The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-07-28
He and Friend, Edward Lau-
terbach, at Work IN Wall
Street Years Ago.
PHONE GAME NOT NEW
Proposition Concerning James B. Keene
Was Turned Down BY Edward
H. Hartman.

ne hunted cash among the corporations,
the methods and practices of the pair
had aroused the indignation Of masters
of finance and of railroads, says the
New York Sun. More than ten years
ago the Wolf of Wall Street and his
associate and prospective beneficiary
were telephoning to moneyed men, ar
ranging interviews and insinuating that
threatened suits could be blocked. that
things could be fixed IL an alliance"
was made.
The late Edward H. Hartman showed
the door to Lamar. who had been sent
to him by Lauterbeach twelve years ago,
and Otto H. Kahn of Kuhn. Loeb & Co
declined to benefit from Lauterbach' s
hints and suggestions. Mr.. Hartman
seldom gave the public the story Of his
experiences with such persons as Lauter-
bach and Lamar, but on occasion he
could speak pretty plainly.
In the form of an affidavit Mr. Harri-
man related on April !. 1903. that in the
autumn Of 1901 Lauterbach had called
him on the phone, stating that a friend
had matter OF Importance to COM
municate and asking for an appoint
ment. The friend turned out to be
Lamar. who presented Lauterbachs
card as well as his own. Lamar smooth
ly proposed a scheme by which James
r. Keene could be prevented from bring
ing suits against Hartman railroads.
Wo~Idn't See Laut-rbach.
"He stated" said Mr.. Hartman. that
he would like to work with me and that
II ] would make an alliance which
would be of some advantage to him. he
had such influence over Mr.. Keene that
he could induce him not 10 instigatc
any adverse action against myself or
allied interests"
Mr.. Hartman declined to have any
thing to do with the scheme or with the
schemers.
At the same time Mr.. Hartman in
his expose of the methods of the
MISUNDERSTANDING combination told how
he had been informed that Lauterbach
was one of those who would make
trouble unless he settled with them in
some way. Mr.. Hartman continued TO
refuse to see Lauterbach, who was try.
ing to reach him. and he informed
Lamar. who was also persistent. that
he was too busy to talk to him. Pres
emily Lauterbach turned up with a fresh
proposition. which was to sell to the
Hartman lines the Southern Pacific
stock held I'm a pool by James R. Keene
Refusal to buy stocks meant trouble.
Refused to Make Terms.
Mr.. Hartman refused to make terms
Shortly afterward a suit was filed against
the Southern Pacific and the Union Pa
cific. Otto H. Kahn made q similar
affidavit
On the whole. the rubber-tired. ball
bearing combination between Lauterbach
and Lamar. the ingenious use of the tele-
phone in paving the way for interviews
Nd ha oh 90
the propositions themselves went on
without such publicity as would have
been distasteful to the versatile lawyer
and to the adventurer. LauterbaCh near
ly had his hands on a $4,000 fee at the
time the Metropolitan Street Railway
absorbed the Third Avenue but
il got away from him. Many large fees
did not. however. because Lauterbach
had a way of connecting himself with
between large corporations.
Flattering press notices of Lauterbach
say that he was appealed to- to save
various big concerns from going to the
logs, and that he was uniformly success
'ul and tactfuL In one way and another
lie had his fingers in the famous litigation
If the Bankers and Merchants Telegraph
Company against the Western Union in
$50; in the reorganization of the Phila-
ielphia and Reading Railroad; in the
lucrative affairs of the Southern Pacific
md in the Brooklyn Elevated Railroad
company's troubles
Activities in Another Field.
These activities were in the open. but
facility for being on hand
when stock market opportunities offered
l field for such talents as he Possessed
was less advertised and was not r.
erred to by press notices. James r. |
(eene in his bear operations did not dis |
lain to use the Lauterbach-Lamar COM |
,ination. |
Lauterbach is So years old, although |
he might be taken for 50. He is a little !
plump man, hardly more than feet |
all: quick spoken, quick in movement. |
with a high pitched voice that is almost |
iuerulous in moments of excitement. His \
head seems too large for his body. A /
'rofuse growth of hair on poll and face |
suggests comparisons to creatures less |
subtle than himself. He likes to wear |
good clothes, is fond of the table and |
requents Broadway restaurants, seldom |
BEING seen alone. How much money he |
,as acquired in the practice of law or !
by the use of his ingenious mind nobody |
'ut himself knows, but he has had the |
equation Of being, as Broadway puts IT, |
/ lavish spender.
Born in the city of New York he went |
o the public schools here and was grad |
lated in 1864 from the City College. He |
vas admitted to the bar in 1866 ana !,
started practice with the firm Of Morri- |
ION. Lauterbach & Spingarn. When this |
irm was dissolved he Joined with George |
aoadly and Edgar NJ. johnson in the |
present firm of Hoadly, Lauterbach & |
Johnson. He was a shrewd, hard work.
ng lawyer and his services were some
lines enlisted by celebrated counsel
ChOate Collected Fee.
There is a story told that Joseph H.
'hoate and Lauterbach were associated |
n a case about twenty-five years ago.
After the suit had been won Lauter-
zach turned to Choate.
I'VE won this case by ourselves"
lie said. Our clients are rich-a cor
,oration. you know"
'Yes?" said Mr.. Choate How much
10 you think we ought to charge, Lau-
erbach?"
''Oh. $3.50 apiece"
Tut. tut" said Mr.. ,choate. you
ct me handle this bill, Lauterbach.
II collect for US both"
Shortly afterward Mr.. Choate handed T
! check for $500 to Lauterbach as
he latters' share of the fee.
Lauterbach scrutinized the check,
troked his beard. and said to Mr..
yhoate:
almost thou persuadest me to be q
,hristian."
As he prospered and made a repu-
alton for himself he made the ac-
uaintance of moneyed men, bankers.
abroad presidents. stock brokers. 1t
Fas this sort of acquaintanceship. as
vas brought out in the Senate investi-
,ation. that Lauterbach. and Lamar
aund llReHIil ha ,.aln0