New-York tribune., 1907-01-05
the securities of the Union Pacific in borrowing
money for the use of the road:

the securities of the Union Pacific in borrowing
money for the use of the road:
Resolved. That E. II. Hartman chairman of the
executive committee be and IS hereby authorized
for the uses of this company, execute in the
oes op sRd the @ amans 0f 50 @ & to pa
the securities of this company as collateral TO
executive committee authority is hereby given to
ohe e Of tbe e s Of S the 20 COMPANY on TO-
the treasurer ard controller or the company, to
the Amounts Gn so borrowet cd and to- Pedge sTc5 s
curities collateral thereto
Just to show how absolutely Mr. Hartman
controlled affairs OF the Union Pacific, Mr.. Sew
erance had Mr.. Millar read from the minutes OF
the executive committee OF June @, 1901. the
following:
The chairman reported to tine committee G THAT !9 ne
quarters OF the Union Pacific. the Southern Pacific
and d IN the city Of Chicago
fully explaining the advantages of such an arrange
ment. Where1pon upon motion. duly seconded, tho
action taken by the chairman in the premises was
ratified and approved
In the same way. according TO the minutes,
Mr. Hartman had reported to his executive
committee on September %. 1904, that he had
purchased for the Union Pacific. subject to rati-
fication by the committee. 100000 shares OF
stock of the Chicago & Alton at sS4 a share
The purchase had been made from Kuhn. Loeb
& Co. The committee promptly ratified the pur-
chase the minutes showed, Mr.. Kahn not voting.
who is Mr. Rahn?" asked Commissioner
Lane.
He is a member of the firm of Kuhn. Loeb g.
Co. Mr.. Severance replied.
GOULD CORRESPONDENCE READ.
There submitted copy OF a letter which
Mr.. Hartman had sent to George J. Gould on
April %. 1905. replying to Mr Gould's sugges-
tion that he should retire from the boards Of
the railroads of which Mr.. Hartman the
head and that Mr.. Hartman should withdraw
from the directorates of the Gould roads. In
the letter Mr. Hartman said he had declined TO
be q. director I'm the Rio Grande Western and
did not want TO be responsible for the attitude
of that company toward the Western Pacific
He added
passing has beer. marked by less construction of
transportation Than any former one but there @ has
rnent and additional facilities to the already exist
ing lines thereby better conserving the interests Of
For myself shall regard the Il loss OF your ad,
the pes haes ao S avD IN Ggr 8f % os. as f IL
them If there has been any misunderstanding Of
the Fsnd N VIII You Rio p sdss
from or declinaton TO qualify as one OF their body?
William Mahl. controller Of tbs Union Pacific
who was in the witness chair part of the after
noon testified about the Union Pacilc's pur-
chases of stock of other companies. He
directed to prepare several schedules for use in
additional testimony to-day.
The commission particularly anxious 10
know how the money provided by an issue Of
500, 100000 of stock Of the Oregon Short Line
was spent. Mr.. Mahl said II would be i'm
possible he thought to trace all the payments
from the fund from the treasury OF the COM
pany.
Either that S1o0OOoOO0 is in the treasury or
you bought something with it, said Commits
sioner Lane.
Mr.. Mahl will prepare a statement as 10
that" said Mr. Lovett.
Later, when the resolution authorizing MY
Hartman 10 pledge the securities OF the Union
Pacific in borrowing money for the road came
UP. Commissioners Lane asked Mr.. Miar:
Does that go into that common fund in which
one hundred million dollars lost?"
81 haven't heard of the loss" interposed Mr.
Lovett
'It was not discovered" said Mr.. Lane. I'VE
could not find out just what became OF that one
hundred million dollars because it's identity was
more or less losts
'I didn't know it was lost" Mr.. Lovett said.
81 thought We had agreed TO furnish the COM
mission the information from the books as to
what was received for those bonds. I undertook
to state that the proceeds of the bonds had gone
into the treasury of the company