The Birmingham age-herald., 1917-06-03

column to the liquidation going in the part of every rich man in anticipation of drastic income war taxes. The belief was then expressed that the proposed war tax would be modified, and hence, that investors with an income of anything less than s150.000 should stick to their railway shares. It was then added:
 Few realize that many railway shares with long dividend records are now, be- cause of the recent heavy liquidation, due to freight over the forthcoming war tax selling below the prices touched in the panic of 1907. Take Pennsylvania: For 1906, the year before the panic, the high price for that stock was 7S$4. Since 1907 theNprice has been as high as 76l4; thls week it was down to 511s. Illinois Cen tral sold at 1S41a in 1906, at 116 in 19Ol at 162lk since the panic, at 100 this week New York Central sold at 1884 in 1906, at S9 in 19O7 at 147 since the panic, at SS1k this week. Many similar cases can be found among the seasoned dividend-paying railroad shares now of fering in income return of per cent or better"
 This week the following letter was re- ceived from a reader of the foregoing:
 After reading your article dated May .12 I wrote the following letter to one of my Yale classmates, who is now stock broker in New York;
 It seems to me that some of the standard railroad stocks are pretty good investment eCould you buy a few shares of Pennsylvania around 50 New York Central, around 90; Illinois Central, around 100; Union Pacific. around 19o; Louisville and Nashville, around 120; Southern Pacific, around 90, etc? do not wish to buy anything on margin, but to buy the actual shares and lock them away
 Under date of May 21 I received the following reply:
 Although do not think the railroad shares you mention will have any imme- diate rise, on account of the unsympa- thetic interstate commerce commission, suppose if one has the nerve to buy them now, sometime in the future they will show a handsome profit, though If something is not done to relieve the situation now, many of our best roads will go to the wall. For the past two years Europe has been sending us stock by every mail, and the big investors here have been liquidating, but relief must come, ore as I have said before, there will be disaster I frankly tell you that have not the nerve myself to buy ra1l- road shares at present. On the other hand, my experience tells me that when they go begging is generally the time to buy /" M
 How is that for inspiring confidence? What would the owner of a corner gro- cery do to q clerk who would thus shoo away a customer who came into his store with his mind made what to buy? Ii one of the trained salesmen now at work on the liberty bonds lucky enough to escape the pessimism of his railroad friends had been asked for advise In the foregoing case, he probably would have answered somethink like this:
 You were badly advised by your New York stock broker friend After you wrote him. New York Central declined to Ss. Illinois Central to 100, Union Pacific to 12S7k Southern Pacific to SEA- With buying order placed in advance at the prices you named you would have gotten all of those stocks which now show prof. it's ranging from t6~1O points or more.
 "As for the future investment pros peets of those stocks which, even at the existing higher prices, still offer attrac- tive yearly income returns, 1t is only necessary to study the past. Everybody today is talking about United States Steel common. That stock Snay be a good specula ton; but as an investment, twice curing the last IS years 1t has been necessary to pass dividends. During that same period Pennsylvania has never paid less than per cent per annum; it .has paid as high as 7, and is now paying S. New York Central has never paid less than 5, has paid 6, and Is now paying 5; Illinois Central has never paid less than