Show i I HARRIMAN IS FOR FOR FORI I FEDERAL His Lawyer Admits This N Necessity Necessity ces- ces sity Before Commerce Commer e Commission i ALTON DEAL WAS WAS' LEGAL Government Resumes I Investigation Investigation gation Into Kings King's Financial Methods Washington I April 4 before jim the ht Inter Inter- NL slate h Iou today tola fiLet nf ney for Cor the n l cont contended contend ned ne ed d that the time Union and antI Southern Pacific cannot h be coi designated as coin coin- lines under th the Sherman law aw and anc that tho Chicago and nd Alton Allon Alon transaction was wal a Q legitimate on one Time The Til h hearing hearing- W was looked forward to with unusual interest owing owinG to time tho th acute phase phaMe I 01 of the r nt crl conlO controversy reigning b be be- t 1 th h Pie President Ident and Mr h H Harriman ml hul nothing exciting vas Was Vos developed There was wan a atra array of array of aC a Hor- Hor I n. n nays leyH rh The rime interests were rep rep- I lU by hy It H S. S Paul U O Paul IX D I Cra Cra- Cra Cravath ath vath th and John Johl O- O while wilie th the government o WA was t fl b P. P I I ond 0 i lol tr t V h. h nhU Jf rt i. i IY ro an Ip U nl t Co U ol 1 Q l J. J no Alton Tnt ami tp U by 03 tl StOp U. U lie WL Wi Jn hn in l bep c. cl red lo to 0 lh the stock nn fad l how Jiow the t various various' of or th the syndicate and ammil mil lied hll forest sold In time tl bonds th they bou boUght Jit Whole hole Transaction L Legal I. I 1 He ile explained that th the whole lon Lion ton wa was entirely legal and regular T to hough h admitting that the time popular view of oC Huch high financial transactions had hl changed in recent years l anti and that thaI the time moral noral aspect of the cage caSc might not be he benow benow now what hal It I wn was then In time the course of or this explanation h he hI dropped the time re- re nark k that time the time was undoubtedly If It It I hat had not already arrived when federal sup supervision r would 0 hJ be bC nee nee- e sary and desirable over o the Lime the Issue ls e of or corporate securities When hen he lit had hail flashed fin fla In shed this part pait pal or of his imis address Commissioner Commis Lal Lane rather branched off oI from Crom 01 immediate subject and UTI said sah Mr Ir Cravath seeing that thai you Iw alluded to the federal supervision super of or the issue of or corporate securities suppose you OU extend your marks re-marks in 11 that direction and ard I tell Lehi I us lie what y you 01 think Is necessary anti antl desirable Mr ili h ra paused as though he hE had laid stirred up nim a n little different brand hrand of discussion diM dis what he for Cor from Crom was prepared He lie said sold however howe r that in mn I a u general enral a way lie ime was In favor of or a fh federal ral commission that would hov have control over 1 0 the Issue o of corporate securities Condition I Has Has- Changed Hl 1 On the time general sU subject of oC time the z Uon and ond recapitalization of th the tho Alton Alon 11 Mr Cravath Cra said ld that each eich move was entirely legal and generally recognized in iii railroad practice at nt the time however ever they might now b be looked upon He Ike le wound up hy by a recapitulation o of oC his poI po po- Dillon I lon sa saying Judge Clements nt at this stage put n n a question est lo n Then It is not true that if you ou take a goo good cOI conservatively managed road load earning good dividends and arni free Cret roat from debt It Is II a u shining mark for fO these gentlemen of means Iwans who can caim cal buy luy and amI pita 17 It I a and ne put hut t Us its Is se- se e- e such Huch that the burden In Iii saupo of o paying paring the dividends dl on them falls fulls Cols Colson on time the of the future About That Allon Deal feal Mr said ald It was wal true that the time 11 capitalization of oC the road had lied been m so that the Uie t earnings earning of or the road and amI th time the earnings of dividends divi 1 on tho the common stock was left Jef to future developments Commissioner Harlan said II it I appeared ap ap- ap to him hint that what whal the syndicate had done to purchase an opportunity unity to lo make moio molo money that they had acquired the road at ut a price rearranged ld the tt capitalization so o that r rn It represented n a larger sum and had sold out h The closing argument of the ta day dayas was as m made me e by John G. G representing Harriman interests but bu specifically spa spa- pe- pe the Southern Pacific Milburn's argument The lh of Mr Mi 1 ment was as that the tho Inter Interstate tte Commerce Corn Com merce mIrce commission ha had selected in lit II com I this timis the Instance Harriman railroads I weakest possible co cases cs and that if i they could only loo look into the question seriously they could COUll find cases cases Mi Mi- II Milburn lburn made time the broad state state- scarcely a meat ment tHat timers there was did nol not have U Loin lom m of railroads that parallel o and computing competing lines and he ime heild slid ild not know knott why th the tl harriman Harrman lines were selected In a n very ery exhaustive c argument h um nt h lie he- maintained that the time Sherman trust anil-trust law did not apply appl to cases where time the tl railroads had acquired ac oc- ac- ac parallel and competing com coin I by purchase J S lines hues Il |