New-York tribune., 1909-01-31
The Financial World.

one another-have actually become fraternsI -
Indicated By surface signs Some cyntcs arsct
to disbelIeve this. But the doubters are pretty
generally speculators short OF stocks-pessimistt,
traders who welcomed almost an apostolic
benediction the fact that when the New YORK
Central Hartman announcement came the stoc.
they had apprehended hurrah And Seesa..
nobody went crazy their subtle souls EeIsd Up
with the joyful hope that, after all. maybe this
last Hartman triumph might prove somethlng
bad and sad.
the South, has apparently given scant attention
10 security market phases. Certainly the worIx
of neither his any other powerful hand Is
evident Union Pacific and Southern Pacific lag
And. as in those premier Hartman issues. 20
generally throughout the standard list there
shows the waiting disposition
Among financial news developments OF ths
week none surpasses In interest or consequences
the annouucement OF Edwin Hawley's acguizi-
ton Of control OF the Chesapeake & Ohio Rail
way. Wall Street had expected no such coup.
What is indicated by the surprise deal. what N.r.
Hawfey may propose what can be accomplished.
whether new gigantic deal Impends-such ara
questions not answered by anybody anywhere
Hawley maintains his accustomed silence. The
Sphinx could be scarcely less linguistic. Yet OF
course. very plain TO even cursory examiners OF
the railway map are possibilities stupendous
Nv use OF one or two minor outside DroUerties
Mr.. Hawley can by merger OF his standard lines
(Chicago & Alton, Minneapolis & ST. Louis
Iowa CeutraD. through his Chesapeake & Ohio
relationship create a Western-Sea board system
consequential enough TO compete even with the
PENNSYLVANIA and the New York Central FOR
grain and humber and ore business 70 the At
lantic. Then, if theorizlng be not too much
labor. what potential additional status may rot
be readily acquired by an absorption OF the Chi
cago & Great Western, a chronic derelct, nav
ing no opportunity equal 20 what can attract IL
into Hawley combination Suggestion Of
deal like this WILL OF course, challenge criticism
Errff rrlpr a n Al IN
the underwriting syndicate identified with Mr..
Hawley's purchase Of the Chesapeake & Ohio
huancfer who has now come to be recognized as
a dominating personality IN the analrs or the
Chicago Great Western? EDWIN HaWiey has
not bought as broker He buys as proprietor
He has such uses for the system as can give IL
consequentiality far beyond what hitherto has
been dreamed for tt-eVen oy those enthusiasts
Irho not SO long ago were confident that merged
with Big Four the Chesapeake & Ohio vas
going 20 serve as tremendous profit producer
for the Vanderbilt system. Perhaps nothing
else has gone so much askew IN Mr. z. H Har-
rfulan's Eastern developments as this loss OF the
ths ne1T,1sr in1t7iry Of Wall Street: Aren't
Hawlev and Hartman really pretty much o1eg
The Colorado Southern deal might answer mat
Not Hartman but James J. Hill was helped 5y
HaxIev there-not merely helped 20 new con-
nectons, traffic. new strength new pronts-
but helped into position where Hartman could
be put 20 vast disadvantage
OF influential market elements most tnpor-
tant is the money market Funds grow mOre
and more abundant. Rates become daily more
and more advantageous for security market
uses IN long list af bonds and OF stocks the
list is still longer, interest yield far surpassss
the rate current for rnouey-and IN this dis
"a rity is TO be found the most effective OF cur
rent bull arguments. United states Realty. Ter
example. paying per cent dividends is yielding
at its present price virtually per cent TO the
investor-or nearly twice what that investor
could obtain for his money by loaning-whie
will soon be superseded by per cent adds. of
course to the persuasiveness. And United
States Realty IS but one Of examples readily
quotable-
With return Of market activity and eonss-
quent market strength, it is still the feeling OF
this review that Pennsylvania IS likely 70 be
leader among the higher-priced standard rail-
road shares. More than passing significance Is
in the sturdiness it has shown throughout the
past weeks choppy market. And as Pennsyl-
vania stands among railway stocks quoted al
premium go IN all Likelihood Denver and no
Grande will be among railway shares OF mod
crate price. James J. Hill. rather than M
Gould. may soon be recognized as Denvers chleL-
That there is a short interest in the market.
extended beyond any recent commitments IS
clear. II is especially large in every property
with which the name of Mr.. Hartman is ident-
aed--so much so, apparently, that cynical trad
ers upon the stock Exchange are affecting 20
believe that very large percentage of these short
commitments are mythical. that they cover ac-
tual sales Of long stock yet to De delivered. As
matter Of fact not one development anywhere
discernhle warrants this sort ot scepticiSE
Bear gospeleers have long been deiugins the
market with theories that M Hartman was
deceivtng his friends and fOLOwers-ani they
we're surest of themselves. surest OF thet- scan
dais, sureSt of their SpeCulariv commitments
when Union Pacific and Southern Paeihc we're
fifty points lower than now they are Suc1
market leadership is not profitable leadership
E. H Hartman does not seem at all opposed 20
being hoelledi oCt any resentment ne may - -
Judged by past records-hnds ample seqlei
Pacific at 100 are vigorously certain that ne S
still wicked and dangerous with Union Pacllc
at IFS. At 200 they doubtless viii be stu
yoieeful
At the close Of the week We have couple OF
days of recession. Standard stocks are down
two or three points after rise Of fifty per cent.
OF course. all the toy Napoleons upon the pear
side are issuing procIamations; and nervous
commission brokers are worrying buL -
men. considering real conditions, viii haEu-y ~ ~
disposed to rush into panic- At the utmost a.
that the recession OF the weeks close can lnl--
cate is that stocks which We're cheap have os-
come still trifie cheaper.
Denver & Rio GFanda Railway shares. 5ecom-
ing suddenly conspicuous this week. suggest q
rich opportunity for proht TO any investor Who >
capable Of bit Of patience. Record equivalent
to Denver & Rio Grande it is impossible to hnd.
An official statement covering a period OF .71
years. for example. shows that mileage II
crease of II per cent is attended BY gross earn
ings Increased over 100 per cent. and net eaI-
ings virtually expanded 100 per cent. Net N 10
whole list of American railway systems V9i'
there be- found aught Ike il Tonnage eapae'''-
measured by actual tons carried-soars . y
cent. And indicative OF the conservatism OF l17
property's administration official data show 'n~'
T., n sinvls ,,sar annrorrfa+ions our of earnings