The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1909-08-31
RAILWAY EXPANSION
IS GREAT
HARTMAN LINES AND OTHERS
NEED MORE MONEY FOR
THEIR NEW PLANS.

New York, Aug. 30,-Disappointment
felt at the unwllingness or inability
of Edward II. Hartman TO proceed
with the much-discussed plans for the
segregation of the investment assets
Of the Union Pacific Railroad company
and for increasing the value of the is
sues Ut the Hartman Pacifics, to-
gethcr with the fear that his greatly
weakened condition may compel him to
retire permanently from the active
management Of these properties, If
not from business of every character,
induced utany holders OF these stocks
to indulge in heavy unloading opera
tons in the New York stock cx-
change during the past week, thereby
demoralizing temporarily not only
CSC securities, but also numerous
other issues in the railroad and in
dustrial groups, which at length began
to crambie under the extensive selling
PRESSURE. The leading banking and
financial interests feared tu offer their
support until the force If this wave of
LIQUIDATION was spent, but they
plucked up sufficient courage to check
the selling movement by making large
purchases in almost all parts of the
list Union Pacific naturally was the
worst sufferer from the raids made
by the bear element as the special in
centive for raising its price to higher
levels has disappeared with the state
ment made by Mr.. Hartman that he
had no intention of doing anything
within the near future in regard to
this roads segregation of assets plan.
Big blocks of this stock We're thrown
upon the market and no material part
of them was taken even by insiders"
Southern Pacific naturally sold off
heavily and especially rabid attacks
were made on Steel common. New
York Central and the Fries, all of
which dropped sharply until some sup
port developed.
The time draws near for the flota-
ton of very important railroad loans.
The order of their appearance cannot
yet be definitely outlined. but it is
believed that the huge Gould appiica-
ton for money to rehabilitate Missouri
Pacific and allied lines will open the
fall borrowing season. This issue may
astonish Wall street by its size. Then
PENNSYLVANIA will sell not less than
$50. 0o0.0 900 and perhaps upwards of
500 600. 900 stock to take up the $780,
600. 900 obligations that mature next
year: as was first stated. months ago,
the bond issue originally planned has
been discarded i'm favor of stocks. The
Hartman system will by and by need
additional funds for its incessant ex-
pansion. The Vanderbilt roads must
also visit the money market sooner
rather than later. These four systems
are likely to provide for not less than
$3.50. 900. 900 before many months pass.
The wholesale foreign borrowing by
our leading bankers has. undoubtedly
been influenced by the known re-
uuirements of our own enterprises, for
obviously Wall streets demands. plus
the needs of the south and west. could
not have been exclusively supplied at
home without reducing surplus funds
SO seriously that heavy corporate and
government borrowing could scarcely
have failed to bring about monetary
stringency. which in turn would great
w have interferred with the stocl(
market plans of our financiers. IL Is
not at all certain even now that the
capital required by our leading rail-
roads can be raised without materially
raising interest rates.
Huge rail orders for 1910 delivery and
a record breaking pig iron production
were the features of the last week in
the iron and steel Industries. The
PENNSYLVANIA Steel company has re-
eeiyed an order for $4,000 tons of steel
for structural bridge work from the
sa,r ynrtx Westminster & Boston
Railroad company. which is controlled
by the New York New Haven X
Hartford. This order will amount IN
the aggregate close tn sl.5eo.ono. This
company has also received an order
from the New York Central for steel
frogs and switches. amounting to sew