New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-16
House Committee Starts
Inquiry Into Terminal
Company's Affairs.
RAMSEY TELLS OF
HARTMAN ACTION
Gould Interests Blamed tor No'e
Issue Which Preceded the
Receivership.

Washington. July 15.-The aHcgeu
Iootiro Of tho Wabash Pittsburgh TER
nirai Connany was the subject OF pre-
Nminarv inquiry to-day by the House
Committee on Interstate commerce
which considered the Townsend reSoiu
ton asking for an Investigation ny Ule
Interstate Commerce Commission "i
the financial affairs OF the company ara
the depreciation in the value oil us Sc
curitics. ILL.,. r
Joseph Ramsey, jr., eX-presldent OF
the compaay, said he would wclconle
thorough inquiry into the hnancial ~
fairs oil the road, although ne d,d not
want TO appear in the attitude OF ne-
handing an inquiry. lie lntimateG 'haV
the Hartman interests we're largely re-
sponsible for the drop in price or the
$40 600 900 of first mortgage bonds Is
sued by the Terminal company hese
bonds sold at 81 in 1905, and gradually
declined until they were recently quot
ed at 7 cents.
The witness was cautious in refer
ring TO tho late T.. II. Hartman and the
Hartman interests and avoided a GI-
rect statement that the bonds dropped
because of the Hartman influence. He
testified that the receiver for the
Wheeling e. Lake Erie had gone TO
court and secured cancellation of the
contracts between that road and the
Terminal company, and that these con
tracts contributed essentially TO the
value of the bonds.
Mr.. Harriman's Interest.
what interest did MIR Hartman
show in the cancellation of the bonds !"
asked Representative Townsend.
ar Re-
tracts should be cancelled the price Of
the Wabash-Terminal securities would
be depressed" said Mr. Ramsey.
"And then a receiver dominated ty
Hartman went into court and asked for
a cancellation Of the contracts, and as
consequence the bonds dropped in
price," Mr. Townsend asked.
"Well, they were left with their heels
in the air" was the response.
Mr.. Ramsey testified at length re-
garding the formation OF a syndicate
to finance the Wabash Pittsburgh road,
asserting that Andrew Carnegie,
George Gould and Myron T. lIerrick
were leading members of the syndicate,
each having a 100000 interest Mr..
Ramsey said the road had sixty miles
of track, with an entrance into Pitts
burgh. which gave it strategic posi-
ton. Contracts with the Carnegie Steel
Company, he added, made the properly
especially valuable, and he insisted that
when $3O,O00,000 of bonds were sold
in 1905 the investors received full value
and the line was profitable.
Deposed by Gould.
Some time later, Mr.. Ramsey said,
George Gould and +. T. Jcffreys sug-
gestcd an issue of three-year notes. Mr..
Ramsey said he advised against the
issue. and was later deposod as the
president of the Wheeling & Lake Erie
by the Gould interests. The notes were
issued, and the roads affiliated with the
Terminal company went into the hands
of receiver, vitiating the contracts
held by the Terminal company.
perhaps a receivcrship would not be
a bad thing" Mr. Ramsey said some
member OF the board of directors re-
marked when he opposed the note
issue. He could not recall who made
the remark.
George l.. HoXie, Of New York, who
was a heavy purchaser of the bonds,
denounced the financing of the Tcrmi-
nal company, asserting: THE history
OF the wrecking of the road shows all
the worst evils Of high finance, and is
conspiracy on the part of rival in
terests to obtain a valuable property
at low price