Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-02-27

sumed that he might be regarded as
the head, but his responsibility was no
greater than his associates.
AS Mr.. Kellogg paused at this point
MI. Hartman suddenly asked:
Are You through with the Chicago
& Alton?"
Mr.. Kellogg said he was and the
witness said: mo, l want to make a
statement"
permission to make the statement
was given and Mr.. Hartman said:
NOW, our figures show that the whole
charge for the year 1906, for interest
ana dividends on the Chicago & Alton
consolidated Company was s3.22S.S64.
In 1888, that including the same dis
I trlpution-interest and dividends-it
was S2,3S3,460; or an increase of sS43.-
404 after SO, 1927 900 had been exnended
In improvements ana bctternent on
the property
'. The syndicate does not hold anv of
that issue of twenty million of common
stock of the Alton upon which 10 div
ldend has been paid. They unloaded it.
didn't they?' asked Mr. Kellogg
You ask the Rock Island peop,e
about that; they can tell you" answer
Kellogg traced the purchase of South
EN- Pacific stock by the Union Pacific
and Oregon Short Line, carving it
down to the famous sale of 300 900
shares to William Rockefeller Kellogg
produced the Rockefeller letter. already
in evidence.
1.-The sale was made on a reciprocal
agreement with Mr.. Rockefeller" said
the witness, "by which Mr.. Rockefeller
could sell US the stock back on May l,
1904, if he desired, at the same price
with interest and a commission of five
eighths of l per cent. and we could
take it back. Mr. Rockefeller paid &c.
, 100000 in cash and gave good collat-
erals. 1t was conditional sale"
Mr.. Kellogg then passed to the
Southern Pacific and the operations by
which the Union Pacific interests ac-
quired its holdings.
"Why did you buy just little less
than the majority of that stock?" he
asked.
MIR. Hartman replied that for their
purposes il was as sufficient as a ma
jority of the stock His recollection was
that this original purchase of South
ern Pacific was not all acquired from
the Huntington estate, but of this he
was not sure.
THE sale TO Mr.. Rockefeller" said
the witness, "was q protective meas
IRE, pure and simple. There had been
formed q pool to speculate IN the
Southern Pacific stock. The pool had
ACQUIRED 100000 shares of stock, had
appealed to the shareholders ana
courts and tried to get enough proxies
to nreyent us from continuing in the
management of the property. Inc poor
MANNED to sell it's own stock to adV2n-
tacc. We feared that they would get
temporary injunction to prevent us
from voting the stock. In order to pre-
vent this we took this method To en-
able us with other proxies mat We
r,iabt obtain votes enough to protect
nc AGAINST this speculative interest. 1t
was a purely protective measure.
Tho witness explained the entry OF the
account on the records and books OF 're
Union Pacific. He frankly admitted tha'
tbe transfer of the stock was to place
If in the hands of someone who "oul"
| act against this speculative pool.
Mr. Kellogg endeavored to have the
| u;tn.es admit ,nat the Rockefeller trans
fer was merely an evasion, but MIR. Har-
| r;,o,n would not do so. The transaction
was to protect the property, he insist
| cd. He admitted that Mr.. Rockefeller
| was paid q per cent. cnmmissl"h' ol
| s1S7.5lO on return of the stock
| Mr.. Hartman testified that the pnr-
chase of $4,000, 900 in Santa Fe stock was
| made as an investment. 1T was III Il
competing line, yes a competing hne'
|
am sorry to say" said tn" Witness
| The witness said Mr.. Morawitz of the
Santa Fee had said that the railroads.
should not destroy ore another but es-
tablish closer and better relations. Inc
witness told of the election of Messrs.
! Rogers and F'rick to the Santa Fe as rep
| resenting certain of the friends of ME
Hartman. The witness said the Santa
F'e people said they were the best d.
| rectors they had ever chosen. and as an
| evidence of their good faith the witness
| said thew had concealed from him the
| fact that the Santa Fee was to issue S9S-
| OoO 600 in bonds. We learned of the ISSUE
| in the papers
"Mr. Hartman. are YOU the author OF
the term community of INTEREST," ask
| ed Mr.. kellogg. mo. l am not. pre-
| fer common interest" said the witness.
Mr.. Kellogg took up the purchase OF
| the $4,000 600 of Atchison stock by the
| Union Pacific interests. He endeavored
to ask what part Of that stock was own
ed by either Hartman, Prick or Rogers.
Mr.. Milburn said he desired to interpose
the same objection as he had to a sim
liar line of inquiry on yesterday as with
| out the scope CT the commission to re.
quest.
! The witness was questioned as to rela-
tons with the Union Pacific and the San
! ia Fe and then as to the joint manage
ment of the California & Northwestern.
He denied there was any question OF
connection as to the San Pedro lire. The
| Union Pacific had joined with Senator
| Clark in building the line.
| It was at this point that the sensation
of the hearing was sprung. Mr.. Kellogg
! had been reading about the lines operat-
| ed under what he called Joint interests
He mentioned the Rock Island and re-
: farred IN IFS change of presidents as evil