Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1913-07-16

q IA sA1 <sscd not even confer
vita ms en- FSs subject.
And 4 Is perfectly true. therefore,
! that for the purpose Of endeavoring 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 Mr.. Schiff.
! 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.
4na- when he first took the stand
II -. &. admitted he was the
I me "a a in the testimony OF
RCsert S. 20 tas having called Wall
street finance : on the telephone and
impersonated congressman.
He then gave a history OF his al
legged dealings with fnanciers and rail-
road magnates. In 1897. he said, the
] late Russell Sage authorized him to
proceed to compel the Union Pacific
20 pay the government $5S.000.000 in
bonds owing it. Lamar. with Senator
/ Foraker. came TO Washington and con-
ierred with President Mckinley.
I'VE were charged with being pair
of constituencies blacknlailers." La
mar said, but that had no effect on
u.s.
: When Sage retired from business
. in 1901. on Sage's recommendation.
f. 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 $4S.00O,OOO in Union Pa
a cific. he took steps to enjoin the voting
of certain stock so that e. II. Harri-
man would be compelled to buy Keene's
stock at a high figure. With Keene's
approval he retained Lauterbachs la%
! firm and paid $4,000 Lauterbacb and
Lamar came to Washington. paid
{ Foraker a fee, and engaged him.
/ When tile 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.
I AS the result of the panic or 1907" ..
said Lamar. Hartman. Kuhn, Loeb
& Co. the National City bank, and
/ Morgan & Co. became bound together
as with an iron band"
! Wlror tho Y,,,,srs,en of dn.{pry NV friarH
Lauterbach, a service" he said, and
to ssstore him to his former friendly
relation with Kuhn, Loeb & Co. Jacob
ScbiE and the Union Pacific officials,
/ and s,thers, did have conversations
with r;aior Pacific officials. and in
those conversations did use the
name. 50 other persons. But there was
no suggestion of fee to Mr.. Lauter-
bach. soa the strength of these tele-
phone messages Mr. Lovett came here
and charged that Edward Lauterbscn
had tried to blackmail him."
The Lauterbaeh incident, added.
"paled into insignifcance, compared
with an $S2,000.000 forgery which he
alleged MAS committed on the Union
Pacific looks in 1901
Il don't aEcw who did It." said La
mar, the chairman % ~ AN2~d ~
the office boy, but do Anow 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 $s3.-
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 so, 1901,
he alleged. some one had erased the
$S2,000,000 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 theL2 - security for an is.
sue of bonds. They got that money
and used it to flnau e the deal for the
Northern Pacific and Great Northern
transactions and the flotation of Great
Northern Ore properties, which they
sold out at an enor rous profit.
Later, Lamar alleged, the principals
in the transaction went TO Kuhn. Loeb
& Co. and secretly got nearly $500
100000, which he believed was for
their own use
Denial Mace 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 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 in.
formed that an effort was being made
to circulate and secure publication OF
prepared story about an alleged
Justification Of the accounts OF the
Union Pacific company involving
$4,000, 900 or ss0.OOO,000 of it's sur.
plus
We were informed, in substance