The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1907-04-09
ROAD is BANKRUPT
Attorney General Stead Scores
Harriman's Alton Deal.
GAVE no VALUE FOR Ss7,O0O,OOO.
Alton system OF Railroads Throwa
Into Hopeless Financial wreck a.
Result of Enormoss Profits
20 Manipulators.

SPRINGFIELD, ILL.,, April S.--Attor.
ney General Stead has handed Gov.
ernor Deneen an opinion on the manip.
ulations OF the Chicago and Alton rail.
road properties within the last few
years by II. III. Hartman and some of
bis financial associates, including q.
j. Gould. James Stillman and MORT.
mer l.. Schiff.
The opinion is given in response to
request communicated from Govern.
or Deneen soon after .the return OF
Governor Deneen and Attorney Con
eral Stead from n conference with
President Roosevelt at Washington, In
which the attorney general was asked
TO advise what his conclusions are In
the matter and what action. II any, Is
contemplated by the legal department
OF the state.
After setting out at some length the
various manipulatlons 10 which the
railroad corporations aud properties
forming the Alton system were sub
jected Attorney General Stead con-
cludes there Ii not the least doubt
that-a civil remedy exists against the
hnanciers who have wrecked this pros
porous rlilroad company and at the
expense Of innocent stockholders and
bondlioiders have gathered 10 them
selves harvest OF millions OF dollars.
Mr. Stead is doubtful, however.
whether Il Is the province OF the state
OF Illinois 10 enforce the remedy. The
revocation OF the company's charter.
which apparently would he the natural
procedure on the part OF the state.
would bring most OF the suffering upon
Innocent stockholders, Hartman and
his friends having already unloaded q
larg~portlon OF their holdings. .
Mr. Stead lncllnes 10 the belief that
the remedy lies with the company H.
self or. In the event OF its refusal 10
act with some one or more Of Its
stockholders. This conclusion. how.
ever Is not final. for the attorney gen
eral specifically states that II he
should become satisfied upon further
investigation that an effective remedy
can be enforced by the state he shall
not hesitate 10 institute proceedings.
No opinion Is expressed as 10 whether
the members OF the Hartman syndi.
cate are criminally liable under the
statutes of Illinois
According 10 the figures set out IN
Mr. Stead's opinion. Hartman and HIS
associates made total profit OF s2s..
GiS.CO0 ont OF their operations inyolv-
Ing the Alton properties. As result
u this enormous profit 20 themselves
the railroad companies OF the Alton
system are thrown Into hopeless hank.
ruptcy.
The Indebtedness % the companies.
~ shown 10y the figures In Mr.. stead's
opinion. has been Increased a total Of
SSO,GiG.2is since they fell Into Harri.
mans hands. OF this amount only
So .5o0co. according 20 Harriman's
own testimony. says the attorney gen.
eral. was incurred for improvements.
bcti"rmcnts or extensions ~ the roads.
Says the attorney gcncrsl:
"Over So .0oo,0O0 Of this Indebtedness.
Or more than 20 per cent Of the entire
created 10y this syndI
rate upon the properties OF these sew
oral companies. was not created IN
81 any Legitimate purpose
for which railroad company IL or
an 10 organized under tho statutes Of
The state 81 Illinois"