The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-02-26
WOULD NOT TELL
HIS OWN HOLDINGS.
Mr.. Hartman, by Advice Of
Counsel, Refuses to Say How
Much Alton Stock Was His.
DEFENDS THE TRANSACTION
Goes Into Details and Says Con-
ditions and Circumstances at
Time Justified Course.
DEFENDS THE TRANSACTION
Goes Into Details and Says Con

NEW YORK, February 25.-E. H. Har-
rIman, master of the Union Pacific sys-
TEN, spent to-day IN a recital Of portions
Of the intimate history OF the financial
operations OF himself and his associates
before the Interstate Commerce Commits
sion, which, in behalf OF the United
States government is investigating tbs
consultations and combinations of car
riers, relations between carriers and COM
nunity of interest therein, their rates,
facilities and practices. Special counsel
for the government made particular at
tack upon the reorganization and financ-
ing OF the Chicago and Alton Railroad
by the Hartman syndicate, and their
action, with a challenge by counsel for
the railroads OF the right of the Inter-
state Commerce Commission to inquire
into the private transactions OF an indi-
vidual, constituted the two important
events OF the days proceedings.
BY direction Of counsel Mr.. Harri-
man declined to tell what proportion
of the preferred stock of the Alton
sold to the Union Pacific belonged to
him individually. and the way was
paved for taking the question into the
Federal courts. The point raised in
wolves material limitation upon the
inquisitorial power of the commission
whole question of interstate corpora
ton investigation.
Method Of Reorganization.
This was an effort to show by Har-
riman's testimony and the records of
the company that there had been an
enormous imitation Of the stock securi-
ties and liabilities of the Alton; that
the Hartman syndicate had taken I'M
fair profits by declaring dividend of
| 80 per cent. from the proceeds of the
| first sale of bonds, amounting to forty
million dollars; that the syndicate had
sold itself the bonds at an unreason-
ably low figure, only to resell them at
enormous profit; that the Hartman
| syndicate had capitalized the losses
| of former stockholders in the Alton
and the money which had been spent
I by the old management for better
! ments over a period of ten years, and
| already charged to operating. expenses
| the books of the company had been
|s'.doctored," and that for an increase OF
/ the stock and liabilities from roughly
forty millions to abou. one hundred
| and sixteen millions, there was nothing
to show except an expenditure Of
! twenty million in improvements
on the property.
i Mr.. Harriman's testimony was de-
! nal of al RI charges, and toward thu
close Of the afternoon he made an cx
tended explanation and defense of thu
entire transaction. which he COMMENDED
was fully justified by the conditions
and circumstances at the time. ant
which, he asserted, had been conducted
entirely in the open. Mr.. Hartman!
examination lasted for five hours. ant
1t went to the end In good spirit, un
q marked by acrimony. The witness
throughout the entire day, declined t.
be led into an attempt to explain til,
details of the Alton operations emf
constantly referred his questioner Il
A the records Of the Alton company.
A& Commissioners Knapp, Clements
Lane, Harlan and Prouty presided, an,
at the counsel-table sat Frank B. Ilel
logg, who examined Mr.. Hartman an.
C, A. Severance for the government
and John G.. Milburn. r. S. Lowell, Pau
y, Cravath and Maxwell E,varts for tn