OCR Interpretation


New-York tribune. [volume] (New York [N.Y.]) 1866-1924, February 27, 1907, Image 1

Image and text provided by Library of Congress, Washington, DC

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn83030214/1907-02-27/ed-1/seq-1/

What is OCR?


Thumbnail for

jt^ 4 l ■ A^j^^t^y "3_ #^y^ . . _ S fli • *
;V; V - lxvi. . . .y°- 22.018.^^.^^,^^^ S3SS7W ***. NEW- YORK. WEDNESDAY. February 27. 1007 -SIXTEEN PAGES -*rJ%S2f)ij2Lu.* PRICE THREE cents.
CANAL BIDS REJECTED.
?!R. STEVENS RESIGNS.
tion To Be Put in Charge
of Army Engint
'■'• -' The ] n tC al will
: la sul -
en re
■ ' ■ " ■■'■■" irn. of Kentucky, will,
; ■ the 6< nate on M in h 4. be ap
■ ram'.ssion;
Ineer of the !
and h:<= resigi

These fact 3 •were announced at the White
Koure to-d.ay. after a most exhaustive inquiry
into the merlt3 of the private contract system,
and after nmple opportunity had teen afforded
to ell the Interested contractors to demonstrate
their ability to undertake a task of th mag
nitude which the enterprise on the isthmus :s
certain to assume.
has can
the work • the las 1
- ■ months
• . ■
t interest f the gov
•u. will he succeeded a; chief engineer by
M r ■:■• --•- W. Goetnals. r.r. am
Major
ils will start for the next
. to take from Mr. ?••
Of the V I k >!:.;■ r I 'ill I c
.. the- pow< r hands
of Chairman Bhonts and Chief E
I 1m at any time in the future be
cente incapacitated for the work or leave the
enterprise, be trill be sure- led ther army
engineer^, two of whom ai nated by the
• at to go to the isthmus with him, and
■■ • ith him will ' era of
lhe reorganized Canal Commission.
THE PRESIDENT'S LETTER.
Keaurly all of (hese Interesting facts weruj
made public this afternoon at the White
and most of them were found in the text of a
the Presidem wrot< to the chairman of the
Isthmian Canal Commission. This letter is as
follow- :
Sir: I have considered with much car the
Question whether the commission should accept
one of the Lids for the construction of the
Panama Canal under the proposed contract, or
should reject them all. There were two bids
■worthy of consideration. The Ma of the McAr
thur syndicate at I2hk per cent was the only
one which came within requirements. The
Oliver & Bangs bid at 6.75 per cent was re
jected as not satisfying the specifications of the
Invitation. Mr. Arthur and his associates not
objecting, and preferring this course to an in
vitation for new bids. Mr. Oliver was allowed
to perfect his bid and obtain new associates
and new financial responsibility; but this per
mission did not in any way change the, situa
tion from what it would have been had Mr.
Oliver's bid in its present form been presented
en January 12, the day fixed for receiving the
bids. Under the invitation for bids, the re
served power exists in the commission to reject
all bids, and' the first question is whether It
shall do so.
The purpose of the contract was to secure. in
the building of the canal, the services of the
best. th - most experienced and most skilled
contractors in the country, at the least risk to
them and at the least expense to the govern
ment. An investigation Into the two bids above
mentioned shows that this purpose of the gov
ernment has failed. In each bid the contractors
of exp^ri^nce. who?"? personal services in the
trork are what the commission has .sought, have
made arrangements to divide the profits under
the percentage bid with bankers or others to
whom the contractors have had to look for the
Heeded capital, so that the tractors who are
actually to do the work have arranged to ac
cept a* comparatively small proportion of the
profits accruing under the contract. In other
•words, the government by this arrangement Is
made to pay a high percentage for the u. c e of
capital. 1 Which it might itself have furnished at
a much lower rate, while the percentage which
the contractors are to receive for the real benefit
