The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-08-26


that the uttermost limit of conservatism
in that direction had been reached, and
it would be better all around If these
concealed pockets of treasure be drawn
upon and the proceeds be brought into
the light where stockholders and the pub
lie could get look at them. The wis
dom of the suggestion" was recognized,
and a change of policy was agreed upon
then and there. theoretically the move
presages an imminent increase in the
Pennsylvania dividend, but 1t is not I'M
derstood that the pledge to the French
bankers went as far as that, the agree
ment being to first swell the central re-
serve by increasing the dividends or sub
ordinate companies. New York Central,
which is on all-fours with Pennsylvania
in the matter of concealed earnings,
has about decided to follow the example
set by the Cassett management and SINH
larly "unbelt" One of Centrals biggest
assets is Lake Shores hidden surplus.
big Four" also has a nugget OF giant
size, the real value of which patient
stockholders are beginning to urge be
disclosed. 1t Is an interesting stage OF
railroad operation and financial manage
ment when the big systems find them
selves forced to call a halt in the &C
emulation of covert surplus reserves
and In Sheer self-protection inaugurate
a more liberal course toward stockholders.
To escape the increasing heat in the rear
built by insistent shareholders. the pow
ers" steal themselves to face the cer-
tainty of an aroused popular clamor for
lower passenger and freight schedules,
The first duty Is to the stockholders
Later, If it be found that the railroads
are earning too much money. the inter-
state commerce commission can take up
and thresh out the issue.
The London privilege traders were burnt
up ON that Hartman coup. Their ag-
gregate losses are estimated at sl00o0,-
600 to $12.000,000
1.-THE Cynic" looks for a big jump in
Pacific Mail, his reason for the belief
being the loss of one of the company $
best ships. He argues that If increased
dividends on the Hartman Pacfics can so
quickly follow huge San Francisco earth
quake losses, and an ice famine cause a
sensational advance in the market for
American Ice shares. It is entirely within
reason for Pacific Mail to enjoy stock
boom on the destruction of its crack
boat. BY the same token the sinking of
the company's whole flee should put the
stock to 300.
One of the biggest quick winners on
the Hartman coup was Charles b. Mac
Union Pacific Southern Pacific and St.
Paul for the last two or three years. He
is one of the fastest traders on the ex-
change. distaneing Jake" Field, the
Wessermans or the Wormsers for rapid
work, and sometimes rivaling Keene.
John W. Gates and the rest of the star
plungers in the magnitude of his opera
tons. He is supposed to have banked
about $1,o00,000 on two days play on tho
last market hurrah in his favorites. He
was one of the pacemakers, frequently
bidding n half a point and occasionally
full point about current quotations for
blocks of 10000 shares. 1t does not neces-
sarily follow that because a plunger
makes these ferocious bids for round lots
that he really wants the stocks however
The other day Macdonald bid IS for 5000
shares of st. Paul. when it could have
been bought in small lots for So. Ten
seconds later the price was Ss12 Turning
to an acquaintance at his elbow his whis-
pered: 1T would have been just as safe
to have bid for 1000 shares. !"
1t wasn't that piece of Union Pacific
pie that gave John d. Rockefeller the
stomachache, although he got large
sized allotment. Williams allowance was
the larger of the two, however.
Three years ago Mr.. James r. Keene
ran deH IN Southern Pacific against the
desires of e. II. Hartman. who mani
Tested his displeasure by deluging the
pool with stock at high figures and event.
ually breaking it, Mr.. Keene losing sew
eral million dollars in an Intellectual at
tempt to support the market. The high
est price reached on the Keene deal was
SO. Believing In the merit of the property
and satisfied that 1t would eventually
find Its proper level. Mr.. Keene invested
-. ofa CT, IL
around the bottom after his pool went on
the rocks and held to the line intact. He
was consequently one of the big winners