The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-20
RAILROAD NEWS.
Winnings of Southern and Union
Pacific Pool Large.
Said to Have Run to the Amount
of % Millions.
KING EDWARD VII IN.
Hartman and Associates Are
Objects of Severe Criticism.
Gossip and Matters of Interest
in Railroad Circles.
KING EDWARD VII IN.

million dollars, King Edward VII five
millions and a half dozen members of
the executive committees of the Harri-
man lines from 1 to 5 millions each.
making an aggregate of approximately
25 millions, following the announce
ment of proposed dividend payments.
In most quarters the course pursued
in regard to Hartman stocks was re-
garded as one of the biggest and most
downright pieces of stock Jobbery ever
known. It was reported that Harri-
man Drofited to the extent of many
millions in the rigging of the market.
and it also was said that King Edward,
operating through Sir Ernest Cassel,
his agent was a big winner. Accord
ing to one estimate pool in Union
to $15.OOO,0O0. and a similar pool in
Southern Pacific $10.0OO,OO0.
On the other hand, a large number
of traders who had sold the stock suf-
fered sharp losses. The shorts in both
Paciflcs were surprised and unpre-
pared for the upward rush, and led
the scramble to cover.
The unusual scenes attracted
crowd to the visitors gallery, which
was a source of keen interest to scores
of sightseeing automobile patrons.
transported thither by rival concerns,
who competed with one another In an
effort to reach Wall street first.
Wall Street to Bed Ignorant.
When Wall street closed its doors
Thursday night it did SO with no
positive knowledge of dividend decIar-
atoms in Union and Southern Pacific
At Harriman's offices the statement
was made that no dividend declara-
tons would be made public. The best
that was looked for was per cent on
Union Pacific and per cent on South
ern Pacific.
The tin began to circulate about 5
O'Clock Thursday evening that these
dividends really had been declared, but
the Hartman offices were silent on the
subject.
It was just fifteen minutes after the
opening of the stock exchange that
news came over the ticker that a per
/ cent semiannual dividend had been de-
clared on Union Pacific, raising that
stock from a to 10 per cent basis,
and that a 2 u per cent dividend had
been declared on Southern Pacific.
One thing in general was admitted at
the start. That was that shorts in Tn
| ion Pacific were left without hope That
they realized this was shown by the
heavy covering which went on in both
the Hartman stocks. It was estimated
/ by one house that bears in these stocks
dropped at least s., 100000 On the other
1 hand the winnings of the manipulators
are said to reach into the tens of mil
! lions. Many brokers-and their opin-
winnings of Hartman alone at not less
than SIC, 000 900.
Small Holders Make Profits.
The dividend came as a windfau to
many small holders. In one broker
Office a modestly dressed man said he
owned a few hundred shares, which he
had gradually accumulated during the
| last seven years from S21 a share up.
Not counting the dividends his stock
shows him an average profit of SIS
share. On the other hand, one trader
said:
eve all are feeling like 80 cents be-
cause few of US got much out of the
advance"
manner in which the declaration of the
dividend was held back. A great deal
of bitter comment concerning Hartman
is heard on the street.
Among persons said to have profted
by Southern Pacihc's rise is Sir Ernest
Cassel. part at least of whose operations
are financed by King Edward VII. As
the gossip of Wall street has it, Sir
Ernest bought Southern Pacific heavily
when it hung around g. At today's
prices this would show a good return
Wall street added the information that
the British sovereign had been let in
on the ground floor by Hartman him
self.
Greatest Sensation in Years.
Declaration of dividends on the two
stocks and their consequent movement
| in the market was one of the most SEN
sational stock features in years. Two
Qu6SllO1S were dShS0 III W Oh otA CCt ~
When were the dividends really de-
cided upon2 When did the Hartman
! interests accumulate their enormous
holdings? An officer of the Union Pa
cific was asked just when the increases
actually were authorized. His only re-
ply was:
THAT is not matter of any interest
to the public"
1t was said in many quarters that the
holding back of the declarations Of divi-
dends was done purposely in order to
facilitate the stock market operations
by individuals and by pool, but none
of these accusations could be proved.
One Wall street operator, who shared
in the Keene pool in Southern Pacific
few years ago. saw a handsome profit
at 91A and then saw it all wiped out
in the failure of Talbot J. Taylor & Co,
on the announcement of the Hartman
dividends, telegraphed James r. Keene:
Congratulations to you, the Dreyfus
of Southern Pacific"
Conservative bankers, whose
names. II they could be used, would
add great weight to the opinions ex-
pressed, said unhesitatingly that the
Union Pacific incident had furnished
proof of the imperative need of rem
4 dering it impossible in the future that
directors should profit by information
regarding dividend actions and other
/ similar matters which had been with
/ held from stockholders
/ Harriman's Course Criticised.
| Criticism of the manner in which
the Union Pacific announcement had
been handled was admitted on all
sides to be a criticism of Hartman,
who has become more and more of a
/ controlling influence in Union Pacific
and Southern Pacific affairs.
The opinion was expressed that
were such an incident to occur in cor
poration management in England the
directors in the raid would be held to
strictest accountability. Bankers who
are accustomed to express only well
considered opinions on such subjects
said today they had little doubt any
/ stockholder in Southern Pacific who
had been induced to sell his stock
could recover damages from any d.
rector of the road who might have