Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1913-07-11

restore the condition OF former FRIEND
ship and harmony that had existed be-
tween Mr.. Lauterbach and the firm OF
Kuhn, Loeb 6 Co., and Mr., Schif,
did, using the names of other per
sons have a 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 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 S5S,0OO,000 In
bonds owing 1t. 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.
HI" detailed how, when Keene and his
associates had $43,000,000 in Union Pa
ciflc, he took steps to enjoln the voting
Of certain stock so that e. H. Harri-
man would be compelled to buy Keene's
stock at high figure. With Keenes
approval he retained Lauterbach's law
firm and paid $4,000. Lauterbach and
Lamar came to Washington, paid
Foraker 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.
"As the result of the panic OF 1907"
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, a 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 Lauterbact
had tried to blackmail him."
The Lauterbach incident, added
"paled into insignificance," compared
with an sS2.000,O0O forgery which HI
alleged was committed on the UnioI
Pacific books in 1901.
Il don't know who did it," said La
mar "the chairman of the board Of
the Office boy, but do know this $50,
100000 was the fulcrum which enabled
Hartman and Kuhn, Loeb & Co. t.
gain control of these corporations.
Tells Story of Forgery"
He described double entry of sS2
100000 representing securities thu
Union Pacific assumed in taking owe
the Oregon Short Line and the Ore
gon Railway and Navigation company
The items, he said, were carried II
the consolidated balance sheet" o
the Union Pacific June 30, 1900, bu
between that time and June 80, 1901
he alleged, some one had erased tn
SS2,000,000 item from one side of tn
ledger, leaving 1t as credit balanc
on the other side.
''They took all the securities of tn
Oregon Short Line and the Orego
Railway and Navigation" he sait
"and used them as security for an i,
sue of bonds. They got that none
: and used it to finance the deal for tn
Northern Pacific and Great Norther
transactions and the flotation of Grea
Northern Ore properties. which the
sold out at an enormous profit"
Later, Lamar alleged, the principal
in the transaction went to Kuhn, Loe
& Co. and secretly got nearly $20C
100000, which he believed was Il
their own use.
Denial Made by Cravath.
Immediately after Lamar had fl
ished this phase of the story. Paul
i, Cravath Of counsel for the Union p
cific railroad put in this reply:
. "In view of the statement regar
= ing the account of the Union Pacif
Railroad company which David Lam'
. has gone out of his way to make b
;, fore this committee, and, inasmuch
persons not familiar with David L
mars character, who may read til
statement in the newspapers, may
d misled thereby. deem 1t my duty
b make the following statement for Il
o records of the committee:
o For several days persons CO
Q nected with the Union Pacific Ra
II road company have been
fnrp,ad thot on affnrt 1uaa hain0 N, N