The Birmingham age-herald., 1921-07-28
By HOLLAND

NeW 1ork, July 2-tSpec1aI)- Railway managers who have offices in this city are reported to feel some what encoura ged, believing that in few weeks certain embarrassments which have borne heavily upon the railroads will be removed Whether the public will share this feeling re- mains to be seen. Railway bonds of exceptional credit are now selling at lower prices than at any time since 1884. Thirty years ago Great North ern stock commanded a market price as small a that which was quoted for it in June of this year. But in the meantime Great Northern stock stood prominent among railroad securities on account of it's high market price. The Southern Pacific is now in as strong a position probably as it has ever been and yet it's securities have been selling at lower price than at any time since 1907. The Northern Pacific turned to a surplus which it had accumulated so that 1t might be enabled to meet successfully any emergency and drew from it enough money to pay it's quarterly dividend. Yet that dividend payment Gid not cause appreciation in Northern Pacific stock. In June it sold at the lowest price since 1900.
 Railway managers, however, are encouraged in spite of the almost unprecedentedly low market quota tions for their securities because in the first place they may find them selves in position to pay the overdue bills which they owe. The public does not know to what an extent American industries and business have been compelled to carry over long periods deferred railroad payments. Some of the best of American railroads con spicuous in the past for prompt pay ment of bills. have been compelled to procrastinate their payments,
 In the aggregate these deferred payments amount to "a very large sum- The railroads are estimated to owe at least $500. .000 900 on account of the purchases of rails, imperative ly needed equipment, coal and vari- ous supplies. The result has been that the corporations which have sold these supplies to the railroads and have not received their pay have been seriously embarrassed. If the gov
 ernment were to pay what it owes to the railroads then these embarrass- ments would be ended. One railroad manager reports that one of the strong railroad companies is behind on bills payable by as much as $6S,-
 100000. But the government owes this company about $100,000,000. Therefore, if the government would make payment this company would be able immediately to pay it's bills and have some $30 100000 left.
 President Harding and the Railroad '
 Some of the New York bankers who
 were the guests of President Harding at the White House recently and some of the western bankers who also met the President a few days later were
 impressed by the Presidents deep concern, over the railroad situation. They are satisfied that he will do all that is in his power to give relief to the railroads. If he does exercise in fuli his discretionary power the rail- roads will be imm mediately benefited, and that benefit would speedily reach the industrial and business life of the nation.
 Some are of the opinion that 1t will
 be the first step toward restoration of business prosperity. Many believe that when prosperity does begin it will be followed by industrial and commercial activities unprecedented.
 That was the fact after the revival began in the early years of Presf- l dent McKinley's administration, and was characteristic of the, first year of President Taft's administration, which began a few months after the recovery from the panic of 1907. Railway managers believe that in- creased net earnings supplementing prompt and liberal settlement of the accounts between the railroad admin : istration and the carriers, will be fol- lowed by buying upon large scale Last winter when the Railway Busi- ness association met in it's annual gathering, 1t was commonly said in the
 representation of the association that
 the many corporations throughout the
 United States whose clief business lis the manufacturing and sale Of equipment. machinery and other com modities of which the railroads staud in need. are almost stagnated because 1 of the inability of the railroads to buy supplies. But when the railroad companies are again in position to | make purchased then these industries l will recover thexr business and prob ably will be pushed to their capacity. That will stimulate general business. | What the Railroads Need
 l The public does not realize how 1 much is necessary to be done in Inn |