The San Francisco call., 1908-03-13
HARTMAN TO
BE SUED FOR
$4,000,
Stock Holders Make Formal
Demand That He Be Made
to DisgOrge
Claimed That Union Pacific Has
Lost Huge Sum by His
SpecuIatiOns
Depreciation of Securities He
Sold Corporation Alleged
by COmpIainants
SPECIAL DIsrATcH TO THE CALL


NEW YORK, March lz-Charges
that z. II. Hartman has caused a
loss to the stock holders of the Union
Pacific railroad of more than $4,000
900 by his stock speculations with the
funds of that corporation were filed
with the board of directors today.
A formal demand was made that suit
be brought against him and the other
directors of the system who have
been parties to his speculations to
recover the sums lost to the company
through these alleged illegal transac-
tons.
The papers were served at noon to-
day upon Alexander Millar, secre-
tary of the Union Pacific railroad. by
e representative OF Leonard M VOL
stein. . lawyer of No. ~ Wall street.
on behalf Of Lewis A. Stowe and Henry
1 T. Buck Of Hartford. Conn; William
A Arnold Of Willimantic. Conn. and
Albert C. Bates Of East CRANKY, Conn,
all stock holders OF record.
no FORCE DIsGoRGING
The action is preliminary to a suit to
be instituted by A powerful group Of
stock holders TO force Hartman to dis
gorge the profits he and his associates
arc alleged to have made in stock mar
ket operations with Union Pacific funds
ard through the alleged unloading Of q
.srge amount Of securities Of other cor
eorations upon the eompany's treasury.
al prices Tar above their present value.
The action is designed 10 forestaT the
plan ef the Union Pacific executive COM
mittee To segresate these securities un-
der a holding company, which is now
being formed for the purpose
IT is alleged that in July and August.
1906. Hartman. as president. caused the
Union Pacific corporation to buy from
himself large blocks of stock Of the St
Joseph and Grand Island railroad. the
Railroad Securities company and I'LL
nois Central railroad, and that Harri-
man unlswfulIy and fraudulently real
lied large profits on his sale of the
above mentioned stock TO the Union
Pacific.
"SHOCKING OUTRAGE"
The petitioners further declare that
It is "a shocking outrage that certain
directors OF the Union Pacific railroad
should have utilized their positions of
trust 70 bleed the company OF enormous
sums for their own profit. and that the
president OF the company has himself
participated In and led this onslaught
on the corporate treasury. that he might
further enrich himself at the cost of the
stock holders
Leonard n Wolstein, the attorney
for the petitioners. represented Stuyve-
SAINT Fish in his recent suit to enjoin
Z. II Hartman from voting the Union
Pacific holdings Of Illinois Central
Wolstein said yesterday to a reporter
for The Call:
The object OF this formal notification
and demand is to establish ground for
a suit in equity to force Mr.. Hartman
and the directors who participated with
him in his transactions to reimburse
the Union Pacific railroad company for
its. tremendous losses in these stock
transactions"
Wolstein said that Fish had no part
II this action Hartman had no state
inent to make nor had Kuhn, Loeb &
Go. IL H. Rogers and James Stillman
ere out OF town.