The Washington herald., 1907-01-06
WALL STREET NOTES
Probable Increase in Steel
Common Dividends.
"ONE-MAN POWER" REVEALED


Present Inquiry Into Union Pacific
Is Resulting ia Strange ReveIa-
tions-BanI< Statement Satisfactory.
New York. Jan. while 1t is generally
believed in the street that the manage
ment Of the United States Steel Corpora
ton and most conservative interests are
in favor Of increasing dividends on the
common stock. it is now questioned If
the Standard Oil interests in the com
pany. and their allies. will not press for
Il larger distribution 20 stockholders. as
they are known TO have done in the case
of Union Pacific and other companies in
whose affairs they exercise an influence.
II is pointed out that three of the di-
rectors of Union Pacific, who are believed
90 have favored the very liberal dividend
policy adopted by that road last summer.
are directors Of the Steel Corporation,
these being II. H. Rogers, II. e. Frick,
and Marvin Hughitt. while John -
Rockefeller. jr., who might, of course,
be expected to vote with them. is also
Il member of the Steel board. or course
it is recognized that it is entirely ques-
ton OF policy whether an Increased divi-
dend is paid or not The earnings fully
warrant the payment Of ratt of per
cent or even more. and the only reason
why a more liberal rate than > per cent
has not been adopted before this time
is that the most conservative interests
in the board believe il is better for all
that the cost of the work on
the new plant at Gary and other improve
rather than through the raising Of new
capital under very Unfavorable conditions
ia the money market
No further issue of stock can ever be
made by the Manhattan Railway Com
pany, the recent sale of 81. Sg0G00 treasury
stock having brought the total issue up
10 the highest figure possible under the
agreement with the marlborough Rapid
Transit Company. II is reported that the
of the elevated lines are now ND
to the largest in their history. having
fully recovered through the growth of
travel ,ae loss suffered on account OF the
opening of the subway
For the three months ending September
30. 1876, all the lines Of the marlborough
Metropolitan Company carried 1872. 1872. IS
passengers, against f79 0G5 .269 in the same
period last year OF this the elevated
lines gained 6.277,l6O the subway 5.573323.
and the surface lines 2IS,CS0 The elevated
lines carried g., S53,472 passengers. against
q .5il ,692 carried in the subway The earn
ngs OF the peterborough Metropolitan
Company for the past year directly ap-
plicable to dividends on Manhattan stock,
were S7.2Uo 657. against dividends Of s.. S64.-
poo, or 1874 per cent on the stock out
sanding. Manhattan stock, through the
-nterbOrOugh-A metropolitan consolidation.
IS now prior charge To So. $4,000 Inter
)orough-MeJropOlitan collateral trust u
per cent bonds and S45.A596JJ Inter
borough metropolitan ; per cent cumu-
ative preferred stock Manhattan Is now
selling IT a price which nets nearly
per cent, although the intrinsic value
II the stock has never been greater The
stock sold as high as 10 IN 1856 at which
price 1t Melted only 1 per cent
The history Of American finance shows
no other instance OF "one-man power at
al comparable to that welded by z. r. /
Hartman as disclosed by the Interstate
Commerce Commission inquiry. Those who /
placed this enormous power in Harri- /
mans hands may put the best face pos I
sible upon it. but the rank and file in 4
Wall street do not like IT, They recog- /
lize in it a dangerous weapon i'm the 4
sands Of any man. ana especially in the 1
hands of a man like Hartman whose I
stock market activities are conducted on I
/ large scale and with all the advantages /
hat can be derived from the exercise Of 1
official power. If Wall street, or the /.
part Of it not directly concerned with the I
mana cement OF the Hartman roads. does /
rot like the condition of affairs that has /
leen disclosed In the matter OF the 4
mount of power exercised by an indi- /
'idual, it is hardly to be expected that I
he country at large will relish it,
Il seems TO be a very proper question +
whether the directors of Union Pacific /
neglected their duty 10 the stockholders /
IL giving Hartman unlimited power in 4
he matter of making purchases of stock /
or the company Under the authority 1
hus conferred stocks Of par value of 4
103. 100000 were purchased within a period !
If six months.
From whom the purchases were made /
[ viii be the business of the commission 1
% find out. and it will be very interesting
o ascertain what were the prices paid
md how the valuation was arrived at In
he case of the ST. Joseph and Grand
sland. Mr. Hartman was eminently
qualified to establish a basis of price Tor
le owned the road and knew all about il.
The stupid rule that an official should
TOT make use Of his official position to
make a bargain TO which he himself was
he other contracting party should not.
Il course, be binding on a man who had
lad unlimited confidence reposed in him
" the board of directors. That Harri-
nan owned the St. Joe is clear. The road
vas brought under his direction years
go. and its executive offices have since
zen domiciIed with those of the Fur
aceville Iron Company in the Equitable
life Building. Every politician in this
state knows that the latter is a HART
nan enterprise.
The present inquiry into the relations
etween important Pacific railroads will
ave done a great amount Of good if
[ establishes nothing more than the
IDENTIFY Of those responsible for Harri-
lan.
James r. Keene was in his palmy days
stock market operator of great re-
possessing means to dis
ose of stocks that he had accumulated.
at it is doubtful if he ever even dreamed
hat it would at any time come into
he power of a stock market operator to
ell to a great holding company stocks