Show ATTACKS ATTACK OLD OD KIV A BUT I EPS SECRETS Harriman Tells TeUs Why Stuyvesant ant Fish Was Kicked Out OutI I of Presidency CONTROLS SALT LAKE ROAD Great Railroad Magnate Says He Helped Build Loc Local l Line J I Now York Yoi-k Feb A C A A hitter Iter attack attak on oIl 01 Fish In which iii his 1 re removal re- re moval from the olce ollice of or president of lie tho Illinois Central railroad was at attributed at- at solely oleh to his gross misuse fl c o of tho ho company's s fUn funds to support a a. tottering trust company the was vas principal prin lain- cipal of several sensations ell with wih which Edward li IL Harriman the most powerful pow pow- pu erful railroad in iii the tho country countr sta startled the tho Int Interstate Commerce commission com corn mission and amid a clow crowded er court room in the rhe federal building today J It lt was the thes s second da day of the commissions commission's lons lon's In Investigation In- In In Iii th the financial operations In lii connection wIth hut his his Pa- Pa chile clie railroads Hero are arc some somo of or the most promInent prom prom- meat things Harriman explained to the commission without their The Union Pacific bought only a dominant minority of Southern Pa- Pa cUte chile stock because It Il could rul rule the the roa road without hol holding Ing a majority Some Somo 1 worth of Southern Pacific stock was sol sold to William Rockefeller In iii 1 1903 03 with wih the the understanding under under- llam standing that thal It I was to be repurchased without loss to tl Rockefeller within a ayeni year yeni- 1 The purpose put was to block a n plot b by which James 11 U Keene hoped tl to gain gahmi gin control of or the ro road ll and dis tribute Its Is surplus amon among stockholders cl 4 lIngers TM In n D l He lIe e persuaded the management of the he To Toi elm eka and amid Santa F Fo Fe to accent ac sic- ac- ac cent Henry J K Rogers alt arid and Henry Cht Clay I Prick the lie Union Pacific directors as s s members of or the AtchIson board boord because o of the largo large stock acquisitions of ot liar Har- lar- lar and his I associates H He lie declared I Rogers and Frick to tl be among mong the best bost corporation directors hi In t the hc Un United Hed i States fluid their personality made them their I active In un any board hoard th they Joined He Ito t declared that the lie mba Pacific helped to build the lie San Pedro Petro Lot Los L Angeles Angelca and Salt Lake railroad which Senator Clark of Montana hu has aloy always claimed a as S j hl his own creation anti and thai that I from rom the thc Inception of or the road roar ant there was no chance hun of or competition 11 n. n Q r U 1 n. n LO om i lt L i te-ol te r tl HUI t I WashIngton luri and unu ni i Or oJ b ter I years ahead of or ll y hr rd t today I If I li hI had bud not SlOt boon able to 0 J Join ln the Southern Pacific to the Union Pa Pacific by raining gaining control that lint territory I I development de would woul be le teu en L years carl behind It I its present Vor rc cre Hold Hack The unexpected dividend of or the South- South r-in r Pacific and 1 tim tint unusually lar large e ei dividend in iii Union Pacific c were held heid e i et gl II f m b i ithe hack back two o days that thai t absent members r of ct the directors could b be notified and Wall Vahl al street cure si-cure an advance o ores the London an and l forel foreign 1 exchanges Mr Ir Harriman closed time the Lt day In with wills wih a lengthy length dissertation ton on railroad rights and legislative e needs Ho lIe le declared that he lie would take talc over o the Atchison to toa today today to- to day a It If the Interstate Commerce commission com corn mission and the Sherman ant trust anti ant trust I-trust law would permit 1 lie went further An And 1 said hI that that except for the law he lie hI would have a si road from frol rota New York to San Francisco Uhlu within a t week ek or 0 so He Ut recommended that the lie Interstate I Commerce commission bo ho given more moore power especially to r regulate u ato rates and HUt that thiat the lie railroad powers be inci Increased eased lI by legislation which would permit Joint truffle traffic agreements He lie II sal said that the lie ln el Sta States les was more moore severe on its Is railroads than other countries e but the toe railroads had none nono hut but themselves l to blame tisey blanie-tisey they did not nol keep their agreements agreements agreements agree ree ments when thc they hind hat the thu right to tomake make them and amid brought down own on their heads the distrust of ot the g general nerl pub pub- i lic Ic lc Deals Not Public Again and amid again he lie Insisted on omi his atc Irl rights an and amid l refused to give any I information it thou regard regarding Ing lila his iia personal stock block purchases or sales defying the commission trout even when one ono of the com com- pleaded with wih him hint to be he as frank rank about himself as lS ho he had been about Stuyvesant tuY Fish He lie did answer I a few fet IW questions about aboul purchases of Southern Pacific the tho frantic signals of oC Mr Milburn Miburn and anti others of his bis counsel i I 1 bought Southern Pacific at 23 Inthe in hut inthe the panic of or 11 and I was called caled a reckless