New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-25
HARTMAN TO TELL ALL
TO BE FRANK WITNESS.
His -1ttitudc To5card Public
Changed. SAY Friends.

suules its sessions in the Federal Building at 10
o'clock this morning. prepared to state fully and
frankly his entire connection with the various
railroad ventures and operations which are to
be a subject of investigation. Never before has
Afr Hartman been a willing witness, whatever
has been got from him in such Investigations
being entirely through the shrewdness and per-
tinacity of the inqusitor
But M Hartman has changed his attitude
toward the public. according TO those who know
him intimately He now realizes the power of
public sentiment, and feels that the newspa-
pers are the accredited mediums for the pres
entation of such sentiment. according to the
same Information Hitherto he has always been
known unwilling witness" This accord
iug 10 his friends was partly because he al
ways spoke quickly and briefly and sometimes
none too distinctly. and also because he thought
conciseIy and stated only the conclusion. believ-
ing that the public understood the rest that was
in his mind.
Nr. Hartman has been made to appreciate
these facts and it is his intention so his friends
say not only to make a ready answer to all the
questions asked him by counsel for the Inter
state Commerce Commission, but even 10 volun-
teer information which will be Of assistance to
them in getting at the inside facts regarding
the so-called Hartman influence" in railroad
circles for the last eight years.
Frank b Kellogg and {. A Severance, of st.
Paul counsel for the Interstate Commerce Com
mission. have been at the Waldorf for several
days putting the finishing touches on their
preparations for the session. They would not
discuss their plans yesterday, but it is under
stood they feel well pleased with the progress
they have made so far. They hope TO prove be-
fore the conclusion Of the investigation that the
operations of Mr.. Hartman were in restraint
Of trade
The examination Of Mr.. Hartman will without
doubt take up all the time to-day, but how much
longer than that depends entirely upon develop
rnents. From what Mr.. Harrimans friends say
Of his willingness 10 testify at length, his ex-
animation may be considerably prolonged.
WITNESSES To BE CALLED.
Among others who may be called are Jacob
i. Schiff, head of Kuhn. Loeb & Co; Otto H.
Kahn, Of that firm; William G. Rockefeller. H.
@ Frick, H. H. Rogers and c W Hnliard, con-
troler Of the Chicago & Alton. James Stilnlan.
president Of the National City Bank, who is de-
sired as witness, is now in Europe
One Of the things that Mr.. Hartman Will be
called upon 10 explain will be the REORGANIZATION
Of the Chicago & Alton in 1899 It will be said
that at that time t vas hard 20 obtain money,
md special inducements had TO be made to
get enough TO float enterprises. The syndicate
which bought the road did not consist solely OF
aIr. Hartman, Mr.. Scliff, Mr.. Gould and Mr..
StilIr1an, but was made up Of more than one
hundred individuals and firms At that time
they could not foreten the wonderful prosperity
that followed in 1900 and later. it viii be ex-
plained.
one OF the points Of the reorganization, of the
Alton that has been severely criticised in some
circles was the selling Of per cent bonds TO the
stockholders for 60. while the public later bought
Them around 80. The New York Life Insurance
Company purchased a block Of them at SO.
charges have been made that the Hartman
syndicate prolted TO the extent Of some $1,000,
coo by the increase in value OF these bonds.
Regarding this. it may possibly be held that
g. was fair price for per cent bond of that
character and that its later increase in value
was due TO its having been made a savings bank
bond-ttat is, savings banks were authorized TO
purchase II for investment.
HEAVY CAPITALIZATION OF c. & A.
Criticism has also been directed against what
has been called the excessive capitalization of
the Chicago & Alton. Its original capitalization
was about &33. coo 900. and the syndicate put in
some $40G00000 Immediately acquiring the
road
Subsequently the Rock Island bought a large
interest in the Alton and entered into an agree
ment with the Union Pacific to control the
former. It vas brought out at the sessions Of
Of the Alton had been turned over to the Rock
Island.
A transaction whicn Nr. Hartman Will be
called on TO explain will be the turning over to
William Rockefeller Of 10000 shares Of Southern
Pacific stock hold by the Union Pacific This
vas the time when James r. Keene was manag-
iug q pool in Southern Pacific. The reported ex-
plauation Of Alr Hartman IS that Mr. Keene
had begun injunction proceedings 70 prevent
the voting Of the Southern Pacific stock held by
the Union Pacific. Mr.. Hartman feared it is
reported his explanation viii be that Mr.. Keene
might get control OF the Southern Pacific for
speculative purposes. He holds that the transfer
Of the stock to Mr.. Rockefeller was justified
under the circumstance The injunction asked
for by 3Ir. Keene was not granted, so the stock
2ss transferred back TO the Union Pacific. But
Mr.. Hartman has not yet explained why no rec
ord OF the fact that Mr.. Rockefeller held the
stock from the spring until the fall appeared in
Inc report Of The Union Pacific for 1903, Just
how this can be satisfactorily explained is caus-
ing much discussion
Mr. KEENE's POOL SMASHED.
While the Southern Pacific stock was held BY
aIr Rockefeller the Southern Pacific pool oper-
ated 10y NJ. Keene. was smashed 1t is under
stood, however, that an intimation that this
stock might have been sold for the purpose Of
influencing the market and breaking the pool
has not the slightest foundation in fact
Another thing IN the management OF the Union
Pacific that has caused more or less discussion
was the purchase Of various stocks with surplus
funds q the Union Pacific. II has been sug-
gssteg that there might have been some per-
souaI profits for certain directors in the pur
chase Of these stocks. II is said, however that
whenever stock bought from director it
done only after the transaction had been
decided on By other directors, and II was bought
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