The Birmingham age-herald., 1908-05-11
RAILROADS SE[
 SILVER LINING Clouds of Financial Depression
 Are Breaking BOND ISSUES ARE EASY The Promised Relief Is of Such Im- portance as to Override Effect
 of Less Favorable De-
 velopments.
BOND ISSUES ARE EASY

New York, May #10-Consideration of
 the improvement in tho investment sit
 uation as it favors the plans for new
 financing of the railroad corporations,
 continued to dominate speculative senti-
 ment in the securities market last week.
 There was additional evidence that sup
 plies of capital will be forthcoming on
 good security to finance the requirements
 of the railroads and obyiate the embar-
 rassments they have been under to carry
 on work necessary to the successful con
 duct of their business.
 The promised relief from this difficulty
 is of such importance that it has served to override the effect of some of the
 developments of a less favorable nature
 from the side of business and industry.
 The ailotments on subscriptions to the
 Pennsylvania $4O,OOO,00O consolidated 4 per
 cent bonds showed an over-subscription
 20 times both in New York and Lon don.
 After due allowance for the high se- curity of the bond, the attractive invest ment basis on which it was offered and the premium bid over the allotment price before the bids were closed, which prompted bidders to send in over-sub- scrptions to secure the amount they
 really wanted, the transaction was re- garded as striking testimony to the re- cuperation of capital supplies. The quick resale of the underwriting syndicate at a good profit of the in- terborough notes was corroborative evil Ca ola ffr 1 for nearly $4O,OOO,OOO of New York reve- nue bonds. The demand for existing bonds at the stock exchange and through
 bond houses broadened moderately at the same time. The coming Union Pacific bond issue Is awaited with interest on
 this accognt as an s9ditiehaL est dt tae
 stability of the improvement. | Hartman Pacifics. 1 The conspicuous place held by the Har-
 riman Pacifics in the stock market move
 ment and the large centralized operations l by houses usually employed by interests largely concerned in those companies | created an impression that the rise in 1 stocks was fostered by those interests | with a view to improving conditions for
  benevolent control of the market by | the great banking and financial interests | in concert was supposed to be exercised partly for the purpose oe furthering pro- | posed new financial issues, partly with view to aid in restoring general col- | fdence in the financial situation and part ! ly from the conviction that conditions | had mended sufficiently from the disorder
 of the financial crisis to call for read | justment of values of securities on the ] basis of investment return.
 | An important factor in furthering this | view was the action of railroad officials | to bring about an advance in the rates l for freight transportation. Extended con- | terences were held to this end and the | project was advocated as a necessary | step in view of the shrinkage in traffic | and the obstacles to an adequate reduc | tion in operating cost to meet this shrink l age
 Freight Rate Advance. l The policy of rate advances came in for criticism and opposition not only among shippers, but from some of the
 railroad officials themselves, making it problematical whether the plan would be carried out. This doubt had some effect in checking the rise in stocks and caus- ing hesitation in the movement. The same criticism has been heard or thu policy of
 the principal iron producers to hold prices where the stagnation in demand and the
 general course of prices of other com
 modities is pointed to as calling for re- duction in prices to revive the demand. The money market has continued easy
 and reserves still accumulate in banks in spite of the withdrawals of government
 deposits by the treasury department. The continued overflow from the treasury by
 reason of the current deficit neutralizes this section. The gold outflow has been checked.
 Good crop prospects were factor in the market, although tn government re- port was not as favorable expected an1 indictment weather in the week following the period of the report had to be all lowed for.