New-York tribune., 1907-02-26

! Of old per cent bonds and providing money 10
tn be laS o from
profits Those are all the the three things. ,,oren+
show you statement from the books OF the Chi
meeting Of board Of directors Chicago & Alton
Railroad Company, held on September / 1899. The The
trea s1Irer presented statement 10 the SUD-
scriptions received to the bonds of the company
under the circular issued to the stockholders dated
Mr. Harriman-Ths Is the correct list, is it not?
! the last few days, have You not?
Q-Have You not looked over the statement pre-
pared by the controller Of the Chicago & Alton?
Q.-very veil It purports to. give the total num-
522162 and as owned by George J. Gould 4534,
and the same amount Py Gac9 & one d qL NE m St
man and the amount OF sqa faG s 3 a9d
you gentlemen subscribed for substantially all OF
Mr. KeiioggM originally subscribed for. And
you four gentlemen 9wned substantially - al rda tae
Q..Tbat is it And YOU sold those bonds to your;
them 10 the stockholders, whoever they may be
don't know whether other people We're Interested
Mr. 1liburn-I do not think you want Mr.; Har
has said, that those four gentlemen were the only
gentlemen in this whole % m9tef d s,n
cate who had these interests.
the books Ok M If M arTiman 3 ~ wants to give the
Q.-I to prove that you sold those bonds
after having bought them for 65 cents on the
get@ A@Tbat I cogdh6't ten YOU
Q.-You got more than 65? A.-There Is no doubt
DID you ever have any books that will show
no; think not. I think was too busy attending
Q.-You did not keep account Of little matter
Of 10000? A.Yes; little matter -, Of g 100000
doesn't amount to much, one way or the other
WATER IN CHICAGO & ALTON STOCK.
Q--Is it not a fact that from year to year during
whatever had been charged against its income and
spent upon the road had been closed each year by
the board of directors? Al presume so, but
under the former nian2gement Of f. the he Chicago Chicago 4
Alton was drying up very fast, and SO was the
CT certainly has not dried up since? A.-No
o3There is water enough to satisfy anybody?
A-Yes; and business enough to satisfy.
Q.-Would you think distributing S6669,0oO as
already had S per cent would prevent it from
of financing which were adopted by the Chicago
Q-You understood. didn't you, that $12.oO0OO0 had
already been charged against operating expenses?
Al did not understand IT at all All know was
and found that N2ooo0l0 Of the profits Of the com,
pany had been expended for improvements and
o-And that s1200Oo50 had been paid out Of tho
earnings of the company. hadn't 1t? A-of course
Q~Now in, addition to paving that the com; T;
s per cent upon its mortgage bonds, had 1t not'
Do you el1'5 consider per cent dividend and that
rate of interest on the bonds fair rate OF income
been Iwenty years or Ih5rt{ IN yS4t,S q Alton for
many years seer to have been satisfied with that;
they did not vo' j.. any more2 A.-Nor have they
received any more since the stock purchased by
.Q.-And Immediately upon the purchase by You,
didn't theg? A%Yes. that is So Well now wait
Don't laugh about IT, ReG2Hse 1t is o all eT{P.@n29g
Interested with you four gentemen2 A-1esi II
! remember. as far as my recollection goes per
QIAnd who is able to tell us who those gentle
7,ar arz zuNa tbafr -
and the records ali show it. because there were cir,
culars issued at that time setting forth the exact
3nf %iad' way or another They have gone out OF my
100000 FOR this stock-T think you stated to the
Mr.. Harrinau-Forty million dollars; that IS,
$391""oo for the stock; and we had an investment
Q-That is. You paid 500 share for the Pre-
ferred stock and Sl75 for the common2 A--That Is
Q.-You capitalized the 100000 Of tho preferred
and common stock Of the Alton for $62 10000? A.
Q.-What do You cali that capltalization-bouds
and stock? Al Will explain II when you give !ne
Q-Wbcn You issue 100000 Of securities that
rate Of Interest is charged against those securities
Q-NoW IN order 70 caTry out tnat tTaRSa,i,on @
stock 70 a gentleman by the name Of stanton ala
we did You have Got all tile records there
Mr. Kellogg placed in evidence records show
ing that in the reorganization OF tho Chicago
& Alton, the Chicago & Alton Railroad Com
pany sold through Mr.. Stanton to the Chicago
Alton Railway Company "a. .722 shares Of pre-
ferred stock for SlOOOO0O0. To pay for this
stock the Chicago & Alton Railway Company Is
sued $220O00OO Of bonds. The bonds were sold
for $I3oOOOOO 100000 Of which was used
TO pay for the short line Of road formerly the
property of the St. Louis, Peoria e Northern
Railway Company. which taken by
he <