The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-11-21
GREAT EVENTS IN
BUSINESS WORLD
Big Mergers of Companies Are
Put Through on All Sides
The WESTERN UNION DEAL
Congress Will Possibly Look Into the
Western Union Absorption-oth
err Big Transactions Are
Also on the Boards.
The WESTERN UNION DEAL
BY w. c. NICHOLAS.


New York, November 2o-This has been
week of important announcements of
great events in the business world Some
OF the big things which have been in
process of working out for a good while
made such progress that definite results
could be stated It might be put down
in the record as period of decided head
way In the evolution of large affairs. The
market effect OF announced achievements
Or near achievements was for the better
ment of the general average OF prices,
but after all nothing occurred.
In point of fact, the volume of business
on the exchange decreased rather than
increased. In a general sense however,
there has been a marked Improvement
in the market undertone The money
situation at home and abroad is better.
an exact confirmation OF what has been
stated specifically in these letters for the
last three weeks Everything has con-
tributed to a restoration of confidence
and to the disappearance of whatever
doubt and timidty may have existed In
the minds Of bankers, investors and spec
ulators.
It is possible that the powers that be-
ferests-are not yet ready to have the
market break away and launch upon an
other season of speculative expansion,
otherwise known as boom in the stock
market" Indeed it is altogether likely
that they will discourage rampant spec
ulation until the home market is better
able to finance speculation on an enlarged
scale.
There may be delay of decided gen.
eral speculative activity in stocks for
two or three weeks. 1t is one marked
feature of speculation. however, that II
does not wait upon any fixed programme
which may be agreed upon. 1t is prone
to anticipate-to discount the future-to
grab for dividends before they are dis
tributed-almost before they are earned.
For instance, there has been lull in
speculation in the equipment stocks,
whereas it is known to all men and the
world at large that every equipment
company in the country has more bust
ness than IL can do and orders on the
books which insure manufacture to the
very limit of capacity for a year or more.
Not only that, but indications point to
prolonged continuance of high-pressure
activity in this branch of industry
In a market way there are signs on
every hand of a quiet accumulation of
equipment stocks by inside interests and
by investors and spectators in close
touch with the situation. It is the very
evident purpose of buyers of this class
TO avoid excitement and to get their
stocks as cheaply as possible. 1t thus
tranSpires that in the equipment division
of industrials there is a lull in the stock
market which is generally regarded as
prophetic Of a later signal improvement
Coineident with the announcement o.
the virtual consolidation of the great tel
ephone and telegraph interests comes
Int inf fia1 oF foil
about the building of a government tele
graph system, and a feature thereof
telephone system-these to be part and
parcel of the postof1ce department. Lit
tie has been heard on this subject for
several years, but with the country face
TO face with a privately owned monop-
oily of telephone and telegraph wires the
matter becomes again instinct with life
Enough has been already heard from the
outside districts to make it plain that
the general public does not take kindly
to the amalgamation of the several os-
tensibly independent interests.
This theory of the benevolent assimi-
lation of the Western Union by the in
terests already in control of the Amer
lean (BelD telephone and Postal MACK
avs companies which has been effected
in order to benefit the general service
and better serve the people, is not being
swallowed with that degree of innocent
faith which the holding interests would
like. There is an ominous skepticism as
to the good faith Of the enterprise and a
very evident willingness to take the other
end of the proposition.
The public has not yet forgotten the
% per cent raise in telegraph codes
which resulted in an additional taxation
of not less than $500 900 a year upon the
business they had to do over the wires,
and they see in this merger, or near
merger still further exactons either in
the way Of higher rates or service
which will be less efficient
The official announcement of the acaui-
sition of the Gould holdings of Western
Union stock contained statement that
one of the reforms in view was the saw
ing OF some odd millions of dollars in the
cost of operation. That means the cut
ting out of thousands of competitive sta
tions and other curtailments In service
All of these so-called economies, IL car
ried out, will tend to stimulate the pop
ular desire for governmental ownership
of independent lines.
Enough IS already known to warrant
the statement that the incoming con-
Rress will be asked to take up this mat
ter with zeal and earnestness. 1t will
be alleged that money expended in this
manner will be of greater general ben
eft than If invested in inferior water
ways, irrigation of arid lands or In the
construction of a $500, 100000 ditch across
the lslllfnuS Ol IdDdInd.
That long advertised merger of the big
copper producing companies has taken
sufficiently tangible form to merit daily
bulletins of conferences between the Gug-
genheims and the Amalgamated people
and the Cole-Ryan representatives. with
half promise that deal will be pulled
off before the end of the year, all hands
agreeing to their due share of the Sc
eurities in the consolidation. It does not
appear that such important producers as
fralumet-Hecla or the United Verde will
participate.
Just how far Phelps Dodge & Co. are
N sympathy with the proposition does
not appear. They may or may not be
included in the Cole-Ryan sphere of in.
nuence. If merger such as seems to bt
under way is actually put through Il
will not seriously interfere with the bis
independent companies. but 1t will PLAY
the very devil with the little fellows