The Odanah star. [volume] (Odanah, Ashland Co., Wis.) 1912-1916, 1913-07-11
ter that they would not sven COME,
with me on any subject.

lnat Tor the purpose Of epGeavoring to
restore the condition Of former friend-
ship and harmony that had existed be-
tween Mr. Lauterbach and the firm OF
Kuhn, Loeb & Co., and MI Schiff,
did, using the names of other per-
sons have number of conversations
over the telephone with meE con-
nected with the Union Pacific COM
pany.%
Testimony Given by Lamar.
Lamar, whe1 he first took the stano
this morning, admitted he was the
man mentioned in the testimony Of
Robert s. Lovett as having called Wall
street financiers on the telephone and
snpersonated congressman.
He then gave history of his al
legged dealings with fnanciers and rail-
road magnates.s In 1837,eshe said, the
late Russell Sage authorized him to
proceed to compel the Union Pacific
to pay the government $5S,000,00e in
bonds owing it. Lamar, with Senator
Foraker came to washington aad con-
ferred with President Mckinley.
We We're charged with being pair
Of conscienceless blackmailers,' La
mar said, ''but that had no effect on
u.s."
When Sage retired from business
in 1901, on Sage's recommendation.
Lamar said, he became associated
with James R. Keene. Lamar said he
warned Keene, when the latter was
buying Union Pacific stock, that the
railroad would ruin him to get re-
venge for Lamar's previous activity.
He detailed how, when Keene and his
associates had $f3,O00,000 in Union Pa
cif1c, he took steps to en.oin the voting
OF certain stock SO that e. H. Harri-
man would be compelled 10 buy Keenes
stock at high figure With Keene's
approval he retained Lauterbach's law
firm and paid $4,000. I,auterbach and
Lamar came to Washington, paid
/ Foraker a fee, and engaged him.
When the injunction was finally de-
cided against Keene Union Pacific
went down and Keene and his friends
lost most of their fortunes.
! els OF HnOne AXIS,
a"As the result of the panic of 1907"
said Lamar, Hartman, Kuhn, Loeb
& Co.. the National City bank, and
Morgan & Co. became bound together
as with an iron band"
s3"For the purpose of doing my friend
Lauterbach, service" he said, land
to restore him to his former friendly
Relation with Kuhn, Loeb & Co., Jacob
Schiff and the Union Pacific officials.
and others, did have conversations
with Union Pacific officials. and in
those conversations l did use the
names of other persons. But there was
no suggestion of fee tn Mr.. Lauter-
bach. On the strength of these tele-
phone messages Mr. Lovett came here
and charged that Edward Lauterbach
had tried to blackmail him."
The Lauterbach incident, added.
"paled into insignificance," compared
with an $82,OOO,0O0 forgery which he
alleged was committed on the Union
Pacific books in 1901.
II don't know who did it," said La,
mar, the chairman of the board or
the office boy, but do know this $780,
100000 was the fulcrum which enabled
Hartman and Kuhn, Loeb & Co. to
gain control of these corporations"
Tells Story Of Forgery"
He described double entry of $780,.
100000 representing securities the
Union Pacific assumed III taking over
hn In
gon Railway and Navigation company.
The items, he said, were carried in
the consolidated balance sheet" Of
the Union Pacific June &c. 1900, but
between that time and June 30, 1901,
he alleged, some one had erased the
S82 100000 item from oae side of the
ledger, leaving it as Il credit balance
on the other side.
''They took all the securities of the
Oregon Short Line and the Oregon
Railway and Navigation, he said,
land used them as security for an is
sue of bonds. They got that money
and used it to finance the deal for the
Northern Pacific and Great Northern
transactions and the f1otation of Great
Northern Ore properties, which they
sold out at an enorm ons profit"
Later, Lamar alleged, the principals
in the transaction went to Kuhn, Loeb
& Co. and secretly got nearly $780,.
100000, which he believed was fox
their own use.
Denial Made by Cravath.
Immediately after Lamar had fin
.ished this phase Of the story, Paul D.
Cravath of counsel for the Union Pa,
cific railroad put III this reply:
'In view of the statement regard
ing the account Of the Union Pacific
Railroad company which David Lamar
has gone out of bis way to make be-
fore this committee. and, inasmuch as
persons not familiar with David La
mars character, who may read this
statement in the newspapers, may be
misled thereby deem it my duty to
make the following statement for the
records of the committee:
For several days persons con.
nected with the Union Pacific Rail-
road company have been in.