Daily press. [volume] (Newport News, Va.) 1896-current, 1907-02-28
GOVERNMENT REVIEWS
ATTACK ON HARTMAN.
But The Railroad Magnate Refuses
to Answer Questions Re.
IatIng 10 Private Business.
BOOKS showed STRANGE THINGS
One Of the Roads Absorbed by the
Alton Was Covered by Mortgage,
There Were No Bonds and No
Money to Pay for the Improvements
Under Way.
lBy Associated Press. J

NEW YORK, Feb. 27.-Counsel for
the government renewed their attack
on the financial methods of the Harri.
man group in the Chicago 4 Alton
Railroad before the Interstate Com.
merce Commission late this afternoon
when they called Charles w billiard,
comptroller Of road, as Il witness. I'm.
der examination by Frank b. kellogg.
billiard testified that he became
comptroller in October last billiard
said that his first task was to find
money to carry on the improvements
that were under way There was
money In the treasury for current ex-
penses but not enough to carry on
the improvements, which included a
cut OF "a 1.2 miles Of road from n
point near Murrayville to Spring
Held. There was not enough money
to complete the building OF this line.
said the witness
looked into the question of rails.
ing money by mortgage discovered
that II had already hcen mortgagcd. /"
Did understand that this road
mad been mortgaged before IL was
buiit?" asked Commissioners Lane.
Yes; was told that II was cover.
cd by the mortgage of 1900 and there
was nothing that could be done OK.
cept put n second mortgage on it,,
which would have been poor secur.
ity.''
Mr. Kellogg then read the mort
gage to show the line had been GOV.
ercd by It. and resuming. the witness
said.
All tho bonds were gone. found
from the books that the S13,OOO.OO
had never been paid for the bonds;
that the S10,000,00O had never been
paid to Stanton for the stock; that
the S37,000,000 had never been paid
to Stanton for the road, hut That tho
S22,OuO,O0O in bonds had been turned
over to the syndicate, who delivered
the stock and the road through the
intermediary. Mr.. Stanton"
The commission wanted to know
what the books showed had been nc.
tunlly paid In connection with the
handling OF the property, l,ut while
the witness wns searching for the
records, the session was adjourned
until tomorrow.
Comptroller billiard will be recall.
ed tomorrow morning and 1t is said
Nuul VIC hcuiiuR vi lHe commission
viii be concluded about midday.
Harriman's Testimony Unimportant.
Il. II. Hartman concluded his tes-
timony Mt the morning SCION, and
his examination brought forth nothing
OF special Importance He was sue.
ceeded OH tho stand by Otto Fl. Kuhn,
one of the leading members of the
firm of Kuhn. Loeb & Co., who has
financed many of the important deals
OF the Hartman party, and former
director of the Union Pacific. Kuhn
remained on the stand until midafter
noon and under examination of C. A.
Severance. counsel for the govern.
ment told of the reorganization
OF the Union Pacific. There was spe.
cial inquiry as to the commissions
paid his firm and the inter-relations
OF the firm. the witness, and Jacob
Schitf with the Union Pacific. The
witness said the firm had received a
commission equal to per cent on
the purchase of the Southern Pacific,
commission of per cent. when
was divided with other underwriters
on the issue of Union Pacific con.