they are to confer on the, government Is reduced
to very meagre and perhaps Inadequate com
ler.sation. X.i contract can ultimately operate
to the benefit of the government In. which the
contractors' energy, skill. experience and per
ft.il supervision of the work are not adequately
paid for.
The r]<--f(-ct in the bids which I have described
and which our Investigation has made apparent
may be due to a defect in the invitation for
bids which perhaps stipulated for too heavy a
lionil and th<> Investment of too large capital
by thf- contractors, or It may be because the
bidders ha\~e taken an entirely different lew of
the money risk involved from that taken by ih<->
government, Mr. Stevens, the chief engineer,
who proposed the form of contract which with
modifications was adopted, advises against ac
cepting either bid. because acceptance of either
would *hot in his judgment accomplish the
purpose h«* sought. The considerations stated
p.ro by themselves sufficient to require a rejec
tion of all. bids and a change in the proposed
form of contract.
Ore of the chief reasons for adopting tho con
tra' t a* proposed was that in its main features
It was formulated by Mr. Stevens, who was ex
pected to supervise the work as chief engineer.
I*o had had exr>erience with contracts of this
Character, and be had had eighteen months'
actual experience with the work on the isthmus.
*jtm than ten .■■-•* ago 1 "'!-■•] ••• letter from
Mr. Stevens, in which he asked to be entirely
relieved from work on the canal os BOOH as h^
could be replaced by a competent person, and
thnt person could become familiar with the
'••r.rk. ] have accepted his resignation. The
withdrawal of Mr. Stevens takes away the spe
cial reason mentioned for proceeding under the
present form of contract,
la order to reeure continuity in engineering
rortro! and management in the future I have
«i*ri<jr-d to request you to assign to the office
of rhicf engineer Major Goethals, a member
of tho corps of army engineers. It Is not my
purpose hy requesting this appointment to dis
turb' in any way the present organization on the
irthmun. wWch is very satisfactory, nor to In
terfere v.';th the n.-Imirnble work now Ing done
by the present assistant chief engineer, Mr.
Rlpleyj and the various heads of departments.
Thf- work of construction In going on well, and
will ronlinuo to do so. The organization al
ready created is Increasing the excavation each
liH.r.tii. and czn Ik* rolled upon under competent
leadership to make further and constant pros>:
r^s pr. j; d!ng a period within which a new form
of contract can be devired by Major Goethalfl
and his associates, If It Is fle^med advisable ' (>( >
do t',:e work »by contract. The services of th.?
sariif; high class contra' tors whose bids we are
now rc-jf-ctinfr. or others '>f .similar standing. ;
may then be invoked In the Interest of econ- i
cmv n::<l speed.
Tv.''» cither competent membeTi of thn .-in'---!
corps/llfajor Goillard and Mclor Slbert, will i
accompany MaJori.Gorthals to »h? Isthmus and
assist hsr;i in his labors. Th-?y will b-? i point
ed on tb'« commission^
Major CoethaJs concura with Mr. Stevens in |
advising rr,f. that all bids on Use precent form
of "iciir.'Kt should be rejected.
I request thp commission fo i3>?.th» formal
action neceissary to reject (he McArihur and
th» Oliver Wo"*, In accordance with the power
reserve to it in its Invitation.
Very respectfully pours
THEODORA ROOSEVELT.
To the rinan of th* Jrthrnian Canal Co:n
mle«lon. Washington. D. C.
WORK MtTST NOT FLAG. !
In conversation with friends within the last j
tf% £?.;-s, the Prc-eid>nt hes thrown considerable j
aMJUonal licht upon the future of tho great j
Cocilaued ca ciz~th pc«~.
SCEXE OF THE WRECK OX THE SECOND AVENUE ELEVATED ROAD.
(For story of the wreck, cso page 5.)
■ [OWING DEBRIS TX THF: STREET.
' SECTION OF STRUCTURE BROKEN Bt
I COLLISION.
i *■» i
BLIGHTING TALE TOLD.
MRS. Til A W LEA FES STAND
