River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1913-07-10

ter that they would not even confer
| with me on any subject.
And 1t 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. Schif.
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 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 $58,000,000 in
bonds owing 1t. Lamar, with Senator
Foraker, came to Washington and con-
ferred with President Mckinley.
1--WE were charged with being pair
OF conscienceless 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
associates had $43,000,000 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 high figure. With Keene's
approval he retained Lauterbach's law
firm and paid $4,000. Lauterbach and
Lamar came to Washington, paid
Foraker fee, and engaged him.
When the injunction was finally de-
cided against Keene Union Pacific
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, a 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 in
those conversations l did use the
names of other persons. But there was
no suggestion of fee to Mr.. Lauter-
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 $82,0O0,0O0 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 $780,
100000 was the fulcrum which enabled
Hartman and Kuhn, Loeb & Co. to
gain control of these corporations"
Tells Story of forgery"
He described a 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
$82,000,000 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,
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 flotation 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 fin
ished this phase of the story, Paul D.
Cravath of counsel for the Union Pa
cif1c 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, VIII 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
$70.000,o00 or $80,00O,000 of it's sur
plus.
I'VE were informed, in substance,