The Birmingham age-herald., 1911-07-02

" as rdllrodu earnings polH net anu gross show a falling off statement made this week by high statistical author ities show that the net income of rail- roads has fallen off more than s17,000,o00 since the first of July year ago, while
 interest on bonded indebtedness has in- creased more than sS7.0O0,OO. The sig niicance of this fact is bearing in on the intelligence of the street and is having marked effect. It is no doubt the cause of considerable recent liquidation. It is true that in some branches of industry slow improvement is going on, but it is a sense of disappointment and diseour- agement. The tariff agitation, according to the Washington dispatches, has again assumed form to give a feeling of unrest to the manufacturing interests ana a pereeptible halt is quoted in that direc- ton, although a small increase in orders
 for Steel products is reported and given prominent place in the market literature of the hour.
 There is still an abundance of money within reach of favored borrowers who still feel that it is safe to buy dividend paying stocks with funds costing per cent and per cent and allowing a Banks are not so anxious as they were. however, to supply Wall street with spec ulative capital, the last statement of con dition of national and state banks show ing almost dangerous imitation of loans on stock collateral, not only in New York but in other large centers. The time is approaching when the drain on New York before crop moving purposes will begin and the banks are already feeling the necessity of preparing for that call. This is not shown so far In any percepti- ble hardening of rates, but rather in a drawing in of sails and a suggestion to borrowers that it might be wise to cur tail commitments. As long as matters run smoothly, banks can get along very nicely, even with a very palpable over burden of stock exchange loans but there
 is where the pinch first begins when the necessity for contraction arises,
 Crop conditions have improved, decided ly. The crops, however, have not wor- ried Wall street very much. although the cOInnOQlIy D1dTh6lS SIOW COiltliuouo quiet on that account Wall street Is in ured to the annual flood of crop damage estimates from high priced experts and pay scant attention to their hard luck stories It has been noticed that the Lord is usually kind to the farmers and that somehow they manage to come out at the end of, nine years out of ten with average crops and that they continue to grow rich regardless of how the rest of the country may fare.
 The bears are again recovering their nerve and at current high prices are be- ginning what looks as though 1t might develop into an energetic and effective campaign. They are trying to make them- selves believe that all good news that can happen has been discounted and that thereafter the chapter of accidents will run against prices. These premises are to hold good until big crops are actual y harvested and Congress gets through tinkerng with the tariff schedules, or at least gives line on what may be eX- pected and makes 1t so clear that man ufacturers and merchants can go ahead without fear of serious loss or embarrass- ment. The bear theory seems to be gain ing recruits. The decision of the federal court validating the Union-Southern Pa CHIC merger gave lile DullS d SliOIS punt to work on but its effect has not been lasting except as relating to few trans- Mississippi lines directly concerned Even there the effect is not lasting and the speculative contingent that jumped in to buy on the announcement of the de- cson has been taking profits freely on the rally. Tt was hoped in the street that the government would be willing to rest with the decision of the circuit court In this merger case, but it appears that an appeal is to be taken and the matter can not yet be called settled. The famous Roosevelt "spte case' against Hartman is to be dragged through another year or two. ~
 Those persistent and pestilential Wash ington Investigations continue to disturb the peace of mind of Wall street. They have ceased to be jokes and no longer excite hilarity except among the ungodly who like to see the .malefactors of great wealth. ripped up the back and other wise manhandled. It is even whispered among the unregenerate that the time may come when it will be really unpopu- lar for very wealthy persons or combina- tions to steal very large sums of money through the abuse of business machinery. This day, however, seems very remote to most people and the best the multitude can hope for in the near future is to have the lucky ones made as uncomfortable as possible in the possession of their multi-millions. This is an unrighteous state of mind for the multitudes to work themselves into, and is merely mentioned in this letter as indicating the location of one of the flies in the Wall street ointment.
 Before sailing for Europe. MT. Daniel Guggenheim uncorked himself for the usual interview. It was a very much mixed output in which he said he saw bounding hopes for the copper industry and hell for almost everything else on the list. He was full of despair over the