr.. Hartman went on the stand the
line OF questioning by W. A. Day. counsel for
the commission led up to A statement of the
great Wall Street excitement last May, when
Northern Pacific stock went up TO 81. 900 a
share Mr.. Hartman had testified that the ore
gon Short Line. aided by the Union Pacific. had
purchased some 1000 Of Northern Pacific
stock, and that the Union Pacific. through the
voice of its directors. controlled the Southern
Pacific 1t was developed that all this Northern
Pacific stock. which was held in the names of
i II. Hartman and winslow Pierce was sold
the purchase had been made only to sell again.
and this brought from Mr Hartman the state
1nent that he was glad explain the so-called
"contest" in the New-York Stock Exchange
which resulted i'll BLACK Thursday"
Il don't think there was any contest" said
Mr. Hartman. Some Of us-the Oregon Short
Line people-thought it would be advantageous
to have an interest in Northern Pacific, and
purchased stock that lying loose all over
Hold l,x-fi fEnC and
TO seven thousand persons. We made no contest
for the control of Northern Pacifc-we pur-
chased majority of the capital stock. We pur-
chased prior TO the supposed contest and no
stock was acquired during the panic in May
DID NOT CAUSE PANIC.
Mr. Day tried to show that the contest for
Northern Pacific stock was the forerunner of the
panic on Change. but Mr.. Hartman insisted
that such not the case.
Some of the stock" he continued we had
bought in markets all over the world. Some
of this was on the way from these various mar
kets TO be delivered. In the mean time the
sellers borrowed"
Questions were then put that indicated job
bingH had been resorted 10 in the purchase, and
which brought the reply: The stock was pur-
chased In New-York from persons who bought
from owners Then when the so-called contest
found It difficult to fulfil the contracts. Our in
terests in every case gave these persons all the
time they wanted"
An attempt was made by the commission to
draw out statements to the effect that the final
sale Of Northern Pacific stock by the Oregon
Short Line Gas controlled by the Union Pacific
Southern Pacific syndicate) was only after an
understandings or a truce, with Mr.. Hill and
the; supposed interests that combated for
Northern Pacific in the panic
Mr.. Hartman said that after the purchase
was made he and his colleagues thought the
matter over again, and they thought better 10
SELL again. He implied that It made no differ
ence really who owned Northern Pacific. Com
missioner Prouty asked: IF you had secured
few more millions of Northern Pacific it would
have made difference, would IT not?"
we could have had it," the reply.
The questions to just why Mr.. Hartman
had disposed Of his Northern Pacific holdings
what was lost or made by the transaction and
case the holdings sold brought from Mr.
Hartman the response that natural conditions
controlled
He said he did not know of any gain made
except that his interests found out that they
were strong enough 10 hold their own in Pacific
traffic. He said his impression was that the
oregon Short Line had not lost by the transfer.
He said Mr.. Hill had given no assurances of any