The Birmingham age-herald., 1912-05-05
PUBLIC NOT GREEDY IN BUYING STOCKS New High Levels Are Not
 So Alluring STRESS OF POLITICS Wall Street Sees Hughes as the Prob able Compromise of Republicans.
 Expects Peaceful Outcome
 of Present Fight
STRESS @ POLITICS
By W. G. NICHOLAS

By w. G. NICHOLAS
 New York, May 4.-(SpeciaD.-The pub lie is not buying stocks as greedily as 1t was short while ago. At the higher range of prices, stocks do not look as attractive as they did on the way up. Having been put on the higher level, they are not wanted either for investment or speculation. The bull leaders and the pools and syndicates behind the various speciaties, find they have to buy the stocks themselves whenever they attempt
 to advance the market into new ground. That is something which is not relished
 by the big people who keep things stirred
 up in Wall street. and they take 1t as a
 sign that the boom has reached the limit of safety for the present. Nat
 urally one of the symptoms of a cooling off in the speculative situation is in-
 creasing liquidation, or as 1t is also some times termed. distribution. Still, even with the heavier pressure of long stock and an enlargement of the short interest,
 prices hold very we'll The public might have stopped new buying, but 1t Is by no means ready to take the back track. It believes in the market and very evil dently believes in the merit and virtue of the securities into which 1t has put hum dreds of millions of dollars Of real moneI
 during the last six months. Besides, there is no other place to put the money to as good advantage as in good stocks not now, at least. When business i'm provement goes on further, other. uses may, be found for part of the capitaA
 now in stock. but that time does not seem
 to be immediately in the foreground. The news developments of the week have l been important, but they are natural in effect. The good news and the bad news
 were an offset. The most important event of the week was the understanding ar rived at by railroad managers and the engineers to arbitrate their differences. The inquiry which will presently be en- tered upon will be educational and is ex- pected to enlighten the public to the need | of a change in laws and methods so as | to give the railroads a chance to increase | their revenues. It Is recognized bys the | far sighted men at the head of railroad affairs that 1t Is likely to be long time | before the transportation interests ob- | tain the relief they are working for. It | took more than 90 years for the people to teach the railroads their duty and obliga-
 
 a severe one and the discipline adminis- tered has been burdensome and unfair in many cases, but it is likely to be years before reversal of policy can be effected , that will result in an absolute square deal for the railroads. The roads are being penaltzed for their past misdoings and will have tt give ample proof that l they understand the situation thoroughly | before being taken back into the full good graces of the people. They are on pro- bation now. They understand this fully, | and the best they can look for at the | present writing or, in the near future is
 progress along lines of friendliness. For that reason, the developments of the ap-
 preaching strike inquiry are being arix- | iously awaited by tht bankers and off cials of railroads. They hopefully anti
 cipate such showing of sentiment as | will give them something to go on for the government of their business-a look
 ahead-something definite upon which they can frame broad policy
 | If that result Is reached, and a fair start
 made in the broad campaign of educa- | tion, such increase In pay of employees | If any be ordered. will not be regarded as a total loss. People who think ahead, and who are responsible for the manage
 ment of railroad properties, are feeling
 more confident today of ultimate fair
 treatment by the law making powers than | they have been in years. They see the
 beginning of the end. although the end | may be still remotely distant. For that
 reason, they are already beginning to
 plan improvement in plant and equipment
 which have been held back because of
 uncertainty st oablity to earn the mon-
 ey to pay the interest and principal on
 new capital, which may be raised. The
 financiers and railroad executives and di-
 rectors have been following a safe and | IA~- s.~ A1.l~
 begin to feel that they can loosen up a | little, and an expression of this senti- ment will be seen In increased action TOT | the construction of new equipment and l improvement in facilities for the hand I ling of the largely expandeu tonnage sure
 to follow revival of business and pros- perity.
 The developments in national politics
 have not been as disturbing to the stock
 market as might have been anticipated. Wall street appears to be becoming recon ciled to the possibility of Mir Taft's de-
 feat In convention. but curiously enough | there is little serious thought that MT. Roosevelt will succeed in his ambition for renomination. It is conceded, however.
 that he may be strong enough to name the candidate, and the chances of dark | horses and compromises enter more pen erally into Wall street discussion than l the nomination of either MT. Taft or MT. 1 Roosevelt. Hereabouts the name of Asso-
 ciatc Justice Hughes is uppermost in most
 mems minds The fact that he has re- fused to run against Mir. Taft is looked
 upon as no bar to his acceptance of A
 nomination rendered him for joint ac-
 count of the present rivals and the re-
 publican organization. This is the phase which Is now looked upon with greatest | favor by lovers Of peace and quiet in the | t,l .14 .s.t. .<-f. steam and noise of the battle now in pros gress. quiet folks see a peaceful out | come.
 The money trust inquiry is stirring up a | sense of uneasness and irritation. The | questions being asked of bankers by the committee are held to be an inquisition | into confidential and private affairs, and | there is an open revolt. The authority of l a committee of Congress to go beyond the laws in demanding business secrets will be contested. and may delay the investiga- Ition until after the presidential election | If Congress or its committees, or the Pres