The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-28

and there is considerable liquidation of
| Union Pacific stock. This liquidation
comes presumably from insiders possess
ed of full information concerning the af-
| fairs of the company. And the Southern
Pacific is sympathetically depressed. In
the case of Southern Pacific is the specific
fact that facts and figures show that
its traffic rates are enormously high as
they stand today. Hence there can be
no anticipation of the Interstate Com
merce Commission granting any advance
in the traffic rates of this railroad. On
the contrary. there is energetic agitation
for reduction OF rates. And Southern
Pacific runs through a territory where
the political sentiment against corpora
lions is at food-tide. 1t certainly looks
as If the entire, Hartman system has
a strenuous time ahead of 1t. OF course
on Just the plain present dividend basis
of 10 per cent and 6 per cent both Union
and Southern Pacific are selling we'll
within conservative limits, but II there
Is to be any impairment of these divi-
dend returns-of which there is much
prediction-the result to market prices
would be swift and drastic.
The affairs of the United States Steel
corporation call for but little comment.
The company is doing big and pros
porous business and is undoubtedly earn
ing every dividend dollar which It is pay
ing out and many a dollar beyond that
Nevertheless, United States Steel COM
mon submits to the same fluctuations as
the rest of the security market There
are many prophets of pessinism who go
bowling day by day to the effect that
United States Steel common ought to sell
down to below 80. Such market action
is conceivable but would be wholly with
out reasonable warrant. In the last slump
the price came perilousiy near to 60. In
the next slump this action may be re-
| peated
The Steel Corporation is on a fair,
square basis and can stand lot of trade
| depression without threat OF impairment
of dividend rates. Indeed, 1t is more than
probable that steel common will receive
| extra dividend returns over and above
| its now permanent per cent during the
next year. The announced official policy
| Is to distribute profits to the common
stockholders when profits appear. There
seems to be no reason to apprehend that
such extra profits will not appear Mean
while Steel common is just as much of
speculative plaything as any other of
the favorite gambling issues, and may re-
main SO for long time to come. Stand
| ard Oil stock used to be subject to just
such gyrations long before it crossed the
| 800 mark.
The money situation is not causing any
| disturbance in conservative banking cir
| cles. The opinions expressed In this
column a weak ago from reliable west
ern bankers are confirmed. There seems
| to be little doubt but that the west can
| take care of itself throughout the crop
moving period. Western banks have been
calling in loans and compelling curtail-
ment of real estate and other speculation
| to a large extent and are fortifying their
reserves by every means within their
power.
In New York money is abundant at
easy rates, indicating a plethora of idle
| funds due, no doubt, to lack of specula-
tive activity. In these circumstances
there does not seem to be any probability
of money squeeze this autumn. So far
as this factor exerts influence 1t should
| be favorable to security market value,
| but 1t is largely lost sight Of In the con-
| 1ux of opinion concerning more imme-
date dominating influences.
| Cheap money is not by any means an
entirely optimistic feature. 1t often sig