The Birmingham age-herald., 1903-05-03

they might not have the money to make good their shipping trust underwriting commitments. Many of these unlucky gentlemen are disposed to complain be- cause MT Morgan did not allow them suf- ficient time to become acquainted with their profits. The steel trust syndicate winnings were distributed seemingly in the form of a call loan, and the cash was called so quickly that it made the friends of the great flnancier dizzy.
 
 A noteworthy feature of the stock mar ket Is the entire absence of liquidation on the "dips" which occur two or three times a week. The specialists and two dollar brokers on the stock exchange complain of lack of stop-loss order busi- ness. In periods of sharp liquidation and also at times when the market Is in the paroxysm of a great bull movement this class of brokers have more than they can attend to in looking after the stop loss orders turned over to them by com mission houses. In dull times they have lean picldngs They are having lean pick ings now.
 One of the strongest bull arguments that can be advanced is found in the fact that prices are no- S20 to $40 a share lower than they were year ago. At the same time the actual value of 
 are based has undergone no depreciation whatever. On the contrary railroads and ndustrials are in better physical and fin- ancial condition now than they have been at any time for years The invest ments which they have been obliged to make to keep pace with the demands upon them have gone into improvements and enlarged facilities for the transae- tion of a greater volume of business l..f1 .~I oot ities are not in any sense over-produc- tion or extravagance. They represent the urgent needs of growing business and typify the development of the resources of the country and legitimate expansion of trade. The panic in the money mar ket is over and the process of digestion of surplus securities is fully begun. A few months of quiet and comparative rest will witness the assimilation of hundreds of millions of dollars of the stocks and bonds which now cucumber the shelves and line the vaults of the banking houses and the manufacturers of goods The market leaders, manufac- turers and salesmen of securities have apparently fully determined to give the market the required respite from emo- tional activity.
 The decision of the state court of last resort in New York affirming the con- stitutionalty of the act taxing fran chises will have an important bearing in a general way. The case will be ap- pealed to the Supreme court of the Uni ted States but among lawyers of the highest ability the opinion is freely ex- pressed that the principles laid down by the New York court will be upheld. once the right of state legislature to tax cor porations for the value of public utilities given them by cities Is confirmed every state in the country will hasten to get in line. It has been denied by eorpor- ations owning and profiting by these util-- ities that the franchises giving them the right to occupy the streets and to en- joy other facilities at the community's expense, were taxable property. The New York decision knocks this theory into cocked-hat and the way is opened for compelling corporations based on public franchises. to bear their proper share of the expenses of local government. The decision is also likely to stimulate ef- forts to bring railroad corporations with in the scope of the franchise taxation. The lighting and transportation com panies of New York city owe about S6.- C00,OOO in back taxes, which they Will have to make up If the Supreme court of the United States affirms the decision of the New York court of appeals. The franchises are assessed at s2O5,ooOOOo.
 
 The attorneys for the men who are att tacking the management of the New York traction companies gave the street a rude shock when they threatened to call the attention of the authorities of the stock exchange to the alleged fact that the traction interests had circulated false reports about the condition of these properties in order to induce the public to invest its money at ictitiously high prices. This threat Is a retaliatory meas ure and direct response to the talk by