The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-07-19
GOSSIP FROM NEW YORK
New York Central Control Sought by Rockefetler-Why
Prices Are Lower-U. S. Bonds Compared to R R. Shares
BY JOHN MARTHoL.

New York, July 1s.-During many years
the public at large has been taught to
study wall street, it having been repeat
eddy declared mirror rejecting the pros
perity of railroads and Industries, the
value of crops. wheat. corn and cotton,
and the output of mines, gold, silver, iron,
copper and coal For the past six months
| prices for securities have declined All
the benefits presumed to lie In high prices
have evaporated. Many "gilt-edge" seeu-
rites are lower than they were before the
magnificent boom took place. And yet
the country continues prosperous. Labor
commands a good price and IS no drug in
the market Capital is in demand and
many opportunities exist for employment.
Industrial wealth and population have
multiplied, acreage yielding magnificent
crops has increased, mining wealth has
been added to. and forge and factory,
loom and mill report healthy demands for
every class of goods for future use Rail-
roads report Increased freight and travel
receipts and business in abundance ahead
of them. This is all known to be true.
If so what is the matter with the mirror?
I,riees for many bonds and stocks during
the palfny days of speculation reflected the
insane antics of crazy spectators rather
than the values placed on them by eonser-
vative investors or their values as pro-
ducers of income and conservators of in
vested funds. 1t is not to be wondered at
that when the mania for speculation sub
sided. or rather when the optimistic spec
ulator got nervous chill the pushed up
prices sagged for lack of support. Then
the ever ready bear with his tale of woe,
had his innings and the pessmistic oper-
ator pointed to the lower depths. 1t IS
commonly believed that the Rockefeller IN
terests for reasons of their own found
'the tale of woe" opportune
A comparison of the cost of New York
Central and other gilt-edged Investments
with the 5000, 0000 900 issue of the United
States steel bonds, paying per cent,
shows ridiculous condition of affairs
New York Central and Pennsylvania have
sold as high as 40 and paid at those prices
about 21s per cent net per annum. At III
It pays about 3 per cent. The steel
bonds pay at current prices over, 6 per
cent net and as l have before stated,
the company's net profits per annum are
sufficient to pay lie interest on the total
bond issue for FIVE years. Still in the pre-
vailing bear movement the public Is
| street influence did not so humbug the
public 1t would realize that funds invested
/ in steel bonus were more secure than In
New York Central and yield a better fate
of interest Anyone doubling this state
nlent should compare the net earnings of
the railroad with the Steel company; also
the decline in values and loss In the in
vestment Of funds in either property dur
ing given period.
/
West of the Mississippi men like Har-
riman. Gould, Moffat, Clark, Hill and
Rockefeller are lighting to gain footholds
of strength to meet the great advances OF
the future. At Denver there has been a
-, concentration of roads, the Missouri Pa
cific seeking an outlet to the far west by
| running south and west and north to Og-
den. the Union Pacific running north and
west to Salt Lake City. The Rock Island,
the Burlington and other roads here re-
! efeve freight for the east and deliver for
TIVE west West of Denver rises the hith-
etto impossible Colorado Divide. West of
! the granite wall lies a country rich with
anthracite coal coke Goals gold mines,
gilsonite primeval forests and fertile val
eys This great territory is larger than
the state of Pennsylvania
David IL Monat the banker and rail-
road builder, discovered that a road pass
ing through this territory would unlock
the door to an empire. The road would
run midway between the Denver and Rio
Grande to the south and the Union Pa
cifc to the north. beween which the dis
trict three hundred and fifty miles wide,
is without a railroad. He began a year
ago to build the "MoNat Short line be-
tween Denver and Salt lake City. 1t re-
duces the mileage 1886 miles and the time
of travel from 20 to IA hours. TO enter
this territory he determined to bore
holeth rough the Rocky mountains. st.
James Peak was selected. the contract to
build the tunnel for $25OO,0O0 was awarded
and the work was begun.
Moffat's past performances were guar
antee of his ability to build the Denver,
Northwestern and Pacific. Senator Clark,
then building the San Pedro from Salt
Lake city to the coast, Joined hands with
him. This opened a new continental
road. Hartman opposed. But Moffat
proved too strong and went on with the
work. Then. it is rumored. became a new
alignment of eastern fnanciers; and the
Moffat became the Moffat, Rockefeller,
Gould Morgan Community of interest
One of the most Important outcomes of
this road Will be coal. Anthracite coal,
steam coal and bitumnous will be moved
out Of the land-locked territory and
shipped through the west as far east
as Chicago. Indeed Mr.. Moffat states he
will put anthracite coal of the same quail
ity as the Pennsylvania on the Chicago
market at five dollars per ton The vast
Yampa coal fields of oyer three hundred
square miles with rich veins from 10 TO Is
feet thick are owned by Moffat ond his
associates. Coal Is now being mined and
being got ready for shipment The chair
of oratoFy in Tammany hall has been va
cant many years, that is since Richard