Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-05-04
FACT AND GOSSIP
IN BUSINESS
WORLD
Rx q. c. FORBES.


NEW YORK. MAY Anew securities
aggregating sl.O27, 600 have been sold
since January 1 by American corpora
tions.
This is almost 5000, 900, 600 more than
the issue during the first four months of
1911, and fully ssooooO,ooo in excess of
1910
April contributed s21s ,O2s. 900. an in
crease of $50, 1se 900 over last year.
Two influences have stimulated the TO
tation of bonds, notes and stocks this
year Forst. money rates have been low.
and, second confidence in an early re
vival of prosperity has returned.
Initiating against the absorption of new
corporate loans. especially railroad is
sues. has been the widespread fear that
regulation might go too far for the com
fort of investors.
Latterly industrial enterprises have
thrown off the timidity begotten by the
prosecutions under the Sherman law.
The events which have followed the so
called dissolution" of the Oil and Tobac-
co trusts are not calculated to stay the
hand of enterprising capitalists disposed
to form new combinations
Public Less Antadonistlc.
Above and beyond this however, is the
conviction that public sentiment is less
antagonistic to capital, that fair play in
stead of revenge is now desired, and that
really injurious legislation will not elicit
popular applause.
The quietness in trade which was
feature of the opening months of the
current year meant the release of vast
sums from mercantile and industrial
channels. This, in turn. brought down
interest charges in reserve cities. And
cheap money, of course. facilitates the
distribution of securities.
The railroads are peculiarly anxious to
have on hand ample funds to provide
the additional facilities which they be-
leve will be necessary to handle their
traffic this fail Every railroad presi-
dent in the United States fears that, If
bumper crops be garnered. there will be
serious blockade on trsnsporta ton lines
At the same time certain managers hes
itate to invite investors to subscribe for
loans the stability of which might be
imperiled by a continuance of harassing
decisions by the interstate commerce
commission or by fresh advances in
wages.
Railroad Presidents View
On this subject. a very prominent rail-
road president writes me as follows:
Assuming that railroad companies
to be necessary for their future de
velopment are they justified under
existing conditions, in taking such &C
ton as will largely increase their
fixed charges beyond the extent re
uuired by their absolute necessities
OF course, when people invest their
money in railway securities, they do
so because they are encouraged to be-
lieve, and do believe that they will re-
ceive the specified rate of interest. or
because they expect to receive the
established rate of dividend. and |
am sure no honest or conscientious
railroad executive would be willing
to accept money from investors unless
he felt reasonably certain that the
conditions justified their confidence.
Railroads VIII Borrow Soon.
The prospects are that the majority OF
roads in need of funds will come into the
market now that the whole raslroad sit
uation is to be investigated by an in
tiuential commission of arbitration
If one were asked to hazard an opin-
ion Of the outlook, the reply would be that
very moderate advance in wages seems
probable and later slightly more generous
treatment of the roads in considering re.
quests for permission to increase certain
freight rates.
During April the railroads foated $115,
S65 900 securities, or $35, 927 900 below the
corresponding figure of a year ago.
The brighter view now taken of indus
trial prospects is reflected by the ennis
sion of S102 100000 bonds, notes and
stocks, an increase of no less than S75,-
116 900 over last year,
Seven per cent industrial preferred
stocks are to play an important part in
1912 financing. one house. not recognized
as a leader in the field, has distributed
500 600 600 of these stocks within the