Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-23
Financial News Letter
BY W. G. NICHOLAS.

NEW YORK. September 22-In the very
near future Erie will cease to be Morgan
road, control having passed from his hands
into those of Mr.. Hartman and the STAN
dard Oil party. The move is not in any
manner hostile to Mr.. Morgan. and is made
with his entire sanction. He will continue
to exercise voice IN the financial direction
Of the property and will be an important
figure in the road. as he Is In the New York
Central. the New Haven and Reading. al
though no longer recognized as dominant In
any of them. He still remains supreme in
Southern railway and Cincinnati, Hamilton
and Dayton. The Rock Island figures In no
small way in the new Erie deal, and will be
represented forcefully in control. The Rock
Island party has had its eye on Erie for
long time, and on more than one occasion
stood accused Of playing for ownership. 1t
would appear to be very we'll satisfied with
the way matters have shaped themselves
and its interests in the Erie field will not
suffer under the new arrangement.
A very strong speculative pool has been
formed in connection with the Eric move,
headed by Messrs. Hartman and H. H.
Rogers. and the tip is out that the stock is
to be put above 60; same have 1t Is. The
market has already moved up several
points. and brokers who have always been
used by Messrs. Hartman. Rogers and the
Kuhn-Loeb connection in the early stages
Of every manipulation in that quarter for
the last half dozen years have been stead
lily picking up. stock. Some of Mr.. Harri-
mans close political friends have been put
wise to what Is going on and advised to
get aboard" Several persons Of conse-
quence in the operation Of the road were
told quietly that Mr.. Hartman would very
soon assume practical direction of the sys-
tenn and that he had in contemplation I'M
portant changes in the working force and
in methods. Like many another old east
ern line, Erie has been Handicapped by a
dislodged without violating sacred tradi-
lions and affiliations. Mr.. Harriman's in
coming will furnish an excuse for gen.
eral housekeeping and barnacle scraping.
During its checkered career Erie has
many times held first place on the Wall
street stage and has performed many won
Of the first to realize its value as q specu-
lative foot ball. Commodore Vanderbilt,
founder of the mighty Vanderbilt fortunes.
made a piaything of Erie for many years
and frequently wrestled with Drew for
control. Then Jay Gould and Jim" Fisk
took 1t In hand, and what they did to It
was large sufflciency. Under the Could
Fisk management the road was looted and
ravished and left wrecked. Since those
stormy days Erie has passed through sew
eral reorganizations. each one (bar the
lateSI) leaving the properly WCCS0 OH imam
before. Finally Mr.. Morgan tried his hand
at the job. and for the last seven years
the road has been on the up turn. MT.
James J. Hill lent his help and persuaded
Mr.. Underwood to leave Baltimore and
Ohio to take charge Of the physical recon-
struction of the road. Mr.. Underwood has
pegged steadily along at the work and al
ready has almost rebuilt 1t. It Is in better
condition than ever before In its history,
and will eventually take rank with Central
and Pennsylvania. Mr.. Hin said to the
writer three years ago that Erie would
one day be worth as much dollar for dollar
man. MT. Hill may live to see his prophecy
fulfilled. 1t VIII not add to his pleasure,
however. to see his ancient enemy Harri-
man In the saddle.
Stock exchange activity In Erie. which
seems to be one Of the nearby certainties.
will probably mark the turning OF popular
speculative attention from the hiGh-priced
issues into the low-priced stocks. Most OF
the favorites are getting SO high prices
that they will soon pass into the fancy
class and disappear in the strong boxes Of
investors. The public will. perforce, have
to gamble In the cheap things or quit the
game. Erie would be a natural leader IN
such q movement and under the skillful
direction OF the Messrs. Hartman and
Rogers 1t will be strange IL the REQUESTS
stimulus Is not impaired to the stock. These
great finaEcfers have always regarded 1t a.
supremacy desirable to make broad and
continuous markets for the properties In
which they are largely interested. Unien
Pacific. Southern Pacific. st. Paul. New
York Central Amalgamated Copper and
through the whole list 1t will be observed