The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-01-03
STOCKS AVERAGE
DECIDEDLY HIGHER
Continuation of improvement is
Expected Until Spring
PRESIDENTIAL CAMPAIGN
Approach of the National Convention
is Likely to Operate Against the
Market-Rock Island sys-
TENS New Passes.
BY w. @. NICHOLAS.

the new year averaging about $40 share
higher in price than at the low ebb of the
market three months ago. Some of the
higher priced 'fancies' have enjoyed
much greater rise than $40, but the av-
| erage Improvement approxlmates that
| figure. War in the far east may stop fur
Their important Improvement for the time
being. but the general tone of the securi-
ties market Is hopeful. The patient was
| very sick, however. and permanent res
| toration to bouyant health cannot be
| looked for in a day. The prevailing opin-
ion among those whose views are worth
having is that further recovery in values
will be at a somewhat slower pace than
| that witnessed since the middle of De-
cember. The common expectation is that
| there should be continuation of improv-
| ing conditions until well along in the
| spring, at least. 1t will be surprising If
| the approach OF the national conventions
of the two great political parties and the
| incidental agitation does not operate
| against prices. Experienced operators in
the stock market count with almost GER
| tainty on the bad effects of presidential
the nomination of Nj. Roosevelt will be
followed by the nomination of a conserva-
tive democratic candidate, a situation
which may foreshadow a closer election
than in 1896 and 1900. In round figures
transactions in stocks on the New York
stock exchange were 16o000,000 shares in
1908 against 190.OO0O0o in 1902 Bond sales
We're less last year by s2oo,0OO,o00 than
during the preceding year.
The election of Mr. L. Z. Loree to the
presidency of the Rock island System is
regarded by the owners of the property
and by railroad men generally as a move
of first Importance. Mr. Loree was slated
for the presidency of the Pennsylvania
system whenever Mr. Cassatt might lay
down the duties of that office To rail-
| road men the presidency of the Pennsyl-
| vania is the very highest official position
| to which the best Of them can ever hope
for. 1t is like the appointment of chief
| justice of the Supreme court of the United
| States to a lawyer. For Mr.. Loree to
abandon his chance in that direction to
| become the official head of the Rock Is
| land system carries with it the conviction
| that he must have been fully assured OF
| the tremendous possibilities of the prop
| erty with which he has become identified.
| 1t is additional testimony also that the
Moore Reid-Leeds combination went into
| the property to develop it physically and
| that they are proceeding along sagacious
| and far-reaching plans to that end. Mr..
Loree grew up In the railroad business
| with Mr.. w. B. Leeds. who retired from
| the presidency of the Rock Island in his
| favor. The two men were in the engi-
neering corps of the Pennsylvania togeth-
| er out in Indiana and Ohio twenty years
| ago. They became division superintend-
| ents of the Pennsylvania system at the
| same time and worked together for ten
| years or more. 1t was Mr.. Leeds hope
| when he became official head of the
] Rock Island two years ago that he might
! induce Mr.. Loree to take the position
| very soon. 1t was not until lately, how
| ever, that 1t was felt that the proposition
was big enough to be attractive to one
confronted with the moral certainty of
nearby elevation to the Pennsylvania
presidency. Not even the offer of SAL
airy of $4,000 year with nothing positive
y in sight beyond that could be consid-
cred as an inducement to a man of Mr..
Lorees calibre Mr.. Loree will be given
free hand in the management of the Rock
Island, which has grown into a system of
| 10000 miles. He has concededly big job
+ on his hands, but without a question he
will prove equal to it. He will be in COM
mand of an army of about $1,000 employees.
The lines of the system etxend through
eighteen states and territories, having an
area larger than all of the United States
east of the Mississippi river.
An old world war should not injuriously
affect American securities for any con-
siderable period of time. The bulk of our
stocks and bonds held abroad are the
strong boxes of rich men, and most of the
remainder are owned by class of con-
sentative small investors in Holland, Bel
GUM, Germany and Great Britain. Spec
ulative holdings in foreign centers are
smaller now than ever before. 1t is also
of current belief in financial quarters that
there is a smaller volume of our stocks
and bonds held as collateral by foreign
banks than at any time in seven years.
In point of fact the American floating
debt abroad. which two years ago
amounted to probably $500, OO0.O 600 is almost
wiped out. The trade and money current
is running in our favor at this time as
shown by the recent large importatlons
of gold. Russia and Japan are known to
have made heavy purchases of food sup
plies. and this, in addition to the ordinary
volume of experts will still further
strengthen our relations with Europe.
A scrutiny of the personnel of the d.
rectorate of the United States Steel cor
poration should be sufficient to set at
rest many of the wild stories af1oat about
the summary ousting of the Morgan con-
troll from that corporation The director
ate Is made up of twenty-four men, who
are selected annually in groups of eight
each group serving three years. AS the
board now stands 1t is overwhelmingly
Morgan. Mr.. Rockefeller and his friends
could elect the entire eight members at
the annual meeting next February and
still be in the minority. 1t is absurd to
suppose that the Standard OIL crowd has
secured an actual majority ownership of
the shares of the corp 1ration and thus
far no open effort has been made to Sc
cure proxies. There are nearly 100000
shareholders all told and down to date
there is no reason to suppose that any
great proportion of this immense army
of owners would deny their proxies to the
present management in the event of q
fight for control. At the same time it is
well known that a slow process OF reor-
ganization is going on and 1t may be
taken for granted that in due course OF
time Mr.. Morgan and his friends will
eliminate themselves from Identification
with the management. They are finan.
ciers rather than manufacturers and 1t il
believed that they have no overshado-ing
desire to continue indefinitely their con-
nection with the manufacturing PROPOSE
ton. On the other hand the people lden-
titled with the Standard OIL crowd are
manufacturers and trained to the various
businesses ASSOCIATED herewith. Standard
Oil methods of production are commonly
accepted as being economical and profita-
BILE hence there Is nothing wild or un-
reasonable in the theory that eventually
these interests may come into actual
control OF the great steel trust. though