Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-03-20
STOCK SLUMP IS
CAUSE OF WONDER
-----------------------
lover Prosperity and "0ver
capitalization Are Terms
Used to Explain.
RAILROADS ARE BIG FACTOR.


The recent Wall street stock slump,
its causese and results have been the
subject OF much discussion and wonder
throughout the country and in fact all
over the civilized world Perhaps as
concise a review as has been furnished
is that contained In z. Z. Hutton &
Company's latest letter which has been
received by James a. Pollock and conf
p0ny over a private wire, The letter
follows; THE tremendous break IN
SOCKS lately on speculative iqulda
tion ana professional selling was fol-
lowed by the strongest kind Of invest
nent buying on a heavy scale. 1t seems
that certain things have been accom-
plished In the market by the break and
the Morgan following, IL large takers
OF stocks for the first time In q long
period, which is a very favorable sign
for future market events, for a W lille at
least There are many rumors atloat
a the close of the week of changing of
control ct several az the trunk Hines, but
it seems quite doubtful if such has
happened"
FACING DEPRESSION.
However, 1T IS quite possible that
certain large interests have been se~
verely hurt that were Instrumental in
the recent buIIsh operations In the
market. what effect This Will have on
the railroad map Of he future Is inn
possible to predict al this writing. We
do not regard money as being q factor
cf Importance in the present situa ton
as bankers can make this commodity
what they may, according to their CONS
Witments in the markets. We are fac
lug depression IN business coming
later on in the year. hence we cannot
feel that one should load UP with stocks
and on the contrary we believe that
opportunities should be taken in the
future to ItquIdate securities.
OVER PROSPERITY"
Suffering from over prosperity. with
Its Incidental bad influences for a con-
tinuanCe OF stability of general bust
ness conditions speculation in certain
groups OF securities on an enormous
scale, induced by placing OF Union Pa
ellie on a 10 per cent dividend basis
last August thereby creating a market
for large speculative banking c1nti-
Gent In Wall street To unload their
holdings u Union PacIfis on the public.
after marketing their personal holdings
Of Illinois Central Baltimore &, Ohio.
New York Central and other securities
on the treasury OF the Union Pacific
railroad recent government and state
legislation OF the most drastic kind
lions. are the prime factors for the
cause of the heavy break in these Sc
curities. The extended prosperity In
THE United States over a number Of
years has resulted In unprecedented ex-
panslon OF trade, speculation in land
and mining, which has strained the
money situation and seriously impaired
confidence. The great speculative coup
of the Hartman banking syndicate In
judging the Union Pacific and Southern
Pacific dividends whereby millions We're
made by these interests, were sufficient
TO unsettle public sentiment toward
standard securities, which has been
lately proved. Foreign investors and
bankers were warned OF the situation
here and funds were unprocurabe In
any volume.
FEDERAL INVESTIGATION.
Searching Investigations are being
made by federal government into rail
way operations and their abuses and
corrective measures ARE being taken In
the shape Of stringent laws whereby
purpose of honesty In the management
VIII be exhibited IN the future both to
the shipper and ira importation COM
pany. The subject OF Orer-capItaIiza-
ton and valuation OF properties will
come later 1t is said by competent au-
thorties that American railways are
Nsi9 bElllliu klt klQMIu OI inc
country Ihen II would seem that not
In the remote future We wall enter upon
q long period o. railroad recon struc don
and extension with national laws to
control this railroad building as to the
issuing of new securities
RICH MANS PANIC.
I'VE VIII find not only period
OF prosperity but marked stability and
American railway stocks will be found
on basis of InvesI ment not seen here
tofore- The administration al Washing
ton is being held responsible for the
great decline IN stocks, since the first
OF the year, facts do not bear out this
View. taken by many. Let the censlre
be placed where 1t belongs. to the tIar-
riruan group ot ''tinancleTs.' This CO.
! terte of amen have fagrantly mauipu
lated their speeIaltIes for six months
| past IN the tace OF dangerous none
| tnry conditions IN the country. They
! have unloaded their holdings, not on
| the sO.ealled hub. but on rich men that
| have been lnlbued with the speculative
| fever aud haze been carried away by
| their Immense speculative Ven
lures. There has been one re-
suit a rich mans panic I'm
| which fortunes ebntvta hazte hnas, lhu,