The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-03-01
REPORTS MADE
CONF USED ! L: PUBLIC ! / | L J
ATOMS ooks and AIin,la i | Report
Did N OF Cor 81 81 .;
respond.
ROCKEFELLER A WITNESS
ROCKEFELLER A WITNESS
Comptroller Mahl's Testimony
Contradicted the Statements
Made by Hartman.

NEW YORK. February 2S.-The Inter-
state Commerce Commission to-day con-
Guided its New York hearing on the IN
vestgation OF the operations and relations
of the Union Pacific system. and while
there will be oral argument heard at
Washington on an5April date to be decided
later, the testimony probably has all been
taken. There has been no decision yet
as to an appeal to the courts to compel
Edward II. Hartman and Otto Kahn TO
answer tho many Important questions de-
clined by them, but the question will be
considered after the commission returns
to Washington. I'VE will discuss the
question at Washington said Commits
sioner Franklin Lane. after adjournment
day, "and there decide If we are to
ask that the stomach pump be applied to
these Witnesses
Did Not Notify S. p. Stockholders
The closing hours of the hearing
brought statement from Controller
Mahl that financial statements were not
sent to Southern Pacific stockholders for
several months before the dividend meet
ing, in July last. This Is In contadic-
ton OF Mr.. Harrlman's testimony.
Commissioner Harlan raised the point
that the 80 per cent. dividend on Alton
was Illegal under the Illinois Constitu-
ton. There was a partial clearing away
of the asperslon about the nlortgaging
of tho Murrayyille- Springfield cutoff
before it was built. and lengthy dis
cussion OF the propriety OF capltalizing
the old expenditures for betterments on
1.-The Alton.
Mr. Kellogg endeavored to show that
the Hartman management OF the Chi
caSo and Alton had capitalized tho debts
OF the old Joliet and Chicago Road
Isprior to 1868, but Controller Hilllard said
| bis knowledge of the roads affairs did
mot go back that far.
$I2,ooo,ooo to Capital.
1t was ELECTED. however, that there
never had been Il foreclosure OF the Chi
cngo and Alton Railroad or Railway, while
the old Joliet and Chicago had been fore
| closed, The witness was examined as to
the Sl20Oo.0OO which it is claimed the
| Hartman party added to the capital or
| tho Alton. because that amount had been
expended on improvements or had been
| lost by former shareholders. Mr.. LoVett,
of counsel for the Hartman interest, obs
jected to Mr.. Kellogg assuming that
| SIC, ,00D, 900 of the amount represented loss
| to the stockholders through foreclosure.
| 1T developed that neither witness admits
| |now that there had ever been u fore
| closure so Mr.. kellogg amended his
question 10 include improvements or
| losses, or both,'
The witness said that the $1200O,O0O in
question had previously been paid, ana the
accounts written off. He did not know
Sif other railroads ever added to their
capital in that way
Report Confused Public,
Mr.. Kellogg then asked a series Of uues-
tlons tending to show that certain oper-
atlng expenses also had been capitalized
by tho Alton. but the witness did not ad-
| nit this Certain construction expenses
had been SO charged, he said. Mr.. Kel-
lngg elected the admission that the dis
count on the bonds had heen SO charged
: Continued on Second Page