The Irish standard., 1907-03-02
Declines TO TELL
OF railroad Deals
HARTMAN REFUSES TO ANSWER
WHEN QUESTIONED ON GRAND
ISLAND PURCHASE.
INTERSTATE BOARD
EXCUSES WITNESS
Otto Kahn, Of Kuhn, Loeb &. Co.,
Then Called to Stand-Says He
and Schiff Went on U. p. Board as
Duty to Security Holders.

ana SChlU went on ". r. oodto do
Duty to Security Holders.
Now York. Feb 2S.-Edward II.
Hartman "Wednesday concluded his
highly interesting story OF his I'M
mense deals and Otto Kahn OF Kahn,
Loeb 4 Co, the bankers. took the
stand before noon in tho investiga-
tion of Union Pacific. Alton and other
matters before the interstate COM
mercc commission.
Mr.. Hartman took The witness
chair a little after ten o'clock and in
answer TO Il question by Mr. Kellogg
testified that tho Union Pacific had
purchased the ST. Joseph 6. Grand Is
land railroad since last year. The
price paid was $2,022,OO0. and the
witness had owned tho property aud
sold it, to the Union Pacific. Objcc-
when he bought tho stock of the St.
Joseph IL Grand Island and what he
paid ior il, and the witness declined
to answer. Tho commission ruled
that he must answer. and there was
the usual formal refusal.
Bought in Open Market.
MIR. Kellogg asked of whom the
New York Central stocks acquired by
the Union Pacific wero obtained. Mr.
Hartman said they were bought in
| the open market.
"Wcre you or any of your assu-
ciatrs Interested in the sale at the
time OF the Union Pacific purchase" 2"
asked Mr.. kellogg. Mr.. Mlburn OBJ.
| jcctrd, and Mr.. Hartman declined to
| answer.
| Mr.. Kellogg asked the witness il
IT was not Il fact that Of the So,
| 100000 said to havo been spent On
| the Chicago g. Alton $2,24O,O00 was
| made up of car trust certificates and
| $1O0O,OGO was Il loan from Kuhn
| Loeb 4 Co, SO that expenditures ON
| the line out of the new securities sold
were only about $4,000, 600. MIR
Hnrriman said that possibly the fig
| urps were correct. lie knew simply
that S222,Oo0,OO0 had been spent on
| the line.
| Otto Kahn Called to Stand.
| The witness WAS then excused ant
Otto Kahn Of Kahn, Loeb G. Co. tool
the stand.
Mr.. Severance took up the cxamina
tion of Mr.. Kahn and asked Il few
questions as to tho organization O.
his firm, leading him back to the day.
OF the reorganization of the Union Pa
cific. Kuhn, Loeb e. Co. were bank
ers for the reorganization committee
and Mr.. Severance piled the witness
with questions concerning the issn
ancc, bonding and general handlinl
OF the Union pnciIlc securities am
| those put out by the reorganization
Mr. Kahn replied fron, printed report.
and for some time the proceeding.
were confined to q recital Of tho de
tails.
Mr.. Kahn said that both he ant
Jacob H. Schiff remained on tho
| Union Pacific board until Il year ago
He said he desired to say that il
going on the board they considerc,
ii Il duty to the public which held tn,
securities. At the same time the,
wished it. understood that they actct
as bankers and at no time ceased tc
be bankers. and that in dealing will
the Union Pacific they did SO at arm.
length. AZ no time had they eve
charged the Union Pacific more than
II bankers regular commission, ant
often they had rendered valuable scrv
ices for nothing.
About Il year ago they felt that tllt
necessity which caused them to g
on the board had passed and tha
the demands of their own bankln.
business had increased The cred
of the Union Pacific had become firm
ly fixed and Mr.. Kahn and Mr.. Schif
resigned from the board.
Took Risk in Purchase.
MI. Kahn said his firm had pur
chased the Southern Pacific stool
control. which afterward passed tt
the Union Pacific, but he insisted tha
it was not bought with the under
standing that the Union Pacific shoult
take it, tho only Understanding be
ing that it was to be offered to tn,
Union Pacific. Mr.. Hartman, he be
lievcd, was in favor of purchasing
but his firm took Il great risk in buy
ing the Southern Pacific stock, a
the remainder Of the board nigh
not approve the purchase and it woult
be left on their hands.
While Mr.. Kahn was ON tho stant
MI. Hartman remained in the cour
room. At first he found Il vacan
chair among the newspaper men VIII,
occupied the jury box, and after re
naming there half an hour he sa
between his own counsel and Mr.
Severance.