The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-11-08

boomtime. There Is some talk heard
OF hard and fast deal between the
incoming administration and the Steel
corporation. but no proof is forthcom-
ing. It stands to reason. however that
business which gives employment
direct and indirect to over 100000 men
and which Is representative of collat-
eral Industries of oven greater magni-
tude, will be treated kindly, especially
in view of tile fact that the sharehold-
ers in this group of corporations ag-
Sregate 100000 to 400 900 in number.
substantial basis exists for eXpecta-
ton OF largely increased business In
the iron trade. Railroads are getting
themselves in shape to put in big or
ders and even the equipment concerns,
which have been under the harrow for
year or more are growing cheerful
over the prospect of a renewal of ac-
tiVfties. In some quarters there Is
much talk of steel rails being put on
basis of 224 per ton. Pittsburg is the
origin OF most of this gossip, which by
the way, does not find extensive Gre
dence In circles close to the manage
ment of the principal rail making conf
panies. At the present range of prices
for iron and steel products, rails at
SIS per ton are cheaper than almost
anything else on the list. Rails ii
must be remembered are sold gross
tons (2240 pounds) whereas nearly
everything else that comes out of mills
is marketed on a basis of net tons
$1,000 pounds. A comparison with rails
at $2s per ton gross ton and struc-
tural shapes at $34 per net ton really
mark a difference of about $40 per ton
against the rails. And then again,
railroads are not particularly anxious
to beat down the price of rails. They
are at the present time too unani-
mously engaged in the campaign for
the raising of freight rates to be doing
much for the reduction of quotations
at the buying end OF their business.
1t is the expectation in railroad circles
that before the end of 1909 the rise in
freight schedules will be very generally
in effect all over the United States. OPP
position to this programme is looked for
on the part of number OF state legls-
latures and a populistic appeal to Con-
gress along the same line OF opposition
will not be surprising. The railroads be-
lieve their demands for a marking up of
freight rates are entirely justi1able and
in harmony with the prevailing upward
tendency of commodity prices and that
serious opposition will fade away under
the light of an educational campaign.
They think they have right to move up
the price OF the only thing they have to
sell, when everything else is moving in
the same Interchangeable with the
possible exception Of wages, and they will
follow as a natural sequence.
Wall street bears in mind grateful re-
membranee the fact that positive direc-
ton was given to the upturn in prices at
the beginning of the last inning of the
market and political campaigns at the
date Of Ex-Governor Herrick's visit to
the financial district along in September.
1t was on that occasion that Governor
Herrick made the rounds of the big men
of Wall street and gave them assurances
that 1t would be to the Interests of the
business men of the country to vote for
Taft.
Very soon after this visit change in
the attitude of the financial people and
their associates in the manufacturing ana
mercantile world became apparent. Very
soon thereafter contributions to the re-
publican campaign funds began to In
crease and the inspired word to be
passed along the line that all would be
well in the event OF Mr.. Tafts success.
Governor Herrick had no difficulty in
convincing the big people of Wall street
that he was authorized to speak and his
pledges were believed. Consequently he
is regarded In this vicinity as being a
prophet well worthy Of honor and as
being rightfully close to the next admin
istration