The San Francisco call., 1909-06-01
BUSINESS IS ON
SUBSTANTIAL BASIS
Hartman, While Predicting
Prosperity for Country, Gives
Warning as to Investment
Says Panic of 1907 Was Di-
rectIy Due to the Judge
Lands Decision

NEW YORK, May S1.-On the eve OF
his departure for Europe to visit Paris
and Vienna, and possibly Austrian
health resorts recommended to him by
his physicians, E. H. Hartman today
analyzed the conditions which had
made possible the panic of 1907 and
gave his reasons for believing that
whatever dangers had existed for re-
turn of those conditions were now
passed. Hartman said:
ON SUBSTANTIAL BASIS
The business of the country is on g
very substantial basis All that Is
needed is a realization on the part OF
the farmers Of the preparations for fooir
made There are now more acres un-
der cultivation than ever before in the
history of the country, and if we. have
favorable weather and correspondence
large crops look for happy times
There will be a big burst of specu-
lation and rise in the price of every
thing, but these will quickly grade
down from the top to whatever level
the crops will make logical. / shall
look to see the Improvement in con-
dftionS go on.
SOUNDS NOTE OF WARNING
The time is ripe, however. for a
warning as TO the proper employment
of idle money. We should be careful
that this money be not devoted TO the
development of fake projects, but, on
the contrary, used in the upbuilding of
real undertakings resting upon solid
foundations.
There was no necessity for the 1907
panic That panic was Directly caused
by the extraordinary Lands decision
and the general attitude prevailing at
the time against the railroads and
the corporations generally There is
no mistake about this. l know what
1 am talking about, because / went
through IL all. 1t was a panic of SEN
timent-a disaster caused by the fear
of something that did not happen. 1t
frightened people into Withdrawing
their money from circulation.
The next panic will be something e
more serious. because 1t will be due to
shrinkage of business. As far as the
mental attitude of the public is con-
cerned. we are on saner basis today
than we were in 1907. If we keep
going up, however, and come down. it
will hurt more after we have gone up
three or four stories.
/ don't think that the tariff lcgisla-
ton Will be Of much Importance.
INVESTMENT AVOIDED
The working agreement recently en-
tered into between the Northern Pa
ciflc, the Great Northern and the Union
Pacific. by the terms of which all will
Vancouver. was cited by Mr. Hartman
as an example of what might be done
TO save unnecessary investment of
capital.
A question as to the ultimate reduc-
tion of the yield of the invested capital
brought the reply that so years hence
per cent dividends would be consid-
cred as remarkable as 10 per cent div
idends are today.
AS for listing securities of the Har-
riInan roads on the Paris bourse and
disposing of 500. 900 of new bonds
abroad. nothing was further from his
thoughts.
On the question of ship subsidies,
Mr.. Hartman, while not indorsing the
principle of governmental subsidies,
expressed the hope that some day his
lines would be placed on such a foot
ing as to permit them to compete on
equal terms with lines now subsidized.
Il lose $500 900 or $500, 900 every
year he said. simply for the pleasure
Of flying the stars and stripes from
those boats. / had a chance to sell
them to advantage, but 1 couldn t
bring myself to having them pass un-
der another flag"