The Birmingham age-herald., 1913-06-26
Chairman of Directors of
Union Pacific Witness
Before Committee
MAKES NO CHARGE OF
CORRUPT METHODS
Edward Lauterback Urged To Be Re-
tained to Prevent Unpleasant
Agitation - Congressman
Mentioned

ScOtt LONett, chairman OI the DOdIu
of directors of the Union Pacific Rail-
road company, told the Senate "lOb-
by committee tonight that long
continued and determined effort had
been made to have Edward Lauter-
bach, New York lawyer, retained by
his company ito grease the wheels
in Washington and prevent unpleasant
agitation in Congress against the dis
solution plan of the Union Pacific
Southern Pacific systems, ordered by
the supreme court and now before the
department of justice.
Judge Lovett made no charge that
any corrupt methods had been used to
secure the employment of Lauter-
bach. He did swear, however, that
someone purporting to be Congress
man Riordan of New York over the
telephone had urged the retention of
the New Yorker and had suggested the
likelihood of difficulty in Congress
which might be averted by his en-
ployment as counsel.
A similar telephone conversation
had occurred, he said, between man
also representing himself as Mr.. Rior-
dan and Maxwell Evarts, counsel for
the Southern Pacific.
Otto H. Kahn, of Kuhn, Loeb & Co.,
a New York banking house interested
in Union Pacific the witness said, had
fad several conversations with Mr. Lau-
terbach personally. in which the lawyer
had referred to what might be expected
from the radical element In Congress
In relation to the dissolution plans of the
two roads.
Mr.. Kahn reported to me-" says Judge
Lovett. that Mr.. Lauterbach had said y.
substance that motion was about to
be made, | think. in the House Of Repre-
sentatives. to oppose this proposed dis
solution or the disposition of the stock
of the Southern Pacific which is now
held by the Union Pacific, and that II
of the money trust inquiry, l think, and
some other matter that had been more
or less discussed.
''He said that the radical party, as he
called them, the radical faction. al
ready about to commence these efforts,
and that they were going to make point
about common banking control-he men
toned some OF the congressman who
might lead in this and he might be help
ful in the matter and that his services
were available if desired.
did he state what congressman they
were?" asked Chairman Overman.
Congressman Henry Mentioned
congressman Henry of Texas was mem
toned, said the witness, las the leader
of the radical faction as he called It,
should like to state in that connection,
however, that I have known Mr.. Henry
for great many years and | never be-
iieved for moment that there was any
connection between this gentleman and
Congressman Henry"
MI. Lovett said he had made no effort
to determine whether it was actually
Congressman Riordan who had telephoned
to him and to Mr.. Evarts. He had not
doubted it, he said, until he learned re-
Gently that many Wall street financial
men had been repeatedly called up by
men who falsely represented themselves
to be congressman.
Il now have very serious doubts that
1t was Congressman Riordan who talked
with me over the telephone he added.
questioned by the committee Mr.. Low
EFT said Lewis Cass Ledyard, another
New York attorney. had been called up
by man purporting to be a congress-
man. but that Mr.. Ledyard investigated
and found that he was not. The imper-
senator. he said, was seeking to have
some other person employed
II have heard of a great many people
in Wall street being called up by per-
son purporting to be Congressman Ror-
dan." Mr.. Lovett continued. Il am by
no means the only one"
Judge Lovett said he ignored the ef-
forts to have Lauterbach employed Until
he became convinced that a conspiracy
had been formed that might succeed in
holding up the Union Pacific-Southern
Pacific dissolution plans until after July
]. The dissolution plan must be arranged
before that date. he added to avoid a
receivership of the stock of the Southern
Pacific, which the Union Pacific now
owns
Conspiracy on Foot
IL believe there was conspiracy here
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