The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-05
Capital Has Monopolized At
tention This Week
WICKERSHAM rs BLAMED
No Performance Under Roosevelt Adj
mfnistration Caused Such Sur
prise As Did the Action
Taken Last Week
BY w. G. NICHOLAS


Washington appertaining to railroads
and railroad freight rates. The nations
capital monopolzed the entire atten-
ton of investors and traders and of
the people who do business for them.
That constitutes the entire population
of the financial district. The story of
the immediate effect of the bomb
thrown by Attorney General Wicker
sham is by this time familiar to ev-
erybody who reads about the stock
market and the things that cause fiuc-
tuations In prices.
At the same time the outside public
may not be fully advised as to the
workings of the Wall street mind IN
regard to this latest development of
Wash gton action. The move by the
department of justice was fully unex-
pected and 1t has thrown the street
into a state of highest excitement and
disturbance. The first impression was
that the Washington administration had
turned squarely about face and was
going after corporations in the true
Rooseveltian style-tllat the promised
reign of good will toward corpora
tions had been declared off. This first
impression still holds, although a va
riety of attempts have been made to
modify or change 1t. The explanation
that the government was not really
moving to prevent a raise in freight
rates but was merely calling down the
railroads for the mistake of thinking
they might with impunity, take 1t for
granted that the Sherman antitrust
law had been suspended by executive
direction, did not entirely satisfy. That
the railroads blundered in moving upon
Washington as an association was ad-
but that did not entirely excuse the
sudden Injunction proceeding, accord
ing to the Wall street view. To the
Wall street mind 1t looked very much
as though the department of justice
had lowered the dignity of the admin
istration by resorting to Smart
lawyers manoeuvre to beat" an OPP
ponent whereas nothing of the kind WAS
called for. The uppermost thought was
that the better way would have beens
for Mr.. Wiekersham to have served
notice on the railroads that If they.
did not proceed separately they would
meet with determined opposition from
the government. The evidence shows
that he had been engaged on these
injunction papers for several days,
ample time for the railroads to have
either revised their first proceeding or
withdrawn notices and commenced all
over again. Instead of adopting this
course he elected to throw the secur-
tiles markets into a turmoil and precip
itate harsh break In prices.
This is the disturbing phase of the
situation. 1t is the one thing that has
served to shake confidence and make
people of affairs fear there may be no
insurance against repetition of raids
from the seat Of government Much will
depend upon a surgical determination
as to whether general confidence has
been merely Jared little or perma
nently crippled. A decision in this re-
spect may be reached as result OF
the chin wagging now going on be-
tween the parties to the trouble. It
is estimated that the actual shrink
age In the market value of stocks as
direct and Immediate result of the
Attorney Generals action, reached a
total of more than $4,000, 900. This may
be considered a pretty heavy fine to
levy on innocent stockh olders for a
technical offense committed by the rail-
road lawyers in not properly approach
ing the interstate commerce commits
sion with their notices OF an intended
raise in rates. The governments COM
plant that the kick Is not so much
against the raise against the meth
DDS Used to get the raise, meets with
a reply on behalf of the railroads that
their kick against Attorney General
Wick er sh am Is not so much on account
of what he did but the way he did
It. 1t cannot be urged by Mr.. Wick
ershams friends that he did not know
what would happen to the stock market
as a result Of his injunction play. As
a lawyer we'll versed in Wall street
matters. he could not have been In
ignorance as to what the effect would
be- All of which is an excuse for
a good deal of free discussion in the
Wall street section that has a distinct
ly sinister flavor 1t also furnishes an
excuse for unpleasant comment on thu
alleged fact that large number oil
selling orders came in on the Wash
ington wires Tuesday MISUNDERSTANDING
the hour or two proceeding the an
nouncement of the injunction proceed
Ing.
None5rf the performances INDUCED In
under me previous administration ever
provoked harsher criticism than this,
which took place during the present week.
The public had learned not to be surprised
at anything which might be inspired by
Mr.. Roosevelt. The public, or at least
the financial end Of the public, had
schooled its mind to look for orderly
methods and lack of sensationalism from
he present administration. Now it will
,ot know what to expect or what to de-
pend on. 1t feels some way as though
support had been knocked out from
.nder the foundation of things and that
1, supposed political exigency will be con-
Ildered an excuse for almost any sort OF
bludgeoning of the business interests.
Time and further consideration of the
facts and needs surrounding this affair
may soften the hasty judgment which has
been arrived at by majority of people
IN Wall street. but such a change in feel
ing cannot be brought about in day or
4 week.
Of one thing the great banking interests
have been made instantly aware, and that
Is decided lowering of temperature In
the money centers of the old world. Ne
sotiations which were on foot for the
placing Of large bond issues in Paris and
London came to an abrupt finish. They
may be taken up again when the foreign
money lenders are satisfied that the oArn-
ing power of the securities upon which
they were intending to lend money are not
being impaired by hostile political action,
out that too, will take time. and mean
While important matters are being held
n allegiance in every quarter. 1t is not
impossible that the latest political atti-
ude toward corporations may have far
.eaching and injurious effect--enough so
in fact, to delay for another year or
conditions. This uncertainty is causing
ha v,ort irnportant r,eOnIe in Wall straet