| Show I HIGH FINANCE FOUND OUT 1 BECAUSE 1 WOULDN'T PERMIT UT I IT TO 10 COX COX- THE rilE INTEREST TEnE T orTHE OP or BUT flUT I IX THE TilE HONEST ET INVESTOR ETOn AND AD D T TIlE THE E GENERAL PUD- PUD LIC LW TIlE THE T E UNHOLY RICH PRECIPITATED A PANIC PANIC- TO 10 PUT ROOSEVELT IN 10 A HOLE HOL From Prom the New York ork World 0 rI d F Feb h. h 11 In n report N No Issued b by the Interstate Commerce commission appears appear a summary of oC the stocks In other othor railroads bought by the tho Union Pacific b by Mr Ir Harriman's direction Omitting minor mailers maller like the Pacific Fruit and Installment s b subscriptions express the the Fresno r City railway and credit of ot the tho the stocks bought with the mone money Union Pacific stockholders and theIr prices were Cot Coit lo to Union Pacific Stockholder Stock Shares Cost Atchison Topeka and Santa Fe c 5 Baltimore and antI Ohio 45 f j 2 Chicago o and slid Alton Allon preferred 89 Chicago o Milwaukee and St. St Paul Chicago and Northwestern r Illinois Central 11 U 2028 New ew York Central St. St Joseph and Grand Island Total cost Those These facts were brought out lJ by the Interstate Commerce Commerce Com Corn commission from the Hie testimony of or the Union Pacific merce H. H Harriman and Kuhn Loeb officials But both Ed Edward Ed and brokers in these bankers who were ere his and company Union tho the tell who the sellers to trans transactions refused to tho the which the sellers bought and Pacific were wore the price at ot that the tho sellers made profit proUt weeks week's market values of or these comparison of the tho past A loss by de depreciation depreciation depredation de- de for rol them shows a stocks with the thc prices paid predation to tho the Union Pacific stockholders as follows to 10 Union Pacific Stockholders Atchison Topeka and Santa Fe 1 Baltimore and Ohio Chicago and Alton preferred Chicago Milwaukee and SL St Paul Poul Hir Chicago and Northwestern Aj Illinois Central q-ni q f New York Central r i St. St Joseph and Grand Island Total loss i Individual ual profit But nowhere In the testimony docs does the Questions Questions Questions Ques Ques- and his partners appear of or Edward H. H Harriman Commerce Com Com- Interstate of the on this point by the counsel answered either by harriman merco merce commission were not After Arter a a. adelay adelay and company compan Loeb or by any members of oC Kuhn months a a. motion to compel them to answer dela delay of many United States court of 01 the Hough was m made de before Judge for tor this district One Oot Who bo lied Stolen these questions must be bo decided that Judge Hough of ot to the plea plen answered saying significantly In reply with their transactions Kuhn Loeb and company compan that HarrIman were privileged privileged- extension of ot the thc rule concerning concerning con con- It would be a a. singular privileged communication that permitted the of or one depositing securities with a a. bank banI to be con- con concealed b by that m The principle If It acknowledged would rould screen one who bad had stolen what h he so deposited Both Iloth Edward H. H Harriman and Kuhn Loeb Loch and company com com- have taken an nn appeal from tho the order of ot Judge any pany and lough HouSh compelling them theta to answer these questions et become a matter maller of or official heir their pro persona yet cial lal ial record The Tho World Is able to to anticipate In part the ans answers which would these questions SIt If lC he ho sho hould ld tell tho the truths truth It ie i ia able to se i In adva advance c ofIs of 01 11 I Is testimony te the profits which he and his partners made low ow these profits were ver divided what waS wag Harriman s share hare share what was Kuhn Loeb and company company's share and andow how low ow much Henry H H. Rogers and James Jamea Stillman who hared In certain of ot the profits respectively took tool the World orld Is unable to state as ns the manner of or division dl Is not nor In the same samo r records cOl s as t those from tram which this Information has been obtained C Central Of or the 31 shares shores of oC Illinois Central stock for tor which he the I stockholders paid a share shares shores were sol told old by Kuhn Loch and company as agents for rOl a syndi- syndi ate shares belonged to the tho Railroad Securities company camo CAme from E. E IL II Harriman 00 ac an 00 Indus Industrial trial rial H H. H. H Rogers and from from James Still Still- man nan Tho The Railroad Securities company was a Harriman holding corporation The Tho average e price which tho the Illinois Central stock cost Harriman and his partners was It t was sold to the Union P Pacific at The profit was 46 Q i L share sharo on shares amounted to The profit was really moro than this because the Rall- Rall pad Securities company campan did not own these shares shores of f t stock free and clear but had Issued of or 4 pel er cent gold sold bonds with the shares of 01 Illinois stock pledges cs as security These bonds had been sol old lold and had reduced b by that much of oC the cost to Hart Harrl- Harriman man nan ian and his ass associates l H How 7 the Illinois Central stock was used at at tho the Union Pacific stockholders stockholders' expense In the recent Illinois Central election Is In itt part disclosed b by the report of or tho Union P Pacific Railroad