Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-06
POWER OF HARTMAN
Inquiry Brings Out the Great
Extent of His Authority.
IN CONTROL OF DIVIDENDS
Suggested They Be Declared and Held
Up Announcement.
BIG DEAL IN S. P. COMMON
Stock Sold to William Rockefeller
BIG DEAL IN S. P. COMMON
Stock Sold to William Rockefeller
and Bought Again With Large
Commission to First Purchaser.

NEW YORK, January 5.-The interstate
commerce commission concluded the pre-
liminary portion of its inquiry into the
Union Pacific and Southern Pacific rail-
roads and allied Hartman lines in this city
today and adjourned to meet again next
Tuesday morning at Chicago.
The testimony taken today tended fur
Their to show the great scope of the power
conferred upon President f. H. Hartman
by the boards of directors OF the various
lines under Union Pacific control.
All the facts of record as to the declara-
ton of dividends last August by the Union
and Southern Pacific were brought out by
the commission The dividends were de-
clared August 10, but were not an
nounced until two days later, just before
the stock exchange opened for business. 1t
was at Mr.. Harrimans suggestion that
the dividends were declared. 1t was also
at his suggestion that the announcement
was deferred. He explained that a num-
Der of the directors of the companies were
not present, and he thought it nothing but
fair that they should be advised before the
matter became public property.
Right to Announce Dividends.
The executive committees of the Union
and Southern Pacfcs were given authority
to announce the dividends at such time
as they deemed proper. Mr.. Hartman was
and is chairman of both committees. The
committees also were authorized to desig-
nate the funds from which the dividends
should be paid. What these funds were
could not be learned from todays wit
nesses, but the commission was promised
a complete statement.
From the minutes of the Oregon Short
Line executive committee ii was disclosed
that in March. 1904, Mr.. Hartman sold to
Mr.. Rockefeller 300, 600 shares of the Ore
gon Short Lines holdings of Southern Pa
cific common stock. \ letter from Mr.
Rockefeller referring to their agreement
as to the stock was next placed In evil
dence. Mr.. Rockefeller in November, 1903
asked Mr.. Hartman to take back the stock
at the time, instead of waiting for the ex-
piration Of the agreement in the spring OF
1904. The minutes of the Short Line showed
that the stock was bought back from Mr..
Rockefeller, and 1t was further shown
that he was paid a commission of S1S1 500.
Today's witnesses knew nothing of what
the agreement between Mr.. Hartman and
Mr.. Rockefeller was.
A subpoena was issued for Mr.. Rockefel-
Ter to appear at such time as the commits
sion shall designate. Mr.. Hartman, when
he is able to testify, will also be asked re-
garding this agreement.
Oregon Short Line Records.
Mr. Miller read entries in the Oregon
Short Line minutes dealing with various
details as to the management of the other
Hartman companies. At one meeting of
the Oregon Short Line executive committee
Chairman Hartman reported that he had
contracted for the purchase Of two ocean
steamers from the Atlantic transport COM
pany for s2,2OOOO0; the chairman's action
was ratified and confirmed. There were
other entries in the Oregon Short Line and
Southern Pacific executive committee min
utes as to various purchases by the chair
man.
The bylaws of the Union Pacific were
amended in April, 1905. SO as to provide
that the president should have supervision
and control of the company's business in
all its departments, subject to the control
of the executive committee. There was a
further amendment to the effect that the
offices of president and chairman of the
executive committee might be held by the
same person.
Counsel for the commission then turned
the inquiry to the dividends declared last
August by the Union Pacific and Southern
Pacific.