Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-05-10
HARTMAN CNSLENON
Wall Street Receives a Jolt
When Union Pacific Direct
ors Meet
SURPLUS IS NOW a DEBT
More Than seo,ooo,ooo Needed to Pay
of Floating sations-WitI Rush
to Sell Stocks-southern Pacific Also
Need. Money-The Financial condi-
lions Explained.

New York, May 10.-When the I'm
ion Pacific directors met Wall street
expected they would "cut a melon In
stead Mr.. Hartman handed the street
a lemon.
That's the way Hartman expressed
it after the directors had adjourned and
he was ruefully contemplating the sud-
den drop in Union Pacific securities.
Instead Of the $4,000, 600 cash assets
reported at the close of the Union Pa
cities last fiscal year, Mr.. Hartman
told the directors that the Union Pa
cit1c required more than $60,000,000 to
pay It's floating indebtedness.
The directors, obedient to HarrAman's
demands, at once authorized the issue
Of $75,000,000 new Union Pacific secur-
tiles. Almost at the same time they au-
thorized an issue Of new Southern Pa
cific stock to the amount of $36,O00,-
600. also to pay off floating indebted
ness, making total of $4,000, 900
new securities of the Hartman lines
thrown unexpectedly on the market.
The news struck the street" a blow
squarely between the eyes. The direct
ors did not meet until II o'clock. Be-
fore that hour, under the stress of
pleasurable anticipation of fine big,
juicy melon to be cut, Union Pacific
stock advanced from LAG to 149A.
At O'Clock came the news of what
actually happened. Instantly there was
a wild rush OF selling orders, which
brought about the greatest confusion
of stock selling at widely different
prices in different parts of the crowd
The net result of the scramble to un-
load .as "a break of TX points, carry
ing the price down from 149A to f411s.
AT the same. time the Southern Pa
cific dropped from S6A to 831s
The break in Union Pacific brought
about reaction in prices on the gen
eral list, which prior to the announce
rnent had been strong. A brisk rally
just before the close brought Southern
Pacific back at the close to S4ss, a net
loss of but Y on the day. and Union
Pacific to 1A3A, net loss of 3M
points.
It's last August all over again." said
Hartman, half disconsolately, haff
jestingly, as he left his offiae for the
day Il thought then was going to
be compounded everywhere and become
the most popular man in the street. /
didn't The result was the same to-
day. except that I'm cursed ana damned
all over the street for handing out a
lemon instead Of a melon"
Just what happened at the Union
Pacific directory meeting is shown by a
statement submitted to the board by
Mr.. Hartman, of which synopsis fol-
lows:
The estimated earnings over operat-
ins expenses for the year ending June
80. 1907. were $32,465, 900. Deducting
from this the fixed charges would
leave surplus of approximately $22,-
100000.
In addition to the above income the
company will receive interest and div
idends other than from investment se-
curtties which will bring the total in
come up to $36,324,000 After paying
the dividend on the preferred stock
s4.OO0,000, and the divident on the COM
mon stock s20.0OO0OO, there would be
something over $12,OOO,OOO over and
above all requirements of every kind
The floating indebtedness was in
Cured for the following expenditures
which have not been capitalized: Con-
struction and acquisition of new lines,
s29,172.0O0; payments on account of the
San Pedro road ,$1s,050,0O0: steam
ships Manchuria and Mongolia S.
10000; rolling stock. $9.302,OOO; lands
and miscellaneous real estate, $1,000
600; "a total Of $63,6S3, 900.