The Madisonian. (Richmond, Ky.) 1913-1914, 1913-07-08

ter that they would not even confer
with me on any subject
And 1t is perfectly true, therefore,
that for the purpose OF endeavoring 70
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.. Scnln'
did, using the names of other per-
sons have 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 a 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 $5S,000,000 in
bonds owing it. Lamar, with Senator
Foraker, came to Washington and con-
ferred with President Mckinley.
I'VE 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, 100000 In Union Pa
cific, he took steps to enjoin the voting
| of certain stock 80 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 a fee, and engaged him.
| When the Injunction was finally de-
cided against Keene Union Pacific
went down and Keene and his friends
lost most OF their fortunes
Tells of Phone Talks.
LAS the result OF the panic of 1867,
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, service he said, "and
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 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 insignificance," compared
with an $S2,000,000 forgery which he
alleged was committed on the Union
i Pacific books In 1901.
81 don't know who did it." said La
mar, "the chairman of the board or
the Office boy; but do know this $S2,-
600, 900 was the fulcrum which enabled
Hartman and Kuhn, Loeb e. Co. to
gain control of these corporations"
Tells Story Of Forgery"
He described a double entry of $S2.-
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
$S2,000,000 item from one side of the
ledger, leaving it as 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 onds. They got that money
and us~d it to finance the deal for the
Northern Pacific and Great Northern
transactions and the flotation of Great
| ANOASAlCAh VIC PlORCAb AC5, WAbSA lhOJ
sold out at an enormous profit"
Later Lamar alleged, the principals
in the transaction went to Kuhn, Loeb
& Co. and secretly got nearly 5000,
100000, which be believed was fol
I 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
cific railroad put in this reply:
In view of the statement regard
ing the account of the Union Pacific
. Railroad company which David Lamar
J has gone out of his way to make be
, fore this committee, and, inasmuch a.
persons not familiar with David La
mars character, who may read thi,
statement in the newspapers, may b,
misled thereby. deem 1t my duty t,
make the following statement for tn,
records of the committee:
For several days persons con
, nected with the Union Pacific Rail