The Barre daily times. (Barre, Vt.) 1897-1959, 1907-02-27
HARTMAN
TESTIFIES
Railroad Finance Exposed on
the Stand
WHY FISH WAS DEP0SE0
Hartman Says He Deposited Large Sums
Of Money With the Trust Company
Of the Republic to PAD
It's Accounts.
WHY FISH WAS DEP0SE0

commerce hearing yesterday, p. H. Har-
riman, wnen he was asked by Mr.. Kel-
logg why he had deposed stuyyesant
Fish from the presidency Of the Illinois
Central railroad, said it was because
time ana time again Mr.. Fish had de-
posted funds OF the railroad in large
amounts with the Trust Company Of the
Republic, and its successor, Common.
wealth Trust company, to enable the
company To bolster up its accounts and
make good showing Of its affairs.
He said that upon one occasion Pres
ident Fish had so deposited 100000 be-
longing to the Illinois Central and that
he (Mr. Harrimanl had been informed
by the officials OF the trust company
that the withdrawal Of this amount all
at once would mean bankruptcy The
money was then drawn out gradually
Attorney Kellogg again took UP the
Chicapo 81 Alton deal when tEt commits
sion assembled, He placed in evidence
a contract executed BY y. II. Hartman,
Jacob H. Schiff, james Stillman and
George J. Gould, sole owners Of the La
clede Construction company, which in
turn owned the st. Louis, Peoria 4
Northern railway, which was turned over
TO the Chicago n Alton Railway com.
parry for ss,00o,o00
Sir. Hartman testified that he did
not know how much the st. Louis, Pc
oria & Northern cost for construction.
He admitted that he, in connection with
the rest of the syndicate, fixed the price
at which 1t should be paid for by the
Chicago q Alton Railway company, of
which, Mr.. Hartman added, the syndi-
cate owned all Of the stock. Kuhn, Loeb
& company, be said, as syndicate man.
ayers, probably bad all the records Of
bond sales.
Rcverting to the alleged gross capital
initiation of the Chicago & Alton, Mr..
Kellogg asked. "If the fixed charges Of
the Chicago & Alton railroad company
before reorganization were si,0I4,63s,
and after reorganization were $780,.
1856, don't you think that indicated UNI
due capital iniationl'
The witness declined to make a di.
rect answer, but explained that S22,000,-
600 had been spent on the property un-
der reorganization.
DO you think IT proper" said Mr.
Kellogg, TO foist s1o,000,000 common
stock on the public which. had no hope
OF ever paying dividends 7"
To this Mr.. Hartman replied
II don't know who told the public
that the common would pay dividends,
/ but the reason that it has not paid a
dividend is that the rate charges Of the
road have been reduced thirty per cent
since 1881
/ Mr.. Hartman admitted that an agree
ment had been made prior to Septem-
Der, 1899, by which the purchasing syn.
dictate Of the Chicago & Alton Railroad
company would purchase bonds OF that
company, or It's successor, but he said
THAT he had no idea where copy Of
/ the agreement could DO found.
Mr.. Kellogg developed the fact that
/ $4,000 900 Of the proposed 100000
bonds were 10 be used for improvements
equipment, etc, and the balance Of SIS,
10000 was to be reserved TO take uT
the old funded debt. Resolutions 10 that
effect were adopted in June, 1909, BY
the directors. but Mr. Hartman said
that he was OF that time IN the coast
Of Alaska, and knew nothing Of the
I matter.
That there was an agreement for The
Joint contract OF the California anC
! Northwestern railroad by the Union Pa
cific and the Atehison, Mr. Hartman saiC
was true, and he was proud OF II. HI
lalso admitted that the San Pedro roat
was under Joint control of the Uniof
Pacific and Senator Clark, but he saiC
that ii was still n keen competitor O.
the Southern Pacific.
"The Union Pacific now controls th'
Illinois Central, doesn't IT," Mr. Kel
logg asked.
docs it n replied MIR. Hartman. CIV,
have a large interest in it, but havl
never exercised any controlling infu
I ence.D
i Mr.. Hartman charged that Prcsiden
Fish of the Illinois Central had depositet
large sums Of money from time 10 tim,
with the prust Company of the Repub
lie, OF which he was trustee, for tn
purpose 81 padding the accounts Of thi
concern. Later, he said, MIR. Fish con
tinued to deposit large sums with tn,
Commonwealth Trust company, success
sor of the Trust Company of the Re
public, for The purpose Of padding tina
company's accounts. Mr.. Fish's atti
tude, he said, was one Of using tn
treasury assets Of the Illinois Contra
as If they were his own personal prop
I erty. For that reason, he said, MI
Fish's resignation was finally forced,