Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1913-07-15
Testimony Given by Lamar.

unprecedented congressman.
He then gave a history of his al.
legged dealings with financiers and rail.
road magnates In 1897 he said, the
late Russell Sage authorized him to
proceed to compel the Union Pacific
to pay the government S5S, 900, 600 in
bonds owing it. Lamar, with Senator
Foraker. came to Washington and con-
ferred with President Mckinley.
we were charged with being a pair
Of constituencies blackmailers." La
mar said, but that had no effect on
us
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
associates had S43,000,000 in Union Pa
cific, he took steps to enjoin the voting
of certain stock so that E H Harri-
man would be compelled to buy Keene's
stock at a high figure With Keene g
approval he retained Lauterbachs law
firm and paid $4,000. Lauterbach and
Lamar came to Washington, paid
Foraker a 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, and
to restore him to his former friendly
relation with Kuhn, Loeb C Co, Jacob
Schiff and the Union Pacific officials
and others, did have conversations
with Union Pacific officials, and in
those conversations / did use the
no suggestion of a fee to Mr.. LATTER
bach. On the strength of these tele-
phone messages Mr.. Lovett came here
and charged that Edward Lauterbach
had tried to blackmail him"
The Lauterbach incident, added.
''paled into insignifcance," compared
with an $50 100000 forgery which he
alleged was committed on the Union
Pacific books in 1901.
Il don't know who did it," said La
mar, the chairman of the board or
the Office boy, but | do know this $S2,-
100000 was the fulcrum which enabled
Hartman and Kuhn, Loeb & Co to
gain control of these corporations"
Tells Story of Forgery"
He described e double entry of sS2,.
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 30 1900, but
between that time and June 80, 1901,
he alleged. some one had erased the
$50. 900, 900 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 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 fotation of Great
Northern Ore properties, which they
sold out at an enormo Gus profit"
Later, Lamar alleged, the principals
in the transaction vent to Kuhn, Loeb
& Co and secretly got neatly $780,
100000, which he believed was for
their own use.
Denial Made by Cravath.
Immediately after Lamar had fin
ished this phase of the story, Paul D.
Cravath of counsel for the Union Pa
cifc railroad put in this reply
''In view of the statement regard
ing the account of the Union Pacific
railroad company which David Lamar
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. l 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
a prepared story about an alleged
Justification of the accounts of the
Union Pacific company involving
$7O00O,O0O or sSO,OOO,O00 of its sur
plus.
We were informed, in substance.
that this story was so palpablS false
and scandalous and so plainly offered
for an improper purpose. that the
newspapers would not publish It, III
formation then came that the story
would soon be made public In such
way that the newspapers would have
to publish it,
1T 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 I'M
considerable OF liars OF modern
times"
Rara Avis.