The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-02-27
GRAND ISLAND DEAL.
President Hartman Tells Commission
About Buying the Road.

New York, Feb. 27.-Just before the
interstate commerce commission con-
Quoting an examination into the fin
ancial operations of the Hartman
reads adjourned last evening, Mr.. KEEL
logg of counsel for the government,
said that he had only a few more ques-
tons to put to Mr.. Hartman, but that
he would prefer they go over until to-
day as the hearing had already been
prolonged until a late hour. Mr.. Har-
riman at first demurred, but on MI.
Kellogg's assurance that he would only
be detained a few minutes today, al
journment was taken with that under
standing.
Mr. Hartman took the witness chair
at a little after 10 o'clock.
Mr.. Hartman, in answer to Mr.. KEEL
logg, testified that the Union PACIFIC
Grand Island since last year. The price
paid was s., 022 900 and the witness had
owned the property and sold it to the
Union Pacific.
to when he bought the stock of the
St. Joseph & Grand Island and what
he paid for it, and the witness de-
clined to answer.
answer and there was the usual for
NAL refusal.
The witness said the ST. Joseph &
Grand Island was not parallel and
Mr.. Kellogg asked of whom the New
York Central stocks acquired by the
Union Pacific were bought. MI. Har-
riman said they were bought in the
open market
s'Were YOU or any of your associates
Interested in the sale at the time of
the Union Pacific purchaser" pursued
Mr.. Kellogg.
Mr. Milburn objected and MI daTrl-
man declined to answer.
Mr. Kellogg asked the witness If It
was not a fact that of the $22 600
said to have been spent on the Chicago
e Alton S2740,0O0 was made up of car
trust certificates and $1,0O0O0O loan
from Kuhn, Loeb & Co., so that the
expenditures on the line out of the new
securities sold were only ABOUT $1o,UOo'-
ono Mr. Hartman said that possibly
fha figures were correct. He simply
knew that $22, 600, 900 had been spent on
the line The witness was then ex-
cused and Otto Kahn OF kunn' Loeo q
Co, took the stand.
Mr.. Severance took up the exam1na-
ton of Mr. Kahn and asked few
questions as to the organization OF MS
Arm. led him back to the days OF the |
OF the Union racine.
The firm of Kuhn, Loeb & Co, We're |
bankers to the reorganization COM
rnittee and Mr.. Severance pied the
witness with questions concerning the
stock issuance, bonding and general |
handling of the old Union Pacific Sc
ourifies and those issued by the re-
orga nization. Mr.. Kahn replied from
printed reports and for some time the
proceedings were confined TO recital
Of the details.
Mr. Kahn said that both himself |
and Jacob H. Schiff remained on the |
Union Pacific board until year ago
He said he desired to say that in going
on the board they did SO because they |
felt it a duty to the public which held
the securities. At the same time they |
wished it understood that they did so
as bankers and at no time ceased TO be
and that in dealing with the l.
Union Pacific they did so at arms
length At no time had they ever
the Union Pacific more than
a bankers regular commission and
often rendered valuable services for
not hing.
About a year ago they felt that the
necessity which caused them to go on
the board had passed and also the de-
nnands of their own banking business
had Increased; the credit of the Union
Pacific had become firmly fixed, and
he and Mr.. Schiff resigned from the
board of the Union Pacific.
Mr. Kahn said his firm had pur-
chased the Southern Pacific stock con-
troll which afterwards passed to the
Union Pacific, but he insisted that it
was not bought with the understand
NO that Union Pacific would take it,
he only understanding being that it
was to be offered to the Union Pacific.
Mr.. Hartman. he thought. was in
favor of purchasing. but his firm took
4 big risk in buying the Southern Pa
,ific stock the remainder of the
BOARD might not approve of it's pur-
chase and it would be left on their
hands.
While Mr. Kahn was on the stand
Mr. Hartman remained in the court
.oon At 6rst he found a vacant
chair among the newspaper men, who
,ccupied the jury box. and after re-
naming there about half an hour, he
vent over and sat between his own
counsel and Mr. Severance.
"A Missouri man stood on his head 20 !
minutes in order to win a wager. He died
what killed him? Congestion of the