The Birmingham age-herald., 1911-02-25
DECISION DOES
 NOT SPELL DOOM Action of Commerce Con- mission Was Expected MIR. OTTO MARX TALKS Railroads, Including Western Lines, Affected Will Continue to c-ake
 Improvements in Line
 of Progress
By CLYDE ENNIS

the opinion of many prominent men spell anything like doom for advancement or progress.
 The decisions, according to the clear thinking business men, has been antici- pated for the past few months exactly as they were given, and the western rail roads, which are more materially anec'eo' have arranged their affairs to get In line for what has happened. The railroad set up the plea that increased wages, in- creased cost of supplies and all advance ments which cut down net earnings had caused raid on their treasury, and that an increase in the only commodity or the railroads, hauling should be given The commerce commission said such was not a true reflection of the conditions, and the rates as maintained out west were fair and no increases should be given.
 The subsequent raid on the stock ex- change in New York coming directly un- der the influence of the adverse decision was looked for by the bull interest, and held in check by them. causing only decline of a few points. Those stocks which went on the toboggan yesterday will be at the same normal quotations in 60 days, according to the best available opinion, and those who bought yester- day will reap a golden harvest.
 It was pointed out yesterday by one broker who deals in railroad stocks that if the decision had spelled anything of serious nature, stocks would have gone
 fhpu did If was held that the mere fact that only a decline in 4, 5 and points was con- fession by the bulls that the stocks would come back. Whereat the bears rushed In and through sympathetic pressure sent the market on a chase. It Is stated that local people who. had little loose money yesterday took advantage of the raid by the bears and piled up with securities. The purchases made from Birmingham alone protected quite few shares of the stocks affected. Otto Marx said yester- day:
 "rhe stocks affected yesterday includ- cd street railways of New York, Amalga- mated Copper and other industrials. Had the decision spelled anything like serious results to the railroads, why should 1t affect the far-removed securities? It was simply a bear raid which was flooded when the bulls were for a moment dis mayed. The market, I should judge, wii be in normal condition in a very short time.
 "The result of the rate cases has been anticipated for some time. The interests in New York have been quietly tipped and have been ready for such an emer- gency I have not the least uneasness about the conditions which prevailed on the stock exchange yesterday. The west ern railroads have been hogging the rate game for some time. And they have sim ply struck a snag which they thought at first would be quickly removed by the cry of wolf
 In the past few months some of the most prominent railroad men in the coun- try have been in Birmingham. The list may be written to include President Fir ley of the Southern, President Curran of the New Orleans and Northeastern, Vice President Powell of the Queen and Cres- cent, Vice President Gray of the Frisco, Vice President Park of the Illinois Gen. tral railroad, Vice President Bibble of the Frisco, and other men who are in direct touch with the properties While nere they Sdiu, WltiOut ChSCPtAOhs tiiC railroads would much prefer an adverse decision of the rate cases than to be held in suspense and not know where to light.
 The most logical opinion as to what is to occur in railroad work is that the railroads affected know exactly what they have in the treasury and what to expect They will at once go about their work in a strictly limited way and will .It xx,l1tI hal nn hiUhar rataG will be given them.
 The fact Is worthy of notice that un- der the old rates, which they wished to advance the railroads in America have earned more money in the past two or three years than ever before in recent years. The gross earnings of the rail- roads have in every instance been little less than marvellous. Yet in the re- quest for higher rates the railroads have stood firmly on the point that increased rates were absolutely essential for the continuation of railroad and industrial prosperity.
 However, the fact that earnings have been great and money fine with all rail- roads even when everyone was crying panic, goes to show that business IS moving and getting better all the while.
 Locally the situation was perhaps never so roseate. The demurrage bureau u year and the beginning of 1910 was ex- pected to be dull year. The result was that at the end the conditions were ballooned to such an extent that the rail- roads themselves were surprised.
 The local situation was not affected yesterday by the wild reports of chaos and the same opinion prevailed that the great American, companies would con tinue to do business at the same old stands.
 The argument is not made that the prosperity of the railroads is not essen tial. Everyone admits that. However, the railroads have been directly endeav- bring to bear the conditions for the past six months in order to impress upon the commerce commission the absolute ruin that would follow their adversing the re- ouest for higher rates. The commerce commission, a body of clear-headed men, were not alarmed and did not fall for the impression. They have no desire to bring ruination upon the American peo< pie and in giving their decision the ef- feet was seriously considered. undoubt- edly.
 Now that the cases have been decided. the railroads will buy materials, relay tracks and improve their roads. as they should have been doing some months ago. Unless they do the shippers will perhaps do business with the competitive lines, who deliver the best of service and keep up the equipment.
 The decision of the rate cases means ,,,,,l, ,ou, instead of a spirit of lethargy