The Washington herald., 1914-12-20
CLEARS MORGAN
OF Ohio BLAME
Stevens Says Firm Entered c.
H. & D. Board in Oc-
tober of 1905.
AIDED ERIE RAILROAD
Shows Minutes of Erie Directors to
I.C. c. with Praise for
Financier.

The Interstate Commerce Commission
yesterday resumed its public hearing into
the affairs of the Cincinnati, Hamilton
and Dayton Railroad and the Pere Mar
duette. the hearing OF the commission
being in connection with its physical val
uation Of railroad properties in the United
States as directed by an act of Congress.
Frederick W. Stevens, former general
counsel of the Cincinnati, Hamilton and
Dayton and the Pere Marquette, was on
the stand during the entire day, and he
seemed to clear up many things with re-
gard to the affairs of these two roads.
particularly the acquisition of the Cincin-
natl, Hamilton and Dayton by the Bal
timore and Ohio in 1909.
sketches Checkered Careers.
Mr.. Stevens sketched the checkered ca
reers Of the two roads, which eliminated
in August, 1909. when United States Cir
cult Judge Lurton, who had conducted
the affairs of the Cincinnati, Hamilton
and Dayton for nearly five years, ap-
proved a plan Of reorganization under the
terms Of which the Baltimore and Ohio
got control OF the road.
Mr.. Stevens testimony showed that
Eugene Zimmerman and others controlled
the two roads. and left as a legacy many
obligations and the road in bankrupt con-
dition.
u. P. Morgan & Co. had nothing what
ever to do with these transactions"
said Mr. Stevens. Until after the close
Of the Zimmerman administration in Oc-
tOber, 1895, they had no representative on
the Cincinnati, Hamilton and Dayton
board and no part whatsoever in the
conduct Of its affairs, either as fiscal
agents or otherwise.
The acquisition of the properties by
the Erie was covered by Mr.. Stevens in
his testimony, in the course Of which he
referred to the fact that J. Pierpont
Morgan. senior, had taken it upon him
self personally to see that the Erie
should not lose through its interest in
the Cincinnati. Hamilton and Dayton and
the Pere Marquette.
An extract from the minutes of the
board of directors meeting of the Erie
was placed in the record to the effect
that the unanimous sentiment Of the
board Of directors of the Erie Railroad
is that the thanks of the company are
due and hereby they are extended to ].
Pierpont Morgan for his extraordinary
service and assistance to the company
and for his magnificent, un-
paraIleled and absolutely voluntary offer
himself to assume the entire purchase
and to relieve the Erie company from
all contracts and cost. in connection
herewith -
"On the same day E. II. Hartman" d"
said Mr.. stevens, who was then direc-
tor Of the Erie. wrote Mr.. Morgan. ex-
pressing his appreciation Of the latter's
action in taking over the purchase and
assuring Mr.. Morgan that il he could be
OF service in helping to work out the
Cincinnati, Hamilton and Dayton prob
lem he trusted Mr.. Morgan would COM
mand him."
Mr. Stevens stated that at the time the
Baltimore and Ohio took over the CinCin-
natl, Hamilton and Dayton Morgan & Co.
had no representative on the board OF the
Baltimore and Ohio. Summarizing Mr..
Stevens said Morgan & Co. were big
losers by the transaction. and that the
firm now has ll0.OOO shares Of stock of the
Pere Marquette Railroad of doubtful. if
any. value to show for 2.0Oe. 900 and up
ward Of actual cash paid by them in 1905
to relieve the Erie Railroad of the Gin
Cinnati. Hamilton and Dayton purchase.