Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-03-18
CAUSE Of THE PANIC
J.P. Morgan and Others Mapped
Out Plan Intended to Ruin
E. H. Hartman
LATTER's STOCKS LED DECLINE
Roosevelt Said to Have Called Harri.
man Menace and is Reported to
Have Agreed to Morsan's Plans -
Morgan Poses as Enemy Of Bad
Roads and a. AmenabIe to Reason.

New York, March 1S.-In the inner
most sanctuaries OF the great bankers,
the private rooms Of the trusted oper1
ators, who act for them in the stock
market and the secluded consultation
offices OF the legal genius, who show
them how to do things that will pass
the scrutiny Of the courts, there were
tensely whispered rumors yesterday
that Hartman had lost or would lose
control of the Union Pacific, the Cen
trail Pacific, the Southern Pacific-the
whole Union Pacific system-togethes
with Reading and all his other seizures
Of high finance; that j. P. Morgan was
the instrument OF Harriman's over
throw; thus becoming the railroad Ma
poleon; that the whole result was due
to President Roosevelt.
Some weeks ago Mr.. Morgan, repre-
senting the alarm of the railroad heads,
and their banking affiliations, sent an
emissar,r to the White House to find
out IL the president were implacably
hostile to the railroads, of the country
as such, or II he were disposed to DIFF
ferenttA.e between the good manage
ments nd the bad. Mr.. Roosevelts
return massage was that he was not
making wa: on railroads as industrial
Institutions; that he was fghting rail-
roads. which persistently and brazenly
broke tho law.
On the understa nding that President
Roosevelt was not unappeasably IN
conflict with all the railroads, but only
with those which def1ed the authority
of the government, Mr.. Morgan then
requested personal interview. At this
meeting he ASSUMED the president that
the wiser presidents Of the roads were
sensible Of the fact that they were the
creatures, not the masters, -of the gov
eminent. He declared that they were
willing to show that they were amen
able to reason and would be glad to
come to an understanding by which
they could seek to satisfy the president
of their purpose to obey the law and
fulfill other conditions of good citi-
zens.
Hartman said Mr. Roosevelt GRIM
ly, "has no conception OF what is law
full and what Is unlawful. He has
'lawless nature. He has no moral sense.
He is a menace to this country. He Is
a disgrace to the institution OF rail-
ways. He is stigma upon those rail-
way men and bankers who tolerate and
condone and help him. The government
proposes to follow him up and expose
his dealings and practices against pub
lie morality and business decency I'M
til it will be Impossible for him to
stand up longer against the storm OF
public opinion that will overwhelril
him."
b Mr.. Morgan warned the president
that a continuation Of the onslaught
that was being made against the rail-
roads would destroy their market val
ues, cause q panic, and perhaps bring
ruin on the whole country. Mr.. Eoose-
welt replied that he had no such fear
for the safety Of the country merely
thru assuring it Of it's right and pro-
tecting the interests Of its people; that
there might be a stock market panic;
that the values of railroad securities
might be impaired or destroyed. But
that could not alter his determination
to do his duty.
Thereupon Mr.. Morgan asked for
time in which to consult with Stillman
or the Rockefeller interests in the First
National bank and other financial lead
.ers. Out Of this comforting grew a.
plan for the appeasing Of the president,
to get rid of Hartman as the domi-s
nant railway factor in the United
States, taking away his vast Union Pa
cif1c system, orr at least. to weaken his
control so largely that he would be at.
the mercy of other railway interests
rather than they at his.
On the executing of the program,
came the sudden break in the stock
market, with Harriman's Union Pacific
system and Reading leading all others
in the downward plunge. Everybody
was selling those stocks and Harris
mans people could not take them,
could not begin to take them. They,
could not take them because the great
lenders, playing their part, had no
money to lend on Hartman securities
as collateral. Indeed, the Hartman
people could not hold what they had.
not to speak of taking more, for the
same reason. The banks were calling
loans" under the Hartman securities.
The call money rates were brought
way up" All this threw flood Of
Hartman holdings into the market.
They carried down the list still further
until the bottom literally was knocked
out Of Union Pacific, Reading and other
Hartman stocks ese-4sj, 81