The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-04-03
The Hartman Affidavit.
(By the Associated Press.)

(By the Associated Press.)
! New York, April 1.-The affdavits in
the answer of the Southern Pacific Com
| pany to the suit of Talbot j. Taylor &
| Company against the Southern Pacific
and Union Pacific deny that the South
ern Pacific is operated in the interest of
1.-THE Union Pacific. The most important
of the affidavits is made by E. H Har-
riman. In it he sets forth that a mutual
| friend of himself and Edward Lauterbach
told him, Hartman, that James r.
Keene represented a pool holding 10000
or 175, 900 shares of Southern Pacific and
that Mr.. Keene himself held about 10000
shares; that they contemplated action
which says the affidavit would make
us a great deal of trouble un-
less we purchased said shares from them;
that he would sell the pool shares at
about 20 and his own shares at about Is. ="
Mr.. Hartman declares he replied that
he would not be forced by fear into any,
thing that would be adverse to the in
terests of the general body of the stock
holders of the Southern Pacific.
Otto II. Kahn, of Kuhn, Loeb & Com
pany, a director of the Southern Pacific
says in a sworn statement that Edward
Lauterbacn 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 20 or to start the pay
ment of dividends on the stock at a rate
of not less than four per cent. per annum.
Other affldavits by j. Kruttschntt,
fourth president and general man
ager; ]. C. Stubs, third vicepresident
and other officials are presented to show
that the Southern Pacific operated in
the interest of it's stakeholder and not for
the benefit of the Union Pacific.
Mr. Harrimans affidavit relates that
in the autumn of 1901, Edward Lauter-
bach introduced David Lamar to him,
Hartman and Lamar said he had
friendly relations with James r. Keene,
a large stakeholder in Southern Pacific
and that Mr.. Keene was contemplating
some action against the management of
the Southern Pacific.
He Lamar) stated that he would
like to work with me-" continued Mr..
Hartman, land that if / would make
an alliance which would be of some ad-
vantage t him, he had such in
fluenee over Mr.. Keene that he could
induce him not to instigate any ad-
verse action against myself and allied
interests. This proposition, Mr.. Harri-
man did not accept Several interviews
with James r. Keene followed. On this
point the affidavit has the following:
"Mr. Keene stated that he had a
large holding in Southern Pacific Com
pany stock that he would like to join
with me in purchasing the shares in
h,f he
be great deal of money made thereby
and that he would act for me either in
purchasing for our point account or for
myself if | wished it.
To this Mr. Hartman replied that he
believed sit would be a mistake to
create a speculation in the shares of
stock and advance their price to basis
that would justify the buyers in expect
ing dividend in the near future"
Mr. Keene then gave assurance that
he did not want to act in any way an
tagonistc to Mr.. Hartman. In the
autumn of 1900, Mr.. Hartman says he
was informed that Edward Lauterbach
and Talbot ]. Taylor would make
trouble for us unless we settled in some
way with them"
Mr. Hartman says he had an interview
with a mutual friend of his and of Mr.
Lauterbach and this man, who is not
named, explained to me that Mr.. Lauter-
bach had said to him that Mr.. Keene
represented pool holding about 10000
or 175. 900 shares and that Mr.. Keene
himself held about 10000 shares; that
they contemplated action which would
make us a great deal of trouble that
might he disastrous to our interests.
especially laying stress upon the large
expenditures we were making upon the
central Pacific portion of the Southern
Pacific properties unless we purchased
said shares from them: that he would
sell the pool shares at about 20 and his
own at about rs. l explained to his
friend that there was nothing in the
situation which we had to fear from
! those people. or in the management of
, the company which would justify any
criticism or objection upon the part of
any stockholders. and that | certainty
/ would not be forced by fear into any
thing they might do by recommending
course which would be adverse to the
interests of the general body of stock
holders of the Southern Pacific"
! Charles r. Keene, who is confined to