New-York tribune., 1907-02-26

$50 that y2u have Outstanding ding in securities tiles
chase socx sub stantiaIy Slsoc000O Of securities Of
Ing to my explanation. that is correct;
Q.-FroIp whom was this stock puTchaased; Of the the
that was purchased from Kuhn, Loeb & Co. as
wei did Kuhn. Loeb & co. get t from the
Q-Y11 don'f know? Al have no absolute
a6 a aa about @ fSa6s R a6sse 5R ssr fsf Fsa
teress HeS & sir ad one So So9feTenoe ofhS5d Wi5d
visit up there. and called on Mr. Cassatt
ohio Doj2 the purchase by US Of the stock they
had sold 10 Kuhn. Loeb q 20. ., .,. r.a tho
Pennsylvania COMPANY? AmN0t sxaGtyi no.
statemen5s ali show that. presume III they do
ton with Mr. Casssltt? Al think It was-I am
not sIre-it either the first part OF September
QAhd The stock notice vas bought boz bts imme- 6op2e
ea5ey eb985y.ee e5sr mat eli SRaf Of a inns
Qdm m oq oc aPd Mr. b Ga5Ts1 not taf daR 9R2uf feco Se
iect that we did. think .o,o eu,,,
the PennsyTa o,,r Y6pe whatever
ions other than expressed in this letter between
& * t9oO q &c See SoqT 'o ' S
QWas the any nder5ading ga d4ecg re bSve or the the
right t. buy this stock back? A-No; not from us
about {Ga f6at! nsysr &o. 2aa s4 any 'a WIN MI Ssa'
QNNor would my one oase. far as you know?
oEYoI did not? A--No; it was, clean trans
acton SO was aF Bought @ T as investment
also. OF the Union Pacific or 10 acquire eonnec-
tion? A.-Well, il was an investment made say
cifr? A&WeiI should correct thar. 1t is not
connecting line; it IS a continuous line through
you lad undpubtedy in your mind the NE
nos Central? A,-The Illinois Central and North
o"Hs the Connections between the Baltimore &
meeting line. line that you know? At is
co6tinuqus me, you i nlighd say 7,,r,,,, o.t,or
companies. yes.
THE CHICAGO & ALTON PURCHASE.
Mr.. Kellogg turned the inquiry to the pur-
chase by the Union Pacilr in 1904 of 1O3,43l
shares Of Chicago & Alton stock and Mr.. Har-
rrnan said the stock sold through Kuhn,
Loeb & Co, with the aid Of a committee COM
posed of John A. Stuart, John ]. Mitchell and
himself When the witness was asked If he had
sold any Of his own Chicago & Alton stock
John G. NIiIburn, of counsel objected and ar
gued that the commission did not have the
right TO inquire into Mr.. Harrfman's personal
stock transactions. There was a long discus
sion Of the question. in which members of the
commission took part. The commission decided
70 wait until after recess before ruling on the
question.
Mr.. Hartman. resuming his testimony. said he
became interested in the purchase of Chicago
q <A4tOLL SloCh III lCSS NIlSH Ile company laU
outstanding securities of the face value of about
S39.000O00 selling at between 40 and 90. He
organized a syndicate. composed of Mortimer
Schiff. George j. Gould, James Stillman and
himself, to buy up the stock of the company
and reorgapze It.
Q.-The statement shows that George J. Could
acquired 81 534 shares Of the stock; E H Hartman.
5i,5S5 That is substantially correct, is it not?
Q.-In other words, this syndicate acquired all
but about $i56,@? A.-About 81 per cent, If
Q.-That capital is about S21oOoOOo. is It not, par
value? Al think it was S220oo,o9
time you bought it. for about IS 10000 was It not?
dent Of the company Immediately thereafter. did
have ever been 11egident Of % tbe 5c9go 3 A1oa tom
Q-The record shows you We're president until Mr.
FELTON, became president? A-That may have been.
Q-Yo2p were chairman Of the board Of directors
/ or Of the executive committee. both-both.
think-untl October last were you not? A.-That
s} 9-And during that time yog had charge of the
board, yes, or subject to their control
coooo9 upon TIE Property, did you not? A.-Yes
Q-You sold those $50 65oOoo of bonds to the
s9ekhoLdeFs r for G seq bond did you not or 65
And this syndcate got sui sGbstantisIIy s all Of tho
bonds, all but about $4,000? Al think there
a subsequent syndicate formed. composed Of ono
h9ndFS6 4S6 dTs5 hK the iPfydua b65a1 were divided among
the stockholders. wh5ever they were WIN
but mat does not bear on this question. It is
question whether they did represent a large
nimrer OF subscribers 70 a syndicate other than
Mr.. Kelogg-The record shows that the bonds
Mr.. HaTriman-To the stockholders
Mr.. KelloFg-To the stockholders. Of which these
four men whom ! mentioned got substantially all.
Mr- Harriman-They We're the largest holders
Q-Eight millions Of those bonds have not beer
Q9.They have been pledged as collateral security
to a $5,ooo00o note Of the railway company? A
Q-Then S32 900 Of those bonds were sold.
gentlemen3 A-You have shown that They had
81 per cent They were the stockholders,
thereafter, did you not? Al think not
SALE OF BONDS TO THE NEW YORK LIFE.
MI sd iT M Goad 5 ta and Mr Mrs man sSd SGpIse ser
100000, in round numbers 70 the Neg York Life
Q:-Who did sell them? Al presume Kuhn.
@-hsy sod for the Re9sas Of the
Go me ali h 10 viii m M Tp9 you but yoG go
not you will get a wrong inference
Know If Kuhn m loeb Co represeatine tb@ %d svnd 10
cate Of these four men did not sell 70 The S He e1
York Life insurance Company in 1899 Sl00O0Go0 Of
these Ties, 13 bonds G at So? A-Now don't know whether
Q-Dld You sell your bonds? A-some of them.
Odd YOU sell them all? Al think I did
Q.-And 100000 of them went to the New York
Life. did they not? Al don't know whether they
Q.-Ten million dollars Of them were sold for 98.
know whether they were my bonds or not
Q.-And thereby the stockholders you gentlemen,
A.On your statement that is correct
ward
e Q1An right, DID YOU ,sen Or did the syndleate
million of those in August, 1900? A.-That | don't