Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-05-10

Big surprises in the way OF new
and gigantic financing plans were
sprung at the meetings OF both the
Union Pacific and the Southern Pa
cihc railroad directors yesterday.
The vast total of $III,ooo,Ooo was
added to the fixed capitalization OF
these two Hartman roads, besides
the possibility of 100000 more.
This money is to be devoted to en-
larging and improving these two
systems. Edward H. Hartman acted
as spokesman for the directors IN
making public the action.
NEW YORK, May 1O.-New security is
sues amounting to s2s1 100000. including
stocks and bonds soon to be authorized
hut not to be issued at this time, were
nrovided for the Southern Pacific and
Union Pacific railroads at yesterdays meet
ings of the directors of the two roads The
securities to be Immediately issued are
SAG 600 600 additional of Southern PACING
preferred stock and s75,OOO,0o0 of Union
Pacific convertible per cent bonds. The
Union Pacific stockholders, at meeting
to be held June H. will be called upon 10
authorize s1OO,OOO,OOO OF additional common
stock. of which 10000 900 is to be reserved
against the convertible bonds, and the bal
auce reserved In the treasury for future
use, and also an issue of $I0,GO0,OOO or more
first mortgage bonds on 1,62S miles OF
road in the Union Pacific system which at
present are unmortgaged These new ponds
are to be held in the Union Pacific treas
ury.
Besides arranging for this new financing,
all of which is to care for floating 1ndeoteo-
moss incurred in new construction and in
the acquisition of new property hciuoine
a portion of the stocks in other railroads
nurchased last fall the directors OF the
two roads decided yesterday to change the
manner of the roads dividend payments
from semi-annual to quarterly. In keep
ing with this decision there were declared
a quarterly dividend of 2h per cent on
Union Pacific common and quarterly divi-
dent of ~ per cent on Southern Pacific
common.
Stocks of Both Roads Decline.
The announcement of these security
Issues, the terms Of which were not wei
understood in the street In the day, was
followed by violent decline In Union "a
cific and by a smaller loss In southern
Pacific Union Pacific. which had been
advancing in the morning, dropped from
1897 to 141h, and Southern Pacific from
a ral1v of
point or more in each stock. Probably
moved by the course which the stock
market took upon the announcement OF
the plans which were decided upon at
Yesterdays meetings at the suggestion of
Mr. Hartman, he made this comment as
he left his office yesterday afternoon:
1T looks as If 1t was going to be like
last August. 1 thought l was doing some
thing most praiseworthy. that l should
be considered the greatest man in New
York and congratulated by every one.
Instead, have been cussed all over the
street for handing out a lemon instead of
a melon
z. H. Hartman was. to all appearances.
as much the dictator of Union Pacific
affairs yesterday as at any time in the
past. OF the more prominent figures in
the Union and Southern Pacific boards
the only one present at yesterdays meet
ing besides Mr. Hartman was H. c. Frick.
1t was believed. however, that the gen.
eral plan Of the financing announced yes
terday was decided upon some time ago,
and that the action at yesterdays meeting
was merely formal.
Apart from unfolding to the directors the
financial plans, Mr.. Hartman at yesterdays
meeting laid special stress on a report of
Vice President Kruttchnitt that in the
month of February 40 rails had broken.
of which 179 were ninety pound rails that
had been laid within five or six months.
Mr.. Kruttchnitt in his letter to Mr.. Harri-
man. which was read at the board meeting,
urged Mr. Hartman to make a claim
against the makers of the rails, and also