Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-02
AN'TFLOAT LOAN NOW
Hartman Says It's Impossible
to Finance Enterprises.
PERIOD OF QUIET NEEDED
Time Must Be Given, He Declares, for
Public Confidence to Return.
DOES NOT OPPOSE PUBLICITY
Deprecates What he Styles Sensa-
tional and Theatrical Investiga-
tions of Corporations.
DOES NOT OPPOSE PUBLICITY
BY WILLIAM f. CURTIS.
Special Correspondence of The Star and the Chicago
Record Herald

Record Herald.
NEW YORK, May 2S. 1907.
In answer to my questions the other day,
Mr.. E. H. Hartman said that railway ex-
tension and rebuilding in the United States
would in all probability, be stopped when
present undertakings completed, be-
cause it is not possible to finance further
enterprises on basis that would be profit
able.
IF any old company like the Pennsyl-
vana New York Central We're to issue
bonds to pay for further Improvements,
even they could not expect to sell them
on the terms that have prevailed hitherto.
1t would be necessary to make sacrifices
which would njure the credit of the COM
panies and accept a low price for high
class certificates. The Northwestern rail-
way has a lot of 311 and per cent
bonds already placed, which maintain their
prices fairly well, because small investors
buy them, but if that company should
come out with a new loan it would bring
down the prices of the old bonds.
Investors are unsettled and doubtful in
their minds, and there is a high nervous
tension throughout the country. People
have become SO much disturbed and excited
that their judgment has been impaired. 1t
is necessary to quiet their anxiety, and the
public must resume its mental tranquility
before it is safe to float any more loans.
We are in a different condition financially,
however, than at any previous time in the
history of financial troubles. Hitherto the
west, which is the producing part of the
country, has relied upon the east for money
to handle its crops and transact its bust
ness. That situation is now reversed. The
producing districts have grown SO rapidly
in wealth that the money centerS are now
relying upon them. The latter are now
borrowing in the west instead of lending
winch gives the country broader and
safer foundation than it has ever had be-
fore, and gradually confidence will be re-
stored and prosperity will continue.
This feeling of unrest and distrust may
be sentimental to a great extent, but it
will be very difficult to restore confidence
unless We can have cooperation between
the government and the business interests
of the country. There must broader
platform upon which individuals and cor
porations can deal more frankly with the
government and the government can deal
more frankly with them President Roose-
welt in his biography of Thomas H. Benton
says: An assault upon the money power
is apt to be popular in a democratic re-
pubic. partly on account of the vague
fear with which the poorer and more ignor-
ant voters regard a powerful institution
whose workings they do not understand
ana partly on account of the jealousy they
feel toward those who are better off than
themselves :"
Mr. Hartman called my attention to
a very striking description in President
l.
cal assaults made by Andrew Jackson UNION
the corporations of the country which led
to the great panic of 1887. He pointed out
some remarkable simlarties between re-
cent events and those which occurred dur
ing Jacksons administration but was con-
hdent that the financial strength of the
country, which is SO much greater TODAY.
cannot be disturbed as ii was then.
Operation of the Rate Bill,
How does the new rate bill work?"
asked.
1t has scarcely been put into operation
replied Mr.. Hartman. 1T is going to help
or retard the transportation business, ac-
cordlng to the manner in which it is en-
forced. 1t can be made oppressive or pro-
gressive. If 1t is fairly and intelligently
applied it will promote the interests of the
railways as well as the shippers, or it can
be used as an instrument Of oppression or
malice or vengeance to destroy the business
of the country and to rob the stockholders
In the great corporations. 1t all depends
upon the personnel Of the interstate COM
merce commission. The present members
are fair and honorable set Of men, and
more should be left to their discretion In
The construction and application of the law
The Hepburn law confers too much power
upon them however, and at some time In
the hands of a different class of men it
might possibly be used for speculation and
for securing advantages for one railroad
against another.
Il have never objected to abolishing re-
bates or to any degree of publicity concern
ing the transaction of the business of rail-
roads and other corporations. There has
never been any complaint from the inter
state commerce commission or the bureau
of corporations, or from the stockholders
of the companies with which am connected
concerning their inability to find out what
the management Of the Union Southern
Pacific is doing. We court publicity. Our
reports are full and complete in the great
oct Iafn anV a in hU Gv.
aiming them, and the stockholders are
perfectly satisfied. Nor have I ever op-
posed the regulation o. rates under proper
safeguards. What l did object to the
men to interfere at their pleasure with the
rights of individuals and the public gen.
orally. If certain interests happen to be
antagonistic. and one of them wanted to
check the other, it could get all the nee
essary information by putting the ma
chinery of the interstate commerce COM
mission into operation and place Its OPP
ponents at a dangerous disadvantage. That
danger is illustrated by what has taken
place since the law was passed.
Alleged Sensational Inquiry.
IF the recent investigation had been con-
Quoted upon a purely bushes basis, and If
all politics had been eliminated, it could
have been done without injury to any one
concerned or attracting so much attention
But 1t was a political rather than bust
ness investigation. 1t was intended to serve
political purpose rather than promote the
welfare of the country. The information
that was apparently dragged out in SEN
sational and dramatic manner had already
been promptly supplied to the commission
from time to time the events to which it
referred happened and every fact disclosed
had been published over and over again in
the newspapers and was familiar to every
man who keeps himself informed concern
ing such subjects. AL the information OBJ
tanned was already on file in the office Of
the commissioner of corporations as well as
In the office of the interstate commerce com
mission The same Is true of the alleged
disclosures concerning the Standard Oil
Company. The bureau of corporations has
known all the facts in detail almost from its
very organization. They have been in the
possession of the interstate commerce COM
mission all the time, and doubtless in the
Department of Justice also. Not one single
new fact of importance has been discovered
and the ends Of justice could have been at
tanned by using the sworn reports pub
lished in 1899 and 1900 and other records of
the bureau of corporations and the inter
state commerce commission. But for some
reason it was considered necessary to treat
the matter in sensational manner and pro-
duce a theatrical effect.
THAT is what l mean" said Mr. Harri-
man, when / suggest that the relations