Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-07-28
{, H. HARTMAN AND
WELLS FARGO 8 CO.
Stockholders Circular Bitterly
Attacks the 0ne.Man Pow.
er Now Displayed.
plorTO DIVERT THE SURPLUS
charged That the scheme Is to Keep
Down tho Dividends 20 L. T..
Gets Big Contract

Further details regarding the con-
,,oyersy between Z, II. Hartman, who
controls Wells. Fargo & Co, and a
,ody OF dissatisfied stockholders. repre-
.snied by the stock exchange house Of
walter {. Stokes & Co.. as briefly SCI
,orth In the Associated Press dispatch
90 are forthcoming In the New York
papers 10 hand In long story the
Now YORK Times says in referring
10 the agitation;
Il began as an agitations on the part
~ stockholders Tor larger dividends,
and has become what Wall Street calls
"deht." II promises 10 become rath-
or bitter and in It's latest phase there
maY be recognized gllmpses OF feeling
entirely outside Of the matter at issue.
Recently the stockholderds have been
urgently solicited TO give proxies In
favor Of the Hartman management,
and a few days ago defense OF Mr.
Harriman's policy was published. Wal
Ter c. Stokes & Co.. who also are solic-
ting proxies with a view to carrying
the contest to a vote. now issue a re-
ply They say in part;
New York. July II. 1905.
To the Stockholders OF Wells. Fargo
& Co.:
THE misleading aud inaccurate
statements contained IN the letter and
balance sheet addressed TO you under
date OF July 3, 1906, accompanying a re-
quest for your proxy In favor OF Mr..
Edward X. Hartman and his assocl-
ates. render 1t necessary that we make
reply IN justice 10 you whose interests
we have undertaken TO champion.
THE issue Is between Mr.. Hartman
on the one hand and the entire body Of
1900 stockholders on the other. Mr..
Hartman now dominates the COM
pany, although he had only ten shares
Of stock when this controversy began
IN February last. apart from the hold
ings OF the Southern Pacific Railway.
We contend:
"G) That the condition OF the COM
pany the nature OF It's assets and all
matters affecting its condition should
now be made known 10 the stockhold-
ers The company should be no longer
run as one-man concern, nor as
though It were the private property o{
Mr. Hartman.
"(2) That the general body Of stock
holders be literally represented on the
board OF directors In place OF the mere
nominees Of Mr.. Hartman.
"(S) That this company. which is adj
mittedly earning 80 per cent, and is
actually earning over 40 per cent. and
which has accumulated an admitted
surplus OF $50 per cent above It's capt.
tai and an actual surplus Of far more,
ought to pay at least is per cent divi-
dends.
THE existing surplus has been a con-
venient source Of supply for those who
may want 10 borrow. We are assured
that no part Of the surplus Is loaned to
direciors-which may mean that Il is
not at the moment being so loaned or
that II Is loaned through brokers. The
stockholders viii be better able to
Judge OF the accuracy OF that assertion
when they are given the opportunity |
10 learn something OF the way In which |
their property has been administered. |
No stakeholder knows today Of what |
the assets consist, and we are con- |
fronted with the amazing spectacle that |
no Information Is obtainable.
We believe that you viii agree with |
us hat The time II past for the man. |
agement NJ great corporate enterprises
with widely scattered ownership on
The basis OF a blind pool"
The circular says that Hjalmar N,
Boyesen. representing Hartman. has
been travelling about New England
'eeklng 20 buy stock and Offering 500 a
'hare TO stockholders who refused their
-roNles II is also stated that a few
weeks ago Messrs, Kuhn. Loeb a. Co.
ne bankers for Mr. Hartman. sent
'lS,Oo0 10 Springfield, Mass, 10 be used
or the purchase OF stock. "wb urge
'ou, however not 10 sell your stock"
he circular says. I'VE believe Il 10 be
ntrinsically worth more than $500 Der
hare ind that We shall be able 10
hare and that We shall be able 10
or the annual meeting on August .
We already represent over IS per cent
u number 81 the stockholders"
\ question Of veraclty Is thus raised:
referring 10 the denial OF the man
cement In their address ~ July 3 10
he stockholders. ~ our statement that
deal was IN prospect with the Union
'ocihc,' ono source Of our authority
'as the statement Of Mr.. Boyesen. who.
lille endeavoring 10 secure proxies.
sed that fact as an argument IN favor
not increasing the dividend. He
lated that the proposed deal WAS sim
ar 10 that With the Southern Pacific;
nat II was proposed "a pay the Union
acihc cash for the exclusive contract.
nd that the existing surplus would
necessary 10 carry out this nlan.
omlng from the authorized agent Of
Ir. Hartman and his associates. we
"a the right TO assume that the in
'iinailcn came from them. This as
'rllon was yesterday again repeated
Mr. Roycgcn"