The Birmingham age-herald., 1907-02-27
Says Fish Used Funds Without Knowledge of the
 Directors
MISCONDUCT OF ROADS IS
 CAUSE OF PUBLIC ANGER
Remarkable Scene Where Railroad King Confronts the Government. Charges and Counter Charges
 Notable Financial History.

Charges and Counter Charges
 Notable Financial History.
 New York, February 26.-An assertion that Stuyvesant Fish was deposed from the presidency of the Illinois Central be- cause of misconduct as to funds, con tinued refusal to answer questions re- lating to individual stock transactions, ex- plantations of the transfer of 100000 shares of Southern Pacific stock to William G. Rockefeller during the attempt of James R. Keane to secure control of the road, and of the delayed announcement of the dividends in Union and Southern Pa cific; attempts by the government to show that the Union Pacific charges unfair rates, stifles competition in the vast ter ritory travelled by it's lines and that it's dividends of 10 per cent and it's expend- ture of $240,00 1000 for betterments came from an unfair toll on its patrons; an academic discussion of railroad regula- ton by high authorities on either side that ran from plea for legalized combin- ations of railroads under government su- pervision to suggestion that the gov ernment control railroad stock issues; a charge and an admission that the mis- conduct of the railroads created the pop ular public angpr thas moves determined ly for their regulations; a charge thta no other country in the world is so hostile to large transportation interests an as- ,,fG oiRe by the upor Pacific had given the southwest ten years ads anfage in dcvel7 opment; that the failure of the Union Pa cfic to secure the Northern Pacific left the northwest ten years behind where 1t would be if control had been obtained-all ending with a remarkable scene where the government and the man stood con fronted.
 These were events that made today's session of the interstate commerce com mission with Edward H. Hartman as sole witness They gave vivid and intimate realization of the problems of swollen wealth. and railway regulation. and the participants, their utterances and the cir cumstances gave the inquiry importance. It all made a notable contribution to the financial history-light and dark-of the time.
 On the Stand All Day.
 MT Hartman again occupied the stand throughout the entire day and again was his examination in chief conducted by Frank B. Kellogg of St. Paul, Minn, special counsel for the government. The statement of the witness as to Stuyvesant Fish came in the middle of the morning session. Mir. Kellogg, in reference to the Illinois Central, spoke twice of the "squabble" between the witness and Mr. Fish.
 "One minute" exclaimed MT. Hartman, as he strengthened himself in his chair. q will tell you how the presidency of the Illinois Central was changed, if you want to know"
 MT. Kellogg remarked that it was en- tirely immaterial. but MT. Hartman was aroused and went ahead.
 q wish to prove to you that it had nothing to do with the Union Pacific, that change in the management or change or the president" said Mir. Hartman, in explaining his reason for relating the story That the change in the president of the Illinois Central occurred after the acquisition of the Illinois Central stock by the Union Pacific was merely coin cidence There has been no change in the management of the Illinois Central. If the | tain amount of it's holdings of securities and had money to invest in like securi- ties. it never would have acquired the Illinois Central"
 Deferred Dividend.
 In 1909. he said, after he returned from Europe. he was approached by several influential directors of the Illinois Central. who asked him as to the advisability of reporting several of MT. Fish's acts to the beard, with a view to having the hoard request his resignation. MT Harri- man said he took steps to smooth over inc difficulty It appeared. he said, that President Fish had used his official posi- ton tc further his own interests Mr. Hartman prevented any action at that time. MT Hartman explained the famous deferred dividend announcement or Au- gust. 1906. by saying that the board had referred the dividend declaration to the executive committee for approval That committee was to meet as usual the next morning. Hartman. however, had to at ten1 a funeral, and 1t was after clock in the afternoon before the committee finally got together Then it was decided not to announce the dividend at that Inc as 1t would give the London mar ket the benefit as against New fork. 50 the announcement was withheld until the seconI morning thus giving the New work market the benefit. He insisted there was no other cause or reason for this action.
 Mir. Hartman proceeded in his narra- five without interruption until this point. He smoke deliberately and without hes- tatlon. MT. Kellogg questioned him close ly in an apparent effort to elicit some admission of motive in the delay or the announcement. but MT Harriman's re- plies were direct He admitted that the delay in the announcement was unusual, bu. said that the occasion was unusual.
 Staggering.
 Ut was staggering" said MT Harri man. ''it marked an epoch, but If had been able to have been present at the hour for which the executive committee meeting was scheduled, the announce ment of the dividend would have been made in the usual way the morning after the directors meeting"
 Then Commissioner Lane interrupted
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