The Birmingham age-herald., 1907-06-09

It Is understood that the speyers are going to make good to all their friends and followers in the Yerlxes London un- derground venture. The per cent notes of the London Underground, which were fioated by the Speyers. are now selling at a price in the New York and London markets that indicates a return to the investor of more than. 30 per. cent. The notes mature year from now, and are selling at discount of more than 20 per cent There is practically no market for them. If anybody was assured that the notes would be met at maturity n year from today It would be a fine thing to pick them up now around IT and turn them in at par in twelve months, receiv- ing in the meantime the per cent n- terest This would mean about 37 per cent on the money. Of course, 37 per gent doesn't look very big to these finan- clers of the new school, who are manu- featuring Cobalt and Nevada stocks, but it looks just as big as ever to the old school financiers, who are accustomed to regarding securities that return more than ' per cent as of a very doubtful merit. As there has been no rush to pick up the London Underground notes at the bargain prices, 1t may be taken for granted that there is no intention on the part of the community to meet these notes at maturity.
 
 don Underground project. and they are not going to lay down on it. They tell their friends that the holders of these notes are going to come out all right in the end. An offer may be made to the note holders next year to extend the securities another three or five years at the same rate of, interest. In these days when railways in a much securer finan- ciai condition than the London Under ground are obliged to pay and per cent for loans of this character, the holders of the London Underground notes may feel that there money could be used more advantageously somewhere else. But the only way they can save their principal Is to accept some such compromise three year or five year extension of the notes. If the notes are extended for five years from June l. 190S then the present discount of 23 per cent would be spread over six years instead of one.
 The speyers have steered pretty clear of doubtful undertakings and have made a record in the past few years as highly conservative bankers This London Un- derground fasco, therefore, Is a thorn in the side of James Speyer, and he pro- poses to remove the thorn as speedily as possible He Is more dscomforted over the feelings about this episode in the Speyer history in London than in New York. The speyers have taken a l great deal of pains to build up a repu- tation for themselves abroad and it l grieves them to see that now, in spite of all their precautions. a lemon has been l handed to them The late Charles T. Yerkes meant all right. His dream of modernizing the antediluvian methods of transit in the English capital were worthy of the greatest f1nancier who tried to make two blades of grass grow where one grew before. But this revolution of London intramural transit could not be effected In a day. The Engllshman makes haste slowly Some day the London Un- derground situation will work out all right In the meantime those who have put their money into the project must have patience.