The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-03
NO NEED FOR ALARM
IN STOCK MARKET
Conditions Appear Good for
Business on Tuesday
BUT BROKERS HESITATE
Railroad Rate Situation Is Problem
That Affects Finances But Opti-
mists Seem to Present the
Better Arguments
BY RALPH EMERSON

New York. July 2--tSpecial) There
is much speculation as to the tone of
the stock market when it opens Tues
day. Yesterdays session was a typical
holiday affair."
There was a partial recovery yester-
day from TIL ursday's tremendous slump
and some of the biggest interests IN
Wall street are accredited with tendins
their influence to bolster up the market
A representative from Chicago says
conference has been arranged pc
tween certain railroad presidents ana
representative of manufacturing inter-
ests for the discussion of rates. me
rate question is the most important oil
three causes which might make trou-
BILE. The other two are wage problems
confronting the railroads and the con-
dition of crops that bring the inter-
state commerce to the van is an I'M
portant factor. 1t is the commission
which is trying to adjudcate an amic-
able settlement between western rail-
roads and manufacturers by which a
4 lower scale of rates may be put into
effect and the commission is also act
ing in the capacity of mediator in set
Ting the d1I1erenCeS between tHc Codti-
ern Railway. the Seaboard Air Line and
other southern roads, and their en-
ployes who are seeking a higher wage
scale.
Weather conditions, upon which crops
rely, are favorable generally through
out the northwest and the west, SO
there is little or no cause for appre
hension upon that score.
Why sufficient alarm should be felt
TO cause. the stocks to go tumbling Is
mysterious. General conditions are
good. In fact, Judge E. H. Gary, who
Is now en- route for Europe, said before
sailing that we are now well into an
era of unbounded prosperity which
might last without intermission for ten
years.
Coming from such an eminent au-
thority as the chairman of the United
States Steel corporation a statement
such this bears weight. The big
bugaboo is the rate controversy. The
change in the basis of rate making in
the west will not be nearly as harmful
as some people suppose. The commits
sioners who have the handling of this
affair are not disposed to be argument
|, tive. Rate making is going to move
slowly. But, as in all big affairs that
affect many people and big institutions.
something intangible plays its part,
causing alarm where alarm is felt and
giving rise to rumors that react.
The bond market. and money market,
which reflect the events in finance are
both in healthy state. Bond prices ruled
oil oh bo of I,,ua
while the bond market is in such state
now that it offers a wide range of posi-
bilities and there is no stagnation. True,
many bond houses are advertising stan
dard bonds of high yield, this does not
indicate that money is stringent nor that
there is possibility of reflux of bad
times. More than anything else this
seems to show healthy condition, con-
dltion when investments are at their best.
Call money has been quoted at 81 to 3h
per cent While the market has been
quiet, this lisa state of affairs always in
evidence at the close OF the first half of
the year.
On the present weeks currency oper-.
atoms there has been a heavy loss of
New York banks. The banks received
from interior institutions $7297,Q0o; the
amount shipped direct to interior insti-
tutions was $5,157. 900. Upon operations
New York banks lost sS,42S,OOO.
Exports of copper during the month of
June ran close to 81, 100000 pounds, a
figure considerably larger than antici-
pated. In this connection former Senator
w. AZ Clark of Montana. who Is now in
n this Jeity, speaks in the most optimistic
terms of the copper outlook. He predicts
healthy boom in the copper market. I
The National railways of Mexico has
I, declared a dividend Of per cent on its
first preferred shares out of the earn
ings of the first six months OF this year.
The Hill roads are finishing their fiscal
year with an increased gross over. last
year.
Chesapeake and Ohio is earning at the
rate of 10 per cent; Missouri, Kansas and
Texas preferred is earning 10 per cent;
Glover Leaf preferred is earning z per
cent, and Chicago and Alton is earning
per cent The gross earnings of Atch-
ison during its present fiscal year will
establish new record Illinois Central
promises the years surplus to be equal to
Us per cent of its stock
IT is estimated that Kansas City South
ern has earned 21 per cent on its COM
mon.
Western Pacific has now begun to re-
alize the hope of it's promoters
The items culled from the railroad
field show prosperous condition surely.
The steel situation has taken on some
of the lassitude that generally character
ICES it in summer. Many Of the big mills
have shut down for the regular summer
stop. Building conditions and railroad
conditions. however, in the east and wevt