The Birmingham age-herald., 1913-12-17

tations of that day that events had
abundantly supported him In that course
Morgan Exhibits Proof
Mr.. Morgan held strip of ticker tape
In his hand when he made this remark
and he exhibited this proof to a few
friends who We're with him at luncheon
in his downtown office.
Today the Reading seems to be. COM
paratlvely speaking, unaffected by busi-
ness depression and Its stock Is one of the
few railroad stocks that are constantly
quoted above par.
The directors of the New Haven COM
pany who met the executive chief, How
ard Elliott, at the meeting last week
which has become historic because 1t was
decided not to pay any dividends for this
quarter, were every one as thoroughly
convinced of the inherent value which is
In the New Haven railroad property as
Mr. Morgan was convinced of the value
of the Reading even at the time of its
great depression. This firm faith in the
inherent value of the property is not
mere guesswork, but Is based upon au-
thoritatiye and reliable ngures. The ac-
tual physical valuation of the New Haven
prcverty over and above all its liabilities
and responsibilities was fixed some years
ago by competent authority at millions
above the aggregate par value of the
capital stock and fixed indefinitely.
Mr.. Ellot's Great Task
The knowledge that the property is
worth a great deal more than the figures
which represent it's capital and bonded
Indebtedness was perhaps the one con-
ISOLATION which the directors had when
they, from a sense of duty, decided to
pass this dividend.
This action was thoroughly sustained by
Howard Elliott who recently became the
executive head of the system. Many OF
Mr.. Elliot's friends have wondered why
he should have been willing to resign his
comfortable post as president of the
Northern Pacific Railroad company to ac-
cept the offer of the New Haven directors
that he become the executive chief of that
system. The Northern Pacific Is prosper
Gus. Evidences are plentiful that its
will be maintained and in
creased. The corporation is not now as
greatly embarrassed by legislative and
political action as some OF the other rail-
way companies of the United States have
been. There were no salary temptations to
induce Mr. Elliot to give up his post
at ST. Paul and establish new one at
Boston, for the understanding is that he
was offered the same salary for the New
Haven service that he had been receiving
as president of the Northern Pacific.
A Great Opportunity
Undoubtedly Mr. Elliot saw a very great
opportunity which told the story of pop
ulation, of transportation, of manufa etur-
ing industries and of commerce in New
England. He knew that the New Eng
land section is the most densely concen-
trated railroad region of the onited
States. He knew that the New England
section is the most densely concentrated
region of the United States. He
knew approximately what the money val
uation of the physical properties of the
New Haven company was and 1t Is very
like ely that he realized that an opportunity
was opening to him as great as that which
was placed in the hands of George f.
Baer when he became the executive head
of the Reading system.
Mr. Elliot is too wise and experienced
a railway manager to look forward TO the
day when the New Haven company can
again earn greatly enough to pay 10 per
cent dividends, and at the same time
amass any surplus. These now famous 10
per cent dividends were paid when the
New Haven company was little prop