The Birmingham age-herald., 1909-01-11


 law on Monday and the company found itself obliged to reduce it's charge for gas from sf to 80 cents per thousand feet and to refund some ssO0o,OOo of over charges since the law was enacted.
 The shares of the company, which sold on Monday at 1854 plunged to low quo- tation of 123, and then rallied. The whole market was upset by the sympathetic effect of this break and by the liquida- tions suggested by the outcome of the case. Other important pending cases for which a favorable outcome have been similarly predicted have been motives for extensive speculation. The suit to test the commodities clause of the Hep burn law Is a notable example.
 Some Readjustment.
 The danger of further miscarriage of the speculation on these assumptions prompted some readjustment of the posi- tion. Disappointment of speculative as- supmtions was read also in the election of ". C. Brown to the presidency of the New York Central and in the nonap- pearance of E. H. Hartman in the direc- torate of that company, according to very confident predictions which had been current amongst stock operators. MT. Harr1man's supposed plans and activities have been so fertile source of inspira- ton for speculative movements all through the past year that an extensive field for the working of anxiety was opened up along this line. Another fa- vorite line for speculative inference for several months has been the assumed subsistence of government pursuit and public agitation against corporations. The Consolidated Gas decision by the su- that combined to revive some apprehen- sion on that account.
 Another was the beginning of oral testimony in the government suit to an null the Hartman railroad merger. The continuance of testimony in the Standard oil suit awakened the recollection of the prosecution of that corporation. The de- nial of the governments appeal to reopen the $29, ,000 600 fine on that corporation was a temporary offset, but the prompt action of the Attorney General in seeking a re- trial of the case in the lower court nulli- fled this offsetting influence.
 The Senate's demand for details for permission accorded the United States Steel corporation to purchase the Ten nessee Coal, Iron and Railroad company, and reports that secret agents of the government were again investigating meat packing industries helped to feed the uneasiness that the consideration of the subject engendered.
 Causes of Weakness.
 These causes of weakness in the mar ket served to aggravate what was not an unexpected tendency as a natural con- sequence of the previous course of the speculation. The period following the new year has been looked forward to for a long time as one of expected re- vival of widespread public demand for stocks. The amount of stocks bought to anticipate this demand had been very large and the selling to realize was heavy.
 The break in prices forced large ad- ditional selling. The money market over the end of the year proved so tranquil that no obstacle was presented to the early reinvestment by anticipation of re- sources available from disbursement of profits The rapid easing of the money rate with the new year, which Is prov ing even greater than was expected, did not have the effect in melting demand for stocks as expected.
 In the success of new offerings of se- curties, however, the effect has been marked. The week saw many such offer ings both here and abroad and many more are in prospect. The effect of this is somewhat to lessen the demand for existing securities. The rate of the re- Aux of currency into bank reserves is so large that a smaller demand for active business purposes is argued. The course of the improvement in business and in- dustrial activity, in fact, is proving more gradual than was hoped for. Leading iron and steel trade authorities testify to the slow demand for finished lines of steel. The renewed accumulation of idle freight cars also gives disappointing of the check to the movement of general merchandise freight.