The San Francisco call., 1907-01-06


boards I'm pOstponing publication of the
declared dividends was taken at the
suggestion of L. HI. Hartman, who ex-
pIained that he 1'thOught all the di-
rcetOrs should be apprfsed before pub
lie notice was given"
At the conclusion of the second days
hearing, which was productive of many
surprises and unending proof that
Hartman is the absolute master of the
Union Pacific and affiliated corpora
fions, announcement was made that
William Rockefeller had been subpe-
naed TO appear at the next meeting I'm
New York of the Interstate Commerce
Commission. He Will be asked TO give
details of a transaction I'm Southern
Pacific I'm which, through the purchase
and resale at the same price, he reaped
a profit of $1S7 500. The facts concern
ing this transaction were revealed for
the first time yesterday and were re-
garded as among the most important
Developments of the inquiry.
FUND FOR SPECULATION
I'VE have had a subpoena server after
Rockefeller for two days" said Frank
B. Kellogg. chief investigator for the
Government, and we find that he is i'll
in the country. He will be here at the
next sitting of the commission, how
ever. He and Hartman will probably
be the only further witnesses we shall
examine in New York"
The members of the commission will
start for Chicago tomorrow on the
Twentieth Century limited and will
begin hearings In the merger case in
Chicago on Tuesday. From Chicago
they will go West, and II may be two
and perhaps three weeks before they
get back to New York.
Evidence was introduced showing
Hartman borrowed nearly $4,000, 900
from various New York City banks and
lent the Union Pacific 100000 on de-
mand note. with no collateral. To 9th
er railroads he lent nearly S1,o00000
with no collateral.
That Hartman had purchased mil
lions OF dollars worth of stock in
street car and lighting companies in
Salt Lake City and Los Angeles was
brought out today. Efforts were made
to show that Hartman had used a
vast fund of which no accurate record
was made for speculation in railroad
stocks but nothing to support such
theory was brought out. Efforts were
made also to trace the so-called miss
ing sl0o,ooo.oo0 bond issue OF 1901"
but this was not altogether successful.
HARRIMAN's VAST POWER
The Investigators are exerting all
their efforts TO show that Hartman
has a power more vast than any other
one person in America, and that he
holds the control of all his great cor
porations in the palm of his hand.
All the facts of record as to the
declaration of dividends last August
by the Union and Southern Pacifics
were brought out. The dividends were
declared on August Is, but were not
announced until two days later.
The executive committees of the
Union and Southern Pacifics were given
authority to announce the dividends at
such time as they deemed proper, ac-
was and is chairman Of both commit
tees. The committees were also author
ized to designate the funds from which
the dividends should be paid.
What these funds were could not be
learned today, but the commission was
promised complete statement
From the minutes of the Oregon
Short Line executive committee it was
disclosed that in March. 1908, Hartman
sold TO William Rockefeller 100000
shares OF the Oregon Short Lines hold
ings of Southern Pacific common stock.
A letter from Rockefeller referring to
their agreement" as to the stock was
next placed in evidence. Rockefeller
in November. 1903. asked Hartman to
take back the stock at the time. in
stead of waiting for the expiration of
the agreement in the spring OF 1904.
The minutes Of the Short Line showed
that the stock was bought back from
Rockefeller and ii was further shown
that he was paid a commission of
$187, 500. Today's witnesses knew moth
ing concerning the agreement between
Rockefeller and Hartman.
ABOUT WESTERN PACIFIC