The Birmingham age-herald., 1911-12-24

story of the stock market for the year 1911 is full of interesting features. Sentiment was bullish during January and part of February and prices advanced steadily throughout practically the entire list. The good feeling was due largely to the atti- tude of the administration in Washington as expounded in the Presidents message to Congress the previous December. In that message MT. Taft said that existing legislation for the regulation of trusts and in restraint of their business had reached a point where 1t would be pru- dent to stop, and that "the activities Of the government will be directed to the building up of home industries and the strengthening of confidence of capital m home investment"
 During January a tentative reciprocal trade agreement was reached between the United States and Canada. It was later ratified by Congress at it's special session called for that purpose and stlll later was rejected by Canada by an over whelmng popular vote. During the ses- sion of Congress which acted on the treaty 1t developed that the reciprocity, although accepted as an administration plan, was not popular. The reciprocity campaign in it's entirety greatly weakened the President in a political and business sense. It entailed loss of prestige and from which the administration has not yet recovered.
 At one of the famous Gary dinners held during the winter it was solemnly an- nounced that steel prices had reached bot tom and would thereafter be maintained. They were not maintained but declined several dollars ton before the year was over and it has only been during the last 30 days that any improvement from bot tom figures occurred. This kind of talk, however, served to engender a degree of confidence which helped the market and inspired considerable buying by specula- tors and investors. Late in February the interstate commerce commission turned down an application of the railroads TOT moderate raise in rates to offset in part the tremendously increased expenses due to the wage uplift of the previous summer an amount officially estimated at sS4,33S,- GOO. The proposed freight increase was officially estimated at $2I171,00O. The actual increase in wages was nearer s5c,- 0Oo,000 with no offset. The railroads had to meet this added drain on resources from reduced traffic. That this was done with very few reductions in dividends speaks we'll for careful and economic management. Railroads as an entirety have done remarkably well through the year. although the effect of the famous sWickersham injunction of May 29, 1910. stopping the proposed increase in railroad rates is still felt as a grievous handicap. The interstate commerce ruling late in February indorsng and supplementing the Wickersham injunction demoralized the stock market. There was a break or 8 to ' points the following day and a panic was only stopped through the active intervention of the banking interests.
 The death of the old Congress in March was followed immediately by call for a special session which lasted from April until late in the summer. The stock mar ket continued weak It could not get over the effects of the interstate commerce ruling and a manifest change in the ar- titude of the politicians in Washington. It was in March that 20,000 troops were rushed to Texas under the shallow pretense | of "extensive maneuvers to try out organ ization and equipment The Mexican revolution which followed soon after and resulted in the overthrow of the supposed ly invincible Dlaz exposed the real motive of the .maneuvers." The administration was excused for it's act which was to pro- tect our southern borders and prevent filibustering but the weakness of the early statements from Washington was not for gotten.
 The stock market recovered in stag gering uncertain way from the various disturbing features, but there was evi- dence of growing business depression, enn- phasized by open cutting in steel prices, by reports of commercial agencies and by the beginning of sharp economizing In railroad operation. New York Central took the bull by the horns and peremptorily reduced it's dividend from per cent to per cent No other large system made dividend reductions, although similar ac- tion would not have been surprising in several roads. Until late in the year dividend cuts would not have been sur prising had they been ordered by St. Paul. Great Northern, Northern Pacific and Union Pacific.
 Throughout April there was no further industrial depression in many directions Then the street began to look for supreme court decisions in the Standard oil and Tobacco trust cases. These decisions were handed down on May 15, in which the court announced that the Sherman law was valid, but that 1t must be interpreted by the rule of reason" and in the Tight of reason" The two trusts were given six months in which to dissolve. The public gave these decisions favorable construction, but the ''big interests culled their lips and stood off drowning. They foresaw confusion and impotency In the ruling of the supreme court and their pre- dictions in this respect were fulfilled by the subsequent farcical dissolution of the old organization of the Standard oil and Tobacco combine Nevertheless, the inr- mediate effect on the stock market was bullish and there was period of tenn porary activity. Sunshine talk was in- dulged in largely and stocks were pushed m although there were more and heavier cuts in steel prices and at the last biz Gary dinner, held the last of May, the pretense of maintaining prices was aban- doned. Thereafter the 40,00O ton capa- city of the mills of the country fought relentlessly for the 25,000 ton business. The
 
 about 800 corporations has increased 640O0 within the last six months. The in- crease has been largely in the standard dividend paying stocks, although the numerical strength of shareholders in speculative issues seems to have under gone no reduction. The public appears to he as friendly to industrials as to rail roads The great industrial combina- lions have gone through long and try ing test with a full measure of success in a majority of cases. They have gained the confidence of investors in all parts of the world.
 Although the big people of the fnan-