Hummel Not Allowed to Testify
About " Affidavit."
When ■ uri adjour • trial
of Harry K. Thaw went over until this m
his yi ung wife, who had nev< r I more
girllike since she first the stor
w hlch the • nd depends. 1 ade
fan « ell I > the courtroom
ght that shines upon the trial.
To save her husband's lit".- she had blackened
i !.'-r,
her bi ther from poverty, a
. and kindliness And this n
• • law of the tat not ]
.. ■ ; to r< l<
the sight lie.
During liis rross-examinatlon Mr. Jerome
trie. 3. as far as the laws of evidence permitted,
to have young- Mrs. Thaw testify as to the ex
cellence of Mr. White's general character. It is
understood that if it was allowable. Mr. Jerome
would gc> much further. Fixing the date of
the alleged a.=pault by the books of.Elchenme'yer.
the photographer, who, Mrs. Thaw testified, took
the pictures of her on the preceding day, it i
asserted that it would be possible to show that
on that night Mr. White was at a public dinner,
where hr- remained until the early hours of the
next morning. £he had positively set tills date
as tho night following the day Eichenmeyer
took certain photographs of her which arc- in
evidence, and the photographer's books fix this
date without chance of cavil.
Besides blackening Stanford White's reputa
tion, tho young woman had placed her mother
in an odious light, and friends' reputations had
suffered iit hc-r hands. There is no doubt that
the sacrifice was necessary and required < t h»r,
but it has been a sad, disagreeable spectacle
that will long lea 1 an unpleasant Impression in
the minds of those who witnessed it.
HUMMEL ON THE STAND.
The trial had been adjourned on Monday bo
that Mr. Jerome might call Abraham Hummel.
the disbarred lawyer, to testify that Mrs. Thaw
hruT :—-do: — -do an affidavit to him that Thaw had
been guilty of many acts of brutality to li^r,
and that Stanford White was not the author of
her ruin. She had declared that these allegations
were untrue, and the District Attorney wanted
to prove by the testimony of th lawyer, of the
stenographer to whom the statement had been
dictated and by a photographic copy of the
document itself that Mi Thaw had really
made the charges attributed to her. Neither Mr.
Hummel nor the stenographer was permitted
to testify yesterday under a ruling of the Court
that testimony to contradict young Mrs. Thaw's
testimony was not permissible at this time.
Later, when Mr. Jerome calls witnesses on re
buttal,, their stories will be told.
Not the least interesting of the documentary
evidence Introduced In the case was a diary kept
by Mrs. Thaw when she wa3 at school in Pomp
ton, X. J. Th<> few extracts from it which the
District Attorney read gave an Illuminating In
sight into the girl's views of life at a time when
she was net seventeen years old. A cyni< .1 phi
losophy remarkable In one of such tender years
v.\?s Its predominant feature] An Illustration Is
contained In the following extract:
When ono gets Into a regular swing and does
c-rt.-.iti things jit .i certain time anil learns
something each time, one thinks there is lots In
life after all, and a girl who has always been
good and never had a word of scandal breathed
about her i: fortunate in more ways than one.
These girls are al! juj-t thit kind. They have
been kept from the world al! their lives and
know very little of the moan isjde of it. And
then, "ii the ether hand, there i- not . no of them
who will ever be "anything," and by "anything"
I mean just that. They will perhaps; be good
wives and mothers, and die good wives
mothers. Most people woul<! s.iy. what could be
better. Bui whether ft is ambition or foolishness,
I wu::t to be* a good actress first
Another time she wrote in her '.'diary" of her
longing !■> £•> to Rector's restaurant, an d at an
other part she spoke of the Broadway crowd,
and rahi they "went so fast they had no time to
think of what? they wtra doing." Again she
wrote:

