Evening star., 1911-08-20
BIG men AT WHEEL
Support Given Market Values
of the Genuine Kind.
REVIEW OF THE DECLINE
Too Much Bulling Given as One Of
Chief Causes.
HARTMAN LINES HIT HARD
Paper Losses at Bottom of Slump Ag-
gregated $112, 600, ooo-Mor-
gan May Control.
REVIEW OF THE DECLINE
HARTMAN LINES HIT HARD
By w. G. Nicholas.
Special Correspondence OF The Star.

By W. G. Nicholas.
Special Correspondence Of The Star.
NEW YORK, August 10. 1911.
The wholesale liquidation Of stocks came
to an end Thursday. For several days
the market had been given the strong
est kind Of support, not that aggressive
booming hysterical support tinged with
fright and uncertainty, but the kind that
counts-not for fractional rally, but for
an impressive recovery. The big inter-
ests had apparently made up their minds
that the only way to check the slump
was to take all offerings, and that is what
they did for several days in succession.
There was no attempt to bid UP prices,
simply determined campaign to bail out
the market and take everything that came
along, paying no more for the goods than
was necessary. The result was a great
concentration of securities in strong
hands.
A feature Of the last half Of the decline
which carried the market down II to %
points was the desperate and reckless
selling for speculative account. There mas
not been a time since the panic OF lovs
when such imprudent pyramiding was in
dulged In by the bear element. Ine lower
the market got the heavier the selling,
until in process of time the short interest
became dangerously over-extended and the
market worked itself into position which
made it easy for the strong interests that
had been supporting 1t to engineer spec
ltacular rally, The market became as bad
ny oversold as 1t mad been overbought
a month ago. This is q situation much
| to the liking of the big leaders, but one in
which the public Is rarely a gamer. no
| matter whether the play be lOr an ad-
vance or a decline.
Market Bulled to Death.
The causes and conditions leading to
the wholesale liquidation were repeatedly
and clearly set forth in these letters. 1t
| is not a case of 'I told you so.' after
the thing happened. Full warning was
given in advance. in an accurate and i'm
partial statement Of facts as they ex-
| listed. The market had BEEN bulled to
| death and no fresh buying could be in
| spired. There was disappointment over
| the crops, the Industrial revival has not
| taken place according to expectations and
the public obstinately held aloof Rail-
| road earnings were lean and the future
was full Of discouragement as to the
| maintenance of dividends year or two
| of political agitation was clearly ahead
and there was nothing really in sight
| to buy stocks on. Liquidation was inevi-
| table and there had to be a adjustment
| of values on a lower plane.
| Whether this liquidation is complete or
| not is an open question. If prices should
| decline to still lower levels the movement
| is likely to be conducted in a more or
| derly manner than the slump of the last
| two weeks. The money powers have given
cline to be slaughter. From a purely
| speculative standpoint the safe play for
| some time ahead will probably. be to sell
on the rallies and take profits on the re-
actions.
Hartman Stocks Suffer.
The Hartman stocks have been the
| worst sufferers. The break OF 25 points
lin Union Pacific represents a loss of
E$5bJOO.OO0 on q capitalization of $216,-
100000. Southern Pacific lost 3S,OOO.-
600 on a capitalization of $272. .OOO, 900.
The five principal railroads in which
the Union Pacific has heavy investments
underwent shrinkage OF $4,000, 900.
| making In all market depreciation
chargeable against that single corpora
tion amounting to 12.OOO,OOO.
the Union Pacific treasury are. as fol-
lows: Baltimore and Ohio. 323, ,342
shares; Chicago and Northwestern, 49,
| 1877 shares: Chicago and Alton pre-
ferred. 103.421 shares: Illinois Central.
225.o shares: New York Central. 176.-
571 shares. The drop in these issues
amounted to 18 points in Balti-
more and Ohio. q points in Chicago
and Northwe estern. Al points in Alton
30 points in Illinois Central and 26
points in New York Central-this from
| the cos. price to Union Pacific
| The great Hartman holding and rail-
road company has gone steadily down
hill ever since the death of the foun-
remarks are made In this connection
about the follies of petticoat manage
| ment, the inference being that Mrs.
| Hartman has mixed things up in trying
| to conduct the enormous business left In
| her hands by Mr.. Herman. On this is
sue. however. there are many conflict
ing stories. One is that Mrs. Hartman
has had nothing to do with the man.
agement of the road, having disposed
OF the great bulk of the estate hold
death. the sale having been made large
| ly through j. p. Morgan & CO.. who
are said to have gained control OF the
great property for themselves and their
| friends. 1t Is now very generally
believed that actual control Is lodged
with the Morgan house and that in
due course of time there will be a COM
plete reorganization of the company
along strictly Morgan lines.
Point to Frick Retirement.
Some people find 1t hard to reconcile
/ ludl IHcOTy Will tHc ACti CAiChS VI AAShh y
c. Frick from Union and Southern Pa
cific directories, he having supposedly
held closest personal and business rela-
tions with the head of the Morgan estab-
lishment It is noted. however, that Mr..
Frick has not been SO intimate with the
Morgan people the last year or so as pre-
| viously. In fact, an actual coolness is
said to have sprung up between Mr.
F'rick and Mr.. Morgan. originating with
the elevation OF Judge Gary to supreme
control OF United States Steel.
For several years prior to that promo
ton of Judge Gary. Mr.. Frick was 1t in
the steel trust. Not an important move
| was made by the corporation officials
| without the Frick o. K. He has not been
consulted In the management of the trust
for a year or more. His holdings in steel
are believed to be smaller now than ever
before 1t is, therefore. not impossible
that he should have sold out his Union
Pacific when he learned that Mr.. Morgan
had become paramount in that corpora
ton. Mr.. Ffick has always been man
of great personal pride, and on numerous
occasions has refused to play second fid-
die to anybody or to subordinate his
| personality and talents for any man or
any interest unless he could have a very
large voice in forming and carrying out
the policies Mr.. Frick's withdrawal from
Union Pacific has been decided factor
| ~