The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-29
TAKES FALLOUT OF HARTMAN
HIS WAY or RUNNING KANSAS
CITY SOUTHERN ATTACKED.


IN the foreign mail copies Of newspaper
called the Algemeea HdHdeisbldd published
In Amsterdam, Holland and dated April
49, This issue Of the paper contains a let
ter addressed TO Messrs kleinwert, Sons
a Co., OF London, and signed by Hermann
sieloken Of this city Yice-president OF the
Kansas City Southern Railroad, running
from Kansas City to Port Arthur, Tex.
sDutohmen' in Wall street, as soon as
thew had read the letter, called the atten-
ton of other persons to II, representing
Il 20 be an exceedingly interesting docu-
ment.
In the letter Mr.. Sielcken makes an edort
TO explain 10 the Dutch and English bond
holders In the Kansas City Southern, OF
whom there are a good many, why the road
il not paying better as an investment for
the bondholders. Mr.. Sieloken charges that
the road is being used by T. II. Hartman
and Others associated with him in such a
manner that il should do mo harm 10 its
neiabbors and not much good 10 itself ,
lie charges that the road has az no time
received any support from the present man
agement and that it's securities have been
sold by them regardless OF what they
would bring. t#
will be held in this city in the early part Of
Nav. and il is said that a determined effort
will be made at that meeting by the Dutch
holders 10 oust Mr. Hartman from the
ohairmanship Of the executive committee
Of the board of directors.
The vce-president asserts that the roads
affairs are practically managed at Mr..
Harriuhans dctation. The other direc-
Nka TlHaf lNn
tories. are John W. Gates, George j. and
Edwin Gould, Daniel &. Boisseyain, Otto
n Kahn, Stuart r. Knott, John Lambert,
John j. Mitchell, H. c. Pierce, Hermann
Sielcken. j. S. Wash and Henry p Vert
helm Mr. Sielcken, Mr.. Wertheim and Mr.
Boissevain represent the Dutch interests
on the board. There are. it is said. about
one hundred bJndholders in Holland.
Mr.. Sielcken goes back in his letter TO
1889, when an effort was being made to
reoreanize the road after 1t had gone into
the hands Of a receiver. There was, ne
SAYS, at that time a committee OF New
York security holders, headed 10y T. H.
Hartman, and a committee Of Philadelphia
security holders composed chiefly OF hush
ness men, having no other railroad in
terests.
When the Philadelphia committee finally
obtained a majority Of the stock Harri-
man and his friends, Mr. Sieloken says,
offered TO Join them, provided the Phila-
delphia committee would recognize them
in the composition Of a voting trust as well
as accept some OF their Suggestions regard
ing the amount Of bonds to be issued. This
proposition the Philadelphia committee
accepted and the bonds were issued as sug-
gested by Mr.. Hartman.
mo doubt" says Mr.. Sielcken, as trans
lated from the Dutch, "a great many stock
holders. feel that il a railroad is In the hands
Of MRs Hartman the ownera Of the stock
must have no further apprehension.
claim that the mana eSUnent Fl Mr.. Harri-
man and his friends Is very good where
their own money Is invested and at stake.
Nobody who knows Mr.. Hartman will
class him as a philanthropist in business;
In fact, such an expression would be a SER
ious insult to well known mercantile and
commercial principles"
Mr.. Hartman got control OF the voting
trust through an additional purchase Of
scurities upon the resignation Of three
members Of the trust. And then, the vice
president alleges, the railroad was not
managed by him as trustee for others,
but in an absolutely autocratic way. Not
even the semblance Of approval or disap-
prevail was wanted, Mr.. Seoken says.
Mr.. Sielcken cites some examples Of how
little the management Of the road under
Mr. Hartman has succeeded in improving
the finances Of the company.
A claim Of S35O,OOO against the road by
the Arkansas Construction Company was
paid in 1902 he says. The securities set
aside TO cover the claim we're allowed 70
remain In the company's treasury $50
bonds, 1000 shares Of preferred and 10000
shares al common. Money was borrowed
TO pay the claim. At the time the common
stock was selling for IS and the preferred
around 90. In December, 1894, after inter
est had been paid on the loan for several
years, the preferred set aside was Id at so
and the common at %, although the man
agement had maintained all along that
the property was improving.
Mr.. Hartman, the vice-president says,
excepted the chairmanship Of the board Of
directors without pay and repeatedly stated
that he was giving his time without com
Pensation, but after serving three years
voted himself back pay at the rate Of SIS 900
year and an annual salary OF equal amount
Back pay, the Wce-pfeeident says, Is
at no time justified in such a case, as the
statements showing the earnings and ex-
penses OF the road are thereby falsifed.
Il know Of nobody connected with the
road says Mr. Sielcken. -or any Of the
stockholders who have received any benefit
out Of the road during the past five years
except the chairman Of the board and a
counsel who never did anything In the in
terest Of the road.
THE importance Of the Kansas City So tn
ern Railroad,' he continues, 'can he behttled
by It's managers all they please. The presi-
dent Of the road was here a couple Of weeks
in the early part OF the year and advised
all his friends TO sell the stock, He spoke
openly against the road az being only a
coal and lumber proposition Of no i'm
portapce. Is il TO the interest Of the stock
holders and TO the real owners that its presi-
ent publicly belittle the property when he
o. an expert railroad man, knows betterl"