The Birmingham age-herald., 1908-08-16

, suit the insiders who still own the bulk of stocks The brass bands were started and the public immediately marched away from Wall street. There is every indica- tion, however, that the music will be kept going until the mob is attracted back ! again, for unable to raise freight rates the railroad managers must unload stocks i before the beginning of the period of re- i ceiverships and congratulations with which the great railroad systems are face to face.
 It is a time to talk plain English, and the plain English of the situation is that not railroad in America could pay div idends without borrowing the money with which to pay them. The facts are not stated So bluntly when the bonds are is- sued, but that Is what is meant. New York Central Is staggering under a load of bonds and stocks amounting to $363, 600 a mile. Ontario and Western has $266, ,0O0 mile, the New Haven $162,000, Erie $233,- 900, Baltimore and Ohio $12O,OOO Chesa- peake and Ohio $1O5OOO, Pennsylvania $146,oo0, Reading s245,0O0, Wabash s103OOO. The significance of these figures can be realized best, perhaps, by comparing them with Canadian Pacific, which has a capi- talization of only s34,000 mile.
 One result of this over-capitalization is that the export grain trade has been lost by New York because the railroads are unable to compete with the Canadian lines. Montreal has fallen heir to this vast commerce.
 The number of shares of stocks sold to- day was 473,610, against 352,239 the same day last year.
 The total par value of bonds sold today was $S1O,0O0, against $9350OO the same day 8 year ago.
 The Standard Oil company is said to have placed in the past week with the steel trust the largest order for material ever received at one time.
 Car building companies are figuring on about 5000 steel cars for the Hartman lines, but no contract will be given until all bids are in~
 Wall street was full of the belief that the receivership would be announced for all or part of the Rock Island system within the next six months. It Is said that everything has been loaded onto the Frisco and that that company may be sacrificed It has obligations of about S7OOOO 900 to finance before December. The feeling about Rock Island is intensified by the belief that outsiders have been running a bear campaign in its stocks.
 Vice President s. M Hayes of the Grand Trunk railway said today that the uiVl- dends had not been earned for the last half year. Earnings of the system were only sufficient, he said, to pay d1vldends upon the guaranteed stock. He expects that the second six months will snow enough to pay on the preferred stock
 Foreign exchange has tended down. ward. but the market has had a gener- ally firm undertone. Banking interests look for a heavy supply of bills against cotton and grain in the fall months. Ihe London money market was reported abundantly supplied with funds. It IS not expected that further amounts or gold will go to Berlin, but the continental situation, according to later cables, is nor considered reassuring, and industrial a1- fairs still in need of strengthening out. On the London market American issues were practically unchanged as to the ma iority. Canadians were inclined, to rally. international stocks were neglected owing to the holiday in Paris.
 Bar silver in London today was l-ls lower at 23ls pence per ounce. Today's New York price was &c lower at DISC. Mexican dollars were 45@51c.
 United States government bonds closed unchanged. Trading in the general bond market was quiet. Prices held relatively steady.