Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-03-27
It is Proposed to Raise About
Fifty Millions.
CLEAN BILL FOR HARTMAN
Directors Refuse to Bring Suit for
Profits on Stock Deal.
MATTER FULLY DISCUSSED
IT IL stated that Board Had Full
Information About Purchases
that Are Complained of
by Stockholders.

NEW YORK, March 26.-Stockholders OF
the Union Pacific Railroad company will
meet on May to authorize an issue OF
bonds, to be secured by mortgage on all
the lines of the Union Pacific which are
now unPlortgaged. These lines aggregate
1850 miles, according to an official an
nouncement. The amount and purpose OF
the proposed bond issue were not made
public. but 1t was currently reported that
it would be S4O,OOO.OOO or S5OOO0,OOO. This it
was said. would be sufficient to cover the
companys financial needs for some time.
and it was expected that only a portion Of
the issue will be made in the near futute.
TO facilitate this bond issue the stockhold-
ers will be asked at the same meeting TO
ratify the taking over by the Union Pa
cific Railroad company OF the physical
properties of the Leavenworth. Kansas &
Western Railway company and of the To-
peka & Northwestern Railroad company,
which are already through ownership of
stock a part OF the Union Pacific system.
These roads taken together have about 200
miles of track and are unmortgaged. 1t is
proposed to include them with the other
unmortgaged lines by which the new issue
of bonds is to be secured, and in order to do
N'AAS ~ 10 hNNSoSeAi1t bAiAtA Nht laws VI nan
sas by which the two companies were in
corporated that the transaction should be
ratified by the stockholders.
No Suit Against Hartman.
The directors by vote declined to grant
the request made by certain stockholders
that the board of directors bring suit
against E. II. Hartman, II. II Rogers and
James Stillmsn to recover profits which
Nl,1sv
sale of the stock of the Illinois Central
railroad, the Railroad Securities company
and the st. Joseph & Grand Island railroad
to the Union Pacific system. The suit was
requested by L. A. storrs and Henry r.
Buck of Hartford. w. A. Arnold of VIII
limantic and A. c. Bates of East CRANKY,
Conn. In giving their reasons for refusal
to bring the desired action the directors
stated the interests of Messrs Hartman,
Rogers and stillman in the stock of the
Illinois Central and of Mr.. Hartman ia
the stock of the Railroad Securities com
pany and the st. Joseph 4 Grand Island
was fully discussed before the directors
before the transaction and purchase was
unanimously authorized by the other mem
bers of the board while Messrs Rogers.
Hartman and Stillman were excused from
voting on that subject.
stock Holders Approved Act.
1t was also stated by the directors that
the proposed purchases were investigated
by committee of three dislnterested d.
rectors, who knew the facts and advised
the purchase. The directors declared that
this action had been approved by the
stockholders of the Union Pacific and that
Il would be unwlse, unwarranted and detrl-
mental to the interest of the company to
attempt to cancel the purchase or TO ques-
tion its validity. Furthermore, the board
declares that the board is opposed to Il as
a matter of business policy. The directors
stated also that they had no knowledge
that any director of the Union Pacific had
any interest In the 10000 shares of the
Illinois Central stock purchased by the
Union Pacific from Kuhn. Loeb s. Co. and
that they were informed by that firm that
no director held any such interest.