company as RS printed In the London Times supplement on January 3 where Financial and nd Commercial It occupies two tV pages p Jes According to this report Central stock vanished from the shares chares s sor of or the Illinois Union Pacific treasury without ono one penny penn being received In exchange thereof Interstate Commerce commission report No o. o states on page ago O 20 that between June 30 20 1906 and February 28 1907 1901 the Union Pacific acquired shares of or Illinois shares of or which belonged to the Central stock Railroad Securities company compan and were r represented d by the purchase of or tho the Railroad Securities stock It appears from the tho London Times report that on Juno Juito 3 30 1 1907 07 the Union Pacific had Including the Railroad Securities company's holdings s O ONLY LY 2 SHARES OF ILLI ILLINOIS OIS CENTRAL STOCK WHICH COST ACCORDING TO TIlE THE TABULAR STATEMENT ON PAGE OF THE TIlE IDE IDENTICAL TI- TI I LONDON TIMES TIl WHICH ARE cAr CAL FIGURES GIVEN ON PAGE 20 OF THE INTERSTATE COMMERCE COl REPORT AS BEING THE COST OF Ol SHARES OF ILLINOIS CENTRAL of or evadIng evading evad evad- It would seem m from this that for the purpose ing log the thc laws lows of or the state of or Illinois a against foreign corporations corporations cor cot controlling Illinois railroads shares of this stock were taken token from tho the Union Pacific treasury treasur without one penny penn of 01 payment or Of the Baltimore and Ohio stock shares of 01 cornmon common common com corn tho the re remaining re- re and partners mon stock were put In by shares having ln been bought from Crom rota tho the Pennsylvania railroad direct The Harriman stock cost an average of or a little less than 85 It was sold to the Union Pacific at The profit of ot 35 on shares amounted to Atchison Topeka and Santa Fo Fe stock cost an average of 90 and was sold for tor an average of oC making a n. profit of On the St. St Paul stock stocIe there was v.-as a n. profit of on Chicago Jo and Northwestern a profit of and on the New York Central a profit of or The St. St Joseph stock was wa admittedly bought from rota Edward Edward Ed Ed- ward H. H Harriman at a cost ot of on which Harriman Harriman Har liar riman made a profit of 01 The Profit Chicago o and Alton AIton h however was tho the champion profit profit- maker of ot the tho list In Tn 1899 Harriman and Gould bought for 39 the old Chicago and Alton Railroad company compan They The at once declared a dividend of ot 30 per pet cent and repaid themselves They then transferred their stock to a n dummy named Louis L. L Stanton who or organized organized or- or tho the Chicago anti and Alton Railway company compan which paid and shares of new stock for tor the theold theold theold old stock thus reducing the cost of ot the road rond to and making tho the shares of ot new stock stocIe cost 5 5 apiece This trifling cost was more than recouped by the Issue of 01 62 of ot bonds of 01 which they first sold to themselves at 65 cents on the dollar and then resold through h the s syndicate managers Kuhn Loeb and compan com corn pan pany In part to the New York Life Lite at 90 96 and to the tho Equitable at 92 The last 22 of ot bonds were v nominally all ally sold to Kuhn Loeb and company for tor CO GO cents on the dollar and ond resold through the stock exchange at to Including these bond transactions the new stock cost Harriman and associates Th They not only got ot the Chicago so and ond Alton Aiton railroad i without paying InS anything on for forit forit it but received a a. cash cosh bonus for or taking It After J fter all nIl this had been done the they sold to the Union Pacific stockholders at 86 50 a share shares of or the thc new Chicago and Alton Alien railway stock which disregarding disregarding garding the bonus had cost not moro more than 5 a share The Union Pacific paid 89 for tor what at the mos mot most liberal estimate had not Harriman Stillman am anti and Kuhn Loeb and company m mOre xo than half halt a million dol dol- ol- ol lars mrs Disregarding the rc received e from the uio h tion of ot the Railroad Securities Securities' shares of or Illinois Central stock and the profits from selling Chicago and Alton bonds Alton bonds to themselves at at atCO 60 CO and 65 05 and reselling th thorn m to to life lite insurance companies and others at 78 to 90 tile the tilt eel and indisputable profits which Harriman and his associates made out of 01 the Union Pacific stockholders lJ bj by buying sto stocks ks at a low price and ami soiling selling them to the compan company com corn pan pany of or which they were trustees at a high h price were as follows The rhe harriman Personal Profits Stock Profit Atchison n Topeka and Santa F Fc Fe 3 Baltimore and ond Ohio and ond Alton et o gi t 4 G 81 Chicago caKo rina tor lW i lW i i. l t Chicago Milwaukee and St. St t. t Paul I i. i A Illinois Cents Central l New NevI York Central St. St Joseph and Grand Island Total Harriman profits As s It happens the loss to the Union Pacific stockholders ers era Is some Borne more than the personal profits 01 or of Harriman and his associates which is the result of general s stock values being lower now now than the they were when Harriman Harriman Harriman Harri Harri- man bought or manufactured the stocks which he lie sol sold at atI I high prices afterward to the Union Pacific |
