The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-02-22

ton are yielding fruit. There is still
urgent necessity for further investments
and great sums are being expended now
in bringing the properties to the point
of the greatest possible efficiency. The
big expense necessary hereafter Will be
in the way of enlarged terminals.
Equipment and tonnage have been In
creased so per cent within the last five
or six years, while the trackage and
warehouse convenences at points of col
lection and distribution are about where
they were before the increase took place.
1t is for this reason that numerous block
AIDES occur, and it is for relief in that
direction that railroad companies are now
bending their energies. CONGESTION cuts
down revenues and Is therefore to be
avoided. The president of one of the
leading railroads spoke the exact truth
when he said the other day that the
railroads of the country would be bet
ter off If they did not have so much
business. They have more tonnage today
than they can handle to the best advant-
age.
The plan for raising money for the
physical Reconstruction OF the Erie rail-
road has not made a hit in Wall street.
1t is too much of reminder of the deal
for paying off the Missouri Pacific float
ing Indebtedness about four years ago.
The Rockefellers, Goulds and their as
sociates had advanced Missouri Pacific
about $7,5O0000. The plan hit on for
liquidating this debt was to trade the
notes in for 100000 in bonds convert
ible into stock at par. 1t was not bad
bargain to take bonds for the notes in
double the face value of the original
debt. Within two years after the trans
action the insiders who had received the
bonds converted their holdings into stock
at par, realizing thereby a clean profit Of
100 per cent. on the investment The
new Erie bonds are almost as inviting
for insiders. There is, however, an ulti-
mate prospect Of the property being sad
died with 500, 600 new capitalization as
a result 1t is thought likely, however,
that the. entire $5O,000,00O authorized will
not be issued and that within the year
the coal properties now owned by the Erie
railroad will be transferred to a big an
thracite holding company, and that a
portion, at least, of this class of assets
will become available for their direct sale
or collateral.
We have been on the edge of gold eX-
ports for the last two weeks. but 1t has
not been the desire of the Kings of the
Street that the yellow metal should go
out at this time. Actual negotiations
ing international banking house, which
has no special affiliations with the specu-
lative interests. Each time, however, it.
was made object for the house to
abandon its purpose and no gold has yet
been shipped. Wall street gives gold ex-
ports exaggerated importance and for
speculative effect it has not been con-
sidered advisable to reduce the boards of
gold In the United States, although the
t.tn 4 to q
is no more reason why the United States
should not export gold than any other
product The production of this country
approximates SS5OO0,00O a year at the
present time and most of 1t is kept at
home, going to increase circulation. We
might just as well ship gold as wheat,
cotton, corn or provisions, but ii seems
to be against the policy of the kings of
finance to allow 1t to be DONE Hence
when there is iminent danger of ship
ments the leading banking houses erect
barriers to check the outgo. This is
usually done by selling bills which is one
form of borrowing money abroad to meet
such obligations as might be maturing,
and which would naturally call for ex-
ports of gold. 1t is not impossible. how
ever, that the coming week may witness
moderate exports of the yellow metal
Wall street will be heartily glad when
congress adjourns. If it passes the AL
drich financial bill danger of a repetition
OF last falls stringency VIII be averted
The banking combina ton Is working hard
to forward that particular piece of legis-
lation, and has assurance that the meas
ure will become a law. Congress is for
given already for its antitrust enact
ments, and there is a prevailing spirit of
thankfulness that nothing worse was
done. The verdict is that congress on the
whole has not done so bad
The market leaders and investors. gen
orally, however will not feel quite safe.
until the statement finally evacuate
Washington and return to their
respective bailwicks Until there is an
actual adjournment there is always dan
ger of deadlock, which would necessi-
tate a special session. That would be re-
garded almost as a calamity and would
not fail to unsettle values. Almost two
weeks must elapse before the end of the
current session, but that is not a long
wait time is measured in Wall street
Meantime many of the large operators
are availing themselves of the normally
quiescent condition of things to devote a
little time TO recreation at the numerous
winter resorts. They will begin to return
by the 10th of March ana majority of
them will be on deck again by the 18th