Albuquerque morning journal., 1907-02-28

TO prevent us. from continuing in The
management of the property. The
pool planned TO sell its own stock to
advantage. We feared that they
would get a temporary injunction TO
prevent us from voting the stock. In
order to prevent this we took this
method TO enable us. with other prox-
les that we might obtain, 10 secure
votes enough to protect us against
this speculative interest. 1t was a
purely protective measure
The witness then explained the en-
try of the account upon the records
and books OF the Union Pacific.
Mr.. Hartman frankly admitted that
the transfer of the stock was to place
1t in the hands of some one who
would act against this speculative
pool.
Pursuing this line. MIR. kellogg en-
| deayored to have the witness admit
that the Rockefeller deal was merely
an evasion. but Mr.. Hartman would
mot do so. The transaction was TO pro-
teet the property, he insisted against
IA speculative raid that threatened the
control.
He admitted that MIR. Rockefeller
was paid SIS per cent commission. or
$1S7, 500, ot the return of the stock.
Mr.. Harriman's account of last Au-
gusts famous delayed dividend came
in answer TO Mr.. Kellogg's questions
about the failure OF the Pacific roads
to reduce rates. When he reached
the matter of the delayed dividend
announcement Mr.. Hartman broke
in: 81 will tell YOU about that" and
without further questioning he told
the story of that episode,
He said the question of earnings
first came up at the July directors
meeting, and the estimate of earnings
was so surprising that he asked them
to consider the question OF a dividend
If the actual figures came up to the
promise of the estimates. At the Au
gust meeting the actual figures were
at hand. The Southern Pacific meet
ing was held in the morning and the
Uni6n Pacific meeting IN the after
noon. The Southern Pacific declared
IA dividend of 2la 4j per cent. Of
which went to the Union Pacific. the
owner of that much stock. Then the
Union Pacific dividend of J per cent,
8 per cent from traffic earnings and
per cent from investment earnings
was declared, the directors deciding to
pass 1t to the executive committee for
approval and announcement, which
was customary.
The meeting of the executive COM
mittee was scheduled for 10 o'clock
the next morning. but Mr.. Hartman
said he could not be present. 1t was
late when the executive committee got
together. BY the time the committee
had passed on the matter II was after
3 o'clock in the afternoon. and the
question then arose whether the an
nouncement of the dividend should be
made public at once, thus giving the
London market the full advantage Of
the situation. or whether 1t should be
deferred until the following morning
and the New York market given the
advantage. 1t was decided to adopt
the latter course, and the committee
did not make the announcement Until
the next day
Mr. Hartman proceeded inNhis mar
ration without interruption until this
point. He spoke deliberately and
without hesitation. Mr.. Kellogg
questioned him closely in an apparent
effort to elicit some admission of mo-
tive in the delay in the announcement,
but Mr.. Harriman's replies were di-
rect He admitted that the delay in
the announcement was unusual but
said that the occasion was unusual.
1T was staggering" said Hartman.
1T marked an epoch, but if ! could
have been present at the hour for
which the executive meeting was held
the announcement Of the dividend
would have been made in the usual
way the morning after the meeting.
Commissioner Lane asked what the
witness knew about the buying of
Union Pacific and Southern Pacific
stock on the market between the time
the directors decided on the dividend
and the time it was announced
Mr.. Hartman declared he did not
know of any unusual buying of Union
Pacific stock, but when the question