The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-02-26
Involving Millions are De-
.scribed by Hartman.
GIGANTIC PROFITS
We're Made By the Alton Syndicate
Power Of Inter State Commits
sion Is Called in Question.

New YORK. Feb. 26.--E. H. Harri
man, master OF the Union Pacific sys
tenn. spent Monday In recital of por
tions OF the history Of the financial op
erations of himself and his associates
before the Interstate commerce com
mission. which In behalf of the gov
ernnient Is investigating consoida
tons and combinations OF carriers, re
lntions between carriers and commun
ity OF interest therein, their rates
facilities and practices. Special coun
sci for the government made partica
lar attack upoa the reorganization and
financing Of the Chicago a. Alton rail
road by the Hartman syndicate and
their action, with a challenge by coun.
sci Tor. the railroads of the right of the
Interstate commerce. commission To
INQUIRE into the private transactions
Of an individual, constitute, tho two
Important events Of the day.
BY direction of counsel MIR IIarri.
man declined to tell what proportion
or the preferred stock CT the Alton
sold to the Union Pacific belonged to
him individually and the way was
paved for taking the question into the
federal courts. The point raised In.
wolves material limitation upon the
lnquisitorlal power Of the commission
end is or serious importance 70 the
whole question OF Interstate corpora
tlon Investigation.
Anticipation OF sensational testi-
nony from Mr. Harrlman and sharp en-
counters between Ir. Harrimsn and
counsel for the government failed OF
fertilization. There was an effort TO
show by Harriman's testimony and
he records Of the company that there
lad been an enormous imitation of the
stock securities and liabilities of the
Alton; that the Hartman syndicate
had taken unfair profits by declaring
dividend of 80 per cent. from the
proceeds of the first sale of bonds
amounting to S40,00O,0OO: that the
syndicate had sold Itself the bonds at
an unreascnably low figure only to rc.
sell them at enormous p;oit. that the
Hartman syndicate had IN the Alton
capitalized tho losses OF former 9,och.
holders in the road and tho money
which had been spent by the old man
agement for betterments over n period
" ten years and already charged to
operating expenses; that the books OF
the company hsd.been dootop.d. aud
that for an increase OF the stock and
liabilities from s40,000,o00 TO about
SIG, 100000 there was nothing t0
show except an expenditure of $c2..
100000 In Improvements on the prop
e:ty. w
Mr.sHarrinan's testimony was dc.
niai Of, all the charges and toward the
close Of the afternoon he made an OK
tended explanation and defense OF tho
entire transactions. which he contend
ed we're fully justified and had been
conducied entirely in the open. IIar-
rlman's examiDation lasted for five
hours. The witness throughout the
entire day declined to be led into an
attempt TO explain the details Of the
Alton operations and constantly rc.
ferred his Iuestioncr TO the records OF
The Alton company.
commissioners Knapp, Clements.
Harlan and .Prouty presided and At the
counsel table sat Frank b. KelIogg,
who examined Mr. Hartman, and c.
A. Severance for the government. and
John G. Milburn, r, s. I.ovett. Paul ID.
Crayatb and Maxwell Evarts for the
rsilroads and members Of the Ilarri.
man syndicate.