The Birmingham age-herald., 1907-10-13
NICHOLAS WALL
 STREET LETTER Stock Market Bears a Bad
 Complexion A LOSS OF CONFIDENCE Odious Revelations In Affairs of New York Street Railways Add to Suspicious Already Well
 Developed.
A LOSS OF CONFIDENCE
BY W. G. NICHOLAS.

BY w. G. NICHOLAS.
 New York. October 12.-(Special.)-If it were merely a case of ordinary money and credit construction due to the annual recurrence of crop movement and the end of the year gathering in of funds' tho situation would be very much bright CT. Reinforce the commonplace routine conditions with q growing loss of con- hdenee and increasing uncertainty as to the future and affairs take on d really bad complexion in the stock market. rho story of the week is not pleasant one to rehearse.
 The odjous revelations in connection with local traction affairs are very far from being local in effect The newspapers all over the country in printing daily renorts of the disclosures not only give the news. but they add to the general scnse of suspicion of underlying rotten ness In all corporation management For two years there has been continuous story of betrayal of trust in large al- fairs and of bad faith in .le direction of corporations. To such an extent mas this been going on that everybody IS more or less impregnated with the Idea that corruption is universal.
 This happily Is very far from being the case for 1t is nnquestionably true that a majority of tho companies in control of railroad and industrial business are honestly and consclentiously managed for inc benefit of the stockholders and With a correct Idea as to the relationship or these businesses to the community at large Mismanagement and thieVery are the exceptions, not the rule, yet so lraee Il space Is given to investigations and ugly disclosures of crookedness that the impression has gained ground that noth- ing Is safe from the pirates of nigh finance.
 TO such an extent has this suspicion grown that intelligent and level headed people are besieging Wall street with specific inquiries, having for basis fear that even the strongest and most con- serVatiVe corporations in existence are being footed for the benefit of insiders. In all countries there is probably not more conservatively or more honestly handled corporation than United States Steel yet even that is under suspicion and bankers and commission merchants throughout the financial district are hourly asked if there can be anything wrong in that quarter. it is of common knowledge that the books, accounts and records of the steel trust were lately subjected to thorough over- hauling by experts acting in behalf of the federal government and found to be clean in every respect,
 Nevertheless so widespread is the fear of all corporation managements that there has been more or less recent liqui- dation of the shares of this exceptionally clean company by people who were the xTfnf fttaan .F tlI growing out of exposures of msmanage- ment or worsefin other directions. The Steel corporation is mentioned in this connection because it is typical of the very finest and best managed among corporations. Nothing is exempt from scrutiny at this time, or free from sus- picion. The positive certainty of a year or more of acute political agitation and or industrial depression adds to the un- easiness and makes it harder for the business interests to get along.
 This unpleasant condition finds refec- tion in a steadily tightening money mar ket and in increasing difficulty in get tlng hold of funds for any purpose what soeVer. There is growing tendency to discriminate against speculation and against individuals and interests which may be unsafely extended. Mention was made in last weeks letter about a num- Der of important individuals and com binations which were skating on thin ice and whose identity was so well known that there was open discussion of names and affairs.
 The only new feature in this develop ment is that gossip is becoming more direct and its sphere considerably en- larged. The steady liquidation which is in progress all over the country adds to the burden of these over-laden peo- pie and emphasizes their danger The mere fact that nothing has happened yet in the way of actual collapse or failure by no means guarantees continuous im- munty, and unfortunately further con tributes to the general distrust instead of restoring confidence
 The action of the stockholders of Union Pacific in giving MT. Hartman an im- munty bath. In Salt Lake City is far from being reassuring incislent. Mr. Hartman now stands indorsed in every thing he has done in the manipulation of the stock market during his admin istration of Union and Southern Pacific affairs. It may be proved against him that he f1agrantly misused the funds of his railroads for stock manipulation and for his personal enrichment yet on the books of his companies it is shown that his actions are approved. If future in- quries should reveal that he has bought stocks with trustee funds for his personal account and sold them back to his own corporations at an advance, the records will show that it was done with the ap- probation of his victims. It is charged by great many people who have not yet sued for libel that this is precisely what Mir. Hartman has done.
 If he has actually committed the of fences alleged he is now in a position to give his enemies the laugh. All of which, while conducting to MT. Harriman's per sonal comfort and peace of mind Is a direct shock to the moral sense of the pubic, and is even now operating against values. The Union Pacific stockholders in condoning the Hartman management have invited serious criticism and con demnation, the act being done blindly and in the face of almost universal protest MT. Hartman, although temporarily tri- umphant, has added immensely to his unpopularty in the financial district as well as throughout the country. If he is