The Birmingham age-herald., 1907-09-01
BELMONT Is LEFT
 ID HOLD THE BAG Ryan Has Been Unloading His
 Traction Stocks OUTLOOK ON THE STREET Leading Flnanoiers Have Returned, and Feeling of Greater Confidence
 Is Shown All the Way
 Down the Line.
OUTLOOK ON THE STREET
BY w. G. NICHOLAS.

deal. Just prior to his departure for Eu- rope a couple of months ago he told friends that he was practically out of traction securities, and was no longer financially interested in the local situation except to a very moderate extent. He is evidently very willing to have 1t under stood that he has shouldered the burdens and responsibilities upon others. It would appear that the load has landed on Mr.
 August Belmont and his packers who are supposed to be the Rotihschilds. They have been Handed with the goods to all appearances MT. Belmont Is left alone to struggle with the mass of complica- tions, including defauIted guarantees of dividends, deficiencies in earnings, receiy- erships and the bankruptcy of some of the constituent companies in the merger. He is up against it for sure. A new era of reorganization has set In and what the outcome will be is largely speoula- tive. The only one thing that the 100000 people of Manhattan and the Bronx feel sure about is that the tracks will not be torn up and that they will continue to be given a service of some sort
 The traction manipulation in New York was directed almost wholly for five or six years by Thomas F. Ryan and the late William C. Whitney. After Mir.
 Whitney's death MT. Ryan had the entire control up to something like 0 year ago, when he succeeded in working off the surface lines on MT. Belmont and clis friends, who had the elevated and subway systems. There seems to be little doubt that MT. Ryan is out of 1t for fair, but does not say sure that he will not be forced to disgorge large sums of money squeezed out of the properties under his management How much money MT. Whitney and MT. Ryan dragged out of the New York traction game may never be known, but the total is quite as lkeiy to be S75, GOO 900 to s100, ,000 900 as smaller sum- It Is known that in 1S9s-lSss MT. Whitney was practically down and out. His estate was appraised few weeks ago at s25, ,0O0, GOO. MT. Whitney was never officially connected with the systems he tuggled and those who are planning campaign to force restitution may nave A hard time getting at the estate. MT Ryan Is not so well protected and he may be obliged to make good large sums saiu to be illegally wrested from the property.
 The plan on foot contemplates the dp- pojntment of special states attorney for New York to criminaily prosecu.s Ryan. Vreeland and their associates ln the manipulation and to use the testi- monv brought out in these trials as basis for civil action. The theory IS that rather than suffer criminal punishment the big ones will make restitution on scale which would make the famous Jay Gould's S7OO0,000 disagreement to Ere stockholders appear trivial All or tnis sounds very nice on paper, and LOOKS llhe tro,hle for MT. Ryan, but whether the campaign can be coined Into money re-
 mains to be seen. MT. Ryan has hlthef- to nrotected himself against that sort or bo,dup. and there Is no assurance that he Is not equal to the threatened einer- eency. MT. Ryan has been putting nm saIf in shane to take his ease. He has snlendid country estate up in the Ramapo
 Hills and another in Virginia. lie mas
 gradually been laying down o1lclai caieS
 wherever he could for considerably more .sa,, vear and to have realized on
 grea+ masses of securities, His selling ana that of his insurance company, the bquit- ahIe have been important factors m the decline which has been going on u termittently since last fail' lie ID also to have gotten rid of mass or ms stocks and bonds in the topacco Uoiiis nanies. and to have planted the puih VI his immense fortune where IL cahiio. ootten at. He is reputed to be worth ae
 sN. .-s ooo oOo The man whose appoint
 r,sot as especial" states attorney to take m this merger prosecution will be asheu
 s1v |. Iarnes w. Osborne, for several years Teromes assistant. The men are now en-
 o,,a. and if Governor Hughes shoulo ap- uaint Osborne 1t will be construed as
 direct affront to the state aeeo,ne' wbose only recourse would pc to ieeie"
 Tho impending reorganization or the ..nt;or systems may drag down the e1anbattan Elevated, as litigating stoek- saIaars in the companies whose Secu- n,,tes are guaranteed, would try 10 hoiu 1 that company responsible. Manhattan i' tbe only system that is making money ! evervthlng else In sight pelne w"ee l logued with stocks and bonds anu UT, abIo to meet even fixed charges Inro aoiS ,,o Ia rnnning behind s2,oo0,0oo year and so is Metropolitan surface sys'ei.,
 rt,o readiustment which Is ahead VIII have to he on very much lower aggre- cate capitalization, the process ehtaihns heavy scaling down from present par values. ,sa,4 a,a, | inc receivershlp or. receivershlps TOT the | constituent companies of the DIE trac- lion merger. Minority and non-assentlns stockholders are suspicious of collusive moves looking to the appointment or | .,friendIy" receivers, who will simply con t,nue the unholy legerdermain to the fur ther annhilation of equities.
 As usual MT. J. P Morgan comes for ward at the psychological moment with plan for relief. On this occasion the scheme which he fathers Is syndicate to take a s4O,O00,0O0 issue of New York citv 41a per cent bonds at par or above. The investment Is about the surest thing in sight. If they pass into hands Of bands which will be their first lodging place, they can be used as security for government deposits, and when they have served their purpose in that respect they can oe distributed to the general invest ment public MT. Morgan and his friends take no risk, whatever, and stand 10 make 10 per cent or more for standing in the gap. The action taken by them is something in the nature of a Christia n Science cure to the financial situation and has acted as a very decided tonic.
 The knowledge that MT. Morgan is back, and that he and his associates stand ready to protect the market against panic has gone a long ways to restore conf1- dence. If the hardening tendency which has developed In consequence does not induce further extensive liquidation for hardly pressed interests. prices should continue to work up to higher level. The Stock Exchange is full of splendid bargains and people with means are be- ginning to fill their strong boxes with some of the very attractive securities winch are dragging on the ground fin partial dishonor.
 The stock market gives signs of break ing away from crazy politics. Uncef- | tainty as to what the politicians might do, anc as to how far they might get the majority of voters to back them up in what Is called warfare on capital" has been a very serious feature and has