Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-06-26
Hartman Opens His Purse to
Avert Passing OF Dividend
of His Victim
PLAN is PUT IN WRITING
Harriman's Word Not Accepted by the
Board Commerce Commission Con-
tinues Its Inquiry Into the Methods
of Masnate and Competing Lines
General News.

Washington, June 26.-Edward H.
Hartman has adopted a new attitude
toward the Chicago and Alton railroad
different from the predatory policy
which memhers of the interstate COM
merce commission alleged he observed
toward that property.
Authoritative information has
reached here to the effect that in order
TO prevent The passing of a dividend
man made 81 loan of $1000,000 to that
line, TO be used for improvements. 1.
has been the history of the road under
The dual arrangement between HalTl-
man and the Rock Island system that
in the years it was controlled by the
latter it made money, while this was
not the case in alternate years.
AT the last meeting of the parties to
the agreement in New York it was an
nounced by representatives of the
Rock Island that the surplus for the
year aggregated S1,400,000, but as the
road needed improvements it would
waive the dividend and use the money
for additional equipment repairs, etc.
Hartman instantly objected, insisting
that the dividend should be issued. 10
practical f1nanciers who listened to
him it was evident 1t was against the
interests of The president of the Union
Pacific to permit sthe passing of the
dividend because of the criticism that
would follow.
However, the representatives Of the
Rock Island were in control, and Har-
riman, after thinking a few moments,
proposed to make a personal Joan of
81 900, 900 at per cent, to be repaid
i'm 1915, If the board would declare div
idends. The proposition was accepted.
Further humiliation, however, was in
store for Hartman. The board de-
clined to accept his mere word, put IN
sisted that the proposal should be made
in writing and the railroad magnate
was compelled to send for the general
counsel of his road, who drew up the
necessary pa pers. 1t is said there was
absolute, silence during the time the.
board was awaiting the arrival OF
Harriman's counsel.
The mere loan of s1,O00,O0O of course
goes but short, way in paying back
the immense sum Hartman added to
the Indebtedness of the Chicago q AL
ton by his peculiar methods of imam
ciering. Attorney General Stead of
Illinois reported that over $57 100000
of the railroads present debt more
than 20 per cent of its entire indebted
ness, had moi been created further
ance of any legitimate purposes.
Adds SSoNo0,0o0 to Debt.
Altogether Hartman added SS0,000,-
900 10 the debt of the Chicago & Alton,
of which Only s22,500.000 was spent on
account of improvements, betterments
and extensions The interest of bond
and stockholders estopped the state of
Illinois and also the federal govern
ment from instituting proceedings
against Hartman. The $1,000000
which Hartman has turned over to
the Chicago & Alton represents only
d proportion of the sum received by
him and his syndicate from the ex-
ploitation of The road, but it is proba-
bly, quite large percentage of the
he personally received from
peculiar transactions.
The interstate commerce commission
has not g1iver up its pursuit of Harri-
man by any means, and proposes to
submit Ito the attorney general a full
of the relations which exist
today between the. Union Pacific and
Southern Pacific system. The abro-
cation of the agreement for alternate
control of the Chicago & Alton let
Hartman definitely out of that prop 1
erty, and he cannot be attacked there
on.
The control of the road by the Rock
Island continues, and unless it should
be relinquished it may be the depart
ment of justice will decide to institute |
legal proceedings. The Rock Island is
however, to obey the law, and
should the interstate commerce COM
mission indicate disapproval of it's
holdings in the Chicago & Alton action
will be taken to insure the reversion
of control over that road to its own