Omaha daily bee., 1903-04-02
HARTMAN RESISTS HOLDUP
Claims Ksene Tried TO Force Sales Of Poole d
Southern Pacific Stock.
OTHER OFFICIALS BACK UP PRESIDENT
CsPitalistic Ring Alleged to He Will
ing TO stop suits ~ Cash Pur-
chasers Are Forthcoming
or Dividend f. RSid.

NASHVILLE, April LIN the Keens suit
against the Hartman interests which was
opened here today a number Of afhdavlts
were filed. Those on behalf Of the Southern
Pacific in answer to Talbot Taylor G. Co.
r'ny that that road is operated in the in
terest Of the Union Pacific.
The most important Of the af1davits is
made by E. H. Hartman. In It he says a
mutual friend told him that James r. Keeue
represented a pool holding 40 900 or IT'S 900
shares of Southern Pacific and that Mr.
Keene himself held about 10000 shares; that
they contemplated action which would make
us a great deal Of trouble-unless we pur-
chased said shares from them that he would
sell the pool shares at about 20 and his
own shares at 7S
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 stockholders Of the
Southern Pacific
Acts Solely for Stockholders.
Mr.. Hartman further denies that any of
the improvements Of the Southern Pacific
complained of we're prompted by considera-
tion for the Union Pacific. but were planned
before the Union Pacific became interested,
and were designed and recommended by
Southern Pacific oficials and we're author
lied by Mr.. Hartman only after a thorough
personal examination of the lines, whereby
he became convinced Of their absolute nee
essity.
He denies the allegation that the Union
Pacific interests were planning to take over
the General Pacific lines from the Southern
Pacific and asserts that no such step has
been contemplated or even discussed.
Mr.. Hartman then relates that in the
autumn of 1901 Edward Lauterbach intro
duced David Lamar to him, who said he had
friendly relations with James r. Keene and
that Mr.. Keene was contemplating, some
action against the management OF the
Southern Pacific.
He (Lamar) said he would like to work
with me-" continued Mr.. Hartman, land
that II I would make an alliance which
would be Of some advantage to him. that
he had such influence over Mr.. Keene that
he could induce him not to instigate any
adverse action against myself and allied
| interests"
Keene Suggests Speculative Pool.
This proposition Mr. Hartman did not
accept. Several interviews with James r.
Keene followed. On this point the af1davit
| says:
MI. heene bIaptQ TO me Ln8L ne mao a
large holding in Southern Pacific stock.
that he would like to join with me in pur-
chasing the shares in the market. that he
| believed there could be a great deal of
money made thereby and he would act for
me either IN purchasing for our joint ac-
would be advantageous for the Union Pa-
| cifc to take all Southern Pacific stock and
Issue its per cent bonds therefor, and he
stated that he was an adept In carrying out
| successfully large stock market operations
| and had shown this capacity especially In
/ stocks
To this Mr.. Hartman replied that he be-
lieved ''it would be. a mistake to create
| speculation in the shares and advance their
! price to a basis that would justify the buy
ers in expecting a dividend in the near fu-
ture; that it was also necessary to make
such repairs and improvements from sur
plus earnings so far as they would go in
order to establish for the company a basis
OF credit upon which 1t could refund the
bonded indebtedness Of its subsidiary COM
panies, a large portion Of which would
mature In a few years"
! Mr.. Keene then gave assurance that he
did not want to act in any way antagonistic
to Mr. Hartman. In the autumn OF 1909
Mr.. Hartman says he was informed that
Edward Lauterbach and Talbot ]. Taylor
would make the bill for us unless we set
other Omcers support.
Otto H. Kuhn of Kuhn, Loeb & Co., a d.
rector of the Southern Pacific, says Ed
ward Lauterbaoh told him there were only
two ways to avoid hostile proceedings
either to buy the holdings Of the Keene
pool at about 10 or start the payment Of
dividends on the stock at not less than 1
per cent per annum.
other affldavits by ]. Krutschnitt, fourth
vice president and general manager; ]. c.
Stubbs, third vice president, and other on
cials are presented TO show that the South
ern Pacific is operated in the interests Of
its stockholders and not for the benefit OF
the Union Pacific.
Two days at least will be required for
the arguments. Afndavlts In support Of the
bill in the case will be fled during the day.
After the afldavits had been read Mr.
Lsuterbach, representing the Keene inter-
ests. presented his argument He was fol-
lowed by Judge Humphrey for Hartman
Judge Humphrey had not completed when
court adjourned.
Keene Denies Oner to Sell.
James R. Keene. who Is confined to his
room at the Waldorf Astoria, made public
tonight the following telegram to his
lawyers at Nashville
Hartman and Kahn affidavits have been
published broadcast; ] expect you to fur
davit Immediately, setting forth the true
| fact that no offer to sell stock was ever
made by me except IN reply to their request
sented and that you were requested by
them to ascertain the cost Of the same and
answer. to sell my individual stock at any
price