Los Angeles herald., 1907-03-03
HARTMAN TALKS
OF INVESTIGATION
SAYS METHODS EMPLOYED
ARE UNFAIR
Railroad Magnate Declares There Is
No Incentive to BE Successful
in View 'of Recent
Events
BY Associated Press.

BY Associated Press.
WASHINGTON. March 2-E. II
Hartman, who is in Washington foi
few days, in discussing the recent
! investigation by the interstate com
merce commission in New York, today
said:
There was not a single new point
! brought out in the inquiry. 1t was
| simply a rehash of matter which was
given wide publicity several years
! ago. This continual reform agitation
shows the animosity that exists today
| against men and corporations that
have made a success. The interstate
commerce commission could produce
| far better results if the members
would cooperate with the financial in
terests of the country instead of an
tagoni2ing them.
I'm view of the unfair methods of
the administration, as carried out by
the commission, there is no incentive
for a man to be successful, but l am
sure that in the end the American
spirit will prevail. That is more to
the purpose than a square deal We
may have a square deal but unfair
play. There seems to be a tendency
among unsuccessful people to assail
those who are successful
''All the so-called charges made at
biit lCNOIL llOtil liiB III NtW 1OTh are
fully covered in the application in Oc-
tober, 1000, for listing the Chicago G.
Alton railway securities in the New
York exchange and every point brought
by the interstate commerce commission
the other day was given publicity at
that time. This circular to which 1
refer mentioned the fact that S31, ,9SS, 900
in per cent bonds were sold to the
stockholders at 65, and that the
1T1nJnt 900 1AA 177 f6 that 1o1
been charged to income, was properly
charged to construction.
Short Line Expensive
"It was stated at that time that the
charter provided for new construction
and that the line had been surveyed
but had not yet been constructed. 1t
cost the Chicago & Alton for the St.
Louis, Peoria & Northern Railway
company for fffty-seven miles about
$42, 100000. There was expended upon
the property about $22OOO,OOO, the pro-
ceeds of the sale of S31, 900 of re-
funding 3s and the collateral trust
bonds against which $7,000000 of the
refunding IS produced $26 000, ,000 maxi
ing total of $9O,OO0OOO
LAS against that there were issued
of the Chicago & Alton Railroad COM
pany the new company $22, 900, 900 of
31a per cent bonds, $20,000,0 900 of pre-
ferred stock, 1000, 900 of common stock
and $45,OO0000 of per cent bonds of
the Chicago & Alton Railroad COM
pany's refunding 3s, or total of $107,-
900, 900.
ITO this might be added $4,000, 900
of equipment trust notes, but the lat
ter are being paid out of the income,
so that the amounts are withheld from
the security holders until the equip
ment trust notes and bonds are re-
deemed, and therefore it is not alto
gether capital charge So it would
seem of the $107, 100000 of security is
sued $9O0OO,OOO has been paid out.
Amounts Not Included
''There may be between $4,000, 900 and
$2,500,000 obligations not included in
the above Including this it would
make the amount of obligations to
date about $110, 100000, instead of $1O7,-
000,00 Our payment to security hold
ers has not increased, taking into ac-
count S22,0OO000 of new capital put in
the property.
THE annual increase in the interest
payments and dividends is $S0O,0O0 at
the most, after spending $22, ,0O0 900
upon the property. This has been in
creased threefold because of the in
crease in facilities"
Then Hartman pointed out that the
Chicago & Alton listing in the circular
referred to the payment of the 30 per
cent dividend upon the preferred and
common stock
when this point was brought up at
the New York hearing" he said, ''the
interstate commerce commissioners
thought they were developing some
new and startling facts, when as
matter of fact the whole thing was
ancient history"