Omaha daily bee., 1906-08-18
HARTMAN STOCKS BOOMING
Union Pacific Placed on Ten Per Cent Basis
and Southern Pacific on Five.
RUSH OF SHORTS TO COVER CAUSES PANIC
Both Issues Advance Rapidly and Two
Pools Clean Up Twenty-Five
Million Dollars In
Profits.

NEW YORK. Aug 17.-Amid scenes OF
frantic trading on the stock exchange
Union Pacific common stock rushed upward
17b points a share and that Of Southern
Pacific SIS points today after an announce
ment of dividends far in excess of what
the traders had any reason to expect. The
result was that a large number OF traders
who had sold stock short suffered sharp
losses and according to an estimate re-
ported by the Evening Post, pool In Union
Pacific stock realized profits amounting to
s15.O0o.ooo and a similar pool in Southern
Pacific $10,o00,000
Notwithstanding the meeting of the ex-
ecutive committee OF the Union Pacific and
Southern Pacific roads in this city yester-
day the bulk of the brokers were totally
unprepared for the announcement Of divi-
dends which was made public soon after
the opening OF todays market. The divi-
dends were: Union Pacific preferred. per
cent semi-annual; common, per cent semi
annual; Southern Pacific, common, 2h per
cent semi-annual. Union Pacific common
heretofore paid 3 per cent and todays
dividend was the first ever declared on
Southern Pacific common.
Mad struggle to Buy.
Brokers were swept into mad struggle
to buy the two stocks within a minute after
the announcement was circulated and the
excited scenes which ensued had hardly
been exceeded since the great struggle to
control Northern Pacific five years ago.
The shorts in both Pacifcs were surprised
and unprepared for the upward rush which
followed and led the scramble to cover.
Within half an hour after the announce
ment Union Pacific bounded UP more than
s points and Southern Pacific nearly !.
Feverish activity prevailed in the two
stocks throughout the session with various
halts in the upward movement when the
traders sold to realize profits. Except for
these halts the upward movement in Union
Pacific continued throughout the day al
most to the close of the market, when
there was a slight recession on profit
taking. Southern Pacific's advance, how
ever, was halted early and held. Union
Paciic's extreme was from 1928 to 17sS. and
Southern Pacific from S37h to So Union Pa
cifc closed at 1874 and Southern Pacific at
s7% The total sales Of Union Pacific were
647 100 shares and those of Southern Pa
cihc 4s1GO0.
London Market Excited.
LONDON, Aug. 1.-THE American section
of the Stock exchange this afternoon be-
came excited upon receipt of the New York
opening prices accompanied by reports of
the dividend announcement of the Union
Pacific and Southern Pacific railroad COM
panies. Union Pacific Immediately jumped
8 points from 18TH to 175h and Southern
Pacific advanced 6i1 points from san to 81.
Trading was active and excited and the
close prices were few points below the
best The shares absorbed the attention
of the market, other shares being prac-
tcally untounched.
The excitement In the American section
continued long after the stock exchange
had closed. Curb trading in Union Pacific
and Southern Pacific assumed large dimen-
sions, the buying being chiefly for New
York account. Union Pacific touched 1871
and Southern Pacific 92k. United States
Steel Atchison, Topeka & Santa Fe and
Pennsylvania were also largely dealt in at
prices niger than the official close.