New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-08
CONDEMNS ALTON DEAL.
REPORT BY MR. STEAD.
CilH Remedy Possible, He Thinks
State Not Likely to act.

Springfield H.. April Attorney General
Stead handed to Governor Deneen to-day an
opinion on the nanipula tions of the Chicago &
Alton Railroad properties within the last few
years by Z H. Hartman and of his fnan-
| cial associates. including G. J. Gould, James
! Stllman ana Mortimer L. Schiff. The opinion is
given in response 10 a request communicated
from Governor Deneen on March - (soon after
! the return of Governor Denccn and Attorney
General Stead from conference with President
Roosevelt at Washnctom in which the At
torney General was asked To advise wha- his
opinions were in the matter and what action, II
any. was contemplated 10y the legal department.
of the state
After setting out ct some length The various
manipulations TO which the railroad corpora
tions and properties forming tho Alton system
We're subjected. Attorney General stead decides
there IS not the least doubt that a civil remedy
exists against the 'fnanciers who have wrecked
this prosperous railroad company. and. at the
expense Of innocen- stockholders and bono
holders have gathered To- themselves a harvest
Of millions of dollars"
Mr.. Stead Is doubtful, however whether II is
the province OF the state Of Illinois TO enforc"
the remedy. The revocation of the companys
charter. which, apparently. would he the naturd.
procedure on the part OF the state. would bring
most OF the suffering upon innocent stockhod
ers. Mr. Hartman and hts friends hasrg ai-
ready unloaded a large portion of their hold
ings. he SAYS
Mr. stead inclines to the belief that the rem
edy lies with the company itself. or IN ease OF
it's refusal To act. with some more Of It's
stockholders. This opinion however. is not final.
for the Attorney General specifically states that
II he should become satisfied upon further in
vestieaton that an effective remedy could he
enforced bv the state. he should not hesitate 10
institute proceedings. No opinion is expressed
as TO whether the members OF the Hartman
syndicate are criminay liable under the stat
utes Of Illinois.
According 10 the figures set out ia Ny Steads
opinion. Mr.. Hartman and his associates made
total profit OF $24 Gas GO3 out Of their opera
tions Involving the Alton propertice. As re-
suit of this enormous profit 10 themselves, the
railroad companies Of the Alton system are
thrown into hopeless bankruptcy. he says.
The Indebtedness Of the companies. shown
by the figures in Mr.. Steads opinion. has been
Increased to a tota! OF SSOG4G.21s since they
fell into Mr.. Harriman's hands. OF this amount
only SD. 100000. according to Mr.. Harrman's
own testimony, says the Attorney General. was
incurred for improvements. betterments or ex-
tension of the roads.
"Over $51 OO0, 900 Of this Indebtedness" says
the ATTORNEY General "or more than 20 per
cent Of the entire Indebtedness created by this
syndicate upon the properties Of these several
companies, was not created in furtherance OF
any legitimate purpose for which a railroad
company is or can be organized under the
statutes OF the State Of Illinois"