ti! i. to their surroundings. I p.m on< of the
If I stay here long
••:■!
many
tnon questions as 1 f mental
■ i She re
.. :■< <i thai he ha n .•■•! "fits,"
when lie trembie< I incoherently an I
a i could not i id him," i lenched
md he was al-
Wllitt*.
■,vaii all.
MRS. THAW LEAVES STAND.
Tho cross-examination by SCr. Jerome w; L s
fls^hei ag, and Mr. Deknaa sought
to patch u;j r, • in the young
BSSd 'n f '::th l^.ff. 1 .
SHORTHST— QUICKEST FLORIDA ROUTE
is Seaboard Air Lino through Plnehurst, imd< n
Columbia, Jacksonville. Office, 1183 B'way.— Advu
WRECKED ELEVATED CAR HANOIN& FROM STRUCTURE
THREE THOUSAND MEX PLOT 10 SEIZE CELEBES.
CONSPIRACY DISCOVERED AT (APE TOWN TO CAPT
URE AXD HOLD A DITCH ISLAM).
Cape Toy i.. Feb 20 The I have
i of a daringly con
i i"U3 nlibustei Ing i
the island of Celebes, a Dutch ■
Malay
A band of thr •
to concentr I '
i, j, y ( t the Dvi h while I
nd worked. H
GRAND DUKE IN rEBIL
80/wfc Found on Track of Imperial
Train Bearing Nicholas.
St. !•■ • • :■:•-. !■'•!■ 27.—' • '

