The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-02-07
STOCK EXCHANGE
IS NOW AWAKE NED
Is Beginning to Take Action
Against Certain Stocks
SCHWAB HASBEEN MISLEAD
Evidence of unsound Advice Regard
ing steel Foundrles-Bucketshop
Failures Are, Attracting Much
Attention, But Expected.
SCHWAB HAS BEEN MISLEAD
RY w. G. NICHOLAS.

BY w. G. NICHOLAS.
New York. February S-(speciaI.) 1.-THE
conscience of the New York stock ex-
change Is undergoing an awakening 1t
is beginning to take action against some
| of the corporations whose stocks are dealt
In under It's auspices. A case in point is
that Of steel foundries whose securities
have been dropped from the list of those
traded on the exchange This action
comes late. but it is, nevertheless,
favorable indication. 1t is in a sense a
recognition of the responsibility of that
body to the public and may in time lead
to keener appreciation of the value of
its endorsement to securities to which it
| has given direct or tacit approval. There
is no way of estimating the amount of
money that has been lost by investors
who have bought stocks and bonds I'M
questionably because OF the fact that
they were listed on the New York ex-
change. This privilege of listing securities
has in the past been too lightly held and
has done great deal to lower the popu-
lar estimate in which the exchange is
held.
Steel foundries is far from being the
only security that should be thrown out of
the exchange. In fact, it is one of many.
and its expulsion should be followed by
general wedding out Of rotten stuff and
sacrifice of lame ducks, such action to be
followed by the erection of higher walls
against the future admission of securi-
ties against which the public should be
protected by all the influence which the
organized exchanges can command.
In this particular case of steel foun-
dries 1t is claimed by friends of MIR.
Schwab, who has been heralded as the
chief sinner that he has been misled and
badly steered by his principal legal adj
wiser, Chicago lawyer who leaped into
sudden prominence through his connec-
ton with the original steel and wire
crowd Mr.. Schwab has certainly been
badly advised and led by somebody and
the street is willing to hear testimony IN
support of the claim that he has been
victimized by selfish men.
1 find that among people having close
connections with the south the opinion
prevails that there will pe an immense
| increase in the cotton acreage this year
| over last. This view is in direct oppo-
| sition to that which Is being cultivated In
certain southern sections where an organ
lied effort is reported to be under way
In the interest of planters to restrict the
area and thereby maintain the price of
| cotton on a higher plane. The country has
| been literally circularized lately to the
effect that the south only raises cotton in
largesauantities when it is hard up and
! that Its recently born period of extraor-
binary prosperity is certain to be follow
| ed by natural reduction In cotton ex-
change. Those who pretend to be best
| informed give this wise exposition the
merry laugh and contend that while the
planters and their friends may be talk
| ing reduced area and giving organized
expression that way, individual planters
everywhere are preparing to increase
their own acreage 25 to rs per cent. 1t
| has always turned out in the northwest
and west that whenever farmers have
made a concerted move to reduce any
| given crop the result has been an imme-
F., diate increase, a circumstance which
| gives rise to a doubt as to the entire in
| genuousness of the farmer and planter.
The rule seems to be that the tiller of the
soil is willing his neighbors should cut
| down their acreage, but that he individu-
ally should be exempt from the require
ment.
For years the oratorcal and literary eff
forts of the leaders of the farmers alli-
ance throughout the country was to keep
acreage. This plan was a complete and
! utter failure from first to last. The propa-
| ganda was followed by occasional at
! tempts to induce farmers to hold back
| their crops. One notable instance of this
| occurred in the northwest about fifteen
| years ago. The farmers alliance organs
urged with great energy that growers
of spring wheat hold their grain for 81
| bushe. The plan worked in this case for
a short while and during that period the
| Minneapolis millers and their allies In
| Chicago taking advantage of the bullish
| fever created by the farmers alliance
! efforts unloaded millions of bushels of
contract grade upon the market Then
when the farmers themselves tried to
sell they found no buyers and the prices
| dropped 90 cents on the bushel. That was
the last concerted effort of the kind made
| in the northwest The campaign now
being undertaken throughout the south to
| educate the cotton planters along the old
! farmers alliance lines may prove profit
able. but If it does it will be a novelty.
A number of bucket shop failures has
| started the cotton trade during the last
ten days. no section of the country being
exempt. Some weeks ago I sounded warn
| ing of this possibility, limitations OF
! weakness In the bucket shop quarter hav-
! ing been heard In Wall street. Many of
| these concerns that made large sums OF
money during the slump in the stock
market have paid their profits back and
more in the astonishing advance in cot
| ton prices One bucket shop hacker with
| headquarters In Boston, New York and
| Chicago is said to have lost over s3.0Oo.O00
| and to have saved himself from utter
| failure by suddenly cutting short his re-
| sponsibilities and taking passage for Eu-
| rope. If change for the better takes
places in his fortunes he may return
| in time to take his usual active part in