The Barre daily times. (Barre, Vt.) 1897-1959, 1907-02-28
BANKING
FOR THE U. P.
Kuhn Loeb 6 Co.'S Percet-
ages on Sales
------
WERE NEARLY S2,OOO,OOO
-----
Had Two Directors; Collected Five Per
Cent commissions--HeIped Gobble
Other Roads, But Under
No Agreement.
WERE NEARLY S2,OOO,OOO

New York. Feb. 2s.--Nearly two mil.
lions in commission was the share Of
Kuhn, Loeb s. Co, in the sale Of the
Southern Pacific, according to the tes-
timony Of Otto RI. Kuhn Of the firm al
the interstate commerce commission ex.
animation yesterday.
g. A. Severance OF the governments
counsel took up the examination of Mr..
Kuhn and questioned him concerning Che
Reorganization of the Union Pacific Rail
road company. Jacob II. schif, the wit
ness said, was member Of the reofgani-
cation committee, and Kuhn, Loeb &
Co. acted as It's bankers
a very large percentage of securities
bought and sold by the Union Pacific
had passed through the house of Kuhn,
Loeb 4 Co. The first large transaction
was the purchase OF the Southern Pa.
tcihc. Before the purchase Of the South
ern Pacific stock they had an under.
standing with Hartman that the Union
Pacific would take it. They took a com
mission of $3.50 per share, or a total oil
ls1s75,00o. This, he said, was no more
than reasonable, In view Of the risk the
firm took in buying the stock.
Members of the commission arc almost
bewildered by the mass Of sensational
revelations which Hartman Il making
in his testimony. The keynote Of The
Hartman operations as be- has told them
to the commission appears TO be what
he called "capitaliging the future" Be.
ginning his operatieH> in boom time he
was able 10 multiply the capital stock
of his properties, one, two, three and
even four times, without actual disas-
/ ter.
| He has the Upion Pacific, his parent
company, capitalized at $4,000 pei
mile, as against the Great NortheTn's
capitalization of $4,000 a mile, and the
Laekawanna's capitalization of $4,000
mile.
1 The commissioners admit that ths
principal point to them in the revelation
Of Wall street wizardy Is It's eject up.
on freight rates. They viii probably
report TO Congress that in their opinion
some of this gigantic prosperity should
have gone to the shippers and the pub
4 lie.
They have no evidence that the UEioE
Pacific freight rates have been reduced
or that the travelling public has received
any concessions. In fact, the only bene
ficiaries they have been able to discover
are Hartman and his immediate associ
ates, who, by increasing the capitalize
1 tion of the Union Pacific by 100000 900
were able with this sum to secure ths
mastery OF the greatest group Of Ameri
can railways ever brought under ons
head.
Government Attorney kellogg began Thu
proceedings yesterday by taking up TIA
st. Joseph q Grand leland railroad mat
] ter. Hartman testified that the Unior
I Pacific had purchased the stocks OF thai
company from him personally since Jul,
4. 1905, for S2,o2s,540. He declined e
state the price at which he secured tbl
stock or the time when he did 50. HI
said that be did not consider the roa<
parallel and competing line with th'
Union Pacific.
The New York Central stock purchaser
by the Union Pacific since July last
Mr.. Hartman stated, was bought In thi
I open market.