Los Angeles herald., 1907-02-27
BY Associated Press.

BY Associated Press.
NEW YORK, Feb. 26.-An assertion
py n H. Hartman that Stuyvesant
flsh "os deposed from the presidency
Oh the lil4nois Central because of mis-
conuuct as TO the funds of the company
was leading 1eature of today's session
or the interstate commerce commission.
Mr.. Hartman was the onlv witness of
the DAY, and the events brought out by
his testimony make the heering a mem
orable one.
Other features Of Mr.. Harrirpan's tes-
timony follow:
A continued refusal to answer Dues
tions relating to individual stock trans
actions.
Explanations of the transfer of 900. 900
shares of Southern Pacific stock to Will
liam G. Rockefeller during the attempt
of James r. Kerr to secure control of
the road, and of the delayed announce
nent of the dividends in Union Pacific
and Southern Pacific.
Attempts of the government to show
that the Union Pacific charges unfair
rates, stiles competition in the vast ter
ritory traversed by its lines, and that
its dividend of 10 per cent and it's ex-
penditure of $240000,00O OH betterments
came from an unfair toll on it's patrons.
Discusses Regulation
An academic discussion of railway
regulation by high authorities on either
side that ran from a plea for legalized
combination of railroads under govern
ment supervision to suggestion that
the government control railway stock
issues.
A charge and an admission that the
Misconduct of the railroads created the
J}pular anger that moves determinedly
~ their regulation.
IA charge that no other country in the
World is so hostile to large transporta-
Gon interests.
An assertion that the purchase of
rSouthern Pacific by the Union Pacific
had given the southwest ten years adj
vantage in development. and that the
failure of the Union Pacific to secure
the Northern Pacific left the northwest
ten years behind where 1t would have
been If control had been obtained.
All this ended in a remarkable scene
where the government and the man
stood confronted. The days events gave
vivid and intimate realization of the
problem of swollen wealth and railway
regulation. 1t made a notable contri-
button to the financial history--light
and dark-of the time.
Mr.. Harriman's examination was con-
Quoted by Frank B. Kellogg of st. Paul,
special counsel of the government.
Tells of Fish's Troubles
The statement of the witness as to
Stuyvesant Fish came in the middle of
IN r. In
reference to the Illinois Central, spoke
twice Of the "squabble' between the
witness and Mr.. Fish.
zone minute" exclaimed Mr.. Harri-
man. "I will tell you how the presi-
dency of the Illinois Central was
changed, IL you want to know"
Mr.. Kellogg remarked that it was
entirely immaterial, but Mr.. Hartman
was aroused and went ahead.
IT wish to prove to you that it had
nothing to do with the Union Pacific,
the change in the management or
change in the presidency" said Mr..
Hartman.
"That the change in the presidency of
the Illinois Central occurred after the
acquisition of the Illinois Central stock
by the Union Pacific was merely
coincidence. There had been no change
In the management OF the Illinois Cen
trail. If the Union Pacific had not dis
posed of a certain amount OF it's hold
ings of securities and had the money
to invest in like securities, it would
never have acquired the Illinois Cen
trail"
Explains Referred Dividend
Mr.. Hartman explained the famous
referred dividend announcement OF
August, 1906 by saying that the board
had referred the dividend declaration to
1f11if fnp
That the committee was to meet the
next morning. Mr.. Hartman, however,
had to attend funeral and It was after
= p m. when the committee finally got
together.
Then 1t was decided not TO announce
the dividend at that hour as II would
give the London market the benefit as
against New York The announcement
was withheld until the second morning,
thus giving the New York market the
(Continued ON Page Nine.)