The San Francisco call., 1908-08-09

dS I1e railroad SITUATION CLEARS II pS-
comes better understood that Gould
surrendered something of his eastern
railroad interests in order to save' his
western property-the Missouri Pa
cifc, Denver and Rio Grande and West
eTn Pacific-in which his brothers ana
sisters are heavily interested. 1t is de-
clared in his behalf that in making his
deal with Hartman he was careful 10
safeguard these interests, and that
they will be affected in no wise by the
deal made with Hartman, but Will
be operated as independent roads, un-
der the Gould management, and with
out any agreement whatever with rival
interests.
Harriman's declaration in Chicago
that as he grows older he grows mel
lower and with kindlier feelings for
his fellow man, was read with mucn
interest in Wall street, where there is
yet much doubt as to whether Harri-
mans latest assimilation of rival rail-
roads was benevolent or malevolent, in
asmuch as he had been on George
Gould's trail since their famous quarrel
a few years ago over Colorado Fuel and
Iron.
AGE MAKES MEN MELLOW
A prominent Wall street operator said
to The Calls correspondent:
1T is true, as a rule, that as rich
men grow old they begin to think more
about the camel and the needles eye,
and begin charitable and benevolent
operations. There is Carnegie, for in
stance, who wrote Count Tolstoi, ask
ing why a rich man might not enter
the kingdom of heaven. Mr.. Carnegie
has announced that he will give away
all his money and die poor but happy.
He donates Libraries bearing his name,
that it may be handed down to pos
terity. st. Peter may regard this as
a rather doubtful brand of benevolence,
smacking rather of vanity than
charity"
When Hartman raised money to pay
off a part of the Erie's obligations
few months ago he announced that he
did it out of sentimental" considera-
tions. Truly, these rich old men grow
wonderfully mellow as they approach
the brink of the gravel
HARD BARGAIN SUSPECTED
1t took the Gould and Hartman con-
ferees three days to reach an agree
ment. Obviously, Wall street thought,
there were terms which the Gould
party found unpleasant and it was the
general impression that the Hartman
party was driving a hard bargain.
Probably it was in q position to do so,
for the time was short and the Gould
party mus have been discouraged by
other bankers before going to Harri-
man and his banking associates. The
Hartman people undoubtedly drove a
hard bargain, said one banker, because
they were in a position to do so. There
was no doubt in his mind that the
agreement contained clauses which the
representatives Of the two parties are
pledged to keep secret.
There was a difference of opinion as
to whether Harriman's entrance into
the Gould system should be considered
a favorable development. 1t was re-
called that about a year ago. which
was the most garrulous period OF his
life, Hartman, who was then in the
west, was quoted in news dispatches
as saving that he would take all the
railroads in the country if he could get
them.
LIGHT ON HARRIMAN'S DENIAL
The remark at once attracted a storm
Of criticism, and presently Hartman
gave out an unqualified denial of the
report. Whatever its truth it is point
ed out that Hartman has since been
acting as if his reported remarks rep
resented his purpose. Since that time
he has secured the Central of Georgia,
has strengthened his position in IL
linois Central, Delaware and Hudson
and Erie, and now shows for the first
it was argued, may serve to revive anti
railroad agitation and thus do more
harm generally than the good that may
be accomplished by the reorganization
of Gould roads with the resources of
Hartman and his associates. In an
other way the expansion was unfav-
orably regarded. Even Hartman, it
was said, might become overextended
and endless chain railroading become
as dangerous as endless chain banking.
HOTELS SEE CLOUDS PASS
Besides the theater, which is consid-
cred the best indication of general
business conditions, the big hotels are
the best business "barometers."
The Waldorf, the Astor, the Plaza,
the ST. Regis, Manhattan, Belmont,
Breslin and all the big hotels are an
ticipating an immense winters busi-
ness. Speaking of the prospects, Man
ager Sterry of the Plaza said:
When a hotelman says the panic has
passed the public will probably say
he is too optimistic. But the fact is
the big hotels felt the panic before any
one else, and they always experience
its passing months before other kinds
of business.
The class of people who patroniZe
| the big hotels are the class who usually
know what is going on in the financial
world. AS a rule tl~y are men of af-
| fairs. When the combination of events
starts these people feel it first and be-
! gin to retrench.
Now when you have whole hotel
| full of people of this kind and they all
begin to look for financial storm you
can very quickly notice it in your re-
ceipts. As a consequence the big hotels
| feel it before the rest of the country
has been warned of what is coming.
I'm the same way these people know
when the cloud is passing away before
the rest of the country has experienced
any relief. AS soon as they see the
skies clearing they begin to loosen ur
again and our business Immediately re-
acts That is why say the panic has
passed so far as the big hotels are con-
cerned. OF course the summer dull sea-
son is on, but the hard times of last fall
and winter have all gone by. There is
nothing but good cheer in sight for the
winter, and I anticipate the best sea-
sons trade we have had in many
years"
NEW ORPHEUM THEATERS
1,o 1af ~