The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1908-01-17
HARTMAN
must Tell. !.
DIRECTED TO ANSWER CUES.
TloMs pRoPouhDED eY CON-
MERGE COMMISSION.
ORDERED BY COURT


Queries Related to Purchase Of Stock
In Other Roads IN Interest Of Union
Pacific Asked II Shares Were Sold
in Pool BY Himself, stillnnan and
Rogers.
New York, Jan. 16. e. H. Hartman
was directed, in decision gwen by
Judge Hough in the United states cir.
cult court today. to answer all ques-
hens propounded to him by the inter
state commerce commission except re-
lating to the purchase Of Union Pacific
and Southern Pacific railroad stock in
connection with the dividend Of Au-
gust. 1906.
He also directed Otto H. Kuhn,
OF Kuhn, Loeb & Co, to answer all
questions asked him by the interstate
commerce commission.
The questions to which Mr.. Harri-
man objected related to'sthe purchase
OF the stock Of other railroads in the
interest Of the Union Pacific. In re.
gard to the 500, 100000 Of Illinois Cen.
tral, purchased at $175 share. the
questions which Mr.. Hartman declin-
ed to answer were as follows:
Were the 10000 shares sold by
yourself, Mr.. Rogers and Mr.. Still
man pooled?'
'.Was It acquired for the purpose oi
selling It to the Union Pacific?"
WAS the stock purchased by you
at a much lower price than $175, with
the intention OF turning 1t over to the
Union Pacihc?"
did you have any interest il the
1O5, 1000 shares sold at the time by
Kuhn, Loeb & Co., to the Union Pa
|cigc7''
Were the Is, 900 shares acquired By
the same pool for the purpose OF sell.
ing to the Union Paciflc?"
Wouldn't Answer These.
On the subject Of the Union Pacific
dividend, which advanced from rate
OF s to 10 per cent per annnm on Au-
gust Is, 1906, with consequent rise
in the stock, Mr.. Hartman declined
to answer the following:
Were you directly or indirectly in.
terested IN any stocks that were
bought between the 18th Of July and
the Itch Of August that ppreciated r
did you or any director buy any
Union Pacific and Southern Pacific
stocks in anticipation Of tnat diyi.
dend z"
Mr.. Hartman is sustained In his oh.
tections to the Union Pacific dividend
question.
The questions which Mr.. huhn re
fused to answer had to do with the
connection Of Kuhn, Loeb & Co., with
the purchase Of stock In the Chicago
& Alton and Illinois Central, and what
proportion Of the stock 30 purchased
was held for the directors Of the
Union Pacific.
While the exceptions were regarded
as important questions by the gov
ernment's lawyers, who were investt'
eating the Chicago & Alton organiza.
tion, they constituted only q small pro.
portion Of those that Hartman re.
fused to answer.
When the Clash Occurred.
The clash between the witness and
the commission occurred February 25
Of last year. For several days the in
vestigators had been endeavoring to
get at the bottom OF Mr.. Harriman's
speculation conducted with the Chi
cago & Alton. The prosecution asked: !:
did you own any Of the Chicago &
Alton preferred stock sold by a syndt-
cate to the Union Pacific? 2"
Immediately the railroads attor-
ney, John llilburn, contended that the
inquiry was not within the scope OF
the federal investigation.
Frank B. Kellogg, the governments
attorney, took the contrary view.
The outcome. after prolonged argu-
ments, was that Hartman declined to
answer q number Of questions as to
stock transactions on the ground OF
personal privilege.
Mr. Kellogg and his associates ap-
pealed to the federal courts to compel
the witness to answer.
Both Hartman and Kuhn we're ex-
amined in relation to the affairs OF the
Chicago & Alton, the At4Sison, TO,
peka & Santa Fe. the Illinois Central,
the st. Joseph & Grand Island. the
New York Central & Hudson River
and the Southern Pacific railroad com.
panies.
Stock In these companies was &C
quired by the Union Pacific company
Of which Hartman was president, by
-