New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-28

A.son Railroad SINGS the acquisition OF Il by yoI5F
syndic6ts g about 81. GJe0e9: AAbout s--,vo' ~
that sta5s-lent: A.-From the president Oh the
Dos st thd: statement include s2274goo in
round numbers 81 car trust cerlincates a4Iu -,
coco borrowed from Kuhn ioeo a CO.. oig nsF5
OF TIE Chicago 6 Alton railroad when me-, aTfrt
gave you yesterday, might tel you flr-.nt Al
,,frlC Handed II bacl: 70 ou il showed that after
spending E22 90 the payment 70 me So i
was !? ls j might possibly BE- ,i i Is 5a AIDED
that the interest on nat 1890 s,fs IN practically
$4,000 more that even II that "sJe ftar
f nc3,,r Sf ;22 s7o 600 instead Of $4,000 and
tie onIv way r can do II IS to take Il up by inc
cSwe probably can set that from Mt NJ Felton, aIs
c ca NJ N95lburn handed me that statement yes
ferday. and J supposed IT was mace up - NJ
oyou did. Mr. Hartman hand It 70 me onand-
Ing napeI,. Here il Is A-Nho lh4us u''
o3There IS the statement Mo- this is not
rti e. ne e.r}eTHent showing the expenditure
You asked for the Statement SHOWING '-''
o@oR no you slndersta4d me W iva h is
statement shows that from .ssI sI,ant upon
January !. 1897 there was gTand tD( o ,astiAed 70
yesterday. THAT is right
Mr.. Hartman said he was willing to conceue
that 1924 O00 Of car trust certificates anu
100000 borrowed from Kuhn. Loeb < Co
should be deducted from the amount OF money
spent on The Chicago & Alton.
Q.-Was not $4,000 Of that item Of S22S5;;7 as
Chicago q Alton Railroad and out Or the railroad cad
company money prior 10 your aclu $500
0.-Prior 20 January ]. 1888. A-Aot unless inns
s eHf ta at is rue then the figure of ssooo
which the controller Of the Alton says was St
would be substantially correct would IT ho'' a
oFBt O II docs alter The TACT that so oDoe00
not spent out Of the s1220109oo2 Al did not say
that. I had nothing 10 do with that. 1t does not
bear the question.
OTTO II. KAHN ON STAND
Otto H Kahn. Of Kuhn. Loeb & Co. followed
Mr.. Hartman into the witness chair and was
examined by Mr.. Severance. Of counsel for the
government
@ 65oT long have , You been member Of Kuhn
.Q-ls that co-partnersilip or corporation? A
o.-Who are the co-partners? A.-Jacob H schiff,
Felix NJ WarDurg. Paul NJ. Narburg. Mortimer
e-FoT how many Years has the r been com
posed Of those gentlemen? -A--Of these particular
Q.0Nho were the partners in Kuhn. Loeb & Co.
eae s R6 6e { comsSnS5 HJ az me H se
Abraham Wolf Felix N. Warburg, Louis A. Helm
ga mar 5e Mr. Kahn 4 ana prior to the re-
organization, the ITm or hUiLDr irOeD q 20. were
quite largely interested in the Union Pacific, were
they not? A-UndoubtedlE.
ton. do you remember? Al don't remember. ex-
Q.-Was any member of your firm q member of
that committee A--Thaj is ten years back;
don't remember il exactly but the records would,
OF course. show it.
Q-I San your attention to the printed plan Of
speeding that, you state, any member Of
Jacob H Schin was 3 member OF the committee.
Mr. Kahn said Kuhn. Loeb & Co. were the
bankers for the committee, and he was the mem
Der Of the banking house most familiar with the
reorganization Of the Union Pacific.
t5s you , state whether s in the
or was there, on the other hand, enlargement Of
Doth; that is In lieu Of The high interest bearing
bonds, the per gent bonds. there were issued
securities MAS ute target nsrssed as il not
40 the extent, believe, OF giving the old
per cent bonds per bonds. and APP
Tor the assessment which furnished in cash,
preferred STOCK, and new common stock
\ Q.-NOw, at the time your trim. as bankers for
the committee ana Dir. Schlh. as member of the
o;-And had been operated by receivers for sew
,ST az IN. s @ On me N .a on m If PEN fbrp pau
Q.-Prior 10 Tie reorganization, did the Union
Pacific have quite number Of branch lines which
did not participate in the reorganization? Al
Q.-Can you name them? A.-No; ! could not be
certain that 7 naming them correctly.
.Q.-Do You remember The St. Joseph q Grand
Island WAS one. don't you2 Al believe so; I
am not certain about thai.
o-What was the aggregate capitalization of the
new Union Pacific road under the reorganization,
stock and bonds? A.-That also would show from
the records
Dwell it is right there in front of you Let
me ask you il this is correct S190Oo000o Of bonds
IS that right2 A.-Not all Of which were issued at
c-Have not they been issued? A-since; but
o.@HoW many of them were not issued at the
ftmeg At does not appear quite clearly from
this plan. It says that for the actual purpose Of
reorga nization there were issued IN round figures
s51 600 go and there We're reserved 70 dispose OF
eoiiprnent obligations reorganization and cor
poTate uses 600 and che balance reserved for
retirement Of debt TO the United states and TOT
extraordinary requirements. IN round figures $685.
090000
proceeds of them 10 settle the debt TO the United
states? Al believe not ! believe that quite
considerable amount turned over to the new
company. and WAS later sold for It's corporate
purposes. /. 1900. -
turned over 10 the company. and was sold
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