New-York tribune., 1907-01-06

Pacific controlled the three transcontnental lnesf
opid the eu@ Denver Ds ne & Rio Grende trae
arrangement with the Southern Pacinc neIore fDas &
cific? A~No
you that the Western tier paGf is o 9ehs ths
Southern Pacific with the Union Pacific? A.-Yes;
the railroads before the consoiidat the south
Pacific with the Union PacifcT A.-Ihere was
cutting before that.
These last answers were in response to ques-
tions by Commissioner Harlan.
Mr. Jeffery said that when Mr., Hartman was
on the Rio Grande board he sure he acted
for the best interests of the Rio Grande He also
felt that Mr. Gould acted for the best interests of
the Union Pacific when serving that road.
That is what Mr. Hartman calls community
of interest," isn't it?" asked Mr.. Kellogg.
Il believe So" said Mr.. Jeffery. I'VE were on
the road to the millennium then" he added, but
didn't quite get in
80 now you are building your own road 10 It,,
suggested Chairman Knapp. amid laughter
David Wilcox. president Of the Delaware &
Hudson followed Mr. Jeffery on the stand. He
testified that he became director in the Harri-
man lines at Mr.. Harrimans request Counsel
for the Union Pacific brought out the fact that,
regardless of Union Pacific control of Southern
Pacific all business from Ogden to San Fran
cisco must at present go the Southern
Pacific route.
STEAMSHIP LINES OWNED.
W. D. Cornish, vice-president of the Union
Pacific who was the next witness. confirmed the
ownership by the Southern Pacific of the Morgan
Steamship Company and its control of the
Pacific Mail Steamship Company. He said he
was not sure just how much of the Oriental and
Occidental Steamship Company the Hartman
interests owned. Mr.. Cornish told about the
struggle between the Short Line and the san
Pedro company. He said Senator w. A. Clark
president of the Sar Pedro company, and
that he began Its construction in 1901 After
the road was begun, he said. there was some
controversy between it and the Oregon Short
Line over a question of grade in the San Pedros
roadbed. which was finally settled.
Mr.. Cornish stated in answer to Mr.. Kellogg
that on March %, 1901. the Union Pacific issued
$1,000 900 of common stock and S100,OO0OiO
worth of bonds convertible into common stock
O.-What did the bonds sell for? Al don't
Q.--The Union Pacific got par for them, did 1t
not? Al presume that it got less than par for
Q.-Ar the bonds except about $4,000 have been
qso that % about @ ses co worth have been con-
verted? AEsomedh3S rs, met bin like that ~.
stocks, isn't 1t?
Mr. Milburn was on his feet in instant.
before the witness could reply, protesting
against the form of the question.
Mr.. kellogg renewed the question in another
form.
ON a general way it was not necessary for the
finance the road at that line, and II was done
that the road vas heavily n debt because of the
DID not the circular say that s45.OooooO was
nseded for the purchase OF the Southern PaeihG; nc
operating surplus but not treasury surplus at
'i' VI. - .,,o condition ~ tha oDeratInE sur
plus at the time of the bond issue? Al don't
know. but can nave statement about IL pre-
tha statement & give tae & dates ate o6o1ns of 5hs
realized by tie sale Of them and the purchases
made?
Mr.. Cornish did not reply, but former Judge
Lovett said that the entire issue of the sloo-
100000 of convertible bonds was not disposed OF
at once but in lots covering a period OF years
He said that the statement which would be pre-
pared would cover the sales
Commissioner Knapp asked whether, when the
new issue OF Union Pacific stock was authorized,
the purpose of the issue specified Judge
Iovett general counsel for the Union Pacific, re-
piled that the resolution authorizing the issue
had expressed the purpose of 1t in general terms
He declared It had been stated at the time that
$40 100000 of the new convertible bonds was to
go to acquiring stock of the Southern Pacific.
BOUGHT SUPPLIES FOR ALL LINES.
William V s Thorne, director Of purchases for
the various Hartman lines. the first wilt
ness after recess He deflnea his duties as the
purchase of cars and other things used by the
several railroad companies. He said that sup
plies for the three lines were bought in large
lots in the name Of the Union Pacific road. and
afterward distributed to the other roads as they
needed. the invoices then being charged
to the road which received the supplies He was
appointed to his position by Mr. Hartman, he
said, and his salary paid by the Union
Pacific.
Alexander Miar. secretary of the Union Pa
cifc then testified told about the three hun
dred thousand shares of Southern Pacific stock
held by William Rockefeller. This was the only
stock deal he knew of between Mr.. Rockefeller
and Mr.. Hartman
HARTMAN ELECTED PRESIDENT.
Mr.. Millar read the minutes Of the Union
Pacific directors meeting OF January T. 1904 at
which, Mr.. Hartman elected president of
the road. and chairman Of the executive COM
lnittee. According to the minutes of August 10
1906 Chairman Hartman submitted statement
showing the financia. condition of the company
and Il Semi-annual dividend of 50 a share on the
preferred stock. and s5 a share the common
stock was decided upon. The announcement of
The dividend, however withheld in the dis
cretion Of the executive committee
Mr.. Millar also read entries in the Oregon
Short Line minutes Al one meeting Of the
executive committee Chairman Hartman re-
ported that he had contracted for the purchase
of two ocean steamers from the Atlantic Trans
port Company for $2,200,000. The chairman's
action ratified and confirmed
Mr.. Kellogg then announced that he would call
MI Rockefeller to the witness stand; that he had
tried to reach him. but he OF town lie
added that he had heard Mr. Rockefeller was Ill,
but Of this he was not
Mr.. Kellogg also said that he would like to
put Mr.. Hartman on the stand at the earliest
possible moment.