The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-13
Wall Street Affected by Rapid
Advance During the
Week.
CRITICIZE HARTMAN SCHEME
Railroad Men. Fear Result 81
Drastic Rate Regulation in
the West.

CrOp conditions have 'DCGn the prlhcl-
pal influence In all OF tho Wall street
markets during tho week. There nave
boon sensational advances IN cott1,l
and wheat us q rss,ii: VI The wi!h.
aprcad damage to the growing crops
caused by tho Unusual spring weather.
In the South and Southwest the cotton
crop liz reported to have had the lntcr.
start in thirty years, Wide aicas have
been rcplnntod three and tDut tines
only to be again devastated by thn
heavy rains that have fallen during the
last ten days. There Il. reported to be
scarcity of seed. and al tie close Of
the week the experts were predicting
crop much below the average. not.
withstanding that Mt tho beginning II
The season II grchter area tran usual
-vns planted. Az matter OF fact. tor
the first time in several years there IA
talk in wall Street Of IL cert cotton
and 81 wheat. The government repoi n
? OF the wheat crop, Issued OIL Friday,
failed to verify the ra Their optimistic
prediction made by the Secretary OF
Agriculture earlier In the week; in
feed. Secretary Wilson'S sourcesof in
formation could hardly have bcca
within his own depar tmcnt. Accord
Ing to the report issued on Friday. the
average condition OF winter wheat on
with 800 on April LIST OF tho present
year; OIL on May 1. 1906 and 81 on
May l. 1905 The most significant
fact. however, In the report !s that
about 3.533.0oO acres OF winter wheat
sown last fall had been completely
abandoned or sowh with other CROPS
on May LIST.
Unexpected Needs.
The large amount OF money needed
by both Union Pacific and Southern Pa
Ac Is not the least painful OF the sur.
prises which Mr.. Hartman has given
the financial world Last summer 1t
was announced that these two roads
had completed their extraordinary ex-
rcnditures, and 1t WAS assumed that
the surplus earned beyond dividends
would be more than sufficient to make
all necessary improvements. Despite
the spacious arguments used by Mr..
Hartman to Justify these cxtraordln-
airy demands for new capital there Is q
very wide suspicion that the necessity
for raising more money Is in some mys-
terious way connected with speculative
operations In other railroad securities,
and perhaps with the recent heavy
decline in the value OF these EpecuIa-
tive securities which. according to Mr..
Harrimnn's own admission. had a
slump In market value OF nearly S2O.-
100000. II can scarcely be expected
that conservative Investors Will have
any very great confidence in the secur-
ties OF a corporation whose millions are
apparently placed absolutely at the
disposal OF any single man. no matter
how great his financial ability and
4 speculative skill may be.
Not Much Reform.
Wall Street has heard great dea
Il, NJ ho rrn NJ Safax IL
cooperative methods and OF a disposition
on the part OF those who control the
great railroad systems OF the country tr
yield In Horne measure ut least to the
pressure Of public opinion. A promise
az least implied, was given that thcrt
were to be changes In the executlv.
committee OF the Union Pacific system
that would render 1t less olIgarchal IL
character. 1t was said that men o
virility and Independence were to TAX.
the places OF GONE OF the lay figure,
on the committee and that the wishe,
OF tho stockholders were to be repre-
scented by directors who would have TIL,
courage to demand share In the shnp
ing OF the system's policies. These ms
surances have not been carried out. no
Is there apparently any likelihood tina
only continues. but additional resource
are placed at It's command. This stat
Of affairs is mainly responsible for tn
utter lack OF faith which Investors o.
both sides of the Atlantic have In tn
future OF Union and Southern Pacific sc
curities. It Ia tho cause OF tho wide
spread communication OF President Roose
velt's attempts to delve into the mystic
rics OF the Union Pacific management
and the generally expressed hope, bot
In Europe and America, that the inqui
sition will result In compulsory reforr
In the management and In the final d;
vorcing OF the great Southern Paciti
System from the control OF II road the
j practically parallels It from the Middl
West to the Pacific and cngs like
vampire to It's vitals.
Fear Legislation. u
There Is one subject upon which Il
railroad men Of the West seem to /
united. and that Is upon the questlo
of the drastic reduction In freight ar
passenger rates which will result fro
the enforcement Of tho Minnesota la
recently placed upon the statute book
There is a growing fear that the Q.
ample of Minnesota may be followt
In other States. Railroad authorize
do not hesitate to say that II the moy
mcnt should progress very far in SUI
direction many OF the strongest roa,
will be compelled to pass or rcdn
their dividends. while some OF IL
weaker lines win be forced into bnnl
ruptcy 1t is undoubtedly true TIL
some of tho reductions proposed, III
der the present condition of increas
cost of labor and material will bril-
rates to a point where there will
no profit whatever to the railroad
The railroad men; however, have theI
selves to blame for this state OF /,
fairs Instead Of sensibly yielding
public opinion and cooperating wi
the Interstate Commerce Commissl
in the fixing of railroad rates throus
out tho country On a basis oqnltaf
a alike to the shipper and to tho ra
road, they instituted Il malignant cal
paign against tho movement In eve
section OF the country. resorted to CT
ruption and coercion to defeat the pf
ple's Will, and have finally adopted
policy of defiance. which they hn
only abandoned when they have d
covered that public opinion In the So