Waterbury evening Democrat., 1907-02-26

 UP AGAIN
Took His Place in the Witness Box Without a Request
 From Commissioners
EvADES THE QUESTION
Says inc Public Was Never Told Thai Common Stock of the Chicago and Alton Railroad Would
 Pay . Dividend.

Pay . Dividend.
 New York, Feb 26.-When the in ter-state commerce commission re- sumed it's hearing to-day. E. H. liar riman immediately resumed the stand. Commissioner Prouty was not present when the session opened. MT Hartman entered the room just as the commissioners came and without hesitation walked directly to the wit ness chair and Mir Kellogg, with a bundle of documents in his hand, stepped to the cleared space in front of the witness and plunged directly into the examination
 Hartman testified yesterday that he did not know whether he had an interest in the Laclede Construction company which had built the St Louis, Peoria & Northern railway and when he took the stand to-day MT Kellogg produced contract re- lating to Chicago Terminal transfer bearing the names of Hartman, George J. Gould, James Stillman 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 original checks to show that Kuhn, Loeb & Co had been man. agers of the Alton syndicate and the witness, who was unable to remem- Der yesterday. said that Kuhn, Loeb & Co had undoubtedly been the sym dicate managers.
 After reciting a statement of the Chicago & Alton railroad showing the interest charges, MT Kellogg asked the witness if he thought 1t was right to put upon the public the large issue of common stock which never would and never could pay divi- dend.
 Did we ever tell the public 1t would pay dividend?" asked MT Hartman. .s'---- 's- Mir Kellogg asked what the total fixed charges of the Chicago & Alton railroad were.
 MT Hartman scanned some papers he held and proceeded to read the amounts. His totals did not seem to agree with those of Mir Kellogg and this led to several brief colloquys.
 MT Kellogg was endeavoring to show the difference in the charges between the old company and the re- Organization and having done this he passed to the matter of the Chi |cago & Alton Railroad company's bond issue of 1899.
 MT Kellogg asked MT Hartman if there was anything to show that the syndicate was ih any way obligated to take the bonds of the Alton before September. 1Ss9.,
 Does any record of such obliga- tion exist anywhere?" he asked. The witness knew of no such rec ord but said he was certain the syn dicate members were bound to take the bonds at 6. You'll have to seek that information elsewhere, Mir Kel- logg," he said.
 Witness said he was absent from the country during the summer of 1899 and did not arrange any of the details of the issue and sale of Alton bonds. He was sure that market conditions had all to do with the sale of the bonds at high figure. Mir Hartman denied that he was the head and front of the re-adjustment or reorganization of the Chicago & Alton railroad company. 'I was only one of several" he said. As chair tman of the committee he presumed that he might be regarded as the head. but h,s responsibility was no greater than his associates. As Mir Kellogg paused at this point. MT Hartman suddenly asked: Are you through with the Chicago & Alton?" Mir Kellogg said he was. and the witness said: Now. l want to make a statement"
 "The syndicate does not hold any of that issue of twenty million of common stock of the Alton upon which no dividend has been paid. They unloaded it. didn't they?" ask ed Mir Kellogg.
 You ask the Rock Island people about that: they can tell you, answered Hartman amid laughter.
 Kellogg traced the purchase of Southern Pacific stock by the Union Pacific and Oregon Short Line. car rying 1t down to the famous sale of three hundred thousand shares to William Rockefeller. Kellogg pro- duced the Rockefeller letter already In evidence
 The sale was made on a reciprocal agreement made with Mir Rockefe- Her." said the witness. ''by which Mr Rockefeller could sell us the stock back on May I. 1e04 if he desired at the same price. with interest and a commission of 5-sths of one per cent, and he could take 1t back.
 "Mr Rockefeller paid six million in cash and gave good collaterals. It vas a conditional sale-.
 Mir Kellogg then passed to the Southern Pacific. and the operations by which the Union Pacific interests acquired its holdinEs. Why did you buy just a little lees than the ma jority of that stock,- he asked
 Nr Hartman replied that for their purposes 1t wae as sufficient as . ma iority of the stoch- His recollection