New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-27

long argument over the rates of the Union Pa
cihc in relation to the earnings of the ROAD Al
length Mr. Hartman said;
think the Union Pacific stockholders are , en-
titled TO receive 10 per cent, or u per cent II us
can do it legitimatey and properly and give proper
service to the territory reached oy 1t p pa tSat to
similar territory in other part OF tho count[ =,
and give better service than in any other part o'
% o.NThat is. you think the service Of the Union
freqbf than the same freight would be hauled for
by otherIroads? At does not get nentI la
tons on other roads. Maybe it received lower
It conduct that same frame at less COST Ih ~
other roads, it is en.Hed to the dlHerence a. a. ~
entitled To receive them in the end You are " NIX
to find out whether ought not to reduce our
our rates on the Union Pacific IT would create
such a scamper all the country that you would
keep some of these lines solvent the Union Pacific
will continue to earn all the money 1t Is earning nm,
bankruptcy and create chaos you may reduce our
Q.-The Pacific roads do not seem in imminent
danger Of bankruptcy? Al don't think they are;
our having our rates reduced
Mr.. Kellogg read from the record the resolu-
lions passed by tho directors Of the Union Pa
cifc and Southern Pacific in August last. au
thorizng an increased dividend Union Pa
cifc stock and a first dividend on South
Pacific stock. Mr.. Hartman. replying
to questions, gave long explanation. appar-
emily wishing TO set at rest the reports
which current last summer that the an
nouncement of the dividends was held back for
a time for stock speculation purposes. He said:
On July u / stated TO the board that In view OF
the increased earnings-"e had estimates out
thought ought not to consider the question OF
dividend until We had the actual figures. and that
cifc, Notwithstanding the Chicago fire.
surprising that l thought We should walt until We
that our statements were correct and that II they
or hgiires we should Increase the dividend on Inc
Union Pacific materially. and that would bring
in the mean limo would like them all to be con
sder!ns the question ana informing themselves on
juno figures. and they were presented IN this form
This statement was prepared before, the con
clared on the Southern Pacific and l presented
this statement to them Vel; we had not the
estaed even hat Snine OF GaS %s o og gG
income ~ tho southern Pacific board ~ directors
they declared IA dividend OF "a per cent. Forty
five per cent OF that had 70 go to the Union Paci-
Ne Immediately after that we had a meeting Of
he Union Pacific ! then stated to them that 70
to 90 added. which would make 100000 for the
YEA acton g' q fI the c2n lH 6S ana ner " ca
dividend and tho method Of charging a. or course.
some other than the usual way. Otherwise. they
mItioe 70 do ~ Now The hoard ~ diraSty 6a5
thar fun month IN which to consider that whole
day at o'clock, At that meeting the resolutions
Now then II got to De after o'clock Also We
had Communicated or had communicated. par
lived In the west and dd not want 40 TAX aS
action, until at least no might be heard from.
after o'clock in New York ana it was then
question OF whether # was advisable 10 announce
London before IL aid IN New York or TO give the
New York market tho advantage OF IT, We dis
"a
decided that 1t was best 70 h.v" the announcement
Of the Union Pacific dividend made IN New York
before II was IN London-that IS, while the New
Q-Who we're the members OF the executive com
mittee present at that discussion? A-The records
Q-Messrs. Hartman, Loyett and stlnan? A
I SUPPOSE that Is so
meeting? Al don't remember that; ~" particular
L isri nil And ! wanted 70 hear FRO" HI" p'F'''u
GO on aud finish youl. statement Ave
lad fun board in July. They all notified
that IL WAS expected we would increase our divl-
come TO that August meeting. 4 their own
rectors they were OF on yachting trips and some
in the West Mr. Earring was off on the st. Paul
Chicago. ana communicated With So l left direc-
lions. after comforting with the executive commit
stated: think III the minutes which YOU read.
Then ieit that afternoon ana went Off on yacht
there me next DAY. but the announcement was
next morning aud tho full advantage Of the dec
l9ratlon Of that dividend was given Ia the New
York market rather than to any other market
Q.-Was there any reason for deferring the
nonnefment or The dividend for two days other
the executive committee had acted
thought it hoad be- deeSd an ff' R6u t a%nd y2g
form the absent members Of the board OF directors
inform OF the absent members of the board OF each
one, OF these companies? A-Well / particularly.
as remember telephoned to Mr. HuEhitt in chi,
capo, and got this answer [ inquired the where
We're ia ones that had in my mind because they
not have been able to have gotten 70 b ana might
in August found Mr. Earlling was too far away
other Chicago director, was III.
o, 8in your t opinion Mr. Hartman the
reduction the cost Of labor and materaIs ana
ON your opinion was the divid"nI aus -, Tho
Union Pacific justified by its earnings or was lit II
you have read the statement itself that it was
ing 10 DO with the stock market in any way what
Q.-Havc you any Knowledge, or did Won have
az tnat tlme; OF any pool in which any OF the
Gfecdofs OF me southern or Union Pacific We're
.Q,E1Were there any heavy speculation In that
between August II and the date in July wien the
such dividend? A-Not to nv knowledge Gay
,oe Ibu d you 90 not know Of any continuation OF
Pacific who bought heavily il! that stock between
JEy and August? A-No, sir: do not. don't think
people interested In Union Pacific had been holding
ali appreciated the Value, and that there K w tmTS
come time when We would have returns from the
Southern Pacific, and there would he continually,
increased earnings In tho Union Pacific. and the
change IN It's management would make il possible
1T would not be necessary for them to make any
such speculation between July and August / 10
not say that they did not
QIMiBut you do not know any individual director
m either company Al haven't any idea whether
mere was anything Of that kind not. I know
there was some appreciation in price, the whole
market went up. might say that one of the in
huences which induced the declaration OF this divi-
dend was that by the middle or August the outlook
OF business for this year had been pretty we'll de-
eIong that cOnId IA Sliuusi