The Birmingham age-herald., 1913-05-25
;rOp Prospects and Large
Railroad Traffic Have no
Effect on Traders
RAILROAD BUYING
ON IMMENSE SCALE
'ome Think the New Financial Leader
Is Not in New York But
May Come Out of
the West
BY w. G. NICHOLAS

BY w. G. NICHOLAS
New York. May 24-(Speoial) )--Wall
treet is still blind to the magnificent crop
prospects and the great movement of
raHic on the railroads. The total is only
lightly under the highest figure on rec
rd. More equipment is in use on the
arriving systems than ever before ex-
epting during brief period last winter.
1t is mystery how the railroads get
money or credit to keep up their equip
Inent. The car building and locomotive
building companies are strained to the
INIT carrying their railroad customers
orrolling stock They are really pressed
accommodate hard up customers. But
his is only one of the incidents. Wall
ktreet refuses to see anything but dark
'olors To participate in the sunshine it
must go above the clouds and there is no
way to get there, as matters now stand
The bigger the man, the more frightened
le seems to be over the present situation,
ind over prospects He feels as though
lie wer completely encompassSd by BUSH
Thackers and dynamite throwers. In the
arguage of the cattle camp they are
\ scared plum crazy"
| Professional money lenders always have
something TO spare, even though they
| nave to get it through the back doors of
I banks and trust companies, but they will
10 business only at usurious rates, and
\ hen sparingly. There are SO many splits
md divisions of these illicit profits that
extreme caution has become necessary
among the operators. With such condi-
ions prevailing, Wall street could not be
otherwise mo
without force or direction.
Out of Money Market
Most of the strongest railroads and in
1ustrials have practically drawn out of
the money market for the time being
majority would like to have more capital
for purposes of expansion and improve
ment of plant, but for this kind of money
borrowers will not pay exorbitantly.
They feel they can better afford to wait
than to pay the price. The needs of not
Ia few conspicuous corporations are OK
|tremely urgent and they have to obtain
accommodations regardless of the de-
mands of the lenders. New Haven fur
nished an illustration of financial need
when it borrowed s12,000,0O0 of J. P. Nor
gan & Co. the day after II ordered the
distribution of that identical sum as div
idends to stockholders.
There las been pretense that the
fOdu earned the tuli QlNluenu Dut IL hat
TO keep up credit with its stockholders in
order to prevent New England from going
into panic. New York Central is also
bidding high for short time money by the
millions. Other roads which have been
putting out desperate feelers have been
unable to secure suckers. For the mo-
'ment the situation could not be worse.
The street is literally overcome with a
sense of fear that something may hap
pen against which they cannot protect
themselves except by filing up their
strong boxes and keeping them locked
The hitherto influential banking and un-
lderwriting firms no longer have the pull
with rich clients as was formerly the
case. In the good old Morgan days all
the great international banking houses
acting In cooperation with a group of
powerful New York banks had only TO
advise long lists of clients that they were
ALLOTTED proportionate shares of UNDER
writing of new securities and the thing
was done. The stock announcements
went out that the transaction was a howl
ing success and that the over subscrip-
tion had been something astounding
Some of the schemes did not pan out and
the involuntary subscribers to new stuff
lost money A few experiences of this
kind cooled them down and for a year
or more increasing reluctance has marked
the behavior of the quiet rich who com
posed the patrons OF the multi-millionaire
banking houses and their immediate
hackers. II is now with great reluctance
that majority OF the banking institts-
tiors will venture to sponsor fresh stocks
or bonds of magnitude. Clearer proof of
loss of old time confidence in the financicl
advice of leaders could not be given
These conditions may In turn give place
to a better feeling, but the wisest among
the students and practitioners of high
a Ga nd
can give no theories counsel tha
might be considered satisfactory or con-
vincing
Need of Strong Leadership
Wall street never felt a greater need Of
strong leadership than at this moment.
The old stalwarts are either dying off or
retiring from active management and the
public has not vet become acquainted
with their successors. No man of unusual
generalship has vet come to the front.
The field Is full of jealousies and of fac
tons yet to prove light. although several