New-York tribune., 1909-09-11
FINANCIAL MARKETS
BEAR PANIC IN L. p.
Hcary Corering 1dUdnccs Prices
Banks Lose Money!


stocks in London was followed by strong
opening in the local market, and before the end
of the first hour bear panic was under way in
the Hartman shares, while throughout the list
advances were made fast enough to create eX-
treme disturbance in the ranks Of the specula-
five element that had looked forward TO a heavy
break in prices as a consequence of the death
Of Mr.. Hartman. Union Pacific enjoyed a max
iu1ur,l improvement Of 12Ss points; the pre-
ferred, 81 Southern Pacific, 5A points; New
York Central 4; Reading, 53s. and United States
Steel 3ss In well informed quarters 1t was re-
ported after the close of Thursdays operations
that the strongest interests in the Street had az
ranged to support stocks in the event Of A dem
onstration against prices but from the very
start of the market there was no opportunity for
successful operations for the decline, the only
early selling coming from holders who Wers
foolish enough TO believe that the death OF Mr
Hartman would bring about acute trouble in
the financial community. These sellers secured.
however better prices for their stocks than any
one expected On the advance in the first two
hours of business active realizing was reported
without the accompaniment Of any important
recession in prices, though in the early after
noon reactions were common, while before the
close further strength developed, with last prices
near the best The idea that the advance Will
continue for any length of time IS not enter
tanned in the highest Wall Street circles, as
money market conditions are expected TO work
against bull activity in securities, and slow
decline 10 moderately lower range would not
surprise careful market observers, Talk OF
competitive buying in Union Pacific was heard
in the day and the general character OF the ad-
yance in the issue suggested something beyond
an extensive covering of short contracts, es-
pecially as the total business in the stock
amounted to more than $4,000 shares II IS
improba Bile that new interests could secure con-
troll Of the Union Pacific company but 1t is pos
sible that some Of the Hartman allied proper
ties may be offered to Rock Island or Hawley
people Three quarters Of the entire transac-
tions in stocks amounting TO more than 1900
200 shares was supplied by Union Pacific, Read
ing Southern Pacific and United States Steel
in which net gains ran from SA in Steel 70 l23e
in Union Pacific
Mr. Harriman's death may halt for time inn
portant DEVELOPMENTS projected by him in con-
nection with many railroads, involving an ex-
penditure of upward Of $500 100000 but his ideas
eventually will be worked out, though there may
be some readjustments in the plans. His CHEZ
projects have reached stage that insures their
completion The Southern Pacific extension into
Mexico, Of which more than 1900 miles have
been finished. win not be interrupted, and the
influence exerted by Mr.. Hartman upon the
Erie and the New York Central will live on, de-
spite the death of the master mind. Mr.. Harri-
man saved the Erie from bankruptcy. Through
his help the property is In a position where
Il can take care OF its own future and the theory
held in some quarters Of the Street that its
shares are a good short sale for long pull is
likely TO bring losses TO the operators who put
the Erie and all the companies with which Mr.
Hartman was identified, while whoever is
chosen 10 succeed him president of the Union
Pacific win have the support Of Kuhn. Loeb &
co. and tie National City Rank. who Will dictate
the fiscal policy of all the sO-called Hartman
companies-the policy Instituted by Mr. Harri-
man and iudorsed by his bankers. The Union
Pacific Railroad is making money for its stock
holders and is earning, including It's income from
investments at a rate of more than 20 per cent
on its common shares, but the fact that its in
come is so large need not be banked upon as an
indication Of an immediate increase in the divi-
dend rate, nor need il be assumed that there
will be any special disbursement to owners of
| the stock in any plans that the management of
the company has in mind in connection with a
possible future segregation OF assets. People who
own Hartman stocks are advised to hold them
inasmuch as they represent properties OF immense
earning power that will not be lessened because
Of the death of the great railroad man. And In
vestors in general will do we'll TO keep what they
have and add To their holdings on Declines as all
conditions point 10 a steady increase in the in
| trinsc value Of American railway and industrial
issues.
Money rates were hrmer in tone yesterday
and increasing demand for funds for interior
account was reported. That the outward move
! ment Of currency has begun in earnest is
| lected in the estimated loss by the banks in
cash holdings in the current week showing on
all accounts A reduction of more than si1 900 600
about half of which due to interior op-
eratons Shipments OF money from here we're
the largest for any one week in the current year