The Birmingham age-herald., 1908-01-17
Judge Hough Orders Magnate
 b Obey Commission
QUESTION OF OWNERSHIP
Otto Kahn Is Also Ordered To Answer Questions Regarding Control of Rail- roads, and Hartman Must Ex-
 plain Illinois Central Deal.

New York, January 16.-Judge Hough of the United Statcs circuit court handed down today an o1xA directing Otto H. Kahn, a membeJ .N S- le banking firm of Kuhn, Loeb & c e 1 answer all questions propounded to .,,ssG the interstate com nnerce commi' . 2 E. II. Hartman was directed to So all questions except those relati ; the purchase of Union and Southf cifc stock in connection with the cS d of August. 1906.
 While 7 Q "ceptions were regarded as important .stions by the government lawyers, who were Investigating the Chi cago and Alton railroad reorganization, they constituted only small proportion of those that Hartman refused to an- swer.
 The clash between the witness and the commission occurred on February 25 of last year. For several days the inves- tigators had been endeavoring to get at the bottom of Mr. Hartman railway manipulations connected with the Chicago and Alton. The question that marked the beginning of the controversy was ths
 Did you own any of the Chicago and Alton preferred stock sold by the syndi cate to the Union Paeific?"
 Immediately the railroad presidents S lawyer, John G. Millburn, contended that the inquiry was not within the scope of the federal investigation. Frank B. Kel- logg, the governments attorney, took the contrary view. The outcome, after pro- longed arguments, was that Hartman de- clined to answer a number of questions as to stock transactions on the ground Of personal privilege. MT. Kellogg and his associates appealed to the federal courts to compel the witness to answer.
 Other Roads Involved.
 Both Hartman and Kahn were exam ined in relation to the affairs of the Chi cago and Alton, the Atchison, Topeka and Santa Fe, the Illinois Central, the St. Joseph and Grand Island, the New York Central and Hudson River and the South ern Pacific Railroad companies Stock in these companies was acquired by the Union Pacific company, of which Harri- man was president, by issue of con vertble bonds to the amount of $100,000, coo par In addition the Oregon Short Line one of the controlled companies, is- sued bonds for s45000,00O par. Kuhn, Loeb & Co.'S bank was stock depository for the passage of affiliation of transaction.
 Hartman declined to answer the ques- tion whether he owned any of the stock deposited with the banking firm, and Kahn declined to answer questions re- 1ating to the ownership by the directors of the Union Pacific of any of the Chi cago and Alton stock so deposited.
 Hartman also refused to say whether he had acquired any part of the stock of the Illinois Central, with view to selling it to the Union Pacific or wheth CT he had procured 1t at a lower price than that paid him by the Union Pa- cific.
 Harriman's Objections.
 The question to which MT. Hartman objected related to the purchase of the stock of other railroads Tn the interest of the Union Pacific dividend. In regard to the $2S,OO0,0OO of Illinois Central stock purchased at $175 share, the questions which MT. Hartman declined to answer are as follows:
 Were the 90000 shares sold by yourself, MT. Rogers and MT. Stillman pooled?"
 Was it acquired for the purpose of selling it to the Union Pacific?"
 Was the stock purchased by you at much lower price than $175 with the intention of turning it over to the Union Pacifiic?"
 Did you have any interest in the 105,- GOO shares sold at the time by Kuhn, Loeb & Company then the Union Pa cific?'
 Was the 1o5,OO0 shares acquired by the same pool Tor the purpose or selling them to the Union Pacifc?
 On the subject of the Union Pacific dividend which was advanced from rate of per cent to 10 per cent per annum on August 15. 1906 with a conse- quent rise in the stock, MT. Hartman declined to answer tkc following:
 Were you directly or indirectly in- terested in any stocks that were bought between the 18th of July and the 17th of August that appreciated"
 Did you or any director buy any Union Pacific and Southern Pacific stocks in anticipation of that dividend?'
 MT. Hartman is sustained in his ob- jections to the Union Pacific dividend questions.
 The questions which MT. Kuhn refused to answer had to do with the connection of Kuhn, Loeb & Company, with the purchase of stock in the Chicago and Alton and the Illinois Central and what proportion of stock SO purchased was held for the directors of the Union Pa cific.