The Birmingham age-herald., 1911-03-05
NICHOLAS WALL.
 STREET LETTER No Material Damage Re- suited From Collision WITH THE COMMISSION Few Who Sold Short and Some En- glishmen Who Looked for Con-
 fiscation Got Burned by
 Recent Rate Decision
Fly W. G. NICHOLAS


 New York, March 4-(Special.)-When it came to picking up the wreckage oc- casioned by the stock market collision with the interstate commerce rate de- cision. it was found that nobody was hurt excepting those who sold the mar ket short and lot of Englshmen who had deluded themselves with the notion that the United States government was about to coniscate the railroads.
 It has been ascertained that very few stockholders of record were panic bitten. or had permitted themselves to be in the slightest degree demoralized. It was quite an effort for the railroad presidents and attorneys who had been preaching calam- ity to get off their perch and readjusr themselves to actualites. They kept up the chorus of lamentations for few days and then suddenly awoke to the consciousness that the threatened deluge had not taken place according to their announced programme and that nobody was being seriously disturbed by what had happened in Washington.
 Then began a change in the spirit of the output and now the railroad men are becoming reconciled to the decision anl are preparing themselves to face t, world that is not quite as frowning as they had expected
 The reverse side of the picture is inn pressing itself at last on the minds of the railroad phalanx. Investors were quick to see and realize the advertising value of the governments indorsement of the American railroad systems.
 No such certificate of rating has ever been given an industry as that prepared and published by the interstate commerce commission in explanation of it's ruling The railroads could afford to. have the document translated into every language, printed in black type and distributed broadcast over the whole world by the tens of millions of copies. It is a won derful testimonial and will be taken seri- ously by investors in every city and country on the habitabie globe.
 The absolute refusal of the real owners of railroad stocks to be stampeded by the raiders who broke the market the day after the decision was handed down is an impressive exhibition of the sturdy courage and impassiveness of the invest ing classes.
 The truth is Wall street opinion and Wall street market action does not count so much with the general public as the experts and so-called price makers would like to have theniselves believe. One For. {o l,.t fe margin trading by the general public than ever before, in proportion ito the volum {, of business done. Brokers and commits sion houses complain of this lack of margin patronage and note that where tt was formerly the custom for men to come into their offices, lay down 5000, $10,000 of s50,00O and buy stocks on a 10-point stocks pay for them in full and carry away the certificates.
 That kind of stocks never come back on the market on the minor breaks. They are never menace to prices and 1t has come to pass that in times like these the great floating supply which in other days was scattered broadcast is lodged in strong hands-that is to say. 1t Is In the possession of monied element ex- perienced in financial methods and quali- fled to make it's own arrangements with the banks for carrying the securities.
 With money cheap and abundant as Is now the case, there is scalpng profit of 2 points to 4 points in carrying dividend paying stocks. Business men with surplus capital and with credit are availing themselves of this opportunity in large numbers and to an aggregate immense amount. There is nothing in the general situation to breed distrust or lack of confidence among these wealthy people and they are sitting tight on their bar gains. They are advised by their banking friends that they are not likely to be disturbed for good while ahead and that they can carry their stocks as long as they want to under existing. arrange ments
 They see that conditions are healthy, that the outlook is promising and they believe that security prices are more likely to advance than to decline. That is why the stuff itself cannot be dislodgel and 1t Is also the reason why raiders always sell themselves into a hole when they attempt roughhousing the market
 The calamity howlers die hard but they are coming over to the right side. It was a great surprise to many of them to find out that the country survives the disappointment of not being obliged to pay the railroads s75.oOO,0OO to $1OO, ,OOo, . O00 year additional
 Some of them are even willing to admit that 1t will be just as well in the end that the railroads do not get this reve- nue as most of it would be taken away from them on compulsory wage increases and other operating expenses Altogether there Is a willingness Somewhat re- luctant. it is true) to admit that all Is not lost and that there is balm and Gilead.
 Railroads are going ahead with their financing as though nothing had hap pened Southern Pacific has already ar ranged for $50,00O000 and St. Paul isN mo-