Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-02-25
SUPREME COURT DECISION
Forced Them to Take Great
Northern, Not Wanted, and Les
ser Amout Of Northern Pacific.
He Was in Excellent Bun,or-~-''I Ought
To be Good Ns,ured; IT'S
My Birthday"

New York, Feb. 25.--'rhe inquiry de-
Neloped the fact that after the decision
OF the supreme court of the Uni,ea
states dissolving the Northern Secur-
ties company, the interest Of the Union
Pacific company IN that corporation
was returned to them in shareg of the
Northern Pacific ard Great Northern
companies, These subsequently werS
sold as Mr. Hartman explained, be-
cause the revenues derived from them
were limited. and the proceeds were in
vested IN stock Of the Illinois Central
the Santa Fo and the Baltimore ana
Ohio companies.
n. p. PURCHASE
I'm the first place said Mr.. Harrl-
man. I'VE had as the result of the
Northern Pacific purchase $50, 600. 600 OF
Northern Securities stocks at a cost of
s790oOO0o our annual report. our
statements, all show that We were
forced to take. by the decision of the
supreme court uniustly--it may have
been lcgal-Cieat Northern which We
did not want, and a lesser amount OF
| Northern Pacific than VIC had deposited
with the Northern Securities and for
which We received the Northern Secur-
tiles stocks.
AT the time that stock, the Great
Northern and the Northern Pacific wa,
| given to us,-forced upon us--it had a
market value OF about slO0oO0oeo.
viii go back just minute, We had
subscribed in the meantime to s3,O0o,05s
| OF Great Northern stock which had
been offered to the stockholders. max
ing the total cost OF the Great North
| ern and Northern Pacific, about $4,000
600. We held 1t until the market price
increased In value to near $3.50, ooO. DOC.
| We sold some of it gradually as IT
| went up, but al that value the returns
| from the Northern Pacific and Great
Northern were less than per cent on
the stock we held Therefore, we con-
cluded that il vas better to sell the
stocks ana invest the same money in
other securities hat would give us
greater return
CHICAGO & ALTON,
Following this inquiry. MI Harriman
was questioned respecting the purchase
| of thc Chicago e Alton railroad in
| 1901, Mr.. Milbum OF MIR. Harrimans
| counsel objected to this line of inquiry
| on the ground tlat II did not fall with
| IN the jurisdiction of the interstate COM
| merce commission.
| Much depends upon who fixed the
| market price OF stocks In such trans
| actions as that just named said Chair
! man Knapp. III men cOtsd iiX the
| market price ard sell their own stock
| a the price, 1t was a transaction to be
| inquired into"
! Mr.. Hartman has said that he and his
associates fixed the price Tor the Chica-
| 80 & Alton stock as a committee.
| DO YOU intend 70 say, Mr. Milburn,
! that you hold this commission has no
right 10 ask whether Mr.. Hartman
! was not himself an owner and seller OF
a part Of that stnck?"
/ MI. NIlburn replied THAI he thought
| such a question quite improper.
| The commission withheld itF decision
| ON his point before proceeding with
| the inquiry respecting the sale of the
| Alton stock OF tho Union Pacific.
TRANSACTIONS NOT sPECuLA-
| TIVE
Throughout the examination Mr.. Har-
| riman insisted that none of these trans
| actions were speculative.
II do not wish TO give the impression
that We have been speculating" he
| Eaid. The roads were bought for IN
| come rc-inVcstnent OF the proceed lngs
| Of the Great Northern and Northern
| Pacific
| Are they for permanent Investment.
or do you expect to sell them again."
| asked Mr.. Kellogg.
! ~ have no expectation about it, said
| MI. Hartman ~ never thought OF
! thut, I, is for the purpose OF receiving
| SIX millions and half OF dollars a year
| Instead OF three and half millions"
| replied Mr.. Hartman.
| MI. Hartman deuled knowledge ~
| on participation IN the sale of $40 00p-
/ coo Of he bouds OF the Chicago a Al
I ton al 81 10 tho New York Life Iusus-
! gnce company.
| An Hartman said that out OF the
| proceeds Of the sale OF $40 900 900 Ia
/ bonds of tho Chicago a Alton that 4
| 30 per cent dividend Nas paid TO lEa
| Htockholdels
GREATEST OF INFLArIoNs.
After Jhe announcement OF the chair
| man thar the commissioners would
/ privately discuss the challenge of their
/ power ~ Inquire Into tho identity ~
! the vendors of the Alton stock AIN
( Kellogs resumed the development ~
| the Alton stock, which he character
! lied as the most conspicuous modern
| example Of imitation He tried Ia show
| by HE witness that Hartman, George
| Gould, James Stllman and Mortimer
| schih hud purchased the road for $40
| 0OOOO0 aud had rapidly expanded its
| capacity uud outstanding indebtedness
| 10 tl22,s72 1923. This he tried 10 show
| had been done by FIRST placing a
| mortgage nu the road Tor $40 900 600 ana
| he tried 80 prove that the syndicate
| had aod the bonds 10 themselves FOR
| O. cents upon The dollar and imnedi-
| atoly resold l00OO0oo NJ them 10 the
I New York Life Insurance company NJ
I 90, lie further tried 10 show that tho
/ syndicate holding n majority ~ tao
/ stock had declared dividend OF 10
| pcr cent. which was paid from The
/ proceeds of the sale OF the bonds. ie
/ also tried 10 show that 900 eX-
pended IA hettcrments aud improve
/ iuentH by Inc old management and
charged against operating expenses
Nyas capitalized by he Hartman inan-
/ agenent
| M. Zntlneo IA ad rot D,aAs nlalah nxau.