The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-02-25
Hartman Investigation, Which
Resumes To-Day, Expected to
Disclose Scandals.
HIGH FINANCE ON TRIAL
Railroads Have Brought OH the
Trouble-Mo neyIs Tight and
Relief Is Distant.
ny LOUIS GUENTHER,
Editor OF the Financial World,

ward with Intense interest to the re-
sumption OF the investigation Of the |
Hartman lines by the Interstate Com |
nlcrcc Commission. which begins Feb
ruary 25th. 1t feels that not alone
the Hartman lines will be placed un-
der the relentless searehlisht OF pub
licity, but that thigh finance" will be
on trial The biggest men in Americas |
financial circles will go on the witness
stand. not only e. II. Hartman. who
has within a few years become the con-
trolling power In American railroads.
but also II. Fl. Rogers. considered at
present the brains OF Standard OIL and
Its financial transactions: Mr.. William
G. Rockefeller, who has his eyes con-
stantly on chances to make fortunes
in the security market, and Mr.. ). Fl.
schiff, the head of Kuhn. Loeb & Com
pany. the 6nanciers OF tho Harri
man lines one OF our greatest inter-
national banking firms.
During the last few years these men
have made The history OF Americas
finance and railroading. as the house Of
j. p. Morgan & Company has actually
laid low and confined itself to the de-
pclopment OF the properties In which
1t is interested. Wall Street cannot
subdue the fear that we are on the
eve Of great financial scandals which
will bring out how high finance
operates on the public and makes It's
mii..ons Should the revelation turn
out as bad as feared, Wall Street will
receive a serious setback. for who will
put money into corporations If it
should be shown that the big men are
using the corporations they control
Just as an enemy is used in con-
quered land?
Railroad Presidents Feel Blue.
One Nv - fE rf Go
leading railroads are expressing
gloomy views about tho immediate out
look. Dir. William II. Truesdale. the
president of the Delaware, Lackawanna
e. Western; Mr.. ]. ]. Hill, the presi-
dent of the Great Northern Mr.. Thayer,
one of the ce-presidents of the Penn
sylvania: Mr.. Stickner,x the president
1 of the Chicago g. Great, Western: Mr..
Milton H. Smith. the president of the
Louisville & Nashville; all of them in
their public utterancesse complain about
the animosity of the public against
railroads, charging thateitf all will lead
to serious results as twill not enable
the railroads to execute their far
reaching plans. of improvements and
i extensions -se.4-s.s ,,r ~
These plans will require millions, and
/ money cannot be raised when deep
| seated distrust and antagonisin exist
But who is to blame for all this but the
| railroad lnanngerrents themselves? Was
| it the public, that has indulgcd in re-
| bates, determinations stock Juggling or
caused the many APPALLING railroad ac-
/ cidents |? The railroads are reaping only
what they have sown. Let them adopt
a policy Of publicity and take the pub
4 lie into their confidence by showing it
4 that the railroads are run for the benefit
ofSthe, people; and not for that of direc-
! tors, many of whom have for years
s paid more attention to- the stock mar
kct than to the railroad properties en-
trusted to them, and they will find out
how easily distrust can be changed into
confidence
4 The Monetary Situation.
4 Even II the above mentioned de-
4 pressing features would not exist, the
4 money situation Is against q real boon,
in securities. Wall Street could not find
means to finance a hull movement Of
any size.
a compilation of the report
of all national banks under the cal
Of the comptroller of currency OF Jan,
uary 26th shows that the loans car.
ried by national banks ara sS92,00O,.
! 600 larger than they were year ago
!. and that these loans exceed the indi.
4 vidual deposits Of the banks by $347,.
100000, while year ago the excess
Oh luQlVluudl7 deposits over loans was
s17. 100000. This shows a strained
. monetary situation, and accounts fol
II the liquidation In stocks that has beer
Il going on In the market since January
No early relief is expected We can.
, not expect to raise much money Ii
|. Europe. where the situation is no,
better. South America, Egypt, China
and India are drawing heavily on thu
financial resources Of Europe. There
is a Worldwide expansion In business
going on. and especially are the abov.
named countries awakening ana begin
q ming to develop their enormous re.
sources.
However, as most OF our railroads
have so far secured what new capita
they need. and have decided to curtai
their extension plans for the present
j the United States will for while cease
to tax tho monetary resources of home
Y. and abroad.
Little Inland Money in Wall !.
4 Street.
u There Is very little money flowing
back from the West and South to New
y York. as both Of these sections can use
all their available cash means to good
advantage. The ratio OF interest West
banks employ their funds relnunera,
4 lively at horne.
The Action Of the Stock Market,
1 The belief, however. is prevailing that
most Of the standard stocks have dis
counted to some extent the worst fea.
/ lures Of the situation, and that II they
should not improve they can hardly &C
much lower. for they nave almost
reached the low prices OF 1s0S-19o4. II
the market should rest for while /,
will only gain strength by 1t, and later
on, when crop news should become
favorable, enter period OF good re.
covery,
The Bears Have the Upper Hand,
n While the market remains mostly
Stock Brokers.