The Savannah morning news., 1903-04-02
FIGHT NOW FIERCE
BETWEEN WARNING INTERESTS
IN SOUTHERN PACIFIC.
HARTMAN MAKES A CHARGE
THAT IGEENE TRIED TO FORCE
HIM TO BUY HOLDINGS.


in the Interest of the Union Pa
cific-Harriman's story of How
Keene Sought to SeII-Keene In
dignantIy Denies This-Says He
Was Approached First.
New York, April 1.-The affidavits in
the answer of the Southern Pacific
Company to the suit of Talbot ]. Taylor
& Company against the Southern Pa
ciflc and Union Pacific deny that the
Southern Pacific is operated in the in
terest of the Union Pacific.
The most important of the adffidavits
is made by E. H. Hartman In it he
sets forth that a mutual friend of him
self and Edward Lauterback told him,
Hartman, that James r. Keene rep
resented pool holding 100000 or 49,
600 shares of Southern Pacific, and that
Mr.. Keene himself held about TO-
900 shares; that they contemplated ac-
ton that, says the affidavit would
make us q great deal of trouble, unless
we purchased said shares from them;
that he would sell the pool shares at
about 20 and his own shares at about
49,"
Mr.. Hartman declares he replied
that he would not be forced by fear
into anything that would be adverse
to the interests of the general body of
the stockholders of the Southern Pa
cific.
Otto H. Kahn, of John Loeb and
Company, a director of the Southern
Pacific, says in a sworn statement that
Edward Lauterbach told him there
were only two ways to avoid hostile
proceedings, either to buy the holdings
of the Keene pool at the price of about
| TO- or to start the payment of dividends
on the stock at rate of not less than
four per cent. per annum.
Other afidavits by J. Kruttschnitt,
fourth vice president and general
manager; j. c. Stubs, third vice presi-
dent and other officials, are presented
to show that the Southern Pacific is
operated in the interest of it's stock
holders, and not for the benefit of the
Union Pacific.
Lamar Had "a scheme.
Mr. Harrimans affidavit relates that
in the autumn of 1901 Edward Lauter-
bach introduced David Lamar to him,
(Harriman) and that Lamar said he had
friendly relations with James R. Keene,
large StOckhOlder in the Southern
Pacific, and that Mr.. Keene was con-
templating some action against the
management of the Southern Pacific
"He Lamar) stated that he would
like to work with me-" continued Mr.
Hartman, "and that if I would make
an allowance which would be of some
advantage to him that he had such
influence over Mr.. Keene that he could
induce him not to iustigate any ad-
verse action against myself and allied
interests"
This proposition Mr.. Hartman did
not accept; several interviews with
James r. Keene followed. On this
point the affidavit has the following:
"Mr. Keene stated to me that he had
large holding in Southern Pacific
Company stock; that he would like to
join with me in purchasing the shares
in the market; that he believed there
could be a great deal of money made
thereby, and that he would act for me
either in purchasing for our joint &C
count or for myself, if 1 wished it,"
Hartman Refused Him.
To this Mr.. Hartman replied that
he believed it would be a mistake to
create a speculation in the shares of
stock and advance their price to a
basis that would justify the buyers in
expecting a dividend in the near fu-
ture."
Mr.. Keene then gave assurance that
he did not want to act in way an
tagonistic to Mr.. Hartman. In the
autumn of 1902, Mr.. Hartman says
he was informed that Edward Lau-
terbach and Talbot j. Taylor would
make trouble for us unless we set
tied in some way with them"
Mr.. Hartman says he had an inter
view with mutual friend of his and
of Mr.. Lauterbach, and this friend,
who is not named, explained to me
that Mr.. Lauterbach had said to him
that Mr.. Keene represented a pool
holding about 10000 or 900 shares,
and that Mr.. Keene himself held
about 10000 shares; that they contem-
plated action which would make us
a great deal of trouble that might be
disastrous eto our interests, especially
laying stress upon the large expendi-
lures we were making upon the Cen
trail Pacific portion of the Southern
Pacific properties, unless we pur-
chased said shares from them; that
he would sell the pool shares at about
20 and his own shares at about rs. 1
explained to this friend that there
was nothing in the situation which we
had to fear from those people, or I'm
the management of the company
which would justify any criticism or
objection on the part of any stock
holders, and that l certainly would
not be forced by fear into anything
they might do by recommending
course which would be adverse to the
interests of the general body of stock
holders of the Southern Pacific"
Kcene Denies II.
James r. Keene, who is confined to
his room at the Waldorf-Astoria, made
public tonight the following telegram
sent by him tonight to Edward Lau-
terbach, his counsel, who is in Nash
Vile:
Hartman and Kahn affidavits pub
lished broadcast. / expect you to fur
nish the Associated Press with your
answering affidavit Immediately, set
ting forth the true fact that no offer
to sell stock was ever made to me, ex-
cept in reply to their request to pur-
chase the holdings, which I represent
ed, and that You were requested by
them to a ascertain the cost of same,
and that / absolutely refused when I
made answer, to sell my individual
stock at any price"
Lanterbach's Statement.
Mr.. Lauterbach at Nashville tonight
made the following statement: The
affidvaits of JAS r.. Keene. Talbot
]. Taylor and myself were filed, show
ing that Mr.. Keene owns at least and
has held for some time 900 shares
of Southern Pacific Individually and
that Talbot J. Taylor owns an equal
amount irrespective of any interest
I'm the pool, which would increase their