The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1907-10-21
HARTMAN WILL
TELL THE STORY
How He Secured Control OF the
Chicago x Alton
He Got Control of Illinois Central TO
Give Him Connection to
Omaha.
THE COMMERCE COMMISSION

New York, Oct. 21.-The inside
history of the financing of the Chi
lcago & Alton railroad is expected to
lcome to light this week when Edward
III. Hartman and Otto II Kuhn, OF
kuhn, Loeb & company, will appear
before the federal court in this city
to show cause why the petition of the
interstate commerce commission
should not be granted calling upon
both men to appear before II and an
lswer the questions which both de-
lclined to answer on the advice of
counsel at the hearing held by the
commission in this city last winter.
The questions which Messrs. Har-
riman and Kuhn declined to answer
for the most part, had to DO with the
Financing of the Chicago & Alton road
The first question which Mr.. Harri-
man declined to answer, upon the ad-
vice OF his counsel. related to the pur-
chase by Mr.. Hartman of Chicago &
Alton stock, and the amount of such
purchase and subsequent sale. Mr..
Hartman is also charged with refuss
ing to tell how much preferred stock
of the Union Pacific he owned. nor
would he explain that the holdings Of
II. H. Rogers, II. c. Frick and him
self were of Atchison, Topeka & San
ia Fe stock. Mr.. Hartman also re-
fused to state the connection of
Kuhn, Loeb & company with the
transaction, that firm having acted as
broker in the purchase Of the stnta
Re stock.
Mr.. Hartman also refused to an
swer questions in regard to buying
100000 shares of Illinois Central
stock, as well as most of the ques
lions put to him concerning the facts
under which the famous 10 per cent
Southern Pacific dividend was de-
clared, and whether or not he profit
ed by the sudden and rapid apprecia-
tion of that stock following the divi-
dend. Neither would he say whether
he purchased any of the stock that
he might profit by 1t.
Mr.. Kuhn is charged with declin-
ing TO answer questions explaining
the connection of Kuhn, Loeb & Co.,
with the purchase of the los, 200
shares of Illinois Central stock on Au-
gust 8, 1906,> for the Union Pacific
lat IT'S, nor would he say what part
of the stock, if any, was held for the
benefit of directors of the Union Pa
cifc road.
Mr.. Kuhn has already expressed
tions when next called upon by the
interstate commerce commission and
it is believed that Mr.. Hartman will
likewise change front and give the
desired information. The law under
which the interstate commerce COM
mission derives its authority pro-
yides for the punishment of any per-
son or persons who refuse to answer
such questions as the commission
may PROFOUND to them.
Harriman's Motive.
Chicago, Oct. 21.-An interesting
disclosure is made of an attempted
deal of Harriman's in 1902 which, II
successful, would lave changed the
western railroad situation and might
have left Stuyvesant Fish secure in
his control of the Illinois Central.
This was an effort to buy up the Chi
cago Great Western in the interests
of the Union Pacific. Shortly after
the fight between Hartman and the
Hill-Morgan forces for the control of
the Northern Pacific in 1901, Harri-
man saw that he would have to OBJ
tain a permanent connection between
Omaha and Chicago. The traffic ar
rangements between the Union Pa
cifc and the Northwestern was not
secure because of the close relations
between ]. p. Morgan and the Van
derbilts, who control the Northwest
ern. Hill had the Burlington, the
Moores had the Rock Island and
there were two Morgan directors on
the board of the st. Paul. The Chi
cago Great Western was then selling
around rs and Hartman sent an
agent to London to make terms with
the English interests that controlled
the road. He offered a liberal price
but they demanded pas and the nego-
tiations fell through From that day
dated the determination of Hartman
to secure control of the Illinois Cen
trail, even If it meant the ousting of
his former friend Fish.