Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-04-07
Financial News Letter
BY w. G. NICHOLAS.

NEW YORK, n. Y. April g. 1907
The financial community was just begin
ming to feel easier this week when it was
disturbed by the renewed outbreak of hos
tiities between Mr.. Roosevelt and Mr. Har-
riman. The spectacle of the President of
the United States and the representative of
large vested interests calling each other
liars and other names in the public prints
is not of character to reassure investors
as to the future stability of the financial sit
uation. The feeling in Wall street is that
the government inquiry into enterprises
backed by the Standard OIL crowd has re-
solved itself into a personal duel between
MIR. Roosevelt and Mr.. Hartman. The rank
and file of Wall street have no great love
for either Of these eminent Americans, and
the feeling here is that no good can come
from this personal fight.
More light is thrown on the so-called
Lawson panic" of December. 1904 by the
correspondence between Mr.. Roosevelt and
Mr. Hartman given out at the White House.
The Lawson panic was in reality panic
caused by the Standard OIL crowd taking
the pegs out of the market on the day the
first Roosevelt message came out. That was
the message that stated the Roosevelt posi-
ton in favor of the government regulation
of railroad rates. The Standard OH crowd,
whether really frightened or not, made q
show in the market of being frightened by
the message Now we find that only a few
days before the pulling out Of the pegs Mr.
Hartman was writing to the President ask
Ing him what he was going to say In the
message about railroad rates. Mr. Roose-
welt wouldn't tell him. At that time SO It
appears. the President was seeking Mr.
Harriman's advice. The split between the
two men came about then. Mr. Hartman
threw up his hands when the President
came out In his message in favor of govern
,yot t<,~ -
road presidents conference at the Metro
politan Club and the Lawson panic" quick
ly followed the publication Of the message
The President has been obliged to listen
to some rather plain talk during the last
two or three weeks More than one White
House visitor has told him frankly that the
political agitation directed against some of
the larger interests has worked injury to
the country at large. They give Mr. ROose-
Welt credit for honesty of Intentions but adj
wise him plainly that his efforts have been
either misdirected are being miscon-
strued. They point to the fact that the DO
litical campaigning now under way has
served as a notice to foreign capital not to
lend American corporations any more
money.
1t has been pointed out to him that q
large part of the railroad mileage has been
built with foreign capital and that even to
this day the financial arrangements of trans
portation systems are obliged to go to Lon
don and foreign capitals for funds whenever
they plan important improvements, extern
sions or betterments. The political attitude
Of the national and state governments to-
ward the railroads Is unquestionably chilling
the old-wOrld confidence In the safety Of
American investments. This is unavoidable
under the circumstances. and the conse-
quences are injurious. This much can be
said without reservation or Qualification
and the responsibility therefor Is traceable
directly to injudicious agitation. Doubtless
the harm can be rectified, but 1t will take
faith in the asset value Of our professions Of
good intentions.