Daily press. [volume] (Newport News, Va.) 1896-current, 1907-02-26
HARTMAN DECLINES
TO TELL OF HIS DEALS
Interstate Commerce Commission
Will Probably Have 10 Make Ap.
peal to Federal Court.
C0NDEsCEND TO TALK A LITTLE
Would Not Say Anything About the
Chicago 6 Alton Deal, But Told Of
the Purchase of Northern scourl.
ties stock-lnvestiaation Friendly
and Devoid of Acrlmony.
tby AssocIated press. 5


tBy Associated Press.)
! NEW YORK, Feb. 25.-E. II. Barri.
man, master Of the Union Pacific
system, spent today In recital of
portions of the intimate history OF
the financial operations OF himself
and his associates before the Inter.
state Commerce Commission, which
In behalf Of the United States GOV.
eminent is investigating the CONSOLE.
dations and combinations OF carriers.
relations between carriers and com.
munity OF interests therein and IN.
ciltties and practices. Special coun.
sci for the government made particu.
lar attack upon the reorganization
and financing OF the Chicago & Alton
railroad by the Hartman syndicate.
and their action, with challenge by
counsel for the railroads of the right
OF the Interstate Commerce Commits.
sion to inquire into the private trans.
actions of nm individual constituted
the two important events of the DAYS
proceedings. BY direction OF counsel
Mr.. Hartman declined to tell what
proportion of the preferred stock OF
the Alton sold to the Union Pacific
belongs to him individually and the
way was paved for taking the question
INTO the Federal courts. The poInt
raised Involves material limitation
upon the inquisitorial poSer of the
commission and la of serious import.
ance to the whole question of inter.
state Commerce Commission CORPORA.
ton investigation.
There was an effort 10 show nv
Hhrrlman's Testimony and the records
OF the company that there had been
an enormous initiation Of the stock
securities and liabilities of tho All.
, Ton; that the Hartman syndicate had
taken unfair profits by DECLARING n
dividend of 80 per cent from tho nro.
cccds of the first sale of bonds
amounting to forty million dollars.
that the syndicate had sold itself tho
polds III an unreasonable low figure
Only 10 resell them nj enormous nro.
~: mat III" HARTMAN syndicate had
capitalized the losses of former stock
hoidcrs IN The Alton. ana the money
Which hah hccn spent by the old man.
aHrment Tor bcttcrments over n No.
riou OF ten years had already been
Ghareed 10 operating expenses: that
me DOCKS or the company had been
dnctored' aud that for an increase
or the stock and liabilities from
roughly forty millions TO about one
hundred and sixteen millions tbore
was nothing to show cxccpt M or.
pcnditure of TWENTY-FIVE million In
improvements on the property.
MI. IiarrimaD's testimony was dc.
MAJ OF all the charges. and toward
tue close OF the afternoon. he made
an extended explanation and dercnso
OF the entire transaction which ho
commended was fully justified nv tho
conditions and circumstances inf thn
time. and which he assorted had becn
conducted entirely in the omen. THO
examination lasted for five hours aud
IL went to the end in good spiri,s. nm.
married hy acrimony. The witness
throughout the entire day declined TO
De led into an attempt to explain the
details of the Alton operations and
constantly referred his uuestioner ia
me records OF the Alton company
commissioners Knapp, Clements.
Lane, Harlan and Prouty presided
ana at the counsel table sat Frank
Is. Kellogg, who examined Mr.. Harri.
man and. G. a. Severance, for tho
( government, and John G.. Milburn n
>. Lowell. Paul D. Crayath and Max.
well Evarts, for the railroads. and
members of the Hartman syndicate.
The testimony of Mr.. Hartman be.
gan with the issuance of one hundred
million OF convertible bonds sby tho
Union Pacific in 1901 and then led TO
the purchase in connection with tho
oregon Short Line of the Northern
Pacific stock. Hartman identified n
statement showing that since the first
day Of last July the Union Pacific
! and Oregon Short Line have pnrchas.
ed stock at cost Of one hundred
and thirty-one million dollars md
Mi. kellogg sought to show that bv
prices In the market TO-DAY. there had
been loss of eleven million On tbc
investment. Mr.. Hartman said that
TINS was possibly true and when f,,r.
ther questioned, asked permission to
explain.
Harriman's Explanation.
IN the first place" said Mr.. IIar.
riman. I'VE had as the. result OF tho
Northern Pacific purchase $50 ,n0ooOO
OF Northern Pacific stock nj n cost
OF about ST9000.0OO. Our annual rc.
DOrl ,I,,l.