The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-05-02
THE SOUTH. HER WONDERFUL
RALLY AND HER OUTLOOK
o. THE FUTURE.

ton and the future outlook for The
south. We wish our readers to note
the authority We 1uote-the New YORK.
Times. There is no more reliable pa
per in the United States on such SUBJ
jects than this. While we and Iaost
of our readers may not agree WITH
that paper in its position on many
matters of politics, no one can say that
it is not authority, and the very best
authority IN such subjects as that
treated in the article we quote. What
The Times has to say on this subject
is well worthy of careful consideration
1t must be borne in mind that The
Times is one Of the leading dailies Of
the Metropolis of America and that
it is recognized authority the country
over On such matters as those treated
of in this article. 1t does not publish
articles by this paper are based On
facts gathered by a corps of thorough
ly trained newspaper men-men who
have a pride in keeping up the high
standard of their paper for reliability
for it's statements as to current ven
and correct opinions ON existing con
ditons:
During last Thursdays d~emoralized
market the stock Of Louisville and
Nashville was SO strong that the few
investors who remain possessed Of n
patience with discussions of value.
have directed their attention to the
railroads of the south, 1t is worth
while to scrutinize values more close
~ than ever. since recent ideas have
been put to so hard a test. The trou-
Bile is that stock market movements
executing in the long run, have no
very close relation to merit. Hence.
If current rumors that the Atlantic
Coast Line is to guarantee Z per cent.
dividends uDOn Louisville and Nash
Vile shal prove ungrounded, n fic-
ton of the rise and of the subsequent
decline will neither prove nor dis
prove the investment values of the
securities concerned. grow
Wher values have Ions been proved
for q rumored melon" is always bas-
ed upon a known wealth.. How alb
suid then to jecrv merit because sue
cesSiVe speculative rumOrs are diSap-
pointed.
The south has been the region of
the last two years best progress. Per-
hans high priced cotton added imDe-
tus to the industrial advancement al
ready started. Perhaps promoters and
enterprising people selected the south
because the east and west and north
west had been depleted Of their OPP
DOrtunities. Perhaps the great Doten-
tial wealth Of the south is a lev dis
/ cuvcry to most Of us. Whatever the
cause. the south has grown and is
growing with marvellous rapidity. The
expected southern iron merger is q
result of the development of wealth.
as it's accomplishment will be a step
ping stone to greater wealth. There
is more iron ore in Alabama than in
any other state in h union and more
coal in Alabama than there is in
Pennsylvania. And the iron and the
o are found together. whereas il
the north they lie a thousand miles
apart. Upon this point Professor
HAYES of the United States geological
survey has recently reported: "The
wonderful proximity of the three es-
sentials in the production of iron and
steel exist throughout the Birming-
ham territory. In some places in this
| region the coa is mined on the noun
tain side and carried by gravity doNn
to the lower level. where it is trans
formed into coke. At the base Of the
mountain containing the Goa stands
the snlelter surrounded by limestone
| giving all the t1ux needed while from
the opposite side Of the gully ore is
taken from the ground. Here We find
the ore. the fuel. and the fiux at the
very doors Of the furnace. a condition
that cannot be excelled anywhere else
in the country What an ODpOrtuni-
~ for a gigantic steel enterprise.
| With a canit91 nor a tenth &C great
the southern iron companies which it
is proposed to merge I'VE more iron
n coal thar are included in the vast
holdings of the United States Steel
| corporation.
| Potential wealth is sometimes a
long while in the process of becoming
tangible wealth. The south has always
possessed the potentially. But the
rapid approach of real activity and
DEVELOPMENT accounts for the increas-
ed value now being accorded to south
ern securities. Men have dreamed Of
southern growth for wears. They are
dreaming of it again today. but this
time with more believers in it's near
presence.
The Atlantic Coast Line railroad
was Of little consequence three years
ago. when it owned 1.756 miles Of
road along the Atlantic Coast. and
was little heard of out Of it's own re-
SINiiN lIia IL - uOII1lItdtSS oNeE
10000 miles of roa means that it has
sud1a1ly become one Of our most
powerful systems. The original l.
I'6-mile road bought I'D in 1902 the
Plant system of 1858 miles. and then
through Gates's memorable coup. was
nade TO bear the burden of CARRYING
the Louisville and Nashville. This
seeming hardship bids fair to turn out
4 hidden blessing. The control OF
Louisville was purchased in securities
and cash. n cost the Atlantic Coast
Line some $165 per share. This was
for SSO,600.0 GG par value. however
much of the remaining $2a.400,03)
may have since been bought for less.
The dividends received by Atlantic
Coast Line uDon It's Louisville stock
lave vet eoualed the annual
cost to the Coast Line Company of fl
naEcing ITS purchase. A z per cent.
dividend upon Louisville would Just
' cover the cost.