The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-16
TELLS OF WRECKING
OF PITTSBURG ROAD
Joseph Ramsey, Ex-President Of
the Wabash. Hints That
Hartman Did II.
HOUSE STARTS INQUIRY
George 7. Hoxie Calls Wabash
Pittsburg Terminal Dealings
a Great Conspiracy.

wAsHISoroS. July Is-->Ioseph Ram.
sey. Jr.. ex-presldent Of the Wheeling
and Lake Erie Railroad and ex.presi-
dent Of the wsbssh appeared to-day be-
fore the House Committee on Interstate
ana Foreisn Commerce and told the story
about the alleged wrecltins OF the wa
bash Pittsbure Terminal Company.
Mr. Ramsey was called to testify con.
oernlne the Townsend resolution. which
recites series OF alleged wrong. com.
mltted by persons Identified with the
wabash. PittsburE Terminal Company.
Mr.. Ramsey said he would welcome an
Inquiry into the whole affair. but made u
clear that he In no wise made A denrsnd
that such an investigation should be au.
thorized.
Mr. Ramsey. who appeared before the
committee on his own motion In one
or the original members Of the syndicate
formed to further the Wabash. Pittsburs
Terminal Company in which Andrew Car
neeie, George Gould and Myron T. Her
rick each had a tb.000.000 interest
Mr.. Ramsey limited broadly that Il was
HIS opinion that the Hartman interests
were responsible for letting the bottom
drop out OF $40. o0o.0 worth OF the
first mortgage bonds OF the terminal
company. which were sold for 81 In 1905
and which are now selling for cents
Cautious on FIXING RIsme.
The witness showed good deal OF
caution in making comments about the
late f. ". Hartman. He would not make
direct statement that the Hartman in
teres's were responsible, although a lead
ing question was asked by a mem.
her Of the committee. Mr. Ramsey had
told the COMMITTEES that the receivers for
the Wheeling and Lake Erie had gone
into court and had secured cancellation
OF contracts between that road and the
terminal company and that these con-
tracts were what made the bonds OF
| value
What interest did Mr.. Hartman show
In the cancellation or the contracts 80
asked Representative Townsend, author
OF the resolution Of inquiry
He was told that n these traf'c con.
tracts should bc cancelled the price OF
the Wabash Pittsburs Terminal securities
would be depressed" replied Mr. Ramsey.
And then receiver dominated by
Hartman went into court and asked for
cancellation Of the contracts and as A
| consequence the bonds dropped In price ?"
asked Mr. Townsend
We'll they were left with their heels
in the air." remarked the witness.
Only 90 Miles Of Track.
MIR Ramsey. testified that the Wabash
| Pittsburg Terminal Company had sixty
miles Of track with an entrance into Pitts
burg that its greatest value was It's po-
sition and its traffic contracts with the
/ Carnegie Steel Works He testified fur
Their that when the $40. 900. 600 worth OF
/ hrst mortgage bonds were sold In 1905
! he investors got full value for the money
] a md hot th, ina rAasa
Mr. Ramsey said that later on &c. r
IeTreys and George Gould suggested an
ssue OF three year notes The witness
said he advised against this issue and
] was accordingly deposed from the pres-
deucy OF the Wheeling and Lake Erie.
II said that three year notes might
not bc me, and the roads would go into
| the hands Of n receiver" said Mr.. Ram
sey Some one AT the meeting said
/ perhaps recevsrshp would not he a
bad thing"
Mr. Ramsey. though pressed IN do 80
could. not recall who made the remark.
He said the notes were issued and sold
through we'll known brokers and that
tho roads went into the hands 81 re-
cevers as h" had predicted. This re-
suited in Whaling the valuable contracts
held by the terminal company
George l.. Hoxie NJ New York was
! extremely bitter in his criticisms Of the
terminal company operations He was
a heavy loser In the slump Of the bonds
I lie declared tina, the history Of the
/ wreckng 81 the road shows all the worst
evils Of high finance and is n conspiracy
on the part Of rival interests to obtain a
valuable property at a low price