■■' ' :!; " 14 " r "
Grai ! Uuk SI h I ■ Nicholaievit* I
i] Defence,
ir Nicholas. This plot I
dla v. red Bhortlj " '■■•"■ *
Bcheduied ror the a
ere of the im]

- the track near the
rs burg i nd of the 111
d us a workman in the ad of placing
a v i the middle of the frack ai a
( om the fn
lea the dai
vaulting fences which barred his way. He
reached the cab of an a.> ■ ■•■
,r bj and di ove away.
The box on the track wru found to
nine of great power.
The vibration of the train, the i
showed, woyld have caused an explcslon.
The guard who made the discovery a 1
communicated ll to the railroad officials, who
led the train w ; 1 '" stopping !f! f
before 11 reach* d Lhe machine.
The entire neightx rhood of the ra
tion was surrounded by police. A statement thai
the orders for the grand dufte's journey Into St.
• were countermanded al the lai
meni has, according to the "Novoe V'remya,"
■onfirmed by the police
. •
MILLIONS ARE INVOLVED.
Juiliiard $ Co. Take Over Holdings
of New York Mills.
Utlca. N T.. Feb. 28. A. I>. Jullliard A Co.,
of New York, who have been the telling i
for the New York mills, with factories near
tills city and al Aragon, Ga., practically have
taken over the holdings ««f other stockholdi rs.
The deal Involves several million dollars, and
with the transfer comes the retiremeni from
the company of the Walcott Interests, which
have been the leading Interests In the enter
prise since its establishment, ninety-nine yean
ago.
LEGISLATIVE JOKEE BUSY AGAIN.
His Latest Effort a Eiil to Prevent Shredding
of Wheat.
I Bj ■■■■• ]
Albany, Feb. 20. Thai same Joker who per
petrated tl)-- closi cason for frogs In the re
ceni measure whose parentage Assemblyman
Ouvtllier so Impas lonately disowned, lias had
another bright thought. It became known to
.night In tho Inner circles that nn amendment t<>
tho F< rfst. Pish and Gam« law was likely to
be Introduced. In Mr. Cuvillier's name, 'to pre
vent the shreddlny of wlffeat." Mr. Cuvillier ap
parently is reaping with somo slight heart
burnings the harvest duo to a first year Demo
crat whoss activities have girdled the universa
with legislation- proposed legislation, (hat is.
GREAT BEAR SPRING WATER.
"IU puiit/ has i:.u.do it famous.' — AUvC
| cessions from the Dutch gov< and to
.
• n and
\\!.<-r' %
itlng to
.. it is
md, on tl
•■ coun
PANIC IN THE SUBWAT
Exploding Fuse St is Fire ti> Car ami
Traffic Is Tied Up.
Ait 1
■ ■
n pre

