The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-06-27
MANY PHONE CALLS
FOR UNION PACIFIC
David Lamar on Other End Of
Wire Many Times
in Past.
HARRlMAN'S EXPERIENCE
How Lauterbach Paved Way for
Visit in kpenp's
Interest.

Wall Street showed deep interest yes
terday in the testimony Of Judge Robert
| =. Lovett. chairman Of the board Of direc-
tors Of the Union Pacific Railroad,
before the Senate lobby committee on
Wednesday night
! THE greatest curiosity centred naturally
upon the identity Of the moving spirit
| in the alleged conspiracy. the man who
used the telephone SO freely in mentioning
Edward 1auterbach and Congressman
Daniel J. Riordan as gentlemen who might
smooth the way for the Union Pacific
company in the Hartman merger dis
solution matter.
| II was recalled in the financial district
that this is not the first instance where
1 the telephone has been used freely in
connection with Union and Southern
! Pacific AFFAIRS. BY an odd coincidence
also. telephoner who has made free with
the name of MIR I.auterbach has not con-
fined his references exclusively to the New
York lawyer.
other Names Mentioned.
! The names Of men potent in financial
and legislative affairs have come trip
pingly to his tongue over the telephone
on many occasions. Years ago one
conjired with the name Of the late Russell
| Sage, Gen Samuel Thomas and Col f. c.
James. a lawyer. all now dead. No one
can say with assurance that the mysteri-
otis third party mentioned by Judge
Lovett IS in any way connected with
other telephone spokesnen In this
connection. however. Wall Street recalled
some of the circumstan associated with
the suit brought against the Southern
Pacific and Union Pacific Company by
Talbot j. Taylor. acting for the famous
late James r. Keene.
Mr. Lauterbach represented the pool
in the litigation which was instituted
against the Union and the Southern
Pacific roads TO enjoin the former from
voting its Southern Pacific hol dings.
This was back in 1903. bet telephone
messages had been freely exchanged long
prior to that date The affidavit made by
the late E II Hartman throws some in
teresting sidelights on the negotiations
for a settlement preceding the joining OF
the ISSUES. In part il is as follows:
zone evening in the autumn of 1901 Ed
ward Lauterbach called me at my house
on the telephone and said that friend OF
his had matter Of Importance TO commu.
nicate TO me and he would like me to have
an interview with the party at once. Ia
this ! Rssented. and during the ecenina q
the card of David Lamar. accompanied by
q card Of Edward Iauterbach identifying
him. was presented 10 me.
Told ~ Innu~nce.
= saw MIR Lamar for about ten or az
teen minutes during which time he stated
that he had friendly relations with James
X. keene. who had large holdings in South
ern Pacific aud was contemplating some
adverse action against it's management
and that he. Lamar. also had influence
with some Judge of the United States cour-
from whom he could obtain an injunction
against the Mon Pacific somewhat similar
10 that obtained against the Georgia Cen
tral. in which latter case MIR. Lamar had
been an influential and an important factor
"A. said that h" would lik. TO work with
me and that if would make an allanc.
which would be of some advantage to him
h. had such influence with Mr., keens
that h. could induce him not TO institute
any adverse action against myself and allied
interests
Mr.. Hartman went on to say in his
: highly interesting affidavit. which hears
the date OF March 80. 1903. that he
declined the kindly and disinterestet
, offices of Mr.. Lamar. Continuing the
! affidavit sets forth:
During the autumn and winter Of 100:
ana the winter OF 1903 ! had severs
7 calls on the telephone from Mr. Lama r
, but my answer through the messenger an
, nouncing the call was that I was too bus,
tn1lf u,if m Inn. IL, Ia n lrx.
1903. MIR. Lauterbach approached n'
through friend. whom he had made ba
l ii-v. that 1t would be to my interest I,
take the matter up. and he telephone,
. and requested an interview with me.
AT this interview he explained to m'
that I.auterbach had said TO him that Mr.
Keene represented II pool holding abou
l,5. 900 shares Of Southern Pacific stocl
and that Mr.. Keene himself held abou
= 5000 shares that they contemplated ac
ton which would make us IA great dea
OF trouble and might be disastrous to ou,
, interests and that Mr.. K-ene would sci
his pool shares at about 20 and his owl
shares at about 49,"
The reorganization committee OF tht
, Union Pacific road. consisting Of Louil
! Fitzgerald. Marvin Hughitt. G. NJ. Depew
: Jacob H Schin. Oliver Ames I'd and T
jefferson Coolidge, Jr,, had unusual prob
lems to deal with. chief Of which was th'
OI tHe ueDt Owing Dy tHt
company to the Government. and thil
required the approval OF Congress-. il
which radical element was dominant
The receivership was a long drawn ou
affair. 1t really made little progress unit
after the election Of william Mckinley
in 1895 The reorganization committs,
agreed with the authorities to compromis'
the Federal claims for the sum Of ap
, proximately $50. .O0O, 900. less certain oh
sets. A contract had been drawn W
formally for this as basis Of settlemen
between the Attorney General and thu
, reorganizers,
More Telephone Calls.
D At this juncture. when everything
seemed i'm fair way Of adjustment and
p the Government had agreed to a sale
: in foreclosure which would launch the
new Union Pacific company on it's career
. :. the then city editor Of an important New
York morning newspaper got telephone
= message. So far a. can be determined
this was about the first Of the long series
2 Of similar calls which have figured ir
= Union Pacific history. The man at the
other end of the wire announced that he
was the representative of the late Russell
> sage He asked If he could make ar