The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1913-07-11

ship and harmony that had existed be-
tween Mr.. Lauterbach and the firm OF
Kuhn, Loeb & Co., and Mr.. Schin,
l did, using the names Of other per-
sons have a number of conversations
over the telephone with men con-
nected with the Union Pacific com.
pany."
Testimony Given by Lamar.
Lamar, when he first took the stand
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
impersonated congressman.
He then gave a history Of his al
legged dealings with financiers and raik
road magnates. In 1897, he said. the
late Russell Sage authorized him to
proceed to compel the Union Pacific
to pay the government $58,000,000 In
bonds owing it. Lamar, with Senator
Foraker, came to Washington and con,
ferred with President Mckinley.
I'VE were charged with being pair
Of constituencies 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
associateo had 100000 in Union Pa.
ciflc, he took steps to enjoin the voting
Of certain stock 80 that e. H. Harri!
man would be compelled to buy Keene's
stock at high figure. With Keene's
approval he retained Lauterbach's law
firm and paid $25, 900. Lauterbach and
Lamar came to Washington, paid
Foraker 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.
Tells Of Phone Talks.
"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"
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 ir
those conversations l did use the
names of other persons. But there was
no suggestion Of a fee to Mr.. Lauter
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 $S2,000,0OO forgery which he
alleged was committed on the Unicu
Pacific books in 1901.
81 don't know who did it." said La
mar, ''the chairman of the board OF
the Office boy, but 1 do know this sS2,
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 in taking over
the Oregon Short Line and the Ore
gon Railway and Navigation company.
The items, he said, were carried in
the consolidated balance sheet" of
the Union Pacific June 80, 1900, but
between that time and June 80, 1901,
he alleged. some one had erased the
$82,000,0O0 item from one side of the
ledger, leaving 1t as 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 fiotation of Great
Northern Ore properties, which they
sold out at an enormous profit"
Later, Lamar alleged, the principals
in the transaction went to Kuhn, Loeb
& Co. and secretly got nearly $780,
100000, which he believed was for
their own use.
Denial Made by Cravath.
Immediately after Lamar had fiji
ished this phase Of the story, Paul D.
Cravath of counsel for the Union Pa.
cific railroad put in this reply:
'In view Of the statement regard
ing the account of the Union Pacific
Railroad company which David Lamar
has gone out Of his 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 il.
formed that an effort was being made
to circulate and secure publication of
a prepared story about an alleged
Justification of the accounts of the
Union Pacific company involving
s7OOOO,OOO or $SO,OOO,OO0 of its sur.
plus.
I'VE were informed, in substance,
that this story was so palpably fa,se
and scandalous and so plainly offered
for an improper purpose, that the
newspapers would not publish it. In
formation then came that the story
would soon be, made public in such a
way that the newspapers would have
RI p,rh1ich IL