Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-02-28

its New York hearing in the investiGa-
tiun of operations in relation to the
Union Pacific system. and while there
viii be an oral argument heard at
Washington on an April date. To be de-
cided later the testimony has probably
all been taken.
May Appeal 10 Courts.
There has been no decision as yet as|
to an appeal 10 the courts 10 compel
Edward II. Hartman and Otto Kuhn 10
answer many important questions de
clined by them. but the question will
be considered after the commission re-
turns to Washington.
The closing hours of the hearing
brought the statement from CGnrrolle"
Maple that financial statements were
not sent to the Southern Pacific stock
holders for several months before the
dividend meeting ON July s. This is i
contradiction of Harriman's testimony
Developments of the Day.
A suggestion from Commissioner
Harlan that the 80 per cent dividend
on the Alton was illegal under the H.
linois constitution; the partial clearing
away of aspersion about mOrtgaging
the Springfield cutoff be
fore it was built. and a lengthy discus
sion of the propriety of capitaliZing old
expenditures for betrerments on the
Alton, were developments of the day.
Says Method Was Legal.
New York, Feb. 2S.-When the in
terstate commerce commission resum-
ed it's investigation of the Hartman
lines today Charles W. Hilliard con
troller of the Alton explained that the
cutoff, from a point near Murrayville
to Springfield which he yesterday tes
titled had been mortgaged before il
was built. was one which the Alton
had right to build The proceeding.
were not unusual. The enterprise anC
method of mortgaging were legitimate
Knew Little of Earlier History.
Kellogg endeavored 70 show the man
agement of the Alton had capitalized
the debts of the old Joliet & Chicag,
road prior to 1863. but Hilliard said hi
knowledge of the roads affairs did no
go back that far.
No Right to 60 Back.
In answer to questions from Con
missioner Lane. witness questione
the right of the directors of the Alto
in going back over their books for
period of many years and capitalism
expenditures. He said each succee,
ing board of directors had each yea
passed upon the accounts and h
oh
final
Simple Transaction.
Witness repeated his testimony {
last evening as 10 the transfer of \
ton from railroad company to railwa
company through Louis Stanton. II
said il was evident from the books tn
syndicate had simply handed over $2C
100000 in bonds and received the pr
ferred stock and the st. Louis, Peor
Il Northern property. Asked no
much Hartman interests had paid f
the Alton and how much they got OF
of the transaction. Hiliard answerC
he was unable to state the profits,
he had no means of knowing.
HfIiinrd Last Witness.
After the examination of Hillia1
was concluded. there being no mo
witnesses, the hearing adjourned vii
out date
Handed Rock Island a Lemon.
New York, Feb. 2S-E H. Harrim;
handed the Rock Island a lemon al
a squeezed one at that when he turn
over the readjusted Alton railroad
the Rock Island last fall. Not on
was the Atoms treasury empty b
the bonds which had been issued
build the thirty-four and one-half m
cutoff from point near Murrayvi
10 Springfield had been sold and t
proceeds diverted, so that there W
no money to build the cutoff.
These facts were testified to vest
day by Charles w. Hilliard. control
of the Rock Island. who last fall s
ceeded William Mahl as controller
the Alton.
Other Sensational Features.
This was not the only sensation
feature of the days hearing before
interstate commerce commissi
which is seeking light on the en-
nous overcapitalization of modern {
railroads
E. II. Hartman refused to tell