■\ hen, with
1
on th( h ■ fide ';;» the
ml I lue • irlclty
alarm was
: i 1!i 1 ! the tw.>

bllng ■ in tli.-ii- ■ • renrh

:•• < irundy,
I . hind
: • Ct S<
I ■ ■ lisplay
>nl iMiiiTic;.
Wlm ii ilr- I ra ■
i |j „■■ \
Firema 1. of Engine SI, pn»cured a
couple of ( nd pui oul the blase
on the woodwork of the real car. After a wait
:urii'.[; wiii'-ii the cur
irned off and every train along
that Bection of th. 1 line stallot], the order to p<»
aheo i v.. a glvoi to i;rin. |y. A tain there was
■ explosions and sheets of flame. The
current was once more turned off and an in
ition made. It was found thai a contact
n the forward truck of the rear car had
. . . I >en the third rail and
• i •■■ r the rail, and thai it had
been so twisted thnt a short circuit was formed
with the truck When thla had been removed
aln was sent forward without any pas-
Meanw hlle a long i ■■ tailed i ars filled
the tunnel. Passengers on them, s.tiiiK tho
,i!i<! fearing some disaster had happened,
, lamored to i <■ allowed to walk along the tracks
t i the stations. Prom the train Immediately
in front of the one on which the trouble oc
curred a few men iii.i escape, but tha guards
iblc to control tha others. It was late be
fore the congest Ii n was relieved and normal con
ditions of service were resumed.
EXPRESSES IN COLLISION.
Three Live:; Lost in Wreck on the
Intercolonial.
Truro, N. 8., 1" b. 26. The nlghl express train
bound from Halifax I ■ B< ton, was in collision
with a Canadian Pacific express running fr. m
Halifax to Montreal on th i Intercolonial Rail
road al Brookfleld late to-night. Thre
;.;.. . ..! the railroad were killed. Both trains
. .1.
GOVERNOR CARTER AND JAPANESE.
Papers Condemn Alleged Utterance Regard
ing Maimge of Daughter.
. Honolulu, Feb. 19 (via Ban 'Francisco, Feb. 26). —
Nothing that has happened for a long time In Ha
waii has created the same widespread Interest i>3
Governor Oatter.'s announcement in an Interview
that he bad been wilting that his daughter should
marry a Japanese. It Is the subject of discussion
everywhere. The newspapers are bombarded with
communications condemning it.
HARRIMAN ATTACKS FISH.
Says He "Looked Upon Illinois Centra! as His Per
sonal Properly."
PERSONALLY LOANED $1,200,000 TO HIM.
Wants Law That Would liable "Corporations to Make Contracts Between Them
selves," Same as Individuals.
■■-.-■
An attack on Stuyyesant F'.r!\ who was ousted
i recently from the presidency <T tho Illinois
; Central Railroad, was a striking feature of Ed
! ward H. Harriman's testimony before the In
terstate Corr. merer Comm.te'on yeatcsrJay. This
part of Mr. Harrimai testimony was entirely
I voluntary, although some excuse for It was
! Given by questions put by Frank U. Kellogg, of
■ CTunsel for the government, and by Comrr.i?
[ sloner Lane, Mr Ilnrrirrrin seemed to bo bent
j on making it appear thai Mr. Fish had been
turned out of the presidency of the Illinois
■ Central, not because of his ettitude toward the
I hnusrr!,->anln£ in the Mutual Llfo Insurance
| Company, but because of his use of the fuads of
the railroad company.
1 Mr. Harriman asserted that in the spring of
j 2003 Mr. Fish deposited more than $500,000
i with the Trust Company of th« Republic, tho
| company which was wrecked !at°r in floating tho
United States Shipbuilding Company, and that
when the secretary cf the Illinois Central tried
! to withdraw the money he r.-aa told that such
a step would force the trust company Into bank
ruptcy. Mr. Fish subsequently lent another
large sum to the trust company, Mr. Harriman
sold, "to pad the accounts" of the trust com
; pany. '. In, in 1904 Mr. Harriman" asserted,
: Mr. F:=:h lent to the trust company's succ^ss^r,
I the Commonwealth Trust Company, sums -to
■ "pad the statements."
In Lhe si • ! 1908, Mr. Karrlman stiU,
Mr Fish I< I self a largo sum <~,f i
and the dtrectora of the Illin I
thoii • V T:-. Fi ih.
•1 interfered In the Inl Mr. F ; sh."
said Mr. Harrii ined hln: H^J00;000 to
.■ •
■ ■• •■■ • ith him for two years, most
of the principal."
MR. FISH DECLINES TO REPLY.
j lyvesant Fish would not talk yesterday re
; garding the charges brought against him by Mr.
Harriman. It Is understood, however, that he
stands ready to explain or deny Mr. Harriman'3
! statements reflecting upon his actions, when
. president of the Illinois Central Railway. A
i statement is in the course of preparation, but
: will not be given oat until Mr. Harriman has
finished his testimony, and Mr. Fish has had
; an opportunity of reading a transcript of !t.
It was brought out yesterday by friends of
: Mr. Fish that the same course had been pursued
j when be ■borrowed money from the Illinois Cen
; tfal as was taken when Mr. Harriman and
I Charles A. Pea body had made loan* from tbe
I railroad. In every case the loan was carefully
• discussed by the other directors and the col-
I lator.il offered carefully examined.
An hour after Mr. Fish resigned from the
j Truesdale investigating committee of the xtu
j tual Life Insurance Com] Mr. Peabody. pres
ident of th? Mutual, went to the office of the li.i
I nols Centra! and demanded a memorandum of
; the loans that had been made to Mr. Fish. He
received it. and a list of the loans mad • to other
i directors of the road was also offered to him
Friends of Mr. Fish said that the Illinois Cen
; tr.il is and was a large lender of money, and
I that the same arrangements were made with th«
Trust Company of the Republic as wore made
ivlth oth •;■ tr;:sr companies. Al I
Its were made with this trua
no question of the solvency of the trust com-
J ,MKS J. lilt. l. SMILES
In his testlmoi I Harriman »x
i an i pinion that if the Union Pa< IQc had

