The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-08-19
Heller Said It Was Effort
to Save Advantage for
America.
Railroad Lawyer Gives Rate
Bill Credit for Big
Dividend.
Special to The Journal.

Special to The Journal.
W v1W YORK, Aug 1s.-On all
I'll sides tonight say re criticism of
E. H. Hartman is heard for his
withholding Of the an louncement of the
increase of Union P ,cific dividends and
the establishment of a dividend on
Southern Pacific. In many quarters it
is charged that the announcement was
deliberately delayed expressly for the
purpose that Hartman and his friends
might profit by millions thru mani pu-
lation.
So sharp has been the comment on
what is generally taken to be a piece
of vicious stock juggling that the fol
lowing statement was issued from the
executive office of the Union Pacific
Railroad company today: p
"The board of directors of the Union
Pacific and Southern Pacific met on
Wednesday and authorized action upon
dividends by the executive committees
The committees, tho, did not meet un-'
til 3 pm. on Thursday. The final no
+ tice OF, the declaration of the dividends
was delivered to the secretary of the
Stock exchange before 10 am. Friday.'
Sought to Protect Americans.
In further explanation, Mr.. Heller,
assistant secretary of the Union Pa
cifc, said that there had been criti-
cism Of the action of the committees in
not announcing the dividend action af-
ter their meetings on Thursday. He
said that this would have offered an
advantage to the London stock market
by giving it the first benefit of the news
and that it was considered fair to save
this advantage for the New York stock
market by withholding the announce
ment until Friday morning.
Expressions on Hartman s remark
able tactics run. in two directions. The
extreme view is that the thing was
wholly unwarranted in the case of the
Union Pacific. 1t is openly asserted
by many that the rate cannot be main
tanned for any considerable period and
that it should never have been begun.
This is heard in a section of Wall street
where there is lack of imagination or
of appreciation of the things with
which the street has become familiar.
Gives Credit to Rate Law.
It has been suggested that because
che method pursued is not the ortho
dox way, it need not necessarily be the
wrong way.
One prominent railway lawyer today
gave the new railroad rate law the
credit for the action.
"E. H. Hartman never would hav
dared to put the Union Pacific on a i
per cent basis and Southern Pacific on
8 per cent basis if the Hepburn rat
bill had been beaten at Washington,
he said. "The rate bill has practicall
eliminated the only real danger to tn
Hartman system. The same thing az
plies to the Pennsylvania and it's affil
ated lines. 49, 49,. -:
eff they can really enforce the law
and they can with the help of the raj
roads-the principal reason for the Of
policy of one dollar for dividens an
one dollar for reserves disappears. -
- The other trend Of comment has to {
largely with the moral position Of tn
directors in the matter of their posse
zion of advance information on que
lions Of great market value to shar
holders. Several Of the local pape
are bitter in their denunciation of tt
Hartman action. SEA, %@s,... =
The calmer attitude is shown in
financial editorial in the Herald tn
morning to this effect: ~....s.
Far-Reaching Portent,
cit is not likely that one day s stot
market has discounted or begun
reflect what the financial and tinvestil
- world may think of the action of tt
Hartman boards. The announceme
made yesterday is considered an epoc
making event which will be, Of fs
reaching and potent consequences, t
extent of which no one can adequate
measure at this time.
The method Of announcement Of t
"- dividends, the holding back Of the
Continued on I'd Pare. 9TH Column