The commoner. (Lincoln, Neb.) 1901-1923, July 11, 1913, Page 10, Image 10
&&f .r f. r tr IV. Iv I ft ft' I id" ft The Commoner VOLUME 13, NUMBER 27 feVGPwiUnued from Pago G.) Later,. Lamar alleged, tho prin cipalis iii;'iho transaction went to Kuhn; Loeb & Co. and got nearly $2p0,0QQ,000 which ho believed was tof thoir own use. Lamar testified ho used tho name of! Representative Daniel B. lllor dan of Now York, telephoning to Chairman Lovott of the Union Paci fic. !On nnothor occasion Lamar testi fied ho phoned Paul D. Cravath, of counsel for tho Union Pacific, sug gesting Lautorbach would be a valu able) advisor. On another occasion ho talked over tho telephone to Lewis Cass Lodyard, using Representative Pal mer's name, and with Maxwell Evarts, using Representative Rior dnn's name. In both conversations ho spoko about Lautcrbach's ser vices. Senator Nelson insisted that La mar toBtlfy explicitly whether ho stated in those conversations; that Lauterbach had influenco iff Wash ington with officials, senators or rep resentatives. "I am inclined to boliove that in my conversation with Mr. Ledyard I wept very far in that direction," re turned Lamar. "Why did you change to Palmer's namo instead of sticking to Rich ards?" demanded Senator Nelson. "Well, Mr. Palmer was vory much in tho house then as one who would luivo groat influence in the house," replied Lamar. Ho added that he did not know Palmer and had no authority to use his namo. Lamar said tho lato J. P. Mor gan's opposition to Lauterbach caused him to telephone Ledyard, sign the namo of Representative Pal mer, to try and win his confidence and find out who hadostraclsed Lautorbach. . , "I found out it was Ledyard him self," said La'mar. "Did you know Ledyard had a fjtdnographer on the line making a rocord of the talk." "I read everything into it I could, said Lamar. "I think I assumed the ontiro government, except leaving the president out. I lectured Led yard because ho did not appreciate what remarkable things Lauterbach could do at Washington for the Mor gan firm. I finally told him tho de fiant attitude of tho Morgan firm to ward the democratic administration in congress had much to do with the decline in valuo of the Morgan se curities," continued Lamar. "I called attontion to tho money trust and other investigations and urged Ledyard to employ Lauter bach. Then I called up Mr. Palmer's office in Washington," said Lamar, with a smile, "and found ho would be in Bethlehem, Pa., the next Sun day. Then I called Mr. Ledyard and told him to call Palmer there. I had done all I wanted to; gotton an in terview for Lauterbach with Ledyard and I didn't want Mr. Palmer in jured I wanted to clear the atmos phere and prevent a possible scandal for Palmer." Tho deception was revealed to Palmer and Ledyard that Sunday. Senator Overman insisted on knowing if Lamar ever impersonated any other congressman. "Oh, Lord, I may have," said La mar. Lamar diverted from his narrative to dpnounce the Union Pacific mer ger plan recently approved by the federal court at St. Paul, agreed to by Attorney General McReynolds, and approved by President "Wilson. The exchange of Southern Pacific and Baltimore & Ohio stock ho charac terized as a farce, and added that Mr. McReynolds had been derelict in his duty. Lamar said that his plan was for tho Union Pacific to buy the Central Pacific with Central Pacific stock. Senator Cummins questioned La mar sharply, and in tho exchange the witness testified that he was a Handy Sewing Awl A Perfect Device for Sewing Any Heavy Material i I With this Awl you can mend Iinncnn, hIiocs, tcntN, awnings ami pulley belt, IjIihI boolcn ttml iiingnzIneM, mcvt or mend carpets, saddles, vuKciiNcn. or any heavy material. Tho sriQKDY STITCHER la the latest Invention and tho most effec tive of anything In tho form of an Automatic Sewing: Awl ever offered for tho money. 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Lamar's statement today before the committee regarding the alleged forgery of $82,000,000 on the Union Pacific railroad's hooks in 1902 was substantially as follows: "In the summer some time during 1001 somebody forged the books of the Union Pacific to the tune of $82, .000,000. Who it was I don't know. As a consequence the men connected with tho company immediately there after got $82,000,000 in cash as the proceeds of that forgery and that $82,000,000 was the fulcrum through which all these giant mo nopolies and conspiracies were fas tened on the lines of railroads serv ing the territory from the Rocky mountains to the Gulf of Mexico and from the Pacific ocean to the Mis souri river, and more than that, it was the fulcrum through which this group of men profited to the extent of $100,000,000 or $200,000,000 and Kuhn', Loeb & Co. and ono or two others profited to the extent of $50,000,000 to $100,000,000 in ac quiring those gigantic fortunes. "The first consolidated balance sheet of the Union Pacific Railroad company, as of Juno 30, 1900, con tained for the first time the evi dences and results of what had been going on from June 30, 1898 to June 30, 1900, and this is what had happened: "In the transaction the old organi zation had lost control of the prop erties. They consisted of the Ore gon Railroad & Navigation company and the Oregon Short Line Railroad company. The new company re covered them and paid for them, first by an