Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-07-03

| fessed himself to be the most UNI
considerable of liars of modern
| times"
Senator Overman asked Mr.. Cra-
vath to strike out the last words of
his statement.
II decline" retorted Mr.. Cravath.
Senator Walsh insisted they go out,
and Mr.. Cravath finally consented.
Lamar detailed some of his opera
tons in Wall Street and the service
Of his connection with Union Pacific
affairs.
In 1897, Lamar said. Russell Sage
authorized him to proceed to compel
the Union Pacific to pay the govern
ment s5S,O0O,o0O in bonds owing It.
Lamar. with Senator Foraker. came
to Washington and conferred with
President Mckinley.
we were charged with being a
pair of, blackmailers," assaid Lamar.
but that had mo effect on u.s."
|f When. Sage retired from business in
1901. on Sage's recommendation he be!
came associated with j. r. Keene.
Lamar said he warned Keene. when
THE latter was buying Union Pacific
stock that the railroad would ruin him
to get revenue for Lamars previous
activity. He detailed how when Keene
md his associates had s43000,000 Union
Pacific, he took steps to enjoin the
voting of certain stock. at a high
figure. Lauterbach and Lamar came
to Washington, paid for a law firm
and engaged further counsel.
H.. Gna 10
cided against Keene. Union Pacific
stock went down and keene and his
friends lost most of their fortunes.
As result of the panic of 1907.
said Lamar, Hartman. Kuhn, Loeb
& Co., the National Cuty Bank and
Morgan and company became bound
together as with an iron band"
Lamar testified that he had used
other names calling Wall Street men
on the telephone
For the purpose of rendering lay
sriend Lauterbach a service" he said,
and to restore him to his former
friendly relations with Kuhn, Loeb &
Co, Jacob Schiff and the Union Pa
,ific. did have conversations over
the phone with Union Pacific Off
If other persons. But there was no
of Lauterbach's name"
The Lauterbaoh incident. he added, |
paled into insignifieanee' compared |
with an sS2,0oo.pol forgery which b. |
alleged was committed on the Union /
Pacific's books in 1901.
Il don't know who did it," said |
the chairman of the board |
Or the Office boy; but | do know this |
sS2,000.000 was the fulcrum which en-
abled Hartman and Kuhn, Loeb &, |
Co to gain control of these great cor !
porations."
He described a double entry" of |
$50, 0e0, 600 representing securities the |
Union Pacific assumed in taking over
the Oregon Short Line and the ore
gon Railway and Navigation. The |
Items, he said, were carried in the
balance sheet" of the |
Union Pacific. June 80, 1900. but be-
tween that time and June 30, 1901, he |
alleged, some one had erased the $S2,-
100000 item from. one side of he
ledger, leaving it as credit balance |
On the other side.
They took all the securities of the |
Oregon Short Line and the Oregon
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
and the fotation of Great
Northern Ore properties, which they
sold out with an enormous profit
T.nte al hn r,rincin1l q
In the transaction went to Kuhn. Loeb
S.& 90. and secretly got nearly $780,
eo008O, which he believed was for their
own use. 4
Lamar testified he used the name of
Representative D. J. Riordan of New
York, telephoning to Chairman Lovete'
of the Union Pacific.
How did you happen to use Mr..
Riordan's name?" asked Senator Cum
Minis.
"oh, it just came to me-" said La
mar.
"Inspiration," suggested Senator Eels
SON
Purely" ~ Z
On another occasion. Lamar testi-
fed. he called up Paul r. Cravath of
counsel for the Union Pacific. suggest
ing Lautcrbach would be a valuable
adviser
MIR. Cravath probably will recognize
my voice. remarked the witness,
smiling at Mr.. Cravath, who sat near
by.
When / talked to him gave no
name"
Mr.. Cravath nodded.
On another occasion, Lamar testi5
fed. he talked over the telephone to
Lewis Cass Ledyard, using Represen-
tative Palmer's name and with MAX
well Evarts. using Representative
Roirdans name. In both converse
tons he spoke about Lauterbach's ser
vices.
Senator Nelson insisted that Lamar
testify explicitly whether he stated IN
those Conversations that Lauterpact
had influence in Washington with OIL
| cials. senators or Representatives
II am inclined to believe that IN my
| congregation with Ledyard l went very
fa, in that direction on the affirmative
side" returned Lamar.
why did you change to Palmer
4 name instead Of sticking to hoif
taan's?" demanded Senator Nelson,
4 well. Mr.. Palmer was very muci