The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-10-06
HARTMAN ON THE Mp. CORNER
DENIES THAT HE CONSPTRED TO
FORESTALL THE MARKET.

wan, Tell What He Did In the stock he.
cause He Doesn't want To--Jacob II.
schiG knew OF No COrner-shoPt
Plaintiff suing Broker for Losses.
Edward Fl. Hartman and Jacob II.
srhifY testified yesterday before Referee
philip F.. Revele at 10 William street, in a
suit brought by John j, O'Leary, Chicago
stock trader, against Sternberger, Fuld 4
snn Of this city to recover $55 900, lost on
90 shares Of Northern Pacific stock sold
short before the panic OF May, 1901
The plaintiff is trying to show that his
shorts, which were covered at $3.50 and
s4oo were covered at too high price, the
general settlement price after the panic
being $50. He also says he was prepared
70 margin his stock then up to 1000 a
share.
Mr. Hartman denied that any attempt
was made by him to forestall or corner
the market in Northern Pacific at that
time. but he refused to answer many ques-
tions regarding the details Of the trading
in the stock in the period Immediately
preceding the panic Mr.. Schif also was
uncommunicative on many questions asked
bv the counsel for the plaintiff.
In reply to the usual questions as to his
occupation and place Of residence, Mr..
Hartman said that he was farmer" iv-
ing in Arden Orange county, and a rail-
road director in this city, SO years old.
But why" he added impatiently, as it
necessary for you to ask all these ques-
tions?"
He would not tell how much Northern
Pacific common he held on May 8, 1901, but
if he had any he didn't think, he said, that
there was anything like a million dollars
worth
He refused to say whether or not he
knew of the formation Of any association
or group Of men in the Street to acquire
Northern Pacific common. His refusal was
not. however, he declared, based on any
fear that he would injure his character. =.
Had you or anybody associated with
you been engaged in buying up Northern
Pacific common he was asked by henry y,
Wilcox, the plaintiffs lawyer.
Il refuse to answer. the witness replied.
why will you not answer
Bee ause l don't want to.
"Mr. Hartman" said Wilcox, we do
not want to inquire needlessly into your
to get at the facts in dispute in this case.
and il you won't answer, why, then, we
shall have to g. to the trouble OF compelling
you to answer.
go ahead that is what you will have
to do" Mr.. Harrim an retorted.
Did you or anybody associated with you
enter into a conspiracy to forestall or cor
ner the market?" he was asked.
Il did not, he replied
To tho best OF the WITNESSES reoollec-
ton, he had not been associated with Kuhn,
Loeb Il Co. in the purchase OF ownership
OF stock on May g. 1901. He conferred
on May 81 with Charles Steele Mr.. Schih
and others, but that conference had to do
with the consideration OF the best method
of allaying the apprehensons then extant,
and he afterward became a dir ector OF the
He denied that there was any strife or
contest between himself or others asso-
ciated with him and Mr.. Hill and others
relative to the control of the Northern
Pacific. When asked whether he knew
common was in May, 1901. Mr.. Hartman
replied that he was not conversant with
the prices at that time. He said that he
did not remember having bong hit any North
ern Pacific stock that month.
Mr.. Schiff objected to telling anything
that concerned Kuhn, Loeb Il Co.'s bust
ness, He denied that his firm had any
with j. p. Morgan Co:
with reference to the fixing Of the price OF
Northern Pacific common prior to Mayo:
ern Pacific stock on or prior to May 0, he
said. Because we wanted It. 1t was
not because 30 many brokers were selling
it short
what part did your firm take in trying
to corner the market in Northern Pacific
on May OF" asked an attorney for the de-
fence
Il never knew a corner in the Northern
Pacific stock" the witness replied.
Did Kuhn, Loeb Co, acting for others,
make any contract with others for the de-
livery Of Northern Pacific common stock
when it had practically all the stock in its
own hands?'
Itdid not We never had all the Northern
Pacific common stock in our control. Nor
did Kuhn, Loeb 4 Co. ever make loans Of
Missouri Pacific stock for delivery to them
selves by purchase.
Ludwig Fuld, a former member OF the
defendant firm, also was a witneso, The
hearing will be continued this morning,
Otto H. Kuhn OF Kuhn, Loeb d Co. being
the principal witnesses. 1t Is said that
more than forty Stock Exchange brokers
will be subpBnaed to testify before the
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