The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-06-27

cropped beard A strained look came
over his face and he changed color per
ceptibly as the witness said
And the gentleman who appeared at
the residence of Mr. l.edyard was Mr..
Edward I.auterbach. "A member of the
bar OF New York city"
MIR. I.au,erhach was sworn and Chair
man Ovcrman explained 10 him that
i, was the understand that Mr.
I.auterbaCh came voluntarily to make
this statement. that it was his own
wish that he make this statement and
tha, the committee would reserve the
cross examination of MIR. l.auterbach
until after certain other men had had
opportunity To give their testimony he
fore the committee.
This Mr.. l.auterbaCh accepted and
launched into his statement. He began
at the very beginring Of his career az
New York lawyer. He told of his
political connections as well as those
in the financial centres Of New York.
G~tsinx into Union Pacinc.
Then Mr.. I.auterbach told Of his first
! connection with Union Pacific matters.
He had been associated with eX-Gov.
Hoadley Of Ohio. who had been Attor-
ney- General Harmon's selection az Fed
eral counsel in the foreclosure proceed
ngs of Union Pacific nearly twenty
years ago. 1t was AT that time that he
came in contact with Kuhn. Loeb 4 Co..
| and incidentally with otto Kahn Of that
Arm. He had been counsel for MIR.
Kahn's father and he believed that he
had the confidence and respect of Mr..
Kahn.
Mr.. I.auterbach told the committee
he had frequently discussed with Mr..
Kahn what he deemed 10 be the mis-
, takes of the Union Pacitics manage
men, in buying a controlling interest
in the Southern Pacific Railway. He
said he had warned them that this
! purchase and stock ownership consti-
,uted an infringement Of the sherman
antitrust law and had tried reg, ,,edly
to ge, MIR Kahn to see II in this light.
ANerward when the Union Pacific
: was sued under the antitrust law and
! dissolution was sought by the Federal
I authorities he had warned Mr.. kann.
and Mr. Kahn had said tn him tha, II
he had taken his advice the Union Pa =
cifc would not have 60, into this trou-
, bic
lie said Furthermore that ten years
ago he had gone to MIR. Kahn AZ the
representative of the keene pool in
Southern Pacific stock and had mad"
representations to MIR Kahn that the
conduct Of southern Pacific affairs by
=, l'n.on Pacific domination was detri-
mental to the interests of the minority
; stock hoi,lers constituting the pool.
Iasu~d Wnrninx to Kahn.
A. that tim. also he had warned MIR.
kahn that the Union Pacific ownership
was "a thing repugnant tn the sherman
act" with senator Foraker for an AS
sociat. Mr. I.auterbach had brought suit
in Federal court before Judge I.urton,
now uf the Suprem" Court. and Judge
I.urtun had said that there was much
in his argument that this did constitute
an evasion "f the sherman law.
MIR l.aut.rbach participated on be-
: half ot the late Edward II. Hartman
IN the proceedings leading up to the
assumption Of control of the Illinois
Central Railroad bv Mr. Hartman. He
had represented to MIR Kahn that h-
had influence in Washington. but ne
meant tina, the influence was that which
ne DbsS"Sseu MS hupWlVukV VI
conditions surrounding the general
problem Of Unconstitutional transpor-
tation
He had never seen Attorney General
McReynolds did not know him and had
made no such representations.
He had suggested to MIR. Kahn that
there might he forthcoming another in
v~etiga tion of Union Pacific with view
v.t1 49,
acquiring other great blocks Of stock
than those holdings in Southern Pacific
He referred he said. to the Baltimore
and ohio and Pennsylvania suggeNtet
new relationship.
He did not believe Union Pacific wa.
justified in purchasing control Of OtheI
railways whether or not they were
competing lines under the general ac
ceptance of that term.
Denied Meeting Riordan.
MIR. I.auterbach denied any connec
tion or relationship with Mr. Riordan
whose name had been mentioned as IN,
go-between last night by Judge Loveu
Il have had no dealings with Mr.
Riordan except to pass the time Of da,
with him AT Albany" said the witness
Il have had no dealings with him what
ever. | have made no effort to cOercs
anybody. ! don't know people In Wash
ington and was therefore not In u po
sition To accomplish what has heer
represented In my behalf"
MIR, l.auterbach told the committe,
that one day Lewis Cass Ledyard called
= him on the telephone and suggested
: that he call. Upon his arrival at Led
Yards office, the latter, according I,
? l.auterhaCh. suggested that Congress