Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-02-26
E. H. Hartman SheWs
Amazing Nerve of High
Financiers.
WAS MERELY TO SELL
Fish 0usted, He Says, Because
He Used Funds to Pad
Reports.

New York. Feb. 2G.-Edward H. Har-
riman was today the principal witness
before the interstate commerce com
mission investigating into the affairs
of the Union Pacific and allied lines.
Asked il he thought il right to put
upon the public 4 large issue of Alton
common stock which never would. and
never could, pay dividends, Hartman
quietly asked Did we ever tell the
public the Alton would pay divi-
dends?"
Hartman said he knew of no record
To show the syndicate in any way was
obliged to take the bonds of the Alton
before September. 1899. but was ce"-
tain the syndicate members were
bound to take the bonds AT 60.
Declined To he Drawn Far.
Kellogg continued the attack on the
issue and sale of Alton bonds, but wit
ness declined to be drawn very far.
He said he was absent from the cOun-
try and did not arrange the de'ailS. He
denied he had Teadjusted or reorgal
lied the Alton Railroad company His
responsibility was no greater than that
of his associateSs
Tells of OustinG of Fish.
Hartman told the S'ory of the de
posing of President Fish from the Hi
nois Central. which he said was done
by the board because of Fish's repeat
ed use of the roads funds to pad trust
company statements and his disregard
of the desires of the directors.
Bought All They Needed.
Regarding the Southern Pacific and
operations by which the Union Pacific
interests acquired its holdings, Kellogg
asked:
why did you buy just a little less
than majority of that stock?"
Hartman replied it was all they
needed. For their purposes il was rs
sufficient as a majority of the stock.
Trnced sale of stock.
Kellogg traced the purchase OF the
Southern Pacific stock by the Union
Pacific and Oregon Short Line. coming
down TO the famous sale of 30O,UOt
"The sale was made on a reciprocal
agreement made with Rockefeller,
said the witness. by which Rockefeller
could sell us the stock back on May !
1904, if he desired ar the same pric,
with interest and a commission of 3,
of | per cent, and We could take j
back. Rockefeller paid sG,00C,0O0 il
fC
was a conditional sale. purely prOteC
tive measure
TO BaIk SpecuIatOrs.
Hartman frankly admitted the trans
fer of stock was to place it in tn
hands of someone who would ac
against a speculative pool that threat
ened the control of the property.
bought in Competing Line.
Hartman testified the purchase G
$lO,OO0,000 in Santa Fe stock wa
made as an investment. "It was in
competing line. | am sorry to- say,
said the witness. Witness said he di.
cussed the matter with Mr.. Morowit
of the Santa Fe, who had said raj
roads should not destroy one anOthe
but establish closer relations.
Did Not Originate Term.
Hartman denied he was the authC
of the term Community of interest
and said he preferred common inte
est Witness was questioned at lengt
as to the relations between the UniO
Pacific and the Santa Fe. and then {
to the joint management of the Ca
iornia and Northwestern.
Profits 500 100000.
New York. Feb 26.-E. H. Harl
man told the interstate commerce cor
mission yesterday how he. with thr'
others. bought the Chicago & Alto
railrpad for $3G.OO0.OO0 and sold it
the Union Pacific for between S13'
100000 and $40 0On OOO.
When the commission tried to fl;
ont who got the difference between Il
S3G,000,000 and the $l40.O00000 NJ
Hartman refused TO say.
Mr.. Hartman also told the comm
sion how and why the Union Pacii
paid $145,O00.000 for stocks of ii
Northern Pacific and the Southern F
cific. and how and what with it boug
$27000.00O of Oregon Short Lii
bonds.
Seeking for Light.
The interstate commerce comm
sion Is endeavoring to bring to lie
the methods by which the enormo