Omaha daily bee., 1909-09-11
Union Pacific and Southern Pacific
Are Bid Up Rapidly.
BANKERS PROTECT THESE ISSUES
Kuhn, Loeb G. Co. and City Bank
Interests Act in Unison.
GOSSIP AS TO SUCCESSOR
Bankers VIII Direct the Financial
Affairs of the Big system and
Operations VIII he Divided
Among Chiefs.

NEW YORK, Sept. 10-Two beliefs con-
cerning the death of Edward Fl. Hartman
came to be accepted facts today: First,
that his great railroad organization will
not be disturbed; second, that he was a
Victim of cancer.
That the financial world had thoroughly
discounted the great mans death and dis
spated all fear Of panic was attested by
one OF the most remarkable scenes in the
history Of the New York Stock exehange.
There, instead of a downward movement
of stocks, a sensational and spectacular ad-
vance occurred, while in London and Berlin
railroad and Industrial securities showed
unusual strength. In all quarters, para
doxical as II may seem, the so-called Har-
rlman stocks were strong, and those of
speculative turn who went short" on the
theory that heavy declines would follow
Mr.. Harriman's death, suffered consider
able losses. The Kuhn-Loeb and National
City bank interests will continue to act as
the chief financial agents for the Hartman
lines, but just who will assume the head
of his vast affairs is a matter OF specula-
tion.
Division of work.
It is generally understood that Jacob II.
schiff and Judge r. s. Lovett will divide
between them the running Of the complex
organization built up by Mr.. Hartman,
while others whose shoulders will bear
part Of the burden are Julius Kruttschnltt.
vice president Of the Southern Pacific and
director Of maintenance and operation of
the Hartman lines; Frederick ID. Under
wood, president of the Erie; John c. Stubbs
the traffic manager of the Hartman lines;
l.. F. Loree, president Of the Delaware g.
Hudson; William r. Heron OF San Fran
cisco and William Hood. chief engineer Of
the Southern Pacific.
Tributes to Mr.. Hartman were expressed
by men Of note all over the world today.
The flag of the New York Stock exchange
was half-masted, as were those on most
of the large banking institutions The Har-
riman offices in the city hall win remain
closed until Monday. on that day a meet
ing Of the board of directors of the Union
Pacific and Southern Pacific railroads will
likely be held.
The following statement was given out
at the Union Pacific offices in this city
today:
The report published today that MIR.
Hartman died at 1880 p. m. is absolutely
untrue.
He died at s:S5 p. m, as was imme.
dIately announced both at Arden and al
12O Broadway.
Mrs. simons did not arrive until after
his death and authorizes me TO deny tha
she intended to make any statement fixing
the time. wv. G. LYLE"
stock Market Active.
Wall streets response today to the death
OF E. II. Hartman was a buoyantly strong
stock market in which securities made SEN
sational gains and held them to the end
The volume of business was enormous
we'll over 100000 shares-and to this vast
amount the better known Hartman stocks
namely, Union Pacific common and South
ern Pacific alone contributed over one-third
while other properties in which the late
magnate was more remotely interested
added probably as much more to the sum
total
The day resulted in a complete rout
of the short interest, which was prob
ably more extensive than even the best
informed had imagined. Even before the
opening here II was evident from the tone
of American securities in London that
the strongest support was forthcoming
Initial prices in New York dispeled all
doubt with advances in practically all is
sues though the Hartman stocks were
the leaders.
shorts Scramble TO Cover.
The Union Pacific and Southern Pa
cific trading posts were the center OF at.
traction and the enormous buying OF both
stocks soon caused a hurried scramble
TO cover. There was a brief session OF
an opening price, but before the end OF
the first hour semi-official announcement
was made that the Kuhn, Loeb-City bank
Interests were acting. In unison" and this
gave the market another uplift to a leve
well above opening prices.
BY this time the bears were I'm a state o
utter Generalization and there was tall
later IN the day that a number OF privat,
settlements had been made by Over-ex
tended shorts.
While the Hartman stocks were SOARING
Wall street was teeming with rumors
some OF which hinted at a contest fo
control OF the Union Pacific road Nom
took these rumors very seriously, but con
siderably more attention was paid TO per
sistent rumors that ]. p. Morgan 4 Co
were buying heavily Of Union Pacift
shares and that arrangements for taking
member OF the Morgan firm into the UnioI
Pacific executive committee were alread!
completed. None OF these stories wa
either denied or confirmed in authoritative
quarters.
Rapid Pace Maintained.
The markets rapid pace was maintained
20 the end and at the close the extent O.
the short covering was estimated all tn,
way from 10000 10 $4,000 shares. There q
little doubt, however. that no small par
OF the days operations represented buyinl
OF an investment character.
No official statement was issued by tn,
n Hartman officials during the day relativ,
10 the future policy OF those properties
but banking interests In touch with tn
situation were authority for the statement
that Mr.. Harriman's plans OF construction
and development would go steadily for
ward
Meetings OF the Union Pacific and South
? cOntinusd on second Pass)