The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-02-26

New York. Feb 15--b- IL
boad of The Union Pacific system spent
-, in recital Of portions OF the IN
,',aa,o history of the financial operations
,,,,,,ssIs and his associates before the
,.,o~stsfa commerce commission. which,
a. hobsif Of the United States government,
=, investigating consultations and com
ts.t;ons Of carriers. relations between
'l,r-iers and community of interest there
a. tbeir rates. facilities and practices
- -, .isi counsel for the government
made 4 particular attack on the reofSaill-
1atjon and financing Of the Chlcaso q
Alton railroad by the Hartman SyIlul-
ste and their action. with challenge
Ia counsel for the railroads of the right
~ he interstate commerce commission
~ inotlire into private trasaCtiOns OF an
;ndividnal constituted the two chief
events of the days proceedings.
Declined to Answer.
Mr. Hartman declined to tell what
,,roportion Of the preferred stock of the
Alton sold to the Union Pacific belonged
Ia him Individually. and the way was
paved for taking the question into the
federal courts The point raised involves
"A material limitation on the inquisitorial
mower OF the commission and Is OF ser
ions importance to the whole question
There was an effort to show that there
had been an enormous initiation of the
stock securities and liabilities of the AL
ton: that the Hartman syndicate had
taken unfair profits by declaring a divi-
dend Of % per cent from the proceeds of
the first sale Of bends, amounting TO
forty million dollars: that the syndicate
had sold itself the bonds at an unreason-
ably low figure. only to resell them at
enormous profit: that the Hartman syn
dieate had in the Alton capitalized the
losses OF former stockholders in the road
and the money which had been spent by
the old management for betteTments over
period Of ten years had already been
charged 10 operating expenses; that the
books of the company had been doctored
and that for an increase of the stock
and liabilities from about forty millions
TO one hundred and sixteen millions,
there was nothing TO show except an ex-
pendtuTe Of twenty-five million in inn
pFovements on The property.
Denied All Charges.
Mr.. HaTiman's testimony was denial
q an the charges and he made an ex-
tended explanation and defense of the
transactions which he contended were
iulh justified by the conditions and cir
oumstances of the time and had been
conducted entirely in the omen Harri-
and was unmarked by acrimony. The
witness declined to be led into an at
tempt TO explain the details of the Alton
operations, and constantly referred his
qneslionef 10 the records of the Alton
COMPANY
Mr. HaFriman's testimony began with
the issuance Of one hundred million of
convertible bonds by the Union Pacific
ier me purpose primarily of paying for
we southern Pacific in 1901. and then led
Fieugh the purchase in connection with
zoe oregon Short Line of the Northern
faeile stock
Asked to Explain.
Mr. Hartman identified statement
SOWING that since the first day of last
Sss NE Union Pacific and Oregon Short
Inc nave purchased stocks at a cost of
e..g hundred and thirty-one million dollars
az MI Kellogg, the governments at
w iHey' sought 10 show that, figured by
80 III the market today there had
r.sn loss OF eleven million on the in
- s-s,ii en- Mr.. Hartman saws that this
voc posSlbly true, and when further
ss. re asked permission 10 explain.
-, inS e witness said if Northern Pacific
~. uIedt Northern maintained their pre-
-. - prices the profit in the Northern
{ - - investment would amount to
- -. fp.'eo'w1 The witness was taken |
i,- Ia lily tStnlentS ana sales made !
i,c ene Mon Pacific and Oregon Short |
~ ana in the end denied that they
'''U Oeeh made for speculative purposes.
Purchase of Baltimore & ohio.
~ ne witness then related the story Of 1
.fo.l u ny OF forty-five million of the /
a. 90 oi TIE Baltimore & Ohio. payment !
II Until would, he said. be COMPLETED \
5s N AaIcn and September next he had /
-. SEQ SEQ the purchase with the late Pres
$50. 49, SAssatt Of the Pennsylvania rail /
n ,ssu' pat nothing had been said as to 1
~ re- s ana no conditions were attached to 4
ebss suiL{ about the Union Pacific pur- /
to re VI =. STOCK in the Alton led the way |
fisrr,r,a.s t objection of counsel for Mr.. /
0f st -..a" e a question as tO the amount /
Alton. ~ witness mad held in the |
and ,. SaisIless explained the sale of stock
conmit S.lliea that he had served on the
", a. :. which had fixed the price al /
any Of ,h men was asked If he had owned !
Mr. Sfs,t-s stock when It was deposited
we're rsaS.uIh objected saying his clients
ance ~ .Ss 70 lend every possible assist
that n ,..e inquiry and that they reioIced
aWay nv, sess them opportunity to clear
ports u lal.y scandalous and Unjust re-
- eenleo- however, that the utes-