The Washington herald., 1907-01-06
PRYINTOSTOCKDEALS
Investigators Try to FathOm
Hartman Transactions.
ROCKEFELLER BUYS SHARES
Gets sIS7,00O for Holding Southern
Pacife-How Declaration OF DIvi-
dend Was Deferred for Two Days.
Two More Companies Organized
Only Few Weeks Ago.

New York, Jan Sit was brought our
to-day-at the inquiry ia The Hartman
lines by the Interstate Commerce Com
mission that on March 4. 1853 Hartman
sold % William Rockefeller 999gg shares
Of the Southern Pacific, then held by the
Oregon Short Line, under an agreement
that Rockefeller should sell these shares
back on May 1. 1904
At the time the sale was made. James
r. Keene was waging war against the
requirement Of the Southern Pacific con
troll by the Union Pacific interests. and
shortly afterward brought suit on behalf
Of himself and minority interests. alleging
that the control by the Union Pacific in
terests was unlawful and 20 the detri-
ment 10 the road. This suit was dropuqi
finally in September, 1913, and in Noyem-
Der Rockefeller wrote TO Hartman that
he would be glad if Hartman would take
the stock back instead Of waiting until
the following May, and that if he wou.d
take 1t back at once hc (R0ckefeuerl
would reduce the commission agreed
upon and would let it 20 AT a bargain
price Of SIS7,OJJ with interest at @ Der
cent. The danger cloud on the Hartman
horizon having been removed, apparently.
Hartman complied with ROckefeller's re-
quest, ana the directors voted 20 approve
all Of mis- actions, as they always did
While Rockefeller held this stock. Harm
man. OF course, did not control the
Southern Pacific Rockefeller was a
dir
the Oregon Short Line. The Keene inter
ests represented about S2).0J0093 as il
came out in the suit.
Regarding Increased Dividend.
Beside this transaction. much was
brought out regarding Harriman's action
in increasing the Union Pacific and
Southern Pacific dividend last August.
and how it was that the declaration OF
the dividend was deferred for two days,
or from August Il 10 August i. This
according to the minutes read to-day. was
at the suggestion of Hartman. who said
that as some Of the directors were alb
sent, the announcement had better be left
10 the executive committee. The execu-
tive committee met the next day. and
ordered the announcement 70 be made on
the morning following.
The commission spent some time to-day
trying 20 find for what purpose the $780,
OCo0J0 convertible Union Pacific bonds is
sued had been used. if not for Harri-
mans stock operations. Nobody seemed
to be able TO answer this question except
to say that some Of il went 10 buy the
Southern Pacific. John q. Muburn- got
quite indignant when the lawyers for the
commission minated that it was to en-
able Hartman TO speculate in stocks and
TO buy up Northern Pacific.
That T. H. Hartman exercised at all
times absolute control over ali the COM
panies. bought and sold stock for them.
and organized companies with their funds
individually, and then had his acts con-
hrmed by his different executive cognuir-
tees was brought out even more forcibly
to-day than on the previous day.
Two More Companies.
1t was shown that only "a few weeks ago
he had organized two companies-the Pa
cific Express Company and the Union Pa
cifc Equipment Association. under the
laws OF Utah. with funds of the Union
Pacific one was 10 DO an express BUSH
ness on the Southern Pacific. and the
other 10 buy all equipment for all the
Hartman roads and 20 lease it to these
roads. His action in organizing these com
panies was unanimously approved by the
executive committee Of the Union Pacific
on December I$ last. Street railroads in
Los Angeles and ogden were bought in
the same manner.
Vice President William D. Cornish, w.
Y. 5. ThoTne director of purchases of the
Hartman lines. and E. 7. jeffrey were the
new witnesses examined to-day William
Mail, the comptroller. and Alexander Mil
Ter, the secretary. who had been examined
the first day, were both recalled in the
afternoon, and it was then that the law
yers of the commission unearthed tha
Rockefeller transaction, and also got some
light on the circumstances surrounding
the dividend declaration last August.
which stirred up so much talk in Wall
street.