The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-02
ImpersOnatOr of COngressmen's
Sensational Charge.
Basis of Fortunes of Hartman
and Others Crooked.
ERASURE MADE $50, 600, 600
Borrowed Two Hundred Mil
lions on Swelled Assets.
Witness Once COnfidant of
Sage, Keene and Others.
Thinks Big Fortune Was Di-
verted to Private Uses.
U. P. ISSUES STATEMENT
Says Story Part of ''Bear" Cam
paign Against Q. p.
Man Testifying Has Used Sew
eraI Names-ReaI Unknown.

Washington, July 2.-David Lamar,
Wall street operator and one time con-
fidant of Russell Sage, James X
Keene and other financiers, amazed
the senate lobby committee today by
smiIingIy and frankly testifying that
it was he who impersonated REPRE-
sentatives Palmer and Riordan in tele-
phone conversations with Lewis Cass
Iedyard, Paul D. Cravath, Chairman
Robert LoVett of the Union Paciflc
hoard and other prominent financiers,
telling them that Edward Lauterbacn,
a New York lawyer, could do great
things for them in Washington.
Lamar also aStonished the commit
tee by making a detailed charge that
the Union Pacific railways books had
been forged in 1901 on an item cover
ing So, 900, 900 and that as one result,
Kuhn, Loeb & Company and the late
r n Hartman had laid the founda-
tions of gigantic fortunes When La
mar had finished Paul D. Cravath OF
counsel for the Union Pacific put IN
a prepared statement to the commit
tee alleging that Lamar's charge con-
cerning the SS2, 100000, which amount
is connected with the Union Pacific
surplus. was part of a bear campaign
to depress Union Pacific stock. of
which the railroads officials nave had
knowledge for several days Lamar
amused entertained and astounded
as to his impersonation of congress
men over the telephone. He did it all,
he said to impress the financiers with
the ability of his friend, Edward
there was ever any mention that
I.auterbach should profit by legal fees
Treated Like Blackmailer.
David Lamar, a Wall street opera
ter, testified today before the senate
lobby committee that he was the man
in Ia Robert
s LoVett as having called Wall street
financiers on the telephone and i'm
personated congressman.
In 1897, Lamar said, Russell Sage
authorized him to proceed to compel ,
the Union Pacific to pay the govern
ment $5S,00O,00O in bonds owing it.
Lamar with Senator Foraker came to
Washington and conferred with Presi-
dent Mckinley. I'VE were charged
with being a pair of constituencies
bIackmailers,' said Lamar, but that
had no effect on US
Warne dOf Revenge.
When Gage retired from business In
1901, on Sages recommendation, he De
came associated with James r. ketnc.
Lamar said he warned Keene when the
latter was buying Union Pacific stock.
that the railroad would ruin him TO get
revenge for Lamar's previous activity.
He detailed how, when keene and his
associates had SAB, ,000,0 Union Pacific
he took steps to enjoin the voting of
certain stock, so that E. H. Hartman
would be compelled to buy Keen"'s
stock at a high figure. With Keene's
approval he retained Lauterbach's law
firm and paid SIS, ,0J0. Lauterbach and /
Lamar came to Washington, paid For
aker a fee and engaged him.
When the injunction was finally decid-
ed against Keene Union Pacific stock
went down and Keene and his frieuus
lost most of their fortunes.
- 10 r a
Lamar. Hartman. Kuhn, Loeb & Co. !
the National City bank and Morgan <,
Co. became bound together as with an
iron band.
For the purpose of rendering my
friend, Lauterbach. a service he said, |
land to restore him to his former
friendly relation with Kuhn, Loeb q /
Co, Jacob Schiff and the Union Pacific |
I did have conversation over the teIa
phone with Union Pacific officials and !
others, but there was no suggestion of
fee to Mr.. Lauterbach. On the !
strength of these telephone messages (
Judge Lovett came here and charged !
that Edward Lauterbach had tried to !
blackmail him.
$S2,OOO,OOO Forgery.
1.-The Lauterbach incident he added !
"paled into insignificance'' compar I'd !
with a $s2,000,OO0 forgery which he al
legeS was committed on the Union Pa |
cific books in 1901. Il don't know who |
did it, said Lamar, the chairman of |
the board, or the office DOS, but 1 DO |
know this $50, ,00O, 900 was the IuIcrum |
which enabled Hartman and Kuhn, |
Loeb & Co., to gain control of these
corporations.
He described a double entry of $50
100000 representing securities the Union
Pacific assumed in taking over the
oregon Short Line and the Oregon
and Navigation company. The
items he said, were carried in the CON
solidated balance Sheet of the Union
Pacific June 80 1900 but between that
time and June 80. 1901. he alleges some
one had erased the $50, 900, 5000 item from
one side of the ledger leaving it as a
credit balance on the other side
''They took all the securities of the
oregon Short Line and the Oregon
Railway and Navigation he said ''and
used them as security for an issue of
bonds. They got that money and used
1t to finance the deal for the Northern
Pacific and Great Northern transac-