The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-02
Mr.. KEENE had TWO PRICBSY
as FOR ME, 10 FOR THE POOL
SAYS MR.. HARTMAN.


TO Sell His southern Pacific at An
Price-siiGhty interesting Amdavit
About the Industry Of Edward IAutes
bach and David Lamar 40 Recoucaiis
tors-inj Junction Arguments Beguu
Al Nashvilie-Iauterbach says Keen,
and the Pool Own $50. 900 SHARES
| A lot Of mighty interesting information
about the Keene Southern Pacific pool
Mr. heene himself. Mr.. Edward Lauterbaot
and MIR. David Lamar Ia contained In som,
OF the afiidavits, made public here, which
were fled at Nashville yesterday on behalf
OF the Union Pacific in the injunction sui,
brought by Talbot j. Taylor 4 CO., through
Mr.. Lsuterbach as counsel, to prevent the
Union Pacific from voting It's Southern
Pacific stock at the approaching Southern
Pacific election.
Mr.. keene has been making statemsnta
and President Hartman OF ,he Union Pacific
who has been saying nothing, now takes q
turn. under oath Mr.. Hartman savs
among other things that Mr. LauterbacA
approached friend OF his with the state
ment that FIR. Keene represented q pool
OF 10000 10 i75O)o shares OF Southern
Pacific aud held about 10000 shares him
SELL and that unless the Union Pacifi,
interests bought the pool stock at 10 and
heene's at rs action was contemplated
that would make trouble for them
Mr.. hecne, on the other hand, declares
that he was approached by Mr.. Hartman
and Mr.. Kahn with a proposition to pur-
chase the stock he represented, and that
he refused to soil his own stock at any
price. He telegraphed personally last
night to Mr.. Lauterbach at Nashville, di.
recting him To publish answering aifidavits
TO that effect.
FIRsr. SOUTHERN PACIFIC rs RON IN rrs OWN
INTEREST
MIR. Harrimans affidavit vigorously d.
nies all allegations made respecting the
working of the Southern Pacific lines In
the interests Of the Union Pacific. He
denies that any Of the expenditures for i'm
provements complained Of were prompted
by consideration for the Union Pacific.
but asserts that they were demanded by
the interests OF the Southern Pacific Alone
and wholly irrespective Of any relations
between the two systems.
They were planned before the Union
Pacific became interested and were de-
signed and recommended by Southern
Pacific officials and were authorized bv
Mr.. Hartman only after a thorough per
sonai examination OF the lines, whereby
cessity Of the improvements. He denies
emphatically the allegation which is such
conspicuous feature OF the complaint
to the effect that the Union Pacific intsrs1S
were planning 70 take over the Central
asserts that no such step has been con-
templated or even discussed. Tho whole
tenor OF the anidsvit u strongly assinst
the charge that the interests Of the Southern
Pacific are being subordinated to the Union
than in its own interests or that tAere n
any conflict between the interests Of the
two systems. Mr.. Hartman goes on.
LAUrERBAcH SENDS LAMAR AROUND.
.One evening in the utumn OF 1901, Mr..
Edward Lauterba oh called me at my house
on the telephone and stated that q friend
OF his had q matter Of importance TO oou-
municate to me and he would like me to
have an interview with the party at onCs.
To this / assented and during the eysuinr
the card OF Mr.. David Lamar, accompanied
by card OF Edward Lauterbach identifying
him. was presented to me. i saw Mr.
Lamar for about ten or fifteen minutes,
friendly relations with Mr.. James H. Kssne.
who had large holding in Southern Pacino
and was contemplating some adverse 60
uon against its management. and that he
Lamar was assured that there could D.
obtained an injunction against the Union
against the Georgia Central, in which latter
case Mr.. Lamar stated he had been an
influential and important factor.
He stated that he would like to work
with me and that Il would make an alliance
which would be OF some advantage 10 him
ne had such influence over Mr.. Keene that
he could induce him not to instigate anv
adverse action against myself and allied
! informed Mr.. lamar that did not ~
hat could do anything regarding The mat
er. but that II / should change my mind
. would let him know. / walked to the
ioor with him and he was very inaistent
3 TO when l would again communicate
With him. l finally took his telephone
ext day, which did. and stated to hin
hat had no desire to pursue the matter
urther.
AN oFPKR FROM KEKNR.
About that Same time I had several
Interviews with James X. Keene, broueht
bout at the request Of others. Mr.. KsSnS
outhem Pacific Company stock; thaf -
'ould like TO join with me In purohasinr
no shares In the market; that &c believS3
here could be great deal Of money msdo
hereby and that he would act for me- sitAer
! purchasing for our joint account or Tor
lysef IL ! wished 1t; that it would BE- ~.
antageous for the Union Pacific 10 ~
j Southern Pacific stock and iaeus NJ
per cent. bonds therefor, and stated thsf
, was an adept In carrying out succsuefui
rye stock market operations; that he Nd
lown this capacity especially In the unantr,-
alton OF United States Steel stocks.
ErNE INFORMED ABOUT RAILS AND noxnrrn
Il carefully explained to Mr.. Keepe tn
quirements Of the Southern Pacific pron-
I les, such as the replacement of old Hsht
Ills with new heavy ones; new and heavier
uipment. both motive power and car. To
place old small-capacity ones; that in
der TO carry this equipment Of larger
pacity the track would not only reouire
avier rails, but additional ballastine and
newai OF ties. heavier and new steel
idges to replace old light sts el and wooden
the lengthening Of present Ode
scks, and additional ones, az well as addi.
nal second tracks; the remodellinR and en-
'ging OF terminals. as well as the elirnI.
ton OF grades and curvature, and that
the surplus net earnings for some time
'uld have TO be applied for such needed
luirements, Improvements and repairs.
d ADVISED AGAINST BULL SPECULATION.
That ! believed il would DO a mistake
create a speculation In the shares Of
'ck and advance their price to q basis
u would Justify the buyers In expecting
dividend In the near future: that Il vas