Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-03-19

| his associates stand closer togetnel
| than ever.
The escape of Mr.. Hartman from
what looked yesterday like a Waterloo
is the more remarkable, for never be-
fore in the history Of financial markets
have so many powerful men allied
| themselves in a pool as in the attack
on Hartman. Andrew Carnegie was
called from his retirement ano
brought tens of millions in cash am
munition. John S. Kennedy, white
haired and feeble in body, but col.
lossus in high finance, was also brought
into the battle. D. Willis James, the
quiet but mighty copper king, came
also. j. H. Millbank, the money King
whose power Is known only to few
,, of the great ones in Wall street, was
drafted for service. ]. P. Morgan,
through his lieutenant, Thomas F.
RYAN, arranged the plan Of campaign,
and to George F. Baker, president OF
the First National bank, was entrust-
ed the delicate matter Of financing the
enterprise.
According to Wall street whispers,
the actual plan Of the campaign was
conceivable some weeks ago. and at
that time all the millions in cash that
the combination could secure were de-
posted in the banks controlled by
Hartman and his friends Of the
Standard Oil party.
J. P. Morgan was informed by Pres
ident Roosevelt that Hartman must
go and Mr.. Morgan Is said to have
given definite assurances that Harri-
man would be disposed of, provided the
secretary Of the treasury stood In the
breach to prevent wild panic. Assur-
ances were given, 1t was said, that
this would be done.
The Morgan people at once loaded
vast quantities Of stock. They believ-
ed they were unloading them on the
Standard Oil people and perhaps they
were. Morgan is said to have sold
100000 shares through James r.
of 100000 shares for himself on top Of
that. With these preliminaries attend
ed to, the last cards were played.
Morgan sailed for Europe, leaving
positive orders behind and. by putting
himself in mid-ocean, placed 1t be-
yond the control Of himself and any
one else to change the programme.
On Tuesday the Standard Oil peo-
pie discovered the trick which was to
be played, for the trick was extreme
ly simple and could have but one
meaning-all the millions Of cash de-
posted by the Morgan combinations
banks at once.
Checks running into the millions
were presented at Standard Oil banks
to be certified. To appreciate the
weight Of such a blow, 1t must be
understood that the minute check
Is certified the bank is compelled to
hold in reserve every dollar represent
ed by the check and dares not use it
for any purpose, although 1t is still
compelled to remain custodian of the
funds.
The moment these checks are certi-
fed, the Standard Oil people knew
that money would go soaring to
10, 20 and perhaps 80 per cent. They
we're compelled to call loans from their
friends to restore the cash balances
while holding these millions Of idle
money for the Morgan people.
They saw the trick before the first
card had fallen from the hands OF the
other side and instantly warned their
friends not to buy stock and not to
borrow any money for a few days, as
there was going to be a squeeze.
On Wednesday the furious selling
commenced. The Morgan people danced
in glee, for they believed they had
their enemy cornered. They knew that
z. H Hartman, personally, was car
Tying dDOul fUV,UUV SildicS VI SloShS
and they knew that 100000 shares OF
choice securities were lodged in the
vaults Of the National City bank.
They were surprised on Wednesday
night at the calmness of the Standard
Oil party and especially Of Hartman,
who, while deploring the panic, was
quietly gathering in the stocks which
his enemies were shaking loose from
the dear public with the aid Of the
administration at Washington.
On Tuesday the Morgan people, wor-
ried at the refusal of Hartman to call
for help, started that furious drive on
Reading and Union Pacific, which end
ed in panic.
Hartman had his brokers on the
floor selling stocks fiercely, but for
everyone sold there were two Of his
brokers buying and before the day was
done he had covered his short line at
enormous profit and calamity awaited
the next move Of the organ combined.
The new secretary Of the treasury to
whom the Morgan people had endeared
themselves through their campaign
contributions Of the past, carried, out
his part of the programme by offering
to purchase $25,000,000 Of bonds. Now,
it happened that the National City
bank owned about all these bonds
available, and 1t was first at the coun-
ter for the government cash.
When the showdown came late on
Thursday night the Morgan Carnegie
Baker combination discovered that 1t
had purchased about 100000 shares Of
Union Pacific, Delaware and Hudson,
Chicago and Northwestern, Illinois
Central and Baltimore and Ohio, but
that Hartman seemed to have as
much stock as when they started.