The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-01-29

ing by those who feel the urgent need of
providing themselves fifth cash insurance
against possible storms; but for every dol
lar that is now withdrawn from Ameri-
can stocks and bonds on account OF for
eign political complications, SO will prob
ably be reinvested within the next six
months. The only suggestion of real
danger is Washington. The restless de-
sire on the part of high officials to be
doing something" may bring on Indus
trial and business disturbances accom-
panied by the incident TO loss of conf
dence in the stability OF tariff laws and
transport alton interests The more exper-
fenced statesmen and politicians at the
national capital, however, seem deter
mined to maintain the position that the
country is committed to a stand pat poll
cy In everything having a bearing on
business. In the sporty language of an
eminent congressman, THE people OF the
United States have a sinch on prosperity
end what's the use of trying to sinch
slnch. To do SO might be dangerous and
1t is certainly unnecessary I think that
Congress will adhere to that position and
that eventually the President will modi-
fy the activity Of his programme"
Rutland Railroad.
As a part and parcel of the deal with
bilt has unloaded his Rutland Railroad
upon New York Central. The terms of
the transfer arr not given, but 1t may be
assumed that Mr.. Vanderbilt got at least
as much is he paid for the property The
Rutland Railroad Is a system of $50 miles
criscrossing that portion ofthe geography
lying in eastern central New York and
Vermont, an area not noted for the lux
uriance of its vegetation or the exceed
In oh af tto 70 Oftt of
ural products. The Rutland Railroad has
been a white elephant on the hands of
William K. Vanderbilt ever since he was
obliged to take 1t off the shoulders of his
brother-in-law, DR.. II. Seward Webb at
the time OF the collapse of the Webb
Meyer syndicate, two and a half years
ago. Webb at that fateful period was
spread out very thin, having invested the
bulk of his wife's fortune of about $10,
100000 in all kinds of dead things. He had
borrowed heavily on the Rutland collat-
eral and when the Webb Meyer enter
prise went to smash he raised the flag of
distress which was answered by the head
of the Vanderbilt family who preferred
to get under a part of of the load rather
than have any more scandals. It was
understood ut the time and has since been
confirmed that Mr.. Vanderbilt assumed
that portion of Webbs Indebtedness re-
presented by the loans on Rutland collat-
oral. Vanderbilt has now found an oppor-
tunity himself and agreeable to Mr..
Rockefeller.
Big Life Companies.
Ill-natured persons have taken this in
convenient moment to publish broadcast
tables showing the financial interest the
big life insurance companies have in
Russian bonds. In one statement which
looks as though It might be accurate.
figures are presented showing that the
New York Life and Equitable companies
have about $15000,000 represented in that
line of securities. 1t is consoling to hear
that the revolutionary leaders in Russia
declare they have no intention of repud-
iating obligations on bonds issued by the
government prior to January 20 of this
year which dates the beginning of a new
deal, according to the theory of the in
surgents. Here people are trying inef-
fectually to borrow money from the life
insurance companies are in the habit of
cynically remarking that these institu-
lions would have more funds for domestic
use IL they would cut out the practice of
scattering their surplus In foreign lands.
The anticipation of most railroads man
agements Is that 1906 will be record year
for the great transportation systems
that they will earn more gross and net
money than ever before, and that there
will be a corresponding distribution
among stockholders as we'll as a further
substantial rise In stock values.
The little group of capitalists compos-
ing the Rapid Transit Subway Construc-
ton Company which conducted the work
of building the New York Subway has
been absorbed by the marlborough the
deal netting the insiders a very fat pro
fit The construction company was cap
italized at Sc, 100000 of which 60 per cent.
or s3500,0o0 was paid In. For the entire
$6,000,000 the holders of Construction
shares receive s13O00,0Oo in marlborough
stock besides valuable subscription rights.
marlborough is now quoted around 200
and at that figure the shareholders in the
Construction Company would appear on
the face of 1t to have cleared more than
400 per cent on their money In four years
Roosevelt as Railroad Manager.
Attention Is being directed to President
Roosevelt as railroad manager. He is
the whole thing on the Panama Railroad,
the line bought by the government in con-
Eection with its Panama Canal. This lit
tie piece of railroad is very important
feature in transcontinental traffic, and 1t
is within the power of the President to
SO reduce schedules as to demoraze the
rate situation between the Atlantic and
the Pacific. In the past these rates
were held up through the operation of an