Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-07-02
TELLS OF ss2, 2,ooo, 900 FORGERY

!. Lamar, amused, entertained and
astounded the committee as he freely
testified as to his impersonation of
| congressman over the telephone. He
did 1t all. he said. to impress the
financiers with the abilities of his
friend Edward Lauterbach, but he
stoutly denied there was ever any
mention that Lauterbach should profit
by legal fees.
David Lamar's statement regarding
the alleged forgery of the $1,000. 600
on the Union Pacific Railroads. J 3ks
in 1901 was substantially as follows:
In the summer, some time of 1901
somebody forged the books of the
Union Pacific Railroad COMPANY Ia
i.ther-ttshe of reees000, O00.--yvliu II was I
do not Know AS a eonseu1enra< ff,a
!, men connected with the cornnanv
Immediately thereafter got $50. 900 900
IN cash as the proceeds of thar
forgery, and that $4,000, ,0a0 was the
fulcrum through which all. these
giant monopolies and conspiraeies-
were fastened on the lines of railroads
serving the territory from the Rocky
Mountains to the Gulf of Mexico ana
from the Pacific Ocean to the Mis-
souri, river, and more than that IL
was the fulcrum through which this
group of men. Hartman, to the ex-
tent of $3.50, 600 600 or 5000. 100000:
Kuhn. Loeb & Co.. and one or twn
others, to the extent of $50. 600 600 or
$1o0 100000 more. were enabled to ac-
quire those gigantic fortunes.
What U. p. balance sheet sboxv.a
THE first consolidated ba1anca
sheet of the Union Pacific Railroad
Company, as of June 80, 1900. con-
tanned for the first time, the eyi-
dences and results of what had been
going ON from June 20, 1898, to June
30, 1900, and this is what had hap
pened:
In the reorganization the old Union
Pacific had lost control of what is
known as the Oregon properties,
They consisted of the Oregon Rail-
road and Navigation Company and
the Oregon Short Line Railroad Conn
pany Between the dates l have men,
toned the new company recovered
them and paid for them, first by an
issue of its own securities, and second-
ly by an assumption of debts of these
companies, and. as l have already
said. the consolidated balance sheet
of June 30. 1900. showed for the first
time the consolidated statement of
all these companies.
"On the debit side appeared the
amount of securities issued and debt
assumed against the acquisition OF
those properties.
! "On the asset side there appeared II
credit equal to the entry value of al.
| the physical properties so acquired
and then again there appeared a
credit equal to the entry value of all
the physical properties so acquired.
and then again there appeared a
| duplication of that. The same amount
was entered over again as represents
ing the value of the securities, which
in turn represented the value of the
physical properties acquired
$S2,O00.O00 Entered Twice as Asset.
'"The sum of $S2, 900, 600 or its equiva-
lent, was entered twice on the asset
side; but up to that time the trans-
action was only open to the obiecton
and criticism that it representei a
piece of clumsy bookkeeping for.
again, on the debit side there ap-
| peared an entry corresponding, treat
! ing the securities owned by tho
Union Pacific railroad as though they
were still afloat and in the hands Of
the public; but the following sea-,
1901, somebody erased that entry on
the debit side.
so you had the entry on the one
side, of the amount of securities ISL
sued by the Union Pacific Railroadk
Company, and the amount of debt ID
had assumed, representing the pay-t
ment of the purchase prce. that on the
6ebet side, and on the asset side there
was Represented corresponding en-
try, of an equal amount, representing
the physical value of the property.
And, then, again, the same entry over
again. And that condition existed as
a result of this forgery, as result
of this erasure.
And that $S2O0O,000 before 1t was
erased represented a debit entry,
representing the securities of these
companies which the Union Paciiiq(
had acquired.
Now here is what they did, and
here is what flowed from the forgery.
| They took all the securities of tho