Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-02-28
Chicago & Alton Blank
eted With Mortgages.
Expert billiard Tells Of Mr..
Harrlman's Methods.
NJ. Kahn Of Kuhn, losb Z Co.,
upholds Hartman.

| New YORK, Feb. 2s.-COunSel for gov
eminent renewed their attack upon the
| financial methods of the Hartman
group in the Chicago & Alton Railroa d
before the Interstate Commerce Com
| mission late this afternoon when they
called Charles w. billiard. controller
Of the road, as a witness. Under exam
ination by Frank b. Kellogg, billiard
testified that he became controller in
October last, when. under the joint ar
| engagements for the management of the
property the Rock Island took its turn
billiard said that his first task was to
find money to carry on the improve
ments that were under way. There
was money in the treasury for current
expenses, but not enough to defray on
the improvements. which included a
cutoff of 341a miles of road from q
point near Murrayville to Springfield.
Il lOked into the question Of rails
ing money by mortgages" he contin-
ued land ] discovered that it already
mad been mortgaged.'
DO I understand that this road hal
been mortgaged before it was built?"
asked Commissioner Lane.
Yes, / was told that it was covered
by the mortgage of 1900 and there was
nothing that could be done except put
second mortgage on it. which would
have been poor security"
Mr.. Kellogg then read the mortgage
to show the line lad been covered by
it, and rcsulning the witness said:
''All the bonds were gone. found
from the books that the $17OCO,COO had
never been paid for the bonds, that the
1nI
Stanton Cor the stock: that the 81. OOC,-
900 had never 1cen paid to Stanton for
the road, but that the S22 100000 in
bonds had been turned over to the syn
dictate who delivered the stock and the
road through the intermediary. Mr.
Stanton
The commission wanted to know
what the books showed had been ac-
tua1ly expended in connection with the
handling of the property. but while the
witness was searching for the records,
the session was adjourned until tomor-
row. Controller billiard will be re-
called to the stand tomorrow morning
and il is expected that the hearing Of
the commission will be concluded about
midday.
Edward II. Hartman concluded his
testimony at the morning session ana
his examination brought out nothing of
special Importance. He was succeeded
on the stand by Otto II. Kahn, one of
the leading members of the firm of
Kuhn Loeb d Co., which has financed
many of the important deals of the
Hartman party and a former director
of the Union Pacific. Kahn remained
on the stand unit! mid-afternoon, and
under examination of c. A. Severance,
of counsel for the government, told Of
the reorganization of the Union Pa
clio. The witness spiritedly defended
the acts of his firm and cited instances
where it had sold stocks to the Union
Pacific at a figure below the current
market. Before leaving the stand Mr..
Kahn made an extended defence of
the Alton transaction
Before he left the stand, Mr.. Harri-
man again invoked the question of pri-
vatc business as against interstate
commerce and refused to answer inter-
negatives as to his individual stock
transactions and Mr.. Kahn refused TO
dIvulGe any specific transaction under
taken by his firm in behalf of clients
in or outside of the Union Pacific di-
rectorate. The commission ruled
against all objections and the record
was in each instance properly complet-
ed for reference to the courts.