The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-02-26
STORY OF ALTON.
President e. III. Hartman Again
on the Stand
At the Investigation By the In
terstate Commission.
SHOWS RAD MEMORY.
SHOWS BAD MEMORY.
Which 1t Is Necessary to Re-
fresh by Documents.
Never Told the Public c. l. A.
Would Pay Dividends.

New York. Feb 2s-when the inter.
state commerce commission resumed III
sitting today Commissioner Prouty wa:
not present Mr.. Hartman entered tbs
room and walked directly TO the wit
ness chair. Mr.. Kellogg, with a bundle
of documents in his hand. stepped Il
the cleared space in front of the wit
ness and plunged directly into the ex-
animation.
Mr. Hartman testified yesterday that
he did not know whether he had an in
terest in the Lac1ede Construction COM
pany which had built the st. Louis,
Peoria & Northern railway and when
he took the stand this morning Mr.. KEEL
log produced a contract relating to Chi
cago terminal transfer, showing that
Hartman. George ]. Gould, James
StiIlman and Jacob Schif were the
owners OF the company The witness
said the document was no doubt correct
and that possibly he had acted in fix
ing the price of the road when it waA
sold to the Alton.
Mr.. Kellogg also produced two orig
inal checks to show that Kuhn, Loeb &
Co. had been managers of the Alton
syndicate and the witness, who had
been unable to remember yesterday,
said that Kuhn. Loeb & Co, undouot-
eddy had been the syndicate managers
After reciting a statement of the Chi
cago & Alton railroad, showing the in
terest cAarG $ Mr.. Kellogg asked the
witness if he thought it was right to
put upon the public large issues of com
mon stock which never would and
never could pay a dividend
Did we ever tell the public 1t would
pay a dividend?'' asked Mr.. Hartman
quietly.
He continued: NO dividend was
ever promised and in addition the pub
lie got the services of the Chicago &
Alton at 80 per cent less in 1906 thar
they paid in 1898. The road also en-
abled the commercial concerns located
along its line to increase their business
threefold-"
Then the Chicago & Alton reduced
its rates much faster than the Union
Pacif1c?-' asked Mr. Kellogg
The Union Pacific has nothing 20
do with this. We are considering the
Chicago & Alton" was Mr.. Harri-
mans response
Mr.. Kellogg asked what the total
fixed charges Of the Chicago & Alton
were
MT. Hartman scanned some papers
he held. and proceeded to read the
amounts with frequent Interruptions
from Mr.. Kellogg. His totals did not
seem TO agree with those of Mr. KEEL
logg. and this led to several brief coll
loquioes-
Mr.. Kellogg was endeavoring to
show the difference in the charges be-
tween the old company and the re-
organization and having done this, he
passed to the matter of the Chicago &
Alton Railroad company's bond issue
Of 1899.
Mr.. kellogg asked Mr.. Hartman il
there was anything to show that the
syndicate was in any way obligated to
take the bonds of the Alton before
September. 1899.
..Doas any record Of such obligation
exist anywhere he asked.
The witness knew of no such record
but said he was certain the syndicate
members were bound to take the
bonds at 60.
You'll have to seek that Informal
ton elsewhere" he said to Mr.. Kellogg
Mr.. Kellogg continued the attack on
the issue and sale of the Alton bonds,
but the witness declined to be drawn
very far. He said he was absent from
the country during the summer of
1899 and did not arrange any of the
details.
He was sure that market conditions
had all to do with the sale of the
bonds at a high figure. In reply to a
question Mr.. Hartman denied that he
was the head and front of the read |
justment or reorganizatio of the Chi |
cago & Alton railroad company.
IL was only one of the several" he |
said.
presumed that he might be regarded |
IS the head. but his responsibility was
no greater than that of his associates |
AS Mr.. Kellogg paused at this point |
Mr.. Hartman suddenly asked:
Are you through with the Chicago |
{ Alton2''
Mr.. kellogg said he was and the /
witness said: Il want to make a state /
nent.''
Permission to make the statement /
vas given and Mr.. Hartman said:
Now our figures show that the /
whole charge of the year 1905 for in
crest and dividends on the Chicago &
Alton Consolidated company was So
.2s.S64. In 1898. including the same
Observation-Disclosures and dividends. ii
vas $2.3SS.4 $50. or an increase of I
isz5,4O4 after s22.327.OOO had been
expended in improvements and better
nents on the property
1.-The syndicate does not hold any of
hat issue of twenty millions of COM
non stock of the Alton upon which no
ividend had been paid. They un-
oaded it, didn't they?" asked MT
Kellogg
You ask the Rock Island people