The Birmingham age-herald., 1904-01-10
9LLAPSES WERE BARELY AVERTEO. Bucket Shops Saved by Turn
 in Cotton MADE MANY MILLIONS Railroads That Have Been Most Llb- eral in Expenditures are Having Reports Carefully scrutinized
 and Analysed.
BY W. G. NICHOLAS.

BY w. U. NlCF1OLAos
 New York, January9-The cotton mar xet turned just in time to avert the wholesale collapse or laying down Of several strong chains of bucket shops having offices throughout the south, mid dle west and east The strongest of these bucket shop combinations are financed from Boston and New York. They made many millions of dollars In stocks dur ing 1905 <but when public speculation switched into cotton they paid back most of these profits and came within hairs bredth of going to smash. When cotton passed IA cents pound. there was among those who understood the bucket shop situation fear of general collapse. An other fifty point advance in the market would probably have been attended witil disastrous results. In the interior cities and towns. spectators do not discrimin- ate sharply between legitimate commis- sion houses and bucket shops, masquer- ading as such. In outward semblance, they are Identical with the exception that in the case of the bucket shops the rule is that better accommodations are pro-
 
 they get the bulk of the business.
 Most of the bucket shops are now con- trolled by strong syndicates who have at their command large amounts of capital. l They are equipped to withstand severe punishment and enormous losses before laying down,V feeling sure that in the natural course of events they will get back what they lose, and more too. One Boston outfit, which is said to have cleaned up nearly $l0O00,0O0 In stocks last year, restored to the speculative public at least 80 per cent of the amount in the form of ppofits to players in cotton As before stated, the turn in the market just saved them from going on the shoals. Just now the nimbe-witted element of bucket shop players seem to be taking up coffee in preference to cotton. bull movement in this commodity has been underway for some time, and current opinion points to still higher prices.
 Daniel J. Scully who is reputed to have made several million dollars on the bull side of cotton during the last two years, is reported to have reversed his posi- | ton. Gossip has it that he has quietly organized bear pool, and that he is now working on the down side of the deal. There is no positive verification of this | story, but the Street takes stock in it. Mir. Scully has bought himself a magnifi- cent home in the millionaire quarter of which upper Fifth avenue is the back bone, and will hereafter make New York his home. He is about to become a mem- Der of the Stock Exchange.
 The railroads that have been most lib- eral and comprehensive in their expendi- | lures for betterments, improvements and equipments are having their periodical fi- nancial reports subjected to unusually close scrutiny and analysis Vast sums have been expended in this way, and own CTS as well as the public are beginning to look to the figures for test of the wisdom of the expenditures. Under MT. Harrimans administration of the Union and Southern Pacific systems, an amount approximating $125,000,000 has been spent in the last four or five years to put the property on a better basis for economical l operation. On these two roads the work is practically completed, and at 8 most opportune time, as, according to the pop ular theory, the lean period with the rail- roads is about to begin and it was to meet just such conditions that the colossal ex- penditures were made. As rule the western roads have been ahead of those in the east in making this kind of out lay. The Rock Island St. Paul North Western and Illinois Central have been notably active in this direction, and the result is shown in their improved effi- ciency In the east, the Baltimore and Ohio has expended large sums In better ments, but the Pennsylvania, New York Central and Erie have hardly commenced. | They have the bulk of their work yet to do The New York Central has hardly made start. It so happens, therefore. that the Hartman systems are especial 1 objects of attention at this time on the part of those interested in railroad econ omies.
 | War is on against the trust companies in this city. Many of them have of late l years gone into open competition with the banks. and are doing banking busi- ness without being under the restraints which are thrown around regular bank ing institutions. They have been active solicitors for deposits, yet they are not obliged to carry cash reserves, and many of them allow their cash to run down to one, two and three per cent while state and national banks carry twenty-five per 1 cent reserve, and are under rigid official surveillance. There are about thirty of these institutions in the city. of New York, and their aggregate deposits are nearly as large as those of the banks within the | Jurisdiction of the Clearing House. The worst features about many of the trust | companies has, been their tendency to 1 engage in the promotion and underwriting | of speculative enterprises. This was l brought out in startling manner dur | ing the exposure of the iniquities of the | Shipbuilding trust The abuse grew so | fragrant that the bank examiner of the state of New York has recommended rad | ical changes in the law, basing his argt- ment on ascertained facts going to prove 1 the unbusiness-iike methods employed by many of the existing concerns It Is evil | dent that there is going to be hot fight ] this winter at Albany over the proposed amendments to the law as 1t now stands. Strong interests are arrayed on both sides and the legislative grafters are looking | for a profitable season.
 Thus far, only one or two of the great l life insurance companies have favored 1 the newspapers with their usual full-page l advertisement of financial condition on | the last day ofEthe old year. Those that have appeared are read with more than ordinary interest because of the prevailing idea that the. companies suffered serious -AeTE1reAs To strengthen