The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-20
After MIR. Hartman.

The Hartman investigation has
again become subject OF active dis
cussion in financial circles, and the be-
lief is growing that the aid OF the
courts will undoubtedly be asked by
the Federal government to compel Mr..
to his speculative operations in stocks
put to him by the counsel for the
Interstate Commerce Commission dur
ing its session in New York. Conserva-
tive opinion in Wall Street Is that the
public interest demands that the opera
tions OF the Union Pacific directors
in the stocks OF the Union Pacific end
Its allied companies should be fully dis
closed It is believed that both
the stockholders and the pub
lie have right to know the
nature of these transactions. It is
recent meeting created q bad impres-
sion, and is largely responsible for the
public credence of the various rumors
about the affairs Of this country which
have been circulated throughout the
financial world recently. There is little
doubt that there have been some very
loose methods In the management OF
the corporation, and q frank avowal
|cf thls fact on the part Of the new
Fcustodians OF the property would have
gone tar toward allaying the appre-
hension OF the stockholders, as Well
as Of the public.
More Liquidation.
There has been considerable liquida-
ton during the week among the lo"
priced stocks, such as Chesapeake ana
Ohio, United States Steel common,
Colorado Fuel and Iron, Southern Kali aIl
way common, Wabash common. Mis-
lsouri, Kansas and Texas Rock Island.
Republic Steel common and Cotton Oh
common. While this selling probably
represents in some measure the mar
keting of q lot OF odds and ends car
ricd by the customers OF certain
speculative firm whose activities are
| to be discontinued, for the time being
lat least. it undoubtedly represents In
a measure also the tendency among
investors to strengthen their resources
lin preparation for any depression that
may develop within the5next year. The
pressure for sale OF these stocks has
shown that the market is very limited.
Prices have declined easily on very
lsmall transactions.
MiSlcntling Reports.
Now that the Interstate Commerce
Commission has the power to regulate
lin some measure, the character Of the
reports submitted to it by the railroad
corporations, attention has been called
lin financial circles to tho deceptive
character of the annual ptatements
made by many Of these corporations
to their stockholders. IL great many
railroads and Industrial corporations
| are in the habit of reporting large
portion Of their yearly increment as
surplus when 1t does not properly be-
long in such classification. The nat
i ral assumption on the part Of the
stakeholder Is that this surplus repre-
sents actual cash on hand or In bank
I'm the majority OF cases 1t represents
no such thing. According to the book
keeping methods most In vogue the ex
terments are charged to this account
SO that very small portion Of 1t con
sists of cash. This system Of keeping
accounts Is wrong and misleading. anc
the suggestion Is made that the Inter.
state Commerce Commission require
that the various items Of the surplus
account be segregated. 50 that the
stockholder may know at glance
ments to property and what is repre-
scented by actual cash.