The Birmingham age-herald., 1911-02-12

Standard Oil crowd Is obsessed with the idea that the business fate of the coun- try depends upon which way the court may decide-that is, whether the Stand ard Oil trust will have to get a new suit of clothes or be permitted to wear the old suit
 Beyond doubt the interests which have been behind the bull campaign since about election time last fall have sold a good many stocks within the last week or so. This proflt-taking has been so gen. eral that the street is full of sold-out bulls who are talking reaction and work ing for reaction in order that they may be able to buy back their stocks at low CT prices. They are helped by a bear contingent which is regaining courage after having suffered severe losses dur ing the past two months. This crowd has been punished continuously. It has not believed in the advance and has fought
 it every step. So continuous and so se- were have been the losses of the bears
 that the triumphant bull crowd is jocosely
 wondering where the losers get the
 money .We takes it away from them ,
 The statisticians have ascertained that
 the average of stock prices is now about
 two-thirds of the way back from the bot
 tom to the highest range of last year.
 That IS to say, of the 25 joint decline on
 the whole list between last January and July 26 there has been about 1T points
 recovery. The argument is made that the organized business of the country is actually in as strong a position now as it was any time last year, if not strong CT, and that if the prices of a year ago
 were Justified then there should be further advance from present levels. The contention is earnestly made that rail- roads and industrials are in better shape now than they have been in two years,
 having passed through a period of econ omy and watchful maintenance A finan- cial paper has taken the trouble to find out that since December last, a little
 over two months ago, 30 railroads and 30 industrials have appreciated the market
 values $57S, 100000, or nearly per cent.
 Steel continues to be the most interest
 ing stock on the list That and Reauing
 run neck and neck in the volume of deal
 ings on the exchange. and they usually
 swing in harmony, although not always
 The elemination of the Carnegie interest
 is the soul of most of the comment and
 discussion. The passing of this powerful
 group of practical steel men from control
 of the operations of the big industrials
 calls attention forcbly to the wholesale shifting of ownership and management lst gone into almost entirely new hands. and is now run by group of lawyers and bankers instead of by the old crowd of practical men. Nearly all of the old iron and steel crowd identified with the con- stituent companies of the trust and with the trust itself for several years after Its organization, has sold out and invest
 ed their money elsewhere-largely in the
 construction of independent plants. The n ntS on nd competitors of the Steel trust 90 per cent of the recognized talent" of the steel industry. In this connection it may be remarked that in spite of the extraor- dinary growth of the working capacity of | the trust the independents have grown l even faster.
 | Since it started in business the trust | has spent nearly s40O 000,O00 in new plants, besides taking over the Tennessee Coal. Iron and Railroad company and the Prick Union Steel company. Both the trust and | the independents are still adding to ca- pacity at a fast gait. The total capacity
 in this country now Is about 3S, ,0O0,O GOO tons
 per annum. of which a little less than l half Is owned by the trust It Is esti-
 mated that in actual investment the in-
 dependents have put about $500, GOO 900 into | plants with a capacity equal to that of | the Steel trust, which in bonds and share | capital now stands about $1.700, ,000 coo. | The independents are not making as much | money, ton for ton. as the trust but it | is making vastly more considering the capital represented. or rather, the capital | zation. By reason of the policy of the ] Steel trust, that of maintenance of high 1 prices for product, everybody in the bus | mess has been making money hand over | fist. That accounts for the craze to add to the already over-extended capacity. | It Is believed that by the end of next ! year the mills of the United States would | be able, If taxed to the utmost, to pro- duce over 40,OOO,000 tons. The high rec
 ord heretofore is 27,0OO,000 tons. It will
 be many, many years before the 40. 900, GOO | ton mark can be actually reached in out put. Meantime the temptation to cut prices to get business will grow stronger
 as capacity increases.
 l Oh. yes; pardon the omission of the | Standard Oil group in the enumeration of interests that have gotten out of Steel. | At one time Standard oil influence was
 in absolute working control of the trust.
 Now 1t is so insignificant as to be hard
 ly heard of. It Is practically out MT. | Prick down to year ago was the rec ognized real thing in the operating end | of the industrial and a hint or sugges- | ton from him was recognized as an or der that had to be obeyed. His quiet authority was unques.ioned He is now seldom seen about the headquarters of the organization and his larger interests are in other things.
 r. Mr. James J. Hill does not seem to be breaking his neck following the lead