The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-03-15

native, but it. nevertheless. gave the cred
ulous food for gossip for several days.
According to this remarkable report
Mr.. Morgan saw IN the fight between Mr..
Keene and Mr. Hartman over Southern
Pacific his opportunity for getting even
with the Hartman party for the North
ern Pacific experience two years ago and
at the same time strengthen his hold on
the western situation. The gossipers
would have It that Mr.. Morgan liquidateu
the bulk Of his immense line of miscella-
neous securities last fall and found him
self, as result, extraordinarily strong
in cash and able to enter upon any kind
of campaign that might appeal to him.
The romancers building on this had Mr.
Morgan begin buying Union Pacific two
months ago. and he. is represented to
have accumulated a vast line under cover
of the furious drives made against the
property by Mr.. Keene and his friends.
So far as can be learned, however con-
troll of the Union Pacific is lodged I'M
changeably in the banking house OIL
Kuhn, Loeb & Co. and as control of that
property carries with 1t Southern Pacificl
it is apparently impossible for the Har7
riman-Schiff management to be dislodgedl
1t is undeniably true, however, that Mr.
Hartman is very unpopular man in thu
transportation field. Even his closest as
socates freely criticise him. They ad
knowledge his ability as a railroad mah
and fnancier, but consider him too arbf
trary and too little disposed to pay az
tention to advice or counsel from thos
who are identified with him in the ownei-
ship of the properties he directs
keene and Hartman Fight.
The open fight between MIR. keene AID
Mr.. Hartman over the question of d.
vidends on Southern Pacific stock his
been one of the disquieting factors in ne
market. 1t is always an alarming evalt
when the giants of the market fall OFT,
audit was particularly so this time beeaue
of the prevailing nervousness. Mr.. xeele
is admittedly the most adroit manipulabr
and leader in the stock market and lis
position must always be taken into en-
sderaton. A year ago he organized The
stupendous pool in Southern Padfc
which is to be dissolved on the first of
April next The holdings of Mr. Kene
and his friends In that property hive
been as high as 100000 shares $50 0Ool0O)
and they are at least half that now, is
understood. They went into the stocA in
the belief that a part of the earnings
would be distributed among the stdk-
holders in the form of dividends. Thre
was disappointment in this respect, for
ii has been the Hartman policy to put
Southern Pacifc earnings back into he
railroad During the last two years $5,-
10000 has been expended In bettermdts |
and it is the Hartman plan to spendat
least s2500o,OOO more in perfectlng he |
system. Mr. Keene and his friends on |
tend that these improvements shoudbe |
charged to capital account and the stqk- |
holders be given either bonds or sticks |
to represent the outlay. Mr. Hartman |
has taken a decided stand against any |
such position, although at one tim he
was supposed to have acquiesced. Back |
of the contention is the covert insinlhtion |
that the minority holders would not
strenuousy object to the Harrmai pro-
gramme If they could feel sure tlPt the
money is being applied as represented. |
They would like to have proof tint the
Southern Pacific earnings are aItually
going back into the property.
They do not openly make TIL ugly |
charge that Mr.. Hartman and hi. asso- |
ciates are using the money for TIE boil
STEERING up of other enterprises not lirect- |
ly connected with Southern Pacift, but |
allow the insinuation to obtain currency.
The fight which is now on may lulmi- |
nate in a demand for rigid invstga-
ton into the finances of the Unio and
Southern Pacific. The annual meeting is
there now appears to be a truce ofsome
sort.
FlagrantIy' Bearish.
1t has been observed that the Gates
contingent has been nagrantly barish
during the last sixty days. Its pera-
lions have been on an extensive sca4 and
the representatives Of that speculative
faction have gone out for a following.
The same Gates people who were wildly
bulling the market last September when
stocks were 20 to SO points higher thin 4
they are now, are insistent that tie
prices will go very much lower Thy
are more vehemently bearish now than
they were bullish then. They wee
frghtfully wrong in September and tie
veterans of the street" are inclined D
think they are wrong now. although 1t
they present moment they have decidedly
the best of the argument and can port
to the fact that the quotations are war
down. Mr.. Gates and most of his loyal
followers are gathered at Palm Beacl
and conduct their operations from thai
point.
Mr.. Loyal L. Smith is the only conspic-
uous member of this contingent in New
York. Mr.. Smith is almost unknown out
side of a few brokerage offices in Wall
street yet he is said to be as heavy a
Spectator as Gates himself. He is the
mysterious unknown plunger whose tre-