The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-07-19

rowing resources had been heavily
strained BY. his purchases of NortherI
Pacific, which were tied up in this
Northern. Securities company while the
litigation was going on. This itiga'
ton promised to last, and did continue
for several years. Foreseeing this, and
tile funds already tied up, Mr.. Harriil
man had to turn to other sources for,
the money necessary to keep control of
his own railroad from being taken away
from him.
Pool Was Formed.
To this object, on Dec. IL, 1902, Pres.
ident Stillman of the National City
bank, Kuhn, Loeb & Co. and Edward
81. Hartman formed pool to tie up
the stock Of the Union Pacific railroad.
An agreement was made that, in ad,
dition to the stock which was already
in their possession under their con-
troll, there should be purchased $685.
100000 Of preferred stock, which should
be held in one block and voted together
with the other stock to retain the con-
troll of the Union Pacific in its present
hands.
The competition for the control has
been seen in, Wall street on the com.
mon stock, which rose in 1902 to the
enormous price of l13. Not many
years before it had sold as low as Az,
and later, in 1908, after the control
was secured and tied up, it fell to 85A.
The preferred stock was selling lower
than the common stock and had an.
| equal voting power. It was, there
fore, cheaper to round out the control
with preferred stock than common
Equitable Money Used.
Here is where the Equitable's money
came in. This money had to be raised
quickly, and before any, specific author
ization or the approval Of the. finance
committee, 100000 was taken from the
Equitable's treasury on Jan. 20, 1908.
Further sums were taken from the
Equitable directly and additional mil
lions were taken Indirectly thru the
Equitable deposits in the Mercantile
and Equitable Trust companies. These
moneys were first taken under color Of
q resolution previously passed making
Snyder committee on speculation,
with full power, to buy and sell stock
with the Equitable money.
1t may haye' occurred to Mr.. Harri-
man that some further and more def
| mite record should be made on the
transaction, and on Feb. 2, 1903, two
weeks after the money was taken, the
Equitable s records, passed a resolution
| buying from Kuhn, Loeb & Co. 5000
shares of Union Pacific preferred stock
at par. According to the Equitable y
records there were present at this meet
ing and voting in favor, President
Alexander, Vice President Hyde, Jacob
H. Schiff, Chauncey M. Depew and
Valentine P. Snyder.
Records False. Said Schiff.
. This is one of the records which Mr.
; Schiff swore is false. The preferred
! stock at that time was not selling at OF
, near par. The highest price that Union
Pacific preferred was quoted at in 1902
and 1908 was, according to the official
7 records of the New York Stock Elk
change, only 95A and purchase at pal
] would be away above the market price
Further, according to the Equitable I
records, which Mr.; schiff swears arr
false, purchases Of Union, Pacific stock
from Kuhn, Loeb & Co. by the Equit
able continued for some time. The pric.
t in every, case was 100. Altho on thu
! day of the first purchase at 100 the mar
: ket price was 90, and altho the marke
price continued to fluctuate, never 90
ing over 95A and the greater part 0.
. the Equitable IS books, which Mr.. Schif
: swears We're falsifed, each and ever,
!, purchase was made at the same price O.
. Hyde Furnished Money.
The fact as that following the bin,
pool formed by Mr.. Hartman, Mr.. Still
= man and Kuhn, Loeb & Co. in the fall O
: 1902 there was an agreement made be
t tween Mr.. Hartman and James Hazel
S Hyde by which Mr.. Hyde must furnisl
q a great part of the money, in return 70
). which Mr.. Hartman agreed to carry tn
;, stock for him and to give him part o.
the profits.
> Mr.. Hyde furnished many millions o
2 dollars of money, which came from tn
p 1Equitable Assurance society and tn
]. Equitable and Mercantile Trust com
e panies. In return he did not get a singl
:. share Of stock, and, according to hi
q own testimony, Mr.. Hartman took hi
e copy OF; the agreement and refused t
+ give it back.
II In order to make the Equitable
r books balance there was record in tn
t assets that the Equitable had the pre-
IS ferred stock in it's possession, and ther
f were the false entries made in tn
: books that the Equitable had bough
;; from Kuhn, Loeb & Co.
~ That is the way the matter stands to
day, so far as the Equitable Life As
, surance society is concerned.