The Birmingham age-herald., 1911-01-22
CASH IS FLOODING ,
 NEW YORK BANKS And Industrial Corporations Propose To Absorb It RAILROADS GET BUSY Will Not Wait for Decision of the In- terstate Commerce. ( commission.
 New Block of New York
 Bonds Is Popular
BY w. G. NICHOLAS

DA
 New York, January 21-(special)-Wit the inflow of a mighty flood of money the financters behind the great railroad and industrial corporations are preparing to grab off all they can of the swelling ac- emulation. Cash is coming into New York at the rate of sl0ooo,OOO to s15,0oo,o 900 week, and those who can get in on it are willing, ready and able to prevent rust from thickening on the gold or mold to destroy the paper currency. The rail- | roads are not going to wait for the de- cision of the interstate commerce com mission and the industrials are discov- ering that they have possibly overesti- mated the importance of supreme court action on the Tobacco, Standard Oil and Anthracite Coal trust cases
 It came a kind of surprise to the captains of high finance to realize that the railroads had been doing without the increase In freight rates that was being demanded and that they had grown in wealth and power for many, many years without the increase which Is now being asked as-absolutely necessary to the we'll being of the railroad business. Having gone ahead without this added s75, 900 year 1t dawns upon them that they may be able to carry freight and passengers in the future as they have done in the past.
 | At any rate, they are going to borrow all the money they can while it is with in reach. They are working hard to make hay while the sun shines and to harvest that same hay. Wall street is full of l plans for bond and stock fotations and they are being put through regardless of | interstate commerce commissions, su- preme court decisions, all kinds of pollti- cal attacks, and of activity on the part | of Attorney General Wickersham and his staff of earnest reformers and law enforc- CTS. This demonstration of confidence In the future of the country and in the sta bilitya and intrinsic value of their own properties now being given by the men cf larger caliber in the financial and bus
 mess world is inspiring a great deal of buying of stocks and bonds.
 The gospel of pessimism has been preached so long and so loud and so earnestly by men in high places that it had produced tremendously depressing effect upon the public mind. It looks all most as though this weight of woe is in process of being lifted and that we are struggling hard to emerge from gloom into sunshine-reaI sunshine. There have been Sd many false starts. however, that
 it may be well to walt while before banking too heavily on this immediate uplift theory.
 It Is fact, however, that since the be- ginning of the new year a great many wealthy men who are in close touch with l banking institutions and with the bank l ing situation and attitude of the powers | that be have been buying stocks freely. | They have taken on larger lines of securi | ties than at any time in two years. | Men who have been keeping out of the | market altogether or else dipping in very | lightly have bought 5000 shares, 10000 shares or 25,O00 shares with something of their old-time spirit, apparently not with | view to quick turn but to hold the securities with the idea of big upward movement some time during the next six month or a year. Refiecting somewhat this newborn spirit of cheerfulness, a re- mark dropped by former Secretary of the Treasury Lyman J. Gage, who is tenn porarily sojourning in New York, mixing with his old friends and absorbing local financial color, as expressed by the most | important people in the street
 MT. Gage is quoted by friend as giv- ing utterance to a very cheerful line of talk and of prophecying among other things that Steel common will be on a 6 or per cent basis before the end of the calendar year. Considering the pre- vailng opinion on Steel just now, this 1 prediction may be said to be going some,' and as representing about the | highest type of faith in the future
 MT. Gage does not seem to think it will be in power of politicians to do seri- | ous harm to business. or to retard prog
 ress. Mir. Gage is well qualified to pass judgment on national business conditions, having been actively on the stage of being always an observer on the front seat when not himself participant.
 The first big thing on the programme will be the Notation of s60,OOO0OO in New | York city 4A per cent stock (the paper is almost always referred to as bonds). | This event comes off during the com ing week.. The stock will be heavily over-subscribed and the sale Is expected | ton of the proceeds will be used to take up short time obligations of the city which are pressing for settlement. Hol- 1 land holds anywhere from $20,OO0.OOO to | $40, ,cOO.000 New York city's floating i'm debtedness and France is also quite a buyer of the same kind of paper.
 1 After the New York incident is closed, Pennsylvania. New York Central and a dozen other railroads will come forward l as candidates for cash. The corporation | financing that is on the programme for the next 90 days will not fall much short of $6C0. .00o.000, 1t is said. Pennsylvania will come in for S10O.0O0,000 and New York Central may not be satisfied with | less than s150, GOO, part of which will be raised on the credit of the parent company and part through the aid of all | lied and subsidiary companies. New
 York Central Is now known to be behind Western Maryland and to be financing the western extension of that line to connect with the line from Pittsburg to Ashtabula. It will take pretty penny to complete this connection and get 1t in good working order and to provide the necessary terminals at Balti- more as well as to provide equipment required to put the property in first class shape. Money will also be needed to round out the Norfork and Western.
 Inside friction in the big Steel cor poraton is still troubling the Morgan 1 Gary management. The Carnegie chiefs of several of the subsidiary companies are still sore clear through and the air tions w. ]. Palmer of American Wire. r,tctra,. oF (>arneUie and R S.hi1-