The Birmingham age-herald., 1911-02-27
CONFIDENCE IN THE RAILROAD RETURNS Rate Decision Is Considered
 Optimistic PROVES / SOUNDNESS Fake Assumption Led to Disorderly Trading, But Mature Considera-
 ton Brought More Cheer
 full View
 

l New York, February 26.-The course Of 1 speculation on the stock exchange last
 week was dominated almost entirely by l the freight rate cases. When 1t became
 apparent Monday that no decision from I the supreme court in the antitrust cases was to be expected during the week, at tention was concentratedN upon the forth coming ruling of the interstate commerce commission and expectation that 1t soon would be made known, had, the effect of curtailing speculation. Wall street, however, had formed it's own conclusions, that at least a substantial portion of the increases asked for would be conceded to the railroads and a general acceptance of this theory was reflected in the strength which the stock market displayed up to the time that the decision was an- nounced.
 This false assumption led in natural sequence to a period of disordered trad ing when the decision was made known. Heavy liquidation which followed reflect ed more truly a species of nervous fright
 on the part of the traders than any we'll grounded belief that the decision itself
 would seriously disturb the earning pow
 CTS of the carriers as was shown by the
 markets partial recovery as soon as
 the first flood of liquidation was checked
 by the appearance of support from the
 most influential sources Mature consid- eration of the arguments advanced by the
 commerce commission in denying the pe- titions of the transportation companies,
 moreover, helped to bring about more cheerful view of the situation, and to em- phasize the conclusion that the decision was essentially a most optimistic com ment on the final strength and soundness of the railroads.
 The facility with which American se
 curities are being placed in Europe, the latest case in point being the sale of a large block of Central Pacific bonds in Paris would seem to offer ample evidence that American credit has not been af- fectcd by the freight rate decision. The only marked weakness in American se- cul ities abroad following the announce ment of the decision was on the London Stock exchange, and that appeared to emanate largely, if not entirely, from New York selling.
 While the effects of the decision of ne- cessity must be a subject of long con sideration before such adjustments as may be necessary on the part of the car flerS nave been Wofked out, some 1mmedl- ate results are apparent Coupled with announcements by two large railway sys- tems of conformity with the ruling was the intimation that a programme of cur taillnent of exports would be adhered to. Such course follows the path marked out for the railroads by commerce com mission and similar action by others of the corporations affected may be expect ed az the first and most natural step to- ward final solution of present difficulties, now that the railroads must look to them selves alone for relief.
 During the week absorption of the Gould stocks and bonds continued. The reports of recent milling activity in the steel trade were of good effect, while greater probability of an extra session of Con- gress was a disturbing influence.