The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1907-02-26
L. II. Hartman Relates Portion OF
Huge Financial Deals.
FAILS TO ANSWER QUESTION
Denies All Charges---Paves Way to Higher
COurt-..Limit to Power.

their present prices the profit on the
Northern Pacific investment would
amount to about $61, 100000. The wit
! ness was taken over the total in
vestments and sales made by the
Union Pacific and Oregon Short Line,
and in the end denied that they had
been made for speculative purposes.
| The witness then related the story
of the purchases of the forty-five mil
! lion of the stock Of the Baltimore &
Ohio, paying for which would, he said
/ be completed in March and Septem-
/ Der next. He had discussed the pur-
chase of the late President Cassatt
Of the Pennsylvania railroad, but
nothing had been said as to price, and
no conditions were attached to the
purchases.
| Inquiry about the Union Pacific pur-
chases Of stock in the Alton led the
way to the first objection Of counsel
for Mr., Hartman to question as
/ to the. amount Of stock witness nad
held in the Alton.
I The witness explained the sale of
stock and testified that he had served
on the committee which had fixed the
price at 841a. He then was asked If
he had owned any Of the stock when
it was deposited Mr.. Milburn OBJ
/ jected, saying his clients were ready
| to lend every possible assistance to
! the inquiry and that they rejoiced
that it gave them opportunity to clear
away many scandalous and unjust
reports. He denied, however, that the
question had any bearing on the ques-
tion of interstate commerce. He said
| the commission had great powers,
but there was limit, and he thought
/ it was to the interest of the commits
sion properly to define its powers.
Chairman Knapp said the sugges-
tion of Mr.. Milburn seemed to draw
a distinction between the transaction
of the company and the action of its
officials and asked if this could be
called the transaction of an individ-
ua1.
There was an extended discussion
of the question and 1t was stated
that the commission would confer and
announce it's decision later At the
/ afternoon session the question was
renewed in another form and the
commission decided that it had a
right to make the inquiry. Objection
was noted in the record and the wit
ness formally declined to make an
swer.
The examination of the entire Al,
ton transaction then began and con
sumed most of the afternoon. Mr.
Hartman first told of the formation
of the syndicate, which he said, con.
tanned many persons and which was
represented by himself, James Still
man. George Gould and Mortimer
schiff Ninety-seven per cent of the
stock of the Alton was acquired, $20u
having been paid for the preferred
and SITS for the common, the total
investment amounted to S42,000,0OO
Bonds to the amount of $40,000,0OC
j were issued and the shareholders
subscribed for them at 65 and from
the proceeds from the sale of bonds
dividend of 80 per cent was de
j clared. The witness denied partlc
ipation in a sale of bonds at 96 tc
the New York Life Insurance com
/ pany. Mr.. Kellogg asserted that the
bonds had been regularly quoted al
from "a to SO, but the witness said he
could not remember what they were
!, selling at. The witness denied knowl
:. edge of the whereabouts of the rec
ord Of the syndicate which handled
:. them. Mr.. Milburn, representing Mr.
Hartman, objected to what he called
an effort to create the impression
J that Mr.. Hartman and the othel
trustees owned all the stock purchas
. ed by the syndicate.
'Why not jump to what you wan
to prove?" asked the witness. 'I'l
help you to do It,"