Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-12

state Of stasnation pending the outcome
Of the latest acute manifestation of hnan-
cial distress In connection with Erie. A
deep-down feeling pervaded the street
that Mr.. Morgan and his immediate
friends would not be averse to seeing the
road go into receivership as being the
easiest way to tide over the difficulties.
Indeed, just before he sailed for Europe
he IL quoted as having confidentially said
to associates that he did not feel at all
certain that he would see either Erie or
Southern Railway through the approach
ing period Of hard times. He had pre-
viously pledged himself to tide both OF
funds as would be needed. The work
looming up large. however. seems to have
wrought q change Of mind and chilled his
willingness to assume the entire burden.
He seemed to have decided that others
interested could do their share. The
Others" not showing intense eagerness
to go into their own bank accounts to
help out. there developed q crisis which
threatened to bring to sudden stop the
plans for the reconstruction OF the Erie
system-plans which are already 80 far
advanced that the final stages can be
said to have been entered into.
Maybe Mr.. Morgan is getting too old
to care to engage in any more nerve
racking enterprises. At any rate the
chill Of his cold feet noticeably reduced
Wall and Broad streets and everybody
waited to see what would happen.
That Mr.. Hartman should have been
able to come to the front as he did was
an occasion Of general surprise. He was
known to have suffered tremendous losses
during the past year. but he seems to
have found fresh sources Of supply. His
apparent recuperation was certainly an
astonisher. He IL supposed to have been
the main factor in the market advance
which put prices up to - points a,, after after
ested in building his specialties to the
extent Of immense speculative commit
ments on the buying side.
That he should have been able to dig
up IS, 600 at this time need not have
been q matter OF amusement, however,
when 1t 10 recalled that he has one-man
power over the entire treasury assets OF
all the railroads and other properties in
the Hartman group. In single year he
the Union Pacific treasury. about $4,000
Co., into floating debt Of approximately
$75 600. COO besides adding scores OF mill
lions to the bonded indebtedness Of this
corporation. A man who can do that need
not worry about a few paltry millions
which can be tortured into legitimate ex-
tension and expansion projects. Whose
money It Is that Mr.. Hartman has
dumped into Erie cannot now be definitely
stated. To all intents and purposes it is
his own personal cash. He has fashion
Of doing business for personal account
on q huge scale until the time arrives
when 1t seems best for him to shift in
vestments over to the treasures of his
corporations. It Is this popularity in his
method of doing business which has
caused him to be 80 severely criticised.
=
OF really greater Importance than the
temporary financing Of any single corpor-
alton is the general business situation.
While the attention Of the mob was CEN
tered on Erie, the main anxiety Of think
ing people was directed to the broader
situation. Scrutiny and study in that
quarter cannot be said to have been sat.
tivity in many departments Of trade In.
evitably incident to spring purchases, bu,
aside from that few signs are visible OF q
genuine background stimulation. What
activity and hustle are in sight seem to
be mainly on the surface. There Is little
substantial building up from the bottom
This is especially manifest in the iron
and steel trade and with railroads. In
the former, conditions are far removed
from wholesomely favorable. More than
ever are the railroads making their policy
clear Of intent to keep down their pur-
ing no commitments that can be avoided
and making no plans which would call
for unusual expenditures. The large man.
ufacturers Of iron try to maintain a brave
front, and most Of their utterances which
reach the public ear are hopeful.
In contradiction Of the cheerful CONVEX
sation 1t is noted that the price of pig
iron continued to soften and that the big
interests are beginning to talk of re.
adjustment in the price list of finished
products. They have resolute,y held. that
there would be no reduction, but con-
growing disparity between raw materials
and the output The incongruity OF at
tempting to hold finished products at the
prices which ruled when pig iron was u
per cent higher than 1t Is now is wear
ing on the nerves and arousing harsh
bination to hold UP prices ere in an ex-
tremely sensitive frame of mind just now.
and shrink from any noise which Is likely
to call attention to their efforts to arti-
f1cially maintain prices in the face Of a
general tendency for trade restriction and
declining values.
The weekly and monthly reports Of the
railroad earnings mark almost no I'M
provement except in a few localities. Now
and then factories and mills resume work
or increase their forces of men. but the
rule is the other way, and the financial
pages of the newspapers and the business
bulletins are full of reports of wage re-
auctions and diminished dividends.
The money markets are working easier
and even time rates show softening side
At the same time banks are not at all