New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-27
HARTMAN TELLS OF ILLINOIS CENTRAL FIGHT.

When Mr. Hartman resumed his seat in the
witness chair yesterday morning Mr.. Kellogg
placed in evidence contract showing that Mr.
Hartman Jacob II Schif. James Stillman and
George J. Gould had been the owners of the
stock of the Laclede Construction Company,
which built the st. Louis. Peoria & Northern
Railway. the road which sold to the Chi
cago & Alton Railway Company at the time OK
the reorganization of the Chicago & Alton Rail-
road Company. Mr.. Hartman said he could
not remember the contract and could not tell
how the price of the little railroad had been
fixed at S3OOOOOO
Mr.. Kellogg took great pains TO get from the
witness the information that the interest charges
Chicago & Alton obligations amounted to
s., 2,4l3G00 a year since the reorganization, while
they were 81 or O00 year before the reorSan-
zation. He then read resolutions passed by the
directors of the Chicago & Alton on June -.
1899. authorizing the bond issue Of $22,0OoUO0
and the sale of the bonds at Ga Mr.. Hartman
had testified Monday that he was member
of the syndicate that took the bonds AT that fig
ure. Mr.. Kellogg read from the report that the
directors present at the meeting when the issue
of bonds was authorized were Messrs. Clowry,
Fenckel. Hutchins and Schin. Mr.. Hartman
said:
In the summer Of 1899 l away from CON-
municaton for I'll that time. | was up along the
coast Of AlaSka-left about the middle of May, and
returning about the end OF August, that could
not have had a hand in or been present at any
of those transactions 1t seems to indicate by the
resolution, which YOU have Just read, which never
have that there some commitment APP
parertly on the part Of some one to buy those
bonds 1T g..
O.-WiH YOU tell me. Mr. Hartman. how IT is
possible for there TO be an obligation for Somc
one 20 buy those bonds at 65 until either the drsC
tors, executive committee stockholders Of the
road had authorized such contract such an OBJ
legation? Al presume that somebody agreed 20
buy them. provided the authority was given.
O.-The somebody must have been YOU four men (?
Att could not have been me personally ut that
time. | have doubt had the same interest that
anybody else mad in them but / was not here.
You cannot refresh my memory on anything that
happened while | away from communication.
Q.-Now, ii appears. Mr.. Hartman, tnat the first
absolutely authorized TO be issued at all were So
WO.C10 of them September 10 1899. Resolved.
that the Illinois Trust and Savings Bank be re-
quested forthwith certify and deliver to F. Y. s
Crosby. assistant treasurer of the company. the
$OO0OOOO face value of the refunding bonds of this
company being part OF the Se5 COO0GO of bonds men
toned In subdivision of Article .. OF the refundng
mortgage, which authorized to he executed and
issued by resolution of the hoard of directors of
the company at meeting held in the city OF
Chicago, September I. 1899 Now, 1t appears that
The first action ever taken by the directors
June "a they not authorized until September
Z and the first bonds ever Issued We're issued Oc
tober 10 under the resolution passed September Il
Isn't that true? Al presume II Is true IL the rec
ord shows it.