The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-10-17

| ing out of the plans for merger Of in
| dependent iron and steel companies from
| s1OO. o0o. 900 to s125,O0o,oOO will be required
in underwriting. That must be money in
hand to pay cash for certain properties
and to provide a large working capital
for the new corporation, to say nothing
of other stop-gap exigencies that always
! arise In the organization Of great indus
trial combine.
In certain half-baked quarters loud
hullaboo is raised over the imminent pos
| sibility of a stupendous issue of "Aldrich
| money under the authority of the emer-
gency act passed by Congress. There Is
about as much probability of such an is
sue as there is of a smothering food of
mama from the heavenly reserves. For
the first time IN nearly two years banks
| are finding a demand for their merchan-
| disc on terms that are honestly remunera-
BILE.
There is still enough money to go
! around but not overmuch, and for that
which is available borrowers are willing
to pay good rates. Is 1t likely that banks
which have gone through long period of
lean pickings will, on the first return Of
favorable banking conditions, voluntarily
have for sale? Hardly. The Aldrich bill
was made a law to cover emergencies.
There is no emergency now, nor is there
| likely to be.
When times get so hard and conditions
| SO desperate that banks are willing to
borrow money at per cent with a MONTH
ly increase of per cent until a maximum
of 10 per cent is reached, then they will
! be willing, perhaps, to draw on the emer-
I
rowers will be willing to pay IS to Is per
| cent.
At the present writing and for several
. months ahead Wall street will have to go
into pretty sharp competition with the
rest of the country for the funds required
to conduct It's speculations This does
not mean that prices will not go higher:
neither does 1t portend any very serious
reactions on the current range of quota
tons. Lots of stocks, on sheer merit, are
altogether likely to work upwards, while
others which are not so advantageously
situated or which are handicapped with
heavy indebtedness will drag behind.
It is time when spectators weary of
carrying stocks that do not pay their
board. It makes a big difference to the
Spectator whether he is paying 8 per
| cent or per cent on his account when
the stock he is Juggling along is yielding
! thin dividends or none at ALL
The most interesting development in
railroad politics this week was the visible
evidence of railroad readjustment incl
dent to the passing of Hartman. In vari-
GUS directions people and parties that
had been going along under the shadow of
Mr.. Hartman are reaching out and again
taking hold Of their own Conspicuous
among the number is the New York Cen
trail.
For a year or more Mr.. Hartman had
been Tightening his grip on the Central
and it was only a question OF a short time
when he would have entirely dominated
1t. You could see and feel the encroach-
ment of his audacious personality. He
had been dead scarcely month when
open announcement was made by Senator
Depew, chairman of the executive com
mttee of the New York Central, that the
Vanderbilts were again in the saddle and
would retain control. Indeed he wen
so far as to declare that there had never
been any Vanderbilt intention to relin-
quish control-whereat everybody smiled
Quite as significant as this Vanderbilt
declaration of independence came the
public announcement that the Missouri
Kansas and Texas, that most progressive
of southwestern systems, had changed
ownerships and gone under joint contro
of the Hawley and Rock Island parties
thus Strengthening the strategic and rev
enue yielding positions of both of these
important interests. tacit understand
ing had existed between Mr. Hawley ant
Mr.. Hartman for the turning over o.
the Alton road to the Hartman party
but death voided that arrangement ant
made 1t easy for Mr.. Hawley to joir
hands with the Yoakum- Reid Moore ele
ment.
The acquisition Of the Missouri, Kansa.
and Texas marks the emancipation o.
the Rock Island system from fear of Har
riman interference. The great Rocl
Island system had been more or lesi
under the shadow of the Union Pacifi,
dictator for several years. It's develop
opment had been considerably restricted
through an indisposition on the part of 1T
management to run afoul of the Harri
man plans. 1t now feels free to extent
itself and do things without consulting
neighbors or rivals.
Incidentally, II may be remarked tina
the Rock Island party was never fnan
cially In better shape to proceed will
whatever plans it may have In mind TO
| the development of its tremendous prop
erty, aggregating 1900 miles before thu
purchase of a half interest In the Mis-
souri,. Kansas and Texas with It's 300
miles Of track.
King Hartman had the whole rail
road world 'btffaloed."