speculator I lou bought ht again af after after ator at- at Both BOUl ter or tho the San Francisco earthquake these purchases t were score in anticipation of the lie recent dividend he std said Wall al street has boon boemi extremely nervous nervous ner nor votis ever since MI Mr Harriman took look the 1 0 stand He lie has hitis enemies and financial leaders feared he would turn on them themas as he ho dl did l on Ott Fish There was particular lar fear eal in certain quarters as a one or more hi big railroad l deals are said salt to le be hanging by a hair Fish Flail decided this afternoon to appear before the lie commission ant and ask atik permission sion slon to defend l himself from rom Harriman charges 1 There 1 is s little doubt that hat this permission will bo be c grunted granted anti and Fish wil is l el to be tho thin most Interesting wJ- wJ wit wit- ness nests In the lie session FIsh I Un Tell cH Secrets The Tho attack on Fish came caluc as a surprise sur sur- prise and was quite gratuitous on 01 liar liar- riman's part Frank II Ii H. Klo Kellogg g. g sl skillful trul railroad attorney at at- 1 torne torney who Is la doing th the lie probing for or the commission asked ed If the Ullon Pacific had not acquired a u dominating Interest In tn the Illinois Central lIes Has It t air Mr I. I Harriman returned Yon lan kee Iee kte fashion Has hiatt los it II 1 Mr 11 Kellogg said he lie want wanted d to Lo know and amid the railroader admitted l that thal It I ha had l a acquired a large Interest but said t It had hadnot hadnot hadnot not exerted influence so far ls Is the he stor story In his own words but without the Interruptions of oC and noll Judge Lo et of or his hil own counsel counsEl who endeavored to halt hal him Harriman I I I will wi tell tel you 01 how the change chang In tn tho the pr president of or tho the Illinois 1903 Central took place In September after I ha had l been abroad about three months on here herr I was wan approached approached ap ap- ap p d t h by y sev several of the Influential di directors iii- iii rectors of or the Illinois Central me of ot the advisability of reporting certain acts of or the the- lie president o of 0 tho thu Illinois Central Cen Cen to lo I its hoard board of or directors with wih a view of or having them limit request t the president to resign at ul that thuit time line Q Q cl the lie change hau o In iii Its president oc occurred OC ec- I curn utter after ufer the the acquisition of 0 the tho Illinois I Continued on itt I page fi 6 r f ATTACKS OLD RIVAL BUT KEEPS SECRETS Continued from flom page pago 1 1 road soad Central company compan stock I by the tho ho Union Pacific Railroad Rail Rail- Rai YiaN n Hul Only s n Coincidence A A That That t was only oni a coincidence If I the Union Pacific had hail not disposed oC of a n certain coy coy- lain tain amount of or Its holdings of or s securities and ald hn had monc money to Invest In like securities It never r would have ha c acquired tho the Illinois Central Commissioner T Lan Lane ann In what manner w was vitt the thc president of the lie Illinois Central using his hi position wrongly A A el A Well In the tile spring of oC l 1903 he lie J- J tl 1 over r o half hair n a million milon dollars with wih the Trust Company Compan of the tho Republic of or which he lie was wati a n trustee a n It very lr small company I and ant then went off to I came home tome from Crom a trip till to Cal California Cor la and found folInd that lInt change I was then lIeu consulted d l by somo some of or the thc directors We e then went to tolie the lie managing officer of or the tl Trust Company Company Com Com- pany of or the lit Republic and were frankly y that hat If IC wo wn demanded a return of or that hat money the company would have ha to go gonto 10 Into nto bankruptcy So Soo wo o C gradually drew that hat monc money ui Ul we got Jot It I all al back hack some ome sometime time Imo during the summer of oC 1901 Notwithstanding standing at tact fact on June 3 30 t. t 19 19 R. R the tile president again deposited a large amount of or money with wih th the he Trust Company of the tue Republic and then tIll hUll It returned about July JLIi 1 1 or July Tul 2 In that way using the mone money of the Illinois Central Halna Railway company to 10 pa pad tile tho tw accounts of the thc Trust Company of no Republic FISH ViSit TO 10 10 HIMSELF Han ilium Came Caine to nl Rescue With Ih 1 SI- SI Oln Ii to It Aid J il 1 tho I ie I President In addition to 10 that he lIe loaned to himself himsel a a large amount of mon money y dueIng during dUIng dU due dur ing Ing lie tho summer without the tho knowledge knowl edge of the board boar of or directors and it I was based on those matters maters that lint the tile members of or th the board who had become become become be be- come conversant with the tho facts approached ap ap- ap- ap me inc after m my return from flom Europe Eu Eu- rope with wih the tho request that I join with wih them to tu take lake the tile matter mater before the tie board of or directors of or the lie Illinois Central Central Cen Cen- dal with wih ho intention of having Mr 11 Fish deposed I Interfered In the In Interests Interests In- In of Mr 11 Fish loaned him him 1 to take up UI his obligations to the Illinois Central an arId and let It