New-York tribune., 1909-09-13
FINANCIAL MARKETS
IRREGUL4RITY IN STOCKS.
Hartman Factor Controls More
ments-Firmer Money Rates.

ClOck D4dEhel prices nave Deen uloNUls ulluci
the influence of considerations based upon the
illness and death of f. II. Hartman and it is
not unlikely that for some little time to come
the Hartman factor will be an important infiu-
ence In shaping the course of security opera
tions Mr.. Hartman is dead, but the properties
over which he practically had absolute control
will live on and there Is no reason to suppose
that their securities will not continue to prove
attractive channels for the investment OF idle
funds; especially as the various companies are
in remarkably strong position, both financially
and physically, with the strongest sort OF tinan-
cial interests behind them and with future
from the standpoint of earnings unusually
promising 1t may be that new interests will
obtain foOthold in the Hartman properties
Indeed. it is quite generally believed that under
meath the surface there is already under way
quiet contest for possession of leadership In
the Union Pacific and its allied companies. but
whatever change may take place in the dom
inant power in the board of directors Will not
be known to the public for long time to come
and in the mean while the speculative COM
munity doubtless win base many of its opera
tiOns upon reported and expected developments
that must arise a result of the death OF the
great railroad man. 1t does not appear likely
however. that actual control of the Union Pa
cific viii pass TO other hands. II is extremely
improbable that any new interests could bring
about such a transfer, but II Is more than
probable that the contest for representation in
the Hartman properties by the Morgan people
Tor instance. VIII De SOcceSStui, ana NIldl luey
Will work in harmony with the present CONTROL
ing interest for the good of the property and
the railroad situation in general in the United
states. The great working organization built
up by, Mr. Hartman will continue to operate
the companies in its charge along the lines toi-
lowed since the day that Mr.. Hartman assumed
the power of command. and persons who are
looking Tor any change in the policy that has
made the Union Pacific the envy Of other lines
that were paying dividends at the time when
the Hartman company was in the hands OF re-
ceivers ought not to operate in stocks ON the
theory that Mr.. Harriman's policies died With
him
Mr.. Hartman had genius both for operating
> railroad and for financing if II will be a diff
fcult matter 10 find a successor who combines
these qualities. and il is not at all unlikely that
the directors will solve the problem by placing
an experienced operating man president OF
Union and Southern Pacific and elect as chair
man of the board man capable of handling the
financial side of the big Hartman system II
Mr Hartman had lived he would have had
under his control expenditures amounting 20
upward of 100000 000. This amount OF money
is still available for and II IS absurd for any
one 10 believe that it will not be put out along
the lines suggested by Mr. Hartman for the
Improvement of the properties. The position Of
the Union Pacific and the Southern Pacific would
be strengthened by the entrance of Morgan In
terests TO the board, particularly as recently the
latter have been in perfect accord with the
as Morgan men already on the directorate OF
several companies in which the Hartman in
flueuce prevails. II the buying of Union Pacific
stock in last weeks market reflected purchases
by Morgan people investors in the Hartman
shares are to be congratulated Mr.. Morgan has
been powerful influence for good in the Amer
lean railroad situation and an extension Of his
activities to the Hartman companies would be
in line with the best interests of American in
vestment securities Mr.. HarTiman's death is
loss to the Erie and the New York Central The
progress Of the two companies however. will not
be checked by the death Of any one man, Tso
matter how prominent ne may have been. Erie
is working along In manner that shows il will
be able to take care Of it's own future. The
control Of the New York Central has not changed
as a consequences OF Mr. Harriman's death, but
the road has lost a valuable adviser. Mr. Har-
rirnan doubtless in time would have become the
chief interest ir the so-called Vanderbilt prop
ertv and while his death is a misfortune FOR the
New York Central. it is not calamity.
The rapid rise in stock prices Following the
death Of Mr. Hartman was based in great part
upon the covering by a frightened short interest
II is not believed that this advance will hold
for any length of time. inasmuch there is no
indication of public buying in the market and
apparently no disposition the part of the
banking community TO encourage bull activity
al this particular period. All signs point toward
higher rates for money in the near future. The
interior is Withdrawing funds from this centre
in volume, owing 10 the growing demand In con-
nection with the financing of the crops and for
mercantile requirements and as bank reserves
are not large, standing at only S6.469,175 in last
weeks Clearing House statement, 1t Is conceiV-
able that loan quotations soon may advance to
a level that will force extensive liquidation on
the Stock Exchange. Loans of the city financial
institutions are enormous while in all parts Of
the country there has been large expansion in
the loan item in the last twelve months without
a corresponding or proportonate gain in cash. A
heavy amount of money is tied up in Wall Street
operations but il looks if the knot would
have to be undone at remote period Money
rates showed a frmer tone last week and an IN
creasng inquiry from the interior at the close,
while there also was marked increase in com
mercial paper offerings. which were negotiated
entirely upon the buyers terms. on their oper-
ations with the interior and the Sub-Treasury
the local banks lost more than Sl1O00o00 in the
week ended Friday night, shipments TO out-of-
town points being larger than In any preceding
week Of the current year, while receipts were
smaller than at any time since last fall Sep
tember and October a rule are months OF
hardening rates in the money market and re-
dictionary movements in stocks. and though this
year there are many outside conditions to be
considered in connection with securities opera
tions well informed observers of market
rents do not look for anything in the nature of
o bull speculation until later in the season.
Conditions governing the actual worth of Sc
curties grow in strength, but furnish no argu-
nlent for an advance in stock prices from the
present high levels. Stock market prices have
discounted all tho favorable features of the gem
eral situation, but il is encouraging, neVerthe-
less, 20 know that the factors upon which Is
based the investment value of American railroad
and Industrial issues promise a long period OF
business growth. and prosperity There are
few features il the present situation that are
somewhat less favorable than reported month
ago notably the condition of cotton and corn
and the increae IN the stock of copper on hand
but the general fundamental position of affairs
i'm the Industrial world ofler absolutely nothing