Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-02-27
Hartman Explains His
F. Big Railroad Deals.
Tell About the Transfer Of Chi
i cage & Alton Stock.
The Magnaie Makes a Very I'm.
& portant Statement.

ITOTn the VI
Central because of misconduct as to
the funds Of the company.
A continued refusal TO answer ques-
lions relating to individual stock tram
SECTIONS.
Explanations Of the transfer of 300,-
900 shares of Southern Pacific stock
TO William g. Rockefeller during the
attempt of James z. Keenc TO secure
control Of the road:
Attempts by the government 70 show
that the Union Pacific charged unfair
rates stiles competition in the vast
territory traversed by it's lines and
that it's dividend of 10 per cent. and
its expenditure Of s240.0O0.000 on bet
terments came from an unfair toll on
its patrons;
An academic discussion Of railroad
regulation by high authorities on
either side; that ran from plea for
legalized combinations Of railroads I'M
der government supervision 10 suS-
gestion that the government control
railway stock issue3;
A charge and an admission that the
misconduct of the railroads created
the popular anger that moves deter
A charge that no other country in
the world is 80 hostile to large trans
portation interest;
An assertion that the purchase of
Southern Pacific BY the Union Pacific
had given the Southwest 10 years ad-
vantage in development, the failure
Of the Union Pacific to secure the
Northern Pacific left the Northwest 10
years behind where it would have been
if control had been obtained;
Ending with remarkable scene
where the government and the man
stood confronted. all these We're events
that made today'S session of the In
terstate Commerce Commission with
Edward Fl. Hartman as sole witness
a memorable one.
II gave vivid AMI intimate realiZa-
ton of the problems of swollen wealth
and railway regula ton and the partici
pants their utteranccs and the circu.n-
stance gave it Importance.
1t made a notable contribution to
the financial history-light and dark
of the time.
Mr.. Hartman again occupied the
stand throughout the entire day and
again was his examination III chief
conducted by Frank y. Kellogg Of
St Paul, special counsel for the gov
eminent.
The statement of the witness as to
Stuyvesant Fish came in the middle of
the morning session. Mr.. Kellogg in
references to the Illinois Central spoke
twice of the "Squabble" between the
witness and Mr. Fish.
AT the adjournment Of the hearing Of
the Interstate Commerce Commission III,
following statement was made public in
behalf of T.. III. Hartman and his asso-
Ciatcs:
'In view of the evident widespread
misunderstanding OF the figures OF Chi
clgo & Alton capitalization. it srems Will
to set forth tn" actual facts III coucis,.
form:
THE syndicate paid for its holdings of
Chicago x Alton sock about Sis 600 90
Less cash dividend. ST. 7O0. 900. Total, So :
5oOCcC
The cost Of half Of the St. Louis &
Northern Short Lin" was about 5000 COO.
odd Chicago 4 Alton Railroad interest
bearing bonds which had to b. refunded!
at a cash cost OF about 100000
New money provided and expended
for bettcrments. improvements, etc.
about So 10000
Total cash outlay about SCI 900 600
1.-The following securities have been is
sued:
''Three per c.n; bonds. 173J00C0
Three and a half per cent. bonds. s.. :
0O000O
nj ~, nno
-Four per cent. preferred stock. sl9,-
$4,000.
-Four per cent common stock, sl9,5e,
co.,
Showing a capitalization in round fig
ures of sloS,oOoJc0. or about $iI.oOO0 C0
above the cash outlay.
This talizatiou mtist however. Il,
looked upon in the light of the fact that
II consists of low interest bcarin. securi-
ties, which were and are now salcable Al
anywhere near par. and of which about
Ssc.OOoco was common stock on which
no dividends were ever raid.
AT the time of the ACQUISITION of til
Chicago Il Alton, the charge for interest
and dividends amounted to about So To-,
Oo against present charges Of about s..
$4,000. n difference OF $4,000. which is
almost exactly 5 per cent. on the So
100000 of new money put into the prop.
erty."
To reporter OF The Associated Press
Stuyvesant Fish said that he would make
no statement today concerning Mr.. Har.
riman's testimony.
New York. Feb. 26.-Harriman ties.
titled yesterday that he did not know
whether he had an interest in the La
Clede Construction Co. which had
built the St. Louis. Peoria & North.
ern Railroad. and when he took the
stand today. Mr.. Kellogg produced q
contract relating to Chicago terminal
transfer bearing the names Of Harri-
man, George ]. Gould. James Still
man and Jacob H. Schiff. The
witness said the document was no
doubt correct and that possibly he had
acted in fixing the price of the road
when it was sold to the Alton. MIR
kellogg also produced two origina
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