The Birmingham age-herald., 1914-09-15
RAILROAD RELIEF WILL GIVE AID ID
 ENTIRE SITUATION Seventy-fiye Per Cent of Se- curities Held Abroad Are
 Railroad Obligations
HARD FOR ROADS TO
 RAISE MONEY NOW
Favorable Action At Washington Will Probably Make It Much Easier to Handle Situation Brought
 About By War
py HOLLAND

New York September 14.-(Special) Should relief even though it be no more than temporary, be given to the railroad companies as a result of the recent con- ference of railway managers with Presi- dent Wilson. that relief may hasten the perfecting of plans for the relief of an other situation with which the securities market is concerned.
 For If the railroads obtain relief of a kind which will speedily bring to them larger incomes. the market value of fheir securities will increase and there will De less difficulty in handling the large amounts of railway obligations which must be liquidated or refunded within a year and half. Of American securities held in Great Britain and upon the conti- nent of Europe, at least, TO per cent, ac- cording to the estimates made in the financial district is American railroad ob- legations. If the opportunity should come speedily to market American securities. or any part of them, now held in Great Britain or on the continent of Europe much the greater part of the sales would be of railroad securities. If by reason of relief made possible by the authority of the government the railroads are able to earn larger incomes than they are now receiving, the disposition might not be so strong among foreign holders of our rail- road securities to market them. Certainly ! if the railroads gain larger incomes than they are now receiving it Is not likely that as much as per cent will be ex- acted from the railroads as the terms hp marketed When a railroad possessing as high credit as the New York Central | is compelled to pay at the rate of ! per cent in order to take care of pressing ob- legations there Is evidence not only of difficulties in the money markets, but also of the impairment of railroad credit.
 Some of those who are now carefully considering tentative plans whereby American securities which were sold just before the outbreak of war can be taken care of and, furthermore, the situation so mastered that the securities market can again be opened, are inclined to think that favorable action at Washington on the plea of the railroads for relief will make it all the more easy to perfect. tEese plans.
 The Third Plan
 Two plans whereby through somewhat artificial methods. the resources ana ar- thority of a unified or central bank-were one in existence-can be mobilized through the voluntary action of American banks are now perfected. practically 2. m- pleted. One of these plans is completed and the contracts which represent it lave been executed. It is exclusively New York city financing. That is to say. the 130 banks now operating in New York city are pledged to contribute sum which may be hundred millions and IS sure to be eighty millions--by means of which New York citys existing obliga- tions on account of her revenue notes and exchequer bills may be met
 This has been accomplished through the organization of syndicate under the di- rection of the house of J. r. Morgan &s Co. The second plan contemplates thc creation of a gold pool of as much as