The Birmingham age-herald., 1911-12-31

ceSSlOn Tn pflces. ifle eildHSe NHiSlA hea9
 thus far taken place is mainly in senti-
 ment.
 On the other hand, a very well defined and seemingly well supported theory pre-
 vails that the really important people Of
 Wall street are planning for a bull cam
 paign to continue through the months
 of January and February. Money is
 going to be abundant and fairly cheap
 and several of the big railroad systems
 think the time opportune for some needed
 financing. This applies particularly to
 New York Central, which is putting
 through it's grand scheme of consolida-
 ton of the Vanderbilt properties, blend
 ing them into a giant combine and round-
 ing into shape what will be the most
 colossal rail consolidation in the world.
 To accomplish this will require a vast
 amount of new capital. campaign to
 this end has been under way for several
 months In order to help the play along
 and to make a good showing of earnings
 in the face of adverse conditions, cen
 tral has been systematically starving
 itself'' in directions which do not imme-
 diately show themselves or appeal to
 the understanding of the public. New
 York Central is making it's biggest cut in the matter of maintenance. The offl- cial statistics of the Interstate Com merce Commission show that the main system has reduced maintenance from around 90 per cent of gross revenue to between 9 per cent and 26 per cent This has been going on since the begin ming of July and on the main line alone it is making a difference in net earnings at the rate of about $5.000,000 a year. Central's gross revenue for its main line approxmates s100000.G0O per annum. It is therefore easy to figure the net say ings'' on that basis Figures are not available as to what is going on In con nection with the subsidiary lines. With a big exhibit of earnings it may be pos sible to successfully float a huge bond issue in connection with the consolidation That some such plan is definitely under way is generally believed in Wall street l. is also believed that the deal will be pulled off during the months of January or February unless there Is some Tall down in the arrangements.
 The most powerful financial factions in America are interested in New York Cen tral and associated enterprises. At the present writing the factions in the tinan- cial district are in closer harmony than ever before and there is not likely to be any friction in the carrying out of its huge project of the nature outllned With Central taken care of and it's shadow removed from the situation there will be palmer sailing for other candidates Tor first capital, is the reasoning. The eie- ment of competition for available capi- tai will be eliminated, and that counts for a good deal in the money market as well as in other markets.
 Railroads are looking forward rather more hopefully to relief from, political Without particular effort on their part the public is becoming edu- eated to a knowledge that In restricting and hampering the freedom of railroads to expand and progress it is injurins itself primarily Railroads are acllnowl- edged to be the paramount agent for the of the country and if they are to be systematically starved they cannot do the work they will be called upon to perform when business reviVes and the country starts In upon another period of advancement. Railroads as whole are in no shape to do a much larger volume of traffic than is now of fered them. Manifestly they cannot do better until they have money with which to extend themselves and increase their facilities If their earnings are to be diverted to other directions under man. date of law, and they are to be prevented from increasing earnings to meet de- mands made upon them for increased facilities, then the people themselves will discover that they are to blame more than the railroad owners. It is two bladed knife, this railroad regulation, and it cuts both ways. When the hurt be- gins to be felt, as it surely will be as times improve, the people who are be- hind the politicians will be obliged 10 move for the relief of railroads and for their own protection. A change of sen timent is already being strongly felt ill that general direction and is reflected in the editorial expressions of the news papers of the country.
 There is pause in the conversational and publicity efforts to boost the anthra- cite coal road stocks They have been energetically boomed on gossip about distribution of hidden assets, segrega- tion of coal lands and all that sort of thing until the street is tired of the talk. Something substantial will have to take the place of rumor before much new buying can be looked for. That some thing will be done is taken for granted. Whether the supreme court decides against the coal road or not the trans portation companies will divorce them selves from their direct ownership of coal deposits Public sentiment is over whelming in the demand that this be done. The day is passing when rail- roads can ship their own products in competition with the public. Under standing this fully the railroads con- eerned are not going to await brutal bludgeoning when they can sidestep gracefully and be making money at the same time.