Daily press. [volume] (Newport News, Va.) 1896-current, 1907-03-01
Financial Wizard Also Raised
Money on The Operating Ex-
pGnsGs Of The Alton.
STOMACH PUMP" FOR FlaAECIER
Interstate Commerce Commission Will
Probably Compel Him to Answer
Questions Which He Flatly Refused
to Answer-New York investigation
at an End-Not to call Rockefeller.
Cry Associated Press.)

(By Associated Press.)
NEW YORK, Feb. 2S-The Inter
state Commerce Commission today
concluded its New York hearing on
the investigation OF the operations and
relations OF the Union Pacific system
and while there will be other hearings
in Washington in April. the date to
be decided later, the testimony has
all been taken.
Notice was given of an appeal Ia
compel Mr.. Hartman TO answer the
many important questions declined by
him. but the question will be consid
cred after the commission returns TO
ashington.
I'VE will discuss the question at
washington" said Commissioner
Franklin Lane after adjournment to.
day, and there decide If we are TO
ask that the stomach pump be up.
piled to the witness"
{ The closing hours of the hearing
brought statement from Comptroller
Mapes that financial statements were
not sent to Southern Pacific stock
holders for several months before the
dividend meeting in July last. This
is In contradiction of Mr. Harriman's
testimony.
Commissioner Harlan raised the
point that the 80 per cent dividend on
Alton was illegal under the Illinois
constitution. There was partial
clearing away of the dispersion about
the mortgagingj of the Murrayville.
Springfield cut off before It was
built and a lengthy discussion OF the
propriety of pitalizing the old ex.
penditures for betterments on the AL.
, ton.
Hartman Capitalized Debts.
Mr.. Kellogg endeavored to show
that the Hartman management of
the debts of the old Joliet and Chi.
caso road. prior to 1863, but Comp
trolier Hilliard said his knowledge of
/ the roads affairs did not go back that
| far.
1t was elected, however, that there
never had been a foreclosure of the
Chicago C Alton Railroad. while the
old Joliet & Chicago had been fore.
closed
The witness was examined MS 10
the s12,000,O00 which it is claimed the
Hartman party added to the capi,al
or the Alton because that amount had
been expended on improvements or
''&u bSSh iOol DN StnTPnOl0prS,
Mr.. Lovett, of counsel for the Harri-
man interest. objected to Mr.. kellogg
assuming that $10,uvv 900 of the
amount represented loss to an old set
OF stockholders through foreclosure.
III developed that neither witness nor
counsel knew If there had even been
foreclosure. so Mr.. Kellogg amend
ed his questicN TO include Improve
ments or losses or both"
| The witness said That the $4,000
900 IN question had previously been
PAID, ana the accounts We're written
OF. He did not know if other rail
roads ever added to their capital in
that way
Even Capitalized Operating Expenses.
Mr.. Kellogg then asked n series of
questions tending to show that GER
tain operating expenses also had been
capitalized by the Alton. but the wit.
ness did not admit this
Certain construction expenses had
been so charged. he said.
Mr.. Kellogg elected the admission
that the discount on the bonds had
been so charged that while the books
disclosed it the annual report would
tend to confuse the public in regard
to this item.
In answer to questions from Com
missioner Lane. the witness question
ed the right of the directors of the
Alton in going back over their books
for period of many years and CAPT.
taiiZing the expenditures.
He said that each succeeding board
OF directors had each year passed
upon the accounts. and he thought
mat such acts should have been
final.
Rockefeller Will Not Be Called.
Before the hearing began il was
said, contrary to expectation, William
G. Rockefeller will not be called to
testify regarding the alleged sale to
him by Mr.. Hartman of 100000
shares of Union Pacific at the time
OF the so-called Keene raid in 1908.
Chathan's New Postmaster.
(BY Associated Presso