Albuquerque morning journal., 1907-02-28
Remarkable Charge Made at
Interstate Commerce Hear.
ing During. Testimony of E,
H, Hartman
MISCONDUCT WITH FUNDS
CAUSED FISH'S DOWNFALL
DepoSed President Acted as
Though Illinois Central Road
Belonged to Him Declares
j Southern Pacific Magnate,
my Morning journal Special Leased Wire,

>o0dtnern Pacific Magnate,
IBy Morning Journal Special Leased Wire.
New York. Feb. 26.-An assertion
by E. II. Hartman that Stuyvesant
Fish was deposed from the presidency
of the Illinois Central because Of mis-
conduct as to the funds of the com
pany was leading feature of todays
session of the Interstate commerce
commission. Mr. Hartman was the
only witness of the day, and the
events brought out by his testimony
make the hearing a memorable one
r-. Other features of Mr.. Harrimans
testimony follow
continued refusal to answer
questions relating to individual stock
transactions.
Explanations of the transfer of the
100000 shares of Southern Pacific
stock to William c. Rockefeller dur
ing the attempt of James r. Keenc
to secure control of the road, and Of
the DELAYED announcement of the div
idcnts in Union Pacific and Southern
Pacific. Attempts by the government
to show that the Union Pacifi,
charges unfair rates, STILES competi-
ton in the vast territory traverscd by
its lines, and that its dividend of 1c
per cent and its expenditure of $240,
100000 on betterments came from an
unfaF toll on its patrons.
An academic discussion of railway
regulation, by high authorities or
either side. that ran from a plea for
legalized combinations of railroads
under government supervision To &
suggestion that the government con
troll railwa. stock issues
A charge and an admission that the
misconduct of the railroads created
the popular anger that moves deter
mlnedly for their regulation.
A charge that no other country in
hepNopd is4ss hostile to large cor
2oratQns,
&lf asseNfoh thai The pufchast b.
southern Pacific by the Union Pacific
had given the southwest ten years
advantage in development, and the
failure of the Union Pacific to secure
the Northern Pacific left the north
west ten years behind where ii woulC
have been if control had been OBJ
tanned.
All this ended ~ remarkable
scene, where the government and the
man stood confronted. The days
events gave a vivid and intimate real
ization of the problems of swollen
wealth and railway regulation. j
made notable contribution to the
financial history-light and dark-of
the time.
Mr.. Harriman's examination was
conducted by Frank Kellogg st. Paul,
special counsel of the government.
The statement of the witness as to
StuyYesant Fish came i'm the middle of
the morning session. Mr. Kellogg, in
reference to the Illinois Central spoke
twice of the squabble between the wit
ness and Mr. Fish.
zone minute" exclaimed Mr.. Har-
riman. Il will tell you how the pres
idency of the Illinois Central was
changed if you want to know.
Mr.. Kellogg remarked that it was
entirely immaterial, but Mr. Hartman
was aroused and went ahead.
Il wish to prove to you that 1t had
nothing to do with the Union Pacific,
that change in the management or
change of the president, said Mr.,
Hartman. in explaining his reason for
relating the story. That the change
in the presidency in the Illinois Cen
tral occurred after the acquisition OF
the Illinois Central stock by the
Union Pacific was merely coinci-
uPHCP. lDtlt lluS Dttil llb ClldilhN "a
the management of the Illinois Cen
tral. If the Union Pacific had not
disposed of d certain amount of It's
holdings of securities and had tho
money to invest in like securities, II
never would have acquired the Illinois
Central"
In 1903 he said, he was approached
by several influential directors of the
Illinois Central, who asked him as To
the advisability of reporting several
of President Fish's acts to the board,
with a view of having the board re-
quest his resignation. Mr.. Hartman
said he took steps to smooth over the
difficulty 1t appeared he said. that
President Fish had used his official
posftioh to further his own interests,
but he tHarriman) prevented any ac-
ton ut that time.
subsequently Mr. Fish repeated acls
of the same character. ana the boaru
of directors, Of Its own VolillOn, re-
lieved him % his office.
Mr. Kellogg then started to resume
his examination, when Mr. Knapp Of
the commission, leaned over ana aus
dressed Mr.. Hartman In low tone
His question apparently related to the
Fish incident. and Mr. Hartman spun
his chair around facing the bench,
ard sald 81
Eyes in 1903 MIR. Fish deposited
OVER half a million dollars of Illinois
Central funds with the Trust Com
pany OF the Republic. We the dlrec-
tors. | mean Immediately directed
the secretary to withdraw this money
and :. w.S dome
Mr.. Hartman then said that later
in the same year Mr. Fish deposited
with the Trust Company of America
large amounts Of Illinois Central
funds. thus using this money TO pad
the trust company's statement
Hartman said that he personally
1oaned Fish Sl.200.00O to help him
out. and 30 that he could take up vari-
obs obligations.
Il Notwithstanding the boards action.
N6htlnted Mr. Hartman. in 1904 Mr..
Fish again began to deposit money OF
the Illinois Central with certain trust
..eampanies. In order TO mad state
incnis."
in addition to that" Mr., Hartman