The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-09-02

had left tine price Of st. Paul far be.
hind
Those of you who are familiar with
Wall Street events viii know that I'm
August. 1906, the Union Pacific divi.
dend was jumped from an annual rate
of 6 per cent to 10 per cent, which act
unclaimed a storm of criticism against
Mr.. Hartman. He was accused OF
having peri etrated stock jobbing
trick, as the property, it was thought,
could not possibly maintain that rate
Of dividend, and of having bought
stock on his advanced knowledge, inn
mediately preceding the declaration Of
the increased dividend, so as to profit,
at the expense of other holders, who
had no knowledge of what was con
templated, from the rise in the mar
accusations were uniustiied. NO
property for the management of which
Mr.. Hartman was responsible ever re-
duced its dividend, and the Union Pa
cihc has maintained with ease a dis
tributon Of 10 per cent Ter annum, de
rived to the extent of per cent from
the earnings Of the railroad, and to the
extent of per cent from its invest
ment holdings. Anybody who knew
re TY L me Ig
knew that his acts were not the re-
suits of sudden impulse, but of plans
long prepared and determined on; that
he had gone on record at every oppor-
tunity Of advising owners of Union
Pacific stock to retain their holdings,
and that if he wanted to increase his
own holdings he would do so Gas, in
fact, he invariably did in times of
depression and not to wait to rush in
a few days or weeks before the ad-
vent of some favorable consummation.
At one of the hearings at which he
was examined, he was asked whether
it was not a fact that he had bought
Union Pacific stock in anticipation of
the ~ per cent dividend declaration,
the meaning of the question being Of
course the accusation that he had UNI
fairly taken advantage of his advance
knowledge of the contemplated in
crease. To everyones surprise Mr..
Hartman calmly answered yes"
The examiner turned towards the audi
ence with triumphant smile and con-
tinued: "Mr Hartman, as you have
been thus frank, would you mind tell
ing me approximately when and at
what prices you bought that stock
you have just admitted you acquired
in anticipation of the increased divi-
dend?" Mr.. Hartman smiled family
in his turn as he answered slowly:
Certainly, l shall be glad to tell you.
Let me think back a minute. l bought
most of that stock, many thousand
shares of it, in anticipation of the ~
per cent dividend declared August
1906, some eight years before, mainly
in 1898, and l paid all the way from
20 to 80 for it. And l bought more OF
it in subsequent years, whenever
prices were low, many thousand
shares more; and all the time while |
was accommodating it I anticipated the
declaration of that dividend"
Stranger to the Art of Making Friends.
In telling this story, do not wish to
be understood as endorsing the wis
dom and prorriety of the increase OF
the Union Pacific dividend from 6 per
cent to 10 per cent at one jump. 1t
was one of the few instances in which
/ | ventured to differ from Mr.. Harri
mans judgment, A man, and espe
cially a man at the head of a great
corporation, must not only do right
but ne must be very careful to avoiC
even appearances tending to arouse
the suspicious of his not doing right
and the fact and manner of that par
ucular act lent themselves to sinister
interpretations, unjustifed though, al
a matter of fact, they were. But re
gard for appearances was not one o
Mr. Harriman's strong points. He wal
a master of what Whistler called "tht
gentle art of making enemies" Hi
e manner was brusque; he was short
{ temDered. though he had his tempe
, under perfect control, and never lost i
e whatever the proyocation-in fact, tn
r. greater the strain the more perfec
his calm and self-possession. He ha
infinite patience in working out plans
= in biding his time, but very little i
= intercourse with men. His min
A worked so rapidly, his thoughts GROVE
2 ed upon him at such rate, that hi
e words could not come anywhere nea
e keeping + ace with the working of HI