Los Angeles herald., 1907-10-27

the same time, when viewed in the
light of recent history, those conditions
appear to us not at all surprising, but,
on the contrary, are easily explained,
and are the logical result Of condition
of affairs with which the public has
been made acquainted by the publica-
ton of recent investigations Of the
interstate. commerce commission and
Governor Hughes public utilities COM
mission.
The most astonishing incident of the
recent financial cataclysm in New York
is the fact that the stock of the Union
Pacific company--a company which for
some time has paid a dividend of 10
per cent per annum, and in addition
has accumulated enormous surplus
earnings-sold at par.
The Union Pacific company, together
with the Southern Pacific. company, the
Oregon Short Line company and the
Oregon Railroad and Navigation COM
pany, which are constituent companies
of the Union Pacific company and are
~
intents and purposes one company,
during the past year has shown earn
ings in excess of any other railroad
combination in the world, and such as
were probably never dreamed of by
railroad men before.
The earnings of the companies at the
present time are not only not impaired,
but in the past quarter, notwithstand-
ling what has been called "unfriendly
Legislation" have shown marked
increase over any other period in their
history.
| 1t is notorious also that the terri
tories which they serve are presenting
them with more business than their
facilities will permit them to transact;
and yet, in spite of all this, the Union
Pacific ock, which in the early part Of
this year had sold at 1S0 and better,
yesterday sold on Wall street at 100.
Certainly the decrease in the price of
this stock cannot be owing to any lack
Of confidence on the part of the public
in the properties behind it. 1t is plainly
owing to a lack of confidence in the
people controlling it, and this lack OF
confidence is abundantly justified by
matters which have within the present
year been given to the public.
The way in which the Union Pacific
company has been manipulated by Mr..
Hartman, it's president, and his par
ticular coterie, composed of some OF
the Standard Oil people and the mem
bers of the firm of Kuhn, Loeb & Co..
is entirely sufficient to account for the
lack Of confidence on the part of the
public shown by the present low price
of the stock of that company, notwith-
standing the magnificent showing OF
earnings which it has made and is max
ing and the great dividends which II
has been paying.
In this connection it may be worth
while to repeat the findings published
by the interstate commerce commission
as the result of an investigation which
that commission recently made into
the management of the Hartman prop
critics. Concerning the purchase by thu
Union Pacific company of a block O
shares of the Illinois Central Railroa'
company, the commission says:
"since June 80 of last year the Uniol
Pacific has purchased 29.J9 per cent o
the capital stock of the Illinois Central
or 2S1, ,2S1 shares out of a total of 950,40
shares. OF the stock so pur
chased by the Union Pacific e. H. Har
riman owned 10000 shares, H. H. Rog
ers 10000 shares, James Stillman 5000
shares; all of said parties being direc
tors of the Union Pacific, and KuhI
Loeb & CO., fiscal agents of the Unio
Pacific, 10000 shares. MIR. Harrima
declined to testify as to whether thi
stock was acquired by a syndicate o
pool for the purpose of sale to tn
Union Pacific, or as to whether he wa
interested in the 100000 shares whic
were bought from 1Suhn, Loeb g. Cs
And Mr. Kahn of that firm declined t
state whether any part of the 1O5,OO
shares so sold was held by his firm 10
or on account of all or any of the direc
tors of the Union Pacific"
In regard to the purchase by tn
Union Pacific company of $10.0OO.000 c