The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1907-03-01
WATER in THE AL TON STOCK
Testimony Brings out Fact That Expend-
itures Were Capitalized.

New York, Feb. 2s. ~ The inter.
state commerce commission today
concluded its New York hearing on
the operations and relations of the
Union Pacific system and while there
will be oral arguments heard in
Washington in April, on a date to be
decided later, the testimony has prob
ably all been taken. There has been
no decision yet, as to an appeal to the
courts to compel 3. H. Hartman and
Otto Kuhn to answer the many i'm
portant questions declined by them,
but the questions will be considered
after the commission returns to
Washington. "We will discuss the
question at Washington" said Com
missioner Lane after adjournment to-
day, sand there decide if we are to
ask if tho stomach pump is to be
applied to these Witnesses"
Before the hearing pegan it was
saida#that, contrary to expectations
VIM. G. Rockefeller would not be
called to testify regarding tha sale
to MIN by Mr.. Hartman Of 100000
shares OF Union Pacific, at the time
of the so-called Keene raid in 1903
Samuel FELTON,, president of the Chi
cago & Alton since 1898, was called
to show that about S1.OOO,OOO from tnv
income as against proceeds from the
sale Of securities was included in
the statement that showed that $22,-
100000 had been expended in i'm
provements.
Charles w. Hilliard, controller of
the Chicago & Alton, who was on
the stand when the hearing adjourned
last evening, was called. He explain
ed that the branch line or cut off
from a point near Murrayville to
Springfield, which he yesterday testi-
fled to had been mortgaged before
1t was built, was one the Alton had a
right to build. The proceeding was
not unusual.
The line of inquiry was evidently
ment to correct the impression left
by questions of counsel and Mr.. Hill
liard's replies yesterday.
Mr.. Kellogg asked questions elic-
iting a statement of the Chicago &
Alton's assets and libilities in 1898,
before Mr.. Hartman entered the
OF hn +j,,,a
These figures were taken from an
annual report, showing that before
1898 it's capitalization was in round
numbers $33,00O,0O0, against $122,O72,-
1913 on June 10 last. The witness
said the car trust certificates were
not included in the capitalization, so
the total should really be $125 5,oOU,-
900 and not $122,OOO,OOO.
Mr.. Kellogg endeavored to show
that the Hartman management of the
Chicago & Alton had capitalized the
debts of the old Joliet & Chicago
road prior to 1868, but Mr.. Hilliard
said his knowledge of the roads af-
fairs did not go back that far. 1t
never had been a foreclosure of the
Chicago & Alton railroad, while the
old Joliet & Chicago had been fore
closed. The witness was examined
as to the S12,OO0,OO0 which 1t is
claimed the Hartman management
has added to the capital of the Alton,
because that amount had been ex-
pended on improvements or had been
lost by former shareholders.
The witness said that the $12,OOO,-
900 in question had previously been
paid and the accounts were written
off. He did not know if other rail-
roads ever added to their capital in
that way.
Mr.. Kellogg asked a series of
questions tending to show that GER
tain enterprises also had been capi-
talized by the Alton, but the witness
did not admit this Certain con-
struction expenses had been SO charg-
ed he said.
Mr.. Kellogg elected the admission
that the discount upon the bonds had
been so charged that while the books
disclosed it, the annual report would
tend to confuse the public In regard
to this item.
In answer to questions from Com