Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-07-02
LAMAR ADMITS POSING
AS REPRESENTATIVES
Confined from First Pase)

Oregon Short Line Railroad Company
and the security of the Oregon Rail-
way and Navigation Company out
| from the treasury of the Union Pa
cifc Railroad Company and pledged
them as security for an issue of bonds
and got the money for them, and
| they took that money and applied II
to the management and the financing
! Of this Northern Pacific stock which
thereafter became Northern security
stock and then again Northern Pa
cihc and Great Northern, Great
| Northern Ore and that in the end
was sold out at a most enormous
profit and the proceeds of that were
then used to buy from Kuhn, Loeb
| & Co., in one day, 5000. 100000 of Sc
curities, which the testimony before
| the Interstate Commerce Commission
has strongly tended to show they
| bought from themselves"
Cravath Puts In is Reply.
Immediately after Lamar had fin
| ished his remarkable statement, Paul
d. Cravath, of counsel for the Union
Pacific Railroad. put in this reply:
I'm view of the statement regard
| ing the account of the Union Pacific
Railroad Company which David La
mar has gone out of his way to make
before this committee. and inasmucf
as persons not familiar with Davi6
Lamar's character, who may read
| this statement in the newspapers
may be misled thereby, I deem 1t 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 informed
that an effort was being made to cir
culate and secure for publication II
| the newspapers of bear attack, II
the form of q prepared story abou
an alleged falsifiation of the accoun
| of the Union Pacific Company in
volvlng 100000 or sso.00o,O0O of 1t.
surplus.
| 1--WE were informed in substance
that this story was so palpably false
and scandalous and so plainly Offered
for an improper purpose that the
newspapers would not publish it. In
| ,
would soon be made public in such
way that the newspapers would
have to publish II.
ut now appears that the medium
for the publication of this story was
to be this man David Lamar, who
has confessed himself to be the most
uncomfortable of liars of modern
times"
| Senator Overman asked Mr.. Cra-
vath to strike out the last words oil
his statement.
'I Decline" retorted Mr.. Cravath.
| Senator Walsh insisted they &c
out, and Mr.. Cravath finally con-
| scented.
| Asks Lamar About "Inspiration."
Before Lamar left the stand Mr.
Cravath, with the consent of the
committee, had asked Lamar IL he
had ever tried to inspire newspaper
stories about the Union Pacific.
1.-The day before Judge Lovett gave
| out his interview in New York I in
spired and helped to arrange for the
| publication of story that appeared
| in the New York Journal" said La
mar. He added he had talked over
the telephone directly with editors OF
the Journal he thought, with mar
named O'Reilly. did Mr.. Lauter-
bach know of this?" asked Cravath
I'VE had agreed to make public
our objections to the railroad disso.
luton plan" replied Lamar.
| Cravath demanded to know where
Lamar got his information about the
alleged Union Pacific forgery. Lamar
replied that he did not secure full in
| formation until recently. He said he
had never seen the Union Pacific
| books. and that the first suggestion
| Of the matter came from Thomas
Gibson. q financial writer In New
| York.
Lamar detailed some of his opera
tions in Wall Street and the source
cific affairs.
In 1897, Lamar said, Russell Sags
authorized him to proceed to compe
the Union Pacific to pay the gov
eminent $5S.00O,o00 in bonds owing 1t
Lamar. with Senator Foraker, cams
| to Washington and conferred will
President Mckinley.
I'VE were charged with being 9
pair of constituencies blackmailers.
said Lamar, but that had no effec
on us"
When Sage retired from business II
1901, on Sages recommendation HI
became associated with James r
Keene.
Lamar said he warned Keene, wher
the latter was buying Union Pacific
stock. that the railroad would ruiz
him to get revenge for Lamar's pre-
vious activity. He detailed how
when Keene and his associates hat
$43, 900, 900 Union Pacific, he took steps
to enjoin the voting of certain stock
so that e. II. Hartman would bs
compelled to buy Keene's stock at 6
4 high figure. With Keene's approva
he retained Lauterbach's law firm
and paid $4,000. Lauterbach and
Lamar came to Washington, pait
Foraker a fee and engaged him.
| When the injunction was finally de
cided against Keese, Union Pacific
stock went down and Keene and hi
friends lost most of their fortunes.
"As a result of the panic of 1907.
said Lamar, Hartman, Kuhn, Loci
& Co., the National City Bank and
Morgan g. Co. became bound to.
gether as with an iron band
For the purpose of rendering m,
friend Lauterbach service" he said
"and to restore him to his formel