The Birmingham age-herald., 1909-06-01
HARTMAN GIVES
 CAUSES OF PANIC Railroad Magnate Says Landis
 Started the Trouble PEOPLE GOT FRIGHTENED Warning Is Issued By Hartman Re- garding the Proper Use of Idle
 Money For Fear of Another
 Financial Panic.
PEOPLE GOT FRIGHTENED


 his departure for Europe to visit Paris and Vienna and possibly some Aus trian health resorts recommended to him by his physicians, E. H. Hartman worn In body, but alert of mind and vigorous of spirit, today analysed the conditions which had made possible the panic of 1907, and gave for his reasons for believing that whatever dangers had existed for return of business conditions were now passed.
 The business of the country is now on very substantial basis,' said MT. Hartman. All that is needed now is realization on the part of the farm CTS of the preparations for prosperity which have been so literally made. There are now more acres in cultivation than ever before In the history of the country, and We have favorable weather and correspondingly large crops, look for happy times. There will be a big burst of speculation and a rise in the price of everything, but these will quickly grade down from the top to whatever level the crops will make logical.
 T shall look to see the improvement in conditions go on. The time is ripe however, for a warning as to the prop CT employment of idle money We mould be careful that this money be | not devoted to the supposed develop ment of fake projects, but on the contrary used for the upbuilding of real undertakings resting upon solid foun- dations.
 There was no necessity for the 1907 panic. That panic was directly caused by the extraordinary Landis decision, and the general attack previling at the time against the railroads and cor portions generally. There is no mis- take about this. I know what I am l talking about, because I went through | it all It was a panic of sentiment-a 1 disaster caused by the fear of some- thing that did not happen. It fright ened people into holding their money from circulation.
 "The next panic will be something | more serious because 1t will be due to shrinkage of business. As far as the mental attitude of the public is concerned we are on a saner basis to- l day 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"
 MT. Hartman spoke haltingly, often stopping as if groping for words to match his thoughts. His voice and man ner were those of a man worn physical | ly. Again and again he reverted to the subject of crops. laying stress upon the point that the lasting prosperity of the country depended upon that and that only.
 | of Congress regards the tariff he dis missed with a shrug, saying: | q don't think that the tariff legisla- | tion will be of much importance. Good weather and good crops will have a much greater effect on business than the tar | iff.'
 1 The working agreement recently en- l tered into by the Northern Pacific. the Great Northern and the Union Pacific l by the terms of which all will use the | same tracks from Tacoma to Vancouver, 1 was cited by MT. Hartman as an ex- | ample of what might be done to save unnecessary investment of capital. A | dOuDle track rOaQ was more eHlclent than would have been three single track roads used independently by each railroad and cost less money to build and operate. The rumor of MT. Harriman's ascend 1 ency in the directorate of the New York | Central, and of his desire to gain con 1 trol of the Missouri Pacific were sub mitted to the master builder of railroad systems, but 1t was not plain that either | of these questions had received serious consideration from him. As to the New York Central he lodged the question by saying rather curtly
 q am not responsible for the opera ton of the New York Central lines.' Concerning the Missouri Pacific he was more explicit.
 MT. Gould has done me the honor of declaring that he would welcome me on | the board of directors of the Missouri l Pacific" he said, and personally I would I take a great pleasure In being associated | with him in the management of that sys- | tenn. But as conditions now are, 1t is l impossible"