HARBIMAN TELLS OF ILLINOIS CENTRAL FIGHT.
When Mr Harriman resumed his seal in the
witness chair yesterday in.'rirm; Mr X
placed In evidence a contraci showing t!:-it Mr.
tan, Jacoh ll > : 'iii:T. James Stllhn
■: the owners of the
stuck of the Laelede Construction Company,
which buili il:<' St. Louts, Peoria A Northern
Railway, the road which was sold to tv
c;ur>> .< \ .. . Ra (way Company at the time of
the reorganisation of the Chlea • .v I
r> •;!<! Company. Mr. Harriman s:; ; .l he could
noi remember the contract, and could i ■
how the price of the little railroad bad
fixed a 1 53.000.000
Mr. Kellogg took great ;u'i!:s to K>'t from the
witness the information thai the interest cl
on Chicago £• Alton obligations amounted •>■•
$2,413,000 .i year since the reorganisation, while
they were $1,077,000 a year bef >rgan
isatlon. He then read resolutions passed by the
directors of the Chicago A Alton on .i
ISOU, authorising the bond Issue of $22,000,000
and the sale of the bonds at <">■"> Mr. Harriman
had testified on Monday thai Ik- was a n
of ih" syndicate that tool the bonds al th
ni> Mr. Kellogg read from the report thai rh-»
<lir«-. i >rs present at th<' meeting when the Issue
of bonds was authorized were Messrs. dowry,
Henckel, Hutchins and Schlff. Mr. Harrtroan
said:
In the slimmer of 1599 I was away from eons
miinifiitlnii for all that time. I was up along tho
coast of Alaska— left about the middle of May. and
ret'irning about the end of August, so that ; could
not have had a band In or been present .it any
• •i" those transaction* l; seems to Indicate '■•>• the
resolution, v.-11-.! you have Just read, which 1 ticver
have Been that there was some commitment i>|>
lmrently on 1 1 ■.•. • ■ part of gome one '■• buy iboM
bonds j'.t G.V
ii v >. Will you tell me, Mr. Harriman, how it is
possible for there to be an obligation f.>r somo
ono to buy those bonds at 66. until either the direc
tors, executive committee or stockholders Of the
road had authorised sue;; .i contract or such an ob
ligation? A. — I presume that somebody agreed to
buy them, provided the authority was rKhi.
q.— The somebody must have been you four mm?
A.— lt could not have be n roe personally at that
time. I have no doubt I had the same interest that
anybody else had in them, but I was not here
You cannot refresh my memory on anything that
happened while I was away from communication.
Now, ii appears, Mr. Harriman. that th- first
absolutely authorized to be issued at nil were Jio.
<x;o.i>!<> of, them on September 15, WSft "Kesolvod,
that the. Illinois Trust and Savings Hank be re
quested to forthwith certify and deliver to K. V. S.
Crosby, assistant treasurer of the company, the
$10,000,000 race value of the refunding bonds of this
company, being part of th • $.\",CGO.Oi/O of honds men
tioned in subdivision -. of Article ". of the refunding
mortgage, which were authorised to be executed and
Issued by resolution of the board of directors of
the company at .i meeting held In the city of
Chicago, September T. 1639." Now. it appears that
the first action ever taken by the directors was
June 27; th«y were not authorized until September
7. and the flrst bonds ever Issued were Issued Oc
tober 10 under the resolution passed September 1">.
Isn't that true? A.— ! presume it Is true if the rec
ord shows it.
AFTER ALL. USHER'S THE SCOTCH
that made the highball famous.— Ad vt.
nuoulj haw done, t'.ie Northern Pacific's devs!
op?nent would iav been hastened ten years, and
that the Southern Pacific was ten years ahead
of wfcet it would have- be»i: if tho Union Pacific
hail not benome Interested In it. When James J.
Hill, president cf the Great Northern, read that
cart of Jfr. Harrhnan's testimony ha chuckled.
"My:" he said, "Mr. Harriman has sot con
trol of time, too, has he?"
Mr. Hnrrimnn told of the temporary sale of
SrtO.ooo rhares of Southern Pacific stock to
WUI-.-ir.i Rockefeller in 1003 to checkmate James
R. Keene, w'fco had rmed a pool of the stock
an 1 was trying tr> get the courts to order a dis
tribution of Southern Pacific earnings to the
stockholders. Mr. Harriman explained that he
was afraid of en injunction to prevent the
Union Parific from voting (Xtei.fiOO shares of the
Southern Pacific stnek.
'We wanted." he said, "to get SOO.fKK) shares
of stock in the ownership of somebody who
would act agm.ir.st the attempt of this specula
tive p*o! to control th* property."
Mr. Kellosr^ lnpirtei that the rates on the
Union s.nd Southern Pacinc roads are higher
r.o-.v than they were in l*»oi*. airl wanted to
know if the increase was net dv? to the con
solidation of the two roa^t'. T.!r. Harr!n-.aa
denied that this was true, and added that there
woud be no decrease in i -•■ He said if rates
were lowered a panic would follow.
At one point in the 'inquiry Commissioner
Lane appealed to Mr. Harrirnan as a railroad
man uf experience to tell why cne railroad cor
poration should have the right to buy up stocks
of other railway corporations, and Mr. Harri
man replied: "I believe under proper regula
tions and proper statutes, which would enable
railroads to combine and "establish lines upon
which trnm> could be moved at tho 'east cost,
we could reduce our rates; b-.it so long as wo
are prohibited by law from agreeing: a:nong our
selves without the danger ••- being sent to state
pri?on, ycu have this chacs that now exists."
In testimony which took the form of a pleasant
conversation with members cf the commission
late in the afternoon Mr. Harriraan talked
further on the subject, assorting: that the rail
roads had themselves to blar-.v? for traffic re
strictions which hnd be^n imposed on them, and
expressed the belief that tr-£ ral'.rcads should
be restrictel by ir.-v in freight rate?, while they
should be permitted to combine their operations
in savins COS! Of transportation.
■.
Mr. Harriman told of the delay last August la
announcing the increased dividend of the Union
Pacific and the first divid?nd of the Southern
Pacific, savin? the announcement had been held
over to let the Now York market have» the bene
fit of it. the decision to declar? th^ dividend hav
ing bf>en reached nfter the market h"ur in this
city. Ho denied knowledge of any pool to specu
late on the increase in the price of the stoeka af

