The San Francisco call., 1907-01-25
rHE RAILnoAD CONGESTION
TIE Problem Of New Mileage From the
Wi So. -......- ~ Ll..-

The Problem Of New Mileage From the
MaII-Sfreef Point Of View
2. S. Bache & CO.. the New York hnanciers.
..Tho greatest business problem has been
f0rcibIE presented by Mr. Hill this week. li
msy he condensed in The statement that Whiie
passenger aud freight business has increased ln
ten years over 100 per cent railroad mileage 70
care for it has Increased only y per cent IN
other words. railroad mileage rs over ~ per
cent behind the business 10 be done; hence
enormous freight biockades, tying up milllons
worth cf products. There are two remeQles-ole
IS to saop doing business, the other 10 raise
thc money and build the mileage. The rail-
roads are taking the latter course and the enor-
NOUS offerings which have been staggering me
money market are toe result. Each week adds
tho amount asked for. one road after
smother presents its request. hat I'm hand. BY
for new securities on rights Sl35.0OO.OOo- aud
-hort term notes and other borrowings viii in
crease -he amount This certainly does not
presaee easy money at any time during The
A PROSPERITY PROBLEM
'Tt Is p problem, but. after all, IL Is pros
perlty problem. When the Southern Railway
ssks FOR money for new equipment u means
building tracks not through arid wastes but
past helds teemiug with products that must hnd
market and 10 communities thriving with
industries producing added and enormous
tonnage Under normal money conditions these
happenings would bc hailed with satisfaction. As
II is. each new demand IS signal for lOpolni
drops In the particular railroad which makes the
request. Nevertheless, the country is very rich.
III viii gradually work out OF the dilemma The
enoilnous nlQckl0es AT lerInlnalss Tying up tasl
nmounts If money IN products held from their
market. viii be Strengthened out and the funds
turned into again. The West and South
sre rich and must eventually have a surplus for
MONEY AND STOCKS
'Tbe week marks the end Of the acute money
staiu which has lasted so long. The emergency
q per cent rate Of the Bank Of England has
been taken of and Germany shows further IN
creases in cash holdings The Bank OF France,
which has been supporting the situation liberal
lT. has advanced its rate. evidently 20 stor
further gold export and 10 replenlsh us own
stock that manifcsts itself elsewhere
our call money has ranged from 25z to
per cent and time money for the first time has
essed ~ from 8 per cent
''It appears 10 have created some amsZement
in certain quarters that the stock market has
moi immediately responded 10 these favorable
factors, with high and Yet higher prices. u
must be borne iu mind. however, that the ten
dencr of long Us IL ined pressure Is 10 produce
numbnoss, and after its pnOtracted restraint
under the money strain expectation Of immediate te
resiliency is unwarranteo- The treasury with
drawals are stil ahead end boom in stocks
might arOtsc patcrnaI approval. Then too, the
continuous announcements OF future railroad 10.
Oul1emcnts 0ay BY day. accompanied by plans
Offering TO absorb al the money in sight and
much more. have had s0bering effect. Pending
invest cations and new attacks have also their
influence. All Of these things probably enter into
me deliberations Of those leaders who are sup
posed 10 be able 70 conduct successful bull
garded by them matter needing the utmost
deiiberston IN its accomplishment.
TIE BOND MARKET
The fact that bonds cheap and also that
frst-clsss bond Is desirable member of the
investment family. even 81 there are more cayly
ecu npeo propositions 10 be had with more at
fractiVe weld Is beginning 10 impress itself on
investors. There is quiet buying cons equently.
and this may increase among conservative people
VINO do not allow themselves 10 be misled by
Temporary chances for fortune ms king.