issue of its own. securities and secondly by an assumption of debts of these companies, and as I have already said, the consolidated balance sheet of June 30, 1900, showed for the first time the consolidated state ment of all these companies. "On the debit side appeared the amount of securities issued and the debt assumed against the acquisition of thoso properties. "On tho asset side credit was en tered at the value of the properties acquired, and again there appeared a duplication of that. The same amount was entered over again as represent ed, in the value of the securities, which in turn represented tho value of the physical properties acquired. "The sum of $82,000,000, or its equivalent, was entered twice on the asset side. But up to that time the transaction was only open to the ob jection and criticism that it repre sented a piece of clumsy bookkeep ing, for again on the debit side there appeared an entry crossing, treating the securities owned by the Union Pacific as though they were still afloat and in the hands of- the public, but during the year 1901 somebody erased that entry on the debit side. "So you had the entry on one side of the amount of securities issued by the Union Pacific and the amount of the debit it had assumed represent ing the payment of the purchase price. And then again the same entry over again. And that condi tion existed as a result of this for gery as a result of this erasure. "And that $82,000,000, before it was erased, represented a debit en try against a credit entry, that credit entry being the entry repre senting" the securities of these com panies which the Union Pacific had acquired. "Now hero is what they did and here is what followed from the for gery. Tliey took all the securities of the Oregon Short Line and the securities of the Oregon Railway & Navigation company out from tho treasury of tho Union Pacific Railway company and pledged them as se curity for an issuo of bonds and got the money for them and (hey took that monnv nnrt fiTit.u,..i ,. lU0K i"rti luunuy unci ;intifp it . .. management and the financing of thu Northern Pacific stock whirl, aC ward became Northern Socurit o, stock and then again Northorn pa cific and. Great Northern Ore and that, in the end, was sold out at a most enormous profit, and tho pro ceeds of that used to buy from Kuhn Loeb & Co. in one day $200,01)0 000 of securities which the testimony be fore the interstate commerce com mission has strongly tended to show they bought from themselves." Immediately after Lamar had fin ished this remarkable statement Paul D. Cravath, of counsel for the Union Pacific railroad, put in this reply: "In view of the statement regard ing the account on the Union Paci fic's Railroad company which David Lamar has gone out of his way to make before this committee, and which to persons not familiar with i- a i t t . uavia juainar s cnaracter who may read this statement in the news papers may be misled thereby, I deem it my duty to make the following statement for tho records of the com mittee: "For several days persons con nected with the Union Pacific Rail road company have ben informed that an effort was being made to cir culate and secure publication in tho newspapers of a bear attack in tho form of a prepared story about an alleged falsification of the accounts of the Union Pacific company involv ing $70,000,000 or $80,000,000. Wo were informed in substance that this story was so palpably false and scan dalous and so plainly offered for an improper purpose that the news papers would not publish it. Infor mation then came that the story would soon be made public in such a way that tho newspapers would have to publish it. "It now appears the medium for the publication of the sto'-y was to be this man David Lamar, who has confessed himself to be the most un conscionable liar of modern times.'' Senator Overman asked Mr. Cra vath to strike out the last words of his statement. "I decline,"' retorted Mr. Cravath Senator Walsh insisted that they go out, and Cravath finally consented. To save New York to the republi cans, while the anthracite strike in 1902 was on, Lamar said he nu Lauterbach call a conference between Governor Odell, Lauterbach and himself with a view of selling the stock. Upon his advice, ho said, Governor Odell threatened to call on the legislature to repeal charters or anthracite railroads. J. P. M1or? sent for Lamar and Lauterbach, ine witness said, for a conference on tnj Morgan yacht. Lamar said he urn not go, but Mr. Morgan sent wora the strike would be called oft. Before Lamar left the stand Mr. Cravath, with the consent on committee, had asked Lamar it no im,i nvAr fHpH to insnire newspap" stories about the Union Pacific. "The day Judge Lovett gave . oui his interview in New York I . msp re" and helped to make public the sioiy in the New York Journal,' said w mar. He added he had ta Ifced . oer the telephone directly with editors of the Journal, he thought, witn a man named O'Reilly. . t Lewis Cass Ledyard testified tu for two years previous to Lamaj telephone conversations with mm. members of the Morgan ??.? at ploy some one to "control affaiis Washington. H T,a- Ho connected Lauterbach and mar with them. L a. "Did you know at first I a J. mar talking?" asked Senator over ""i knew it was some blacki and finally concluded it was Lamar, ;,i K. '..iktv. v( " .. vUvay ia.. &fcl4