The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-16
STRENGTH IS SHOWN
IN STOCK MARKET
Listless Condition Does Not
Indicate Weakness
TIME MONEY IS FIRMER
Railroad News of Pnst Week Was
Interesting-sfeeI Corpora
ton Curtails Output
BY RALPH EMERSON

| New York, May 15.-(Special.) while
| the stock market was lstless through the
greater part of the week. this did not in
dictate weakness; on the contrary there
was an undercurrent of strength which
| was manifest while the trading was slight
The absence of any Tngish markets on
| the last two days of the week and a fall
Ing off in English trading earlier, had no
effect upon the United States market.
1t was feared that the death of King
Edward would affect the worlds money
market. causing a tensity which might
be embarrassing. This has not proven
the case. From day to day this week
there has been no appreciable effect on
the market. Call money has been main
tanned upon an equal rate, varying be-
tween 3ls and Az per cent. Time money
Is a shade firmer with a small demand.
In connection with conditions In the
money market the tremendous influence
of the Standard Oil company in financial
affairs is revealed. The Standard is per-
haps the heaviest lender in the world to
railroads and industrial corporations.
From time to time within the past ten
days there have been reports that the
Standard Is putting million upon million
in Wall street and when we consider the
marvellous reserve of the corporation the
possibility of such action could not be
disputed The net surplus set aside by the
Standard since 1901, including the present
year. is over $315,000,0oo. Notwithstanding
this. the corporation at the present time
has more money out at interest than any
other corporation in the world. l merely
cite this to show the substantial manner
in which the tight place could be tided
over without the necessity of securing
foreign money should an exceptional OPP
portunity arise
At the present time there is much criti-
cism relative to the action of corpora
lions. notably the Chicago, Milwaukee and
st. Paul railroad. seeking foreign funds
through the sale of bonds abroad. That
Is not made necessary on account of lack
of money in this country. The bonds
could be sold here quite easily-as easily
as they could be disposed of abroad. The
point is that the bond market in this
country has been so flooded with issues
that better rate for the bonds can be
secured abroad. That leaves more money
for immediate use here, but the profits on
the debentures, however, go out of the
country. The bond market has not re-
sponded in any marked degree to the plac-
ing of certain debentures abroad.
The American bond market is longest
ed slight increase In activity is noted
In the bond department of the stock ex-
change, but IT is not of such character
as to give 1t significance. In the private
market there are no indications of big
revival of domestic demand New York
banks this week gained cash to the extent
OF $7.313.00o. From the interior there was
\, of Of crot, m
from that source being in the neighbour
hood Of 36,000000. On operations with the
Interior there was net gain to the banks
of s1,269O00. The United States subtreas.
ury's returns for the weeks transactions
with the New York banks show net re-
ceipts by the government on all accounts
of 600; net payments by the gov
eminent to banks of $26,141 900.
1t Is interesting to note the railroad
news of the past week. According to this
source we find that st. Louis Southwest
ern is earning at the rate of 1923 per cent
on its outstanding common. This is look
ed upon as a satisfactory showing, not
withstanding it is lower than estimates
on account of the partial failure of the
cotton crop. The earnings in the week of
the present month showed an Increase of
s2s. 100000. The Gould roads continue to
report large increases of business. Wa
bash, Missouri Pacific and Denver and
Rio Grande for nine months show an ag-
gregate increase of 10 per cent. The net
earnings of those three roads increased
IS per cent, or over 100000. The Chica-
go, Burlington and Quincy has an
nounced its budget for the next IL
months, which carries $50, 100000 for ex-
penditures in new construction.
There is much speculation as to the ac-
tivity of James ]. Hill in the northwest.
This builder is working the way of his
lines down through the heart of Oregon,
and a new contract for 1875 miles of track
already let will carry his system to the
SC uthern boundary of that state. The Hill
lines then will cut into virgin strip OF
the finest timber land in the world.
The United States Steel corporation has
begun to curtail Its output. not for the
want of orders, but to maintain more
even equilibrium in the law OF supply and
demand.