The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-03-30
WALL STREET PLEASED
WITH COURT DECISIONS
Railroad Men Feel That Their Inter
ests Will Be Protected Against
Confiscatory State Legisla-
ton In Supreme Courts.

New York, March 29.-Several events
last week are viewed with qualification
and encouragement by the holders of and
dealers in securities. The movement of
the market for securities nevertheless
was somwhat halting and irregular. The
reason was to be found in the extent to
which operations based on expectations
OF the most important of the Develop
ments had preceded the fact. This was
notably true regarding political affairs
and the course Of administration and leg
islative policies at Washington There had
been a very active speculation for more
than week preceding last week based on
the daily reports of consultations going
on at Washington, looking to the shaping
of the legislative programme of the rest
of the session of Congress.
Great stress had been laid also on the
mild tone which was to characterize
President Roosevelt special message ad-
vocating this programme. The progress
of the legislative plan proved to have
been quite accurately detailed in the press
reports and the introduction of the pro-
posed Hepburn amendments to the anti
trust law and the publication of the Pres
ident's message brought no new force to
the situation. The natural disposition to-
ward realization in fact induced some re-
action. The action of the market, how
ever. does not obscure the fact that the
benefits to the financial and Industrial sit
uation are hoped for from an amendment
to the antitrust law which will permit
reasonable agreement, though in restraint
of trade, in the strict application of the
law as interpreted by the supreme court.
Courts Decision.
The judicial department of the govern
ment supplied factor of encouragement
in the supreme courts decision against
the validity of the Minnesota and North
Carolina railroad rate laws. The effect
of this decision seems to not have been
foreseen on the sotck market, so that it
furnished a genuine new information on
the speculation.
1t would be difficult to exaggerate the
amount of discouragements which finan-
ciers have professed over the course of
state legislation toward railroad corpor-
ations. The force of the supreme court s
decision as it was interpreted to the
financial district was : o offer a broad
restriction on state ! on concerning
interstate commerce raj law, and
additional security W med in this
against forced redu, rates to a
point of confiscation ble profits
and also against exces PENALTIES which
would operate as obstacles to an appeal
for constit I.ioIai rights of property in
corporations
The effect was particularly pronounced
on stocks of commissioners that have been
directly concerned in struggles against
such conditions.
The Metal Trade.
Additional assumptions of steel mills and
the rise in the price of copper caused a
feeling of encouragement over the metal
trades. Large curtailment of cotton goods
production and reduction of wages in the
New England mills made a depressing
factor from the textile trade situation.
Railroad officials don't speak with enthus-
iasm of the rate of betterment In their
traffic and retrenchment continues the
order of the day in the railroad world,
while returns of earnings thus far made
don't show the process extended to a
point sufficient to offset the inroads upon
the rate of gross earnings of previous cor
responding periods. Satisfaction is felt
with the condition in which the grain
crops are reported to have come through
the winter and growing influence is looked
for in the news from that field
The movement of accumulation of money
in banking reserve centers continues, and
the withdrawal of government deposits
from the banks has not prevented in
creasing ease in the tone of the New York
money market. The easing tendency of
the New York money market has not yet
improved the conditions for absorption of
new securities. The report of preliminary
arrangements looking to later mortgage
issue of S40000,000 to $50,OO0,00O on un-
mortgaged Union Pacific lines gave a SEN
sible check to the whole market.