The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-12-05

ANSQ AcW oHd1e iosueS or are HDOOL TO 90
SO. The theoretical effect of the new
fiotations is as tangible as the actual
absorption of the stocks themselves This
class of new securities will, however,
very soon find permanent lodgment to the
accompaniment of a reduced floating sup
ply on the exchanges Standard stocks
like Pennsylvania, New York Central, St.
Paul and Northwestern do not go beg
ging very long. The strong boxes yearn
for them and there is the ultimate des-
tination.
The gentle determination of President
Taft to take no backward step In the
administration policy of corporation reg
ulation has been a disappointment to the
reactionaries in Wall street This hard
headed and narrow-minded element had
deluded itself with the belief that Mr..
Taft would take open position with the
conservative monied interests and do
what he could to nullify the progressive
political action of the last decade. 1t Is
true there never was shadow of excuse
for the entertaining of any such hope, yet
none the less 1t was held in quarters
where superior intelligence Is supposed
to reign. There Is a rich and somewhat
stupid element In the population of Wall
street that Is welded to the conviction
that this great financial center Is the
hub of the universe and that everybody
the people who have had much to say
since the Standard OIL decision about
quick action by Congress to amend the
Sherman law by knocking its teeth out.
In the same quarter is heard learned
opinion that this same nearby Congress
will promptly inaugurate supposedly ur-
gent reforms in the banking and currency
laws, and especially that It will create
a Central bank. Such wiseacres are nom
plussed to learn that a very large SEQ
ton of the country is rabidly opposed to
a central bank and that the opposing
territory has large membership major
ity in Congress. The Consciousness dawns
slowly upon these hard-headed citizens
of the money GLASS that Congress and
court action to prevent lawlessness on
the part of the rich Is not necessarily an
assault on virtue or values or even ap-
proximatcly oonfiscation. They are learn
ing the lesson, however. and may in
time realize the facts as seen by the rest
OF the world.
The Rock Island-'F risco divorce has
been pulled of about as outlined in the
dispatches. In getting rid of Frisco the
Rock Island proper saves little matter
Of nearly $4,000 a year. which II has
been paying out for the last six years In
interest on Frisco bonds which It be-
came responsible for at the time of the
those six years for this Frisco interest
account footed up $Al5o.00o. a sum suffi-
cient to have paid per cent on Rock
Island preferred. That $4,000 year rep
resents what the Frisco management is
willing to pay year for its independence
and for the right to grow and fill up the
southwest with untrammeled freedom.
Mr.. Yoakum's special province Is the ex-
tension of his railroads and the building
of In fbo
western empire. He looks to the future
for his big returns. Those who would
rather reap a present harvest of divi-
dends than to walt for posterity to make
good huge speculative profits complain
that Mr.. Yoakum and his associates are
unduly gifted In the construction of I'M
remunerative mileage. Be that az it may,
the two systems will hereafter be con-
Quoted separately
tions of the Rock Island party. In my
last dispatch I noted the fact that In
exceptionally well informed orioles cred
ence was placed In the talk about the
extension of tho Rock Island system to
the Atlantic 6eaboard by way of the
Wabash and Isehigh Valley lines. 1t now
seems to be very generally recognized
that D. g. Reid and Judge Moore have
acquired control of Lehigh Valley and
or in a very advanced stage for tho ac-
QUESTION of Wabash by the same party.
A glance at the map shows how very
advantageously the additions of these
two systems would fit into Rock Island
plans for an eastern extension. The Wa
bash would make up for the loss OF
Eastern Illinois in a connection between
ST. Louis and the lakes and would give
an owned line to Toledo and Troy. At
~ IL. - xxft1.
the Grand Trunk. over whose lines 1t has
a long time trackage arrangement which
is in effect as good as a partnership. The
Lehigh Valley meets this Wabash-Grand
Trunk line at Buffalo and affords the de-
sired tfdewater extension. Several years
ago 1t was the ambition of the Rock Is
land party to put its nose into the At
lantio ocean and there was talk at the
time of its purchase of the control OF
either Baltimore and Ohio or Erie. There
were reports also OF its ambition to get
hold of New York Central. These pro-
1ects were abandoned, however, but it is
by no means certain that the tidewater
ambition WAS killed. Present indications
are that 1t merely went to sleep. A Wa
bash-Lehiah Valley addition to the Rock
Island system would give It a mileage oil
nearly 1900 miles and would be advan-
tageous from almost every point OF view.
The bankers have done their best to
keep up the interest rates and have done
fairly we'll although now and then
weak spot is uncovered in their defenses.
Mrs. Hetty Green. for instance. appeared
In Wall street two or throe days this
week and loaned out several million dol
lars q full half point under the prevailing
bank rate. She was very particular In
the matter Of collateral. however. and
would take only the choicest Of gilt-edge
securities. No mixed loans for her.
Being worth only about $lO00oo.ooo she
cannot afford to take any chances. Be-
vero losses would compel retrenohmsnt
in tho maintenance Of her $50 month
nat on Wurzburger avenue. Hoboken.
She let out her money on this occasion
at AZ per cent for 90 days and had re-
spectacle chunk left when she got
through. Since the death Of Russell Sage
there has been no big lender In tho street
who would do this kind Of irregular thing
while the horny-handed bankers were
struggling against odds to maintain arti-
hoially high rates.
The Industrial List has been somewhat
under the hammer and for no reason that
anybody could understand unless 1t be
that there were more weak bull accounts
than anybody. knew of. Tho equipment
stocks In particular are looked upon as
the very cheapest things on the whole
list, yet they, too, suffered with the rest.
Car Foundry is one of the choicest OF
tho equipment stocks, yet 1t lost points
in a week. although certain to go on
per cent basis early next year. 1t Is
earning nearly 20 per cent. has surplus
of about Ga, 900 co., of which 600 -
in cash and will build its big new plant
at Gary without having to DO cent Of