Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-08-18
NE HARTMAN DEAL
Coup in the Matter of Pacific
Dividends Brings Fortune to
Railroad Magnate
SPRUNG SURPRISE ON MARKET
Withheld News TO Give Impression
That Dividends Had Been Passed,
and Then at opportune Moment
Sprung Surprise Causes Great
FURRY in the Stock Market.

Sprung Surprise Causes Great
FURRY in the Stock Market.
New York, Aug. 1S.-The most stu
pendous speculative trick ever ensi-
neered in Wall streets turbulent his
tory was successfully put thru by s.
q. Hartman yesterday, when without
an instant's warning the, news was
flashed into the stock exchange and
thru every artery of the financial dis
trict in this and other cities that I'm
jon Pacific had been put on a 10 per
cent dividend basis, and Southern Pa
cific in a per cent dividend class.
The stock market was just twenty
minutes old when the news came.
From peaceful, hulAdrum affair it
was transformed instantly into a crazy
whirlwind and from that time = 1920
g. m.-until the final gong at p. m.
the scenes on the floor were unprece-
denied, barring May 3, 1901, the day
of the Northern Pacific corner.
Here is where the trick came In:
The meetings Of the executive commits
tees of the Union Pacific and Southern
Pacific roads were Thursday afternoon.
For weeks Wall street had been look
ing forward to them, it being we'll I'M
K derstood that important action would
be taken in regard to dividends on
both roads. The street had been
taught to expect that Union Pacific
would be regularly placed on per
cent basis and that Southern Pacific
which has never paid dividend, would
be hoisted into the 4 per cent class.
Union Pacific owns s90,000.o00 Of
Southern Pacific stock and with that
company paying dividends the value
of Union Pacific stock would be con-
siderably enhanced. For weeks Wall
street had been expecting the good
news. Union Pacific stock had been
boosted from 140 to 1852 and Southern
Pacific from So to 49,
Mr.. Hartman Waits.
At 2. p. m. Thursday, the hour when
official news Of the dividend action
was looked for, nothing of the kind
came. Instead Mr.. Hartman announc-
ed the earnings for the fiscal year of
the two properties.
The failure of a dividend announce
ment had but one Interpretation on the
door of the exchange and In the brok-
ers' offices where the traders were
gathered. and that was of the gloom
lest knd--that the expected good thing
had been put off indefinitely.
Traders who were long of Union Pa
cific and Southern Pacific closed out in
disgust, others sold both stocks short
I in big chunks. Somebody took the
long stock dumped out as fast as it
came, and the short had no trouble
getting on top of both stocks. The
buying was done quietly and with t
bidding up, but every share offered
was taken So skillful was the buying
that both stocks closed under the high
price of the day-Union PacSS a..
1925 and Southern Pacific at S2h.
Isl Bears in Complete Route.
Friday Union Pacific opened at 1853
and Southern Pacific attS3. They hung
around those figures for twenty min-
utes and then came the whirlwind
which swept millions of dollars from
those who had parted with their shares
pockets OF the wise men who did the
clever buying.
M In Union Pacific alone $4,000 shares
We're dealt in and in Southern Pacific
the trading reached the enormous to-
tai of 49,, 400 shares, or more than a
million for the two stocks. The total
sales on the floor were 2,43Ss800 shares.
: It was the twentieth in the history Of
the stock exchange that one days
trading exceeded 100000 shares.
Hartman Wins $5,000,000.
AZ What Mr.. Hartman made out of the
deal was the subject Of much guessing.
Most of the estimates placed his win
nings around $5,000,000. Theye have
been two bull pools in Union Pacific
and Southern Pacific for some time.
He was dominant in both, his chief
associates being the Standard Oil
group, headed by II. III. Rogers and
William Rockefeller and Kuhn, Loeb g.
CO. The total profits of the Union
Pacific were figured at $15,000000 and
Of the Southern Pacific at s10.000,O00.
There was diversity of opinion as
I to the wisdom of placing a 10 per cent
dividend for Union Pacific and only a
few rampant bulls had expected to see
Southern Pacific Oh per. cent basis.
Made Inactive by Great Surprise.
So stupehdous was the surprise when
the news first came thru the regular
channels that many floor traders and
brokers in their offices refused to ac-
cept 1t as genuine. They took the prec-
ious time to call up the Union Pacific
offices by telephone to corroborate 1t
and thereby lost thousands, for the
market was bounding skyWard every
minute with insane speed.
Shorts crazy to cover, longs insan.
to get a heavier load aboard, others
frenzied to get piece of the cool
thing, boosted the prices of both stocks
at GREATNESS clip. Around the Union
Pacific and Southern Pacific posts on
the floor of the exchange the traders
fought like street boys grabbing Tor
coins. Even. the expert specialists
could not keep track of the fluctua-
tions.
FROM COAST TO COAST.
Little and Haserty, Chicago, Start At
- L. ri