■ >rr. Harrhnaa de
l
is, follovrii
• \ !!1 ha
pt, al
ks will
i
- ••->!! Kahn,
of Kuhn. 1.
- - hut c >uns,l for tha
eommi yesterday whea they
Q— Very well. Tf that is true, will you tell mm
hnw the markrt bad improved between June ani
ii.'t.ili.^r so that a 3 i»?r cfnt bond could only bs>
Mild at 63 In June, anil couM be told at S-J in Oc
tober? A.— l>i'l anybody say it rouKI only be sold
at S3 in Jisn' 1 ? 1 have rot said S'J.
Q.— You knt>w of rv» reason? A.— Know of no
reason why everything appreciated in the markot
in lw:
Q.— To the extent ->f 21 points. A.— Will you take
a list of the s-»eiiri;i.^s dealt In at thf Stock Ex
chance In June. 1599, :m.l a li?t in September, is*).
and ftn oi't if you car. fln.l any appreciation of th»
market value of other securities than thns?-. durln?
that time? There was v complete charge In lha
disposition of the public.
o — i>o you think there was a change in Altia
bonds t.i the extent of 31 (joints? A.— There a?
parentlx was at that time, by your own record.
O—l think that la true: there was a change In
th.. nrlce of from 63 te- :<6. Was there any suclj
Change In any other f.r^t r.iorts»;^<' bonds? A. -I
have r.'>' any r _ «.
, i T" •■•■ you il > net attribute th« difference bo
tween 6S and W to any Increased value by re;isoa
of market conditions: A.-A very large part .of
it had to be. I do not believe you wrald ha\e soU
S per cent bonds to .lur.e at anything like 90 or 9«.
BOND SALES TO NEW YORK LIFE.
' -".*-■ •' ■ -' ■',:'' '■
„ —You s:iiJ jresterday you ,ii.l not know- whether
an* ... vmir liomls were sola t.> the New \-.-:c
1 If* All of that $l*.<X«JXn w.^re sold to the No-.*
York Life, weren'l they? A.— Not to my know.
ii" If all of that JIO.OOP.CCO were Fold to Ole N r
Vorfc 1 Ife and no other bonds issued until tr<»
'. iv'tVi May your bonds were sold, weren't
thev-vour shnrev A.-Wh:.t «pjroa mcan-my m
terest in tho«» bonds? Undoubtedly. ,
e^-Well, did you have any? A.— l don t re
member.
SOUTHERN PACIFIC PURCHASE.
Mr. Harriman testitlea that C. P. Huntlngton
bad been president of the Southern Pacific for
many years previous to his death, and that Mr.
Stanford also had been president of the road
at one time, but that Mr Hayes was tho presi
dent of the company .!. th? time the control of
property was taken over by the Union Pacific.
Q— Now. as it appears, the first purchase xras
7:*>.t:iV> sbnres, am', afterward I^.OCO shares, making
9OO.on) shares, which the company owned prior to
the issue of the preferred stock— that is. either th«
Union Pacific or th« Short Line'! A.— Yes.
q Why did you buy Just a Httle less than t!to
majority? A.— Well. I presume ihnt we though it
was not ne.-essary to buy a majority.
0.-You could control it Just at well with-*
minority? A.— Undoubtedly.
y.— A large amount of thi^ stork was bous;ht
fiom '!!•• tluntinstoti estate, wasn't it? A.— l think
It wns-iso, wa.lt a moment.
y._l, j you carry on the negotlationa for tiiat
purchase? A.— l h^lpej carry them on.
«j. — t»idn't you make the arrangement for the
purchase for the Union Pacific? A.— No, not tor
the Union Pacinc.
Q.— Well, the Union Pacific and Short Line? A.—
No. from the Huntir.gton estate I made no ar
rangement for any of our companies.
Q.— Was all of that stock purchased from tlisj
lluni'.nßton estate? A.— The whole S00.00«3?
Q.— The whole 730.000 shares? A.— l think not.
Q.— l notice that your statements show that
since that time, since the acquisition of the other
150,0. j shares in 190 C. I believe, that at all times
since either the Union Pacific or the Short Una
has owned -^ ..000 shai*<i of the common stock, ac
cording to th» statements. Now. where did yoa
Many families use. as ix i cod-drink. Instead of
impure milk. Horllck's Maltha Milk, original a&vi
only genuine. Always reliable, nutritious.— A4v

xml | txt