remain with him for two years most niost of or the toe principal He paid It back hack gra gradually until the lie securities which ho had appreciated ap up- in iii value and arranged to dispose of some somo of it I. I Subsequent to I that thal he again In January 1 1 1904 deposited with tho the Commonwealth Trust company compau tho tile successor of the Trust Company of tho the Republic a additional fonal money again to toIla Ila had the stalls stal of that lint trust company and continued to do various arlous things of oC which I think I have llave said salt enough These Ih Fo are are all al mutters matters I of record ana can cnn be taken up They In Indicated that ho lIe looked upon the lie Illinois IllnoIs Central Cen Cen- trl as l hIs Is personal property to 10 be used as he ho personally thought fit ft Controlled Union Ulion Pacific Inquisitor Kellogg during the mornIng morning morn morn- ing lug session eslon Ic led Harriman to tell tel how the time Union Pacific stepped in and ant obtained ob oh- nine nine-I dominant Interest in the Southern South South- ern era Pacific after the Iho death cath of or Cols I P P. He Ire denied that he hind hall made an any offer ofer to the huntington es estate state s 5 tate Lute for Cur its Is stock but admitted that it I had laid been heen secured by hy tile the Union Pacific The Tile total purchase amounted to 1 shares Wh Wily did you OU buy Just a little less les than a majority asked Air Mr r. r Kellogg gI g. g I presume that that we we 0 thought It was not 1111 necessary to bu buy a majority For 10 ForoUt oUt our OU purpose it i was vas just as us good to us as it if It was a dominating interest Mr Kellogg Kelogg read a letter leter from William Wil tHam t liam Ham Rockefeller asking to have the lie Union Ulion Pacific take nice tko over tile the 3 shares s of or Southern Pacific which he lie ha had bought In March 1903 with the he und understanding that tiit It I might aught be bought back on or before May ay 1 1901 i. 1901 He demanded an explanation Harriman said It was vas easy to explain I He lIe said alt That whole transaction of or the shares hares of or stock sold to Mr 11 Rockefeller efler was a pro protective measure pure an and simple Wall Vall aU Street Pool Formed There here ha had been a n syndicate n or a pool 1001 1001 formed in Wall rail al street to speculate In In Southern Pacific stock stock and thc they were said to have havo acquired about shares Thoy had appealed to tolie the lie stockholders and had hud appealed to the courts and had tried to get gel ge enough proxies with wih their stock to prevent us from continuing In the management of or orthe the Southern Pacific and to force torce In InHume Hume Homo way a C distribution to the stockholders stock stock- holders so 50 they could coul get St a C Jakat market for fOI and sell Hell gel their stock out to a advantage vantage We Ve were re fearful that they might get a temporary injunction and anti prevent fHe us UM from rom voting the tile shares of stock and in order to protect us against such uch a 0 condition we took look this method methol of or disposing of or enough tock stock ock wo thought that would woul enable us us with vili wih tile the proxies that we might obtain from tho the stockholders to control the tue election elec lieu tion ton as against the speculative lyn syndi leate l- l cate It I was wa purely ur ly to 1 protect the tue in interests In- In crests of or the tho Union Pacific or Short Line Lino stockholders Q Q That Thai is Is If Ir It was necessary to show somebody else owned It ItA It- It 1 A A And And in fact there never was any uny l election lecton for the tIle year yeal 1903 There Therewa was wa a temporary injunction obtained and ald it I wax was Wa in iii il the thc courts until sonic some limo in the tho autumn oC or 1903 1 Why Transaction Was Vas Made Tho Tilo annual report of or the Southern Pacific was not approved by its Is board oard It ft f directors until after ncr Nov 12 1903 It I has lias been tho the custom of tho the comptroller comp comp- troika to hold his books open until after the annual report has been ileen approved ap up- proved b by the board of or directors Now then when this ills stock was returned in November on November on No Nov 12 some 12 some six si months prier to the time of ot the agreement agree agree- agee- agee ment meat at which 11 Mr Rockefeller was to have havo the tue right to return it i to us us the comptroller mode made his entries as ot or June 30 1903 anti and anI that was the reason reason rea rca son that tho ho shares hart s was no not I shown to have been disposed of or during that year I believe bellove that explains it We Wc wanted to get goel shares of or stock in the ownership of or somebody somebody some some- body who would act against t tile the at attempt attempt attempt at- at tempt of this speculative pool ool to control control control con con- the Then he explained the lie elastic clastic bookkeeping bookkeeping book book- keeping which enables lie tho comptroller to figure the thie shares of ur Southern South South- era ern Pacific as ns n a Union Pacific asset a aa at ata a n date hate when they were ere still In Rockefellers Rockefeller's Rocke Roche- e- e fellers feller's reler's hands Mr lr Kellogg thought though this was |