The Birmingham age-herald., 1912-12-08

harsh decline in prices The severe losses. however, fell upon the gambling community. The general situation has not been impaired and, as a matter of fact, good stocks which were forced upon the market have, in large part. found lodgment in safe and strong hands. The speculative securities are still afloat and for that class of secur- ities still lower prices may be found before the money market permits of resumption of active speculation. That period may not come until after the turn of the year. although there Is likely to be sharp recovery from this weeks break. due principally to the fact that the short interest has again become overextended. Such occurrences are the almost inevitable result Of drastic liquidation such as we have witnessed.
 Effect of Tariff Revision
 Traders have been giving rather more serious attention of late to the possible market effect of the impending tariff revision, singling out the stocks that will be most directly affected by the promised cut in duties and acting accordingly. That earnings will be im- paired in many cases is certainty. though in the readjustment net re- turns will be satisfactory. As the late MT HaVemeyer was wont to say ire quently, 1t makes very little difference in the actual results. as the manurac- turers arrange for their profits on basis of the actual cost of raw ma terial-the velvet" being the difference between what the cost at bedrock and the price al which the product can be sold to the consumer. He held that the principle which applied to his own speciality, sugar, applied to nine tenths of the things manufactured and that tariff was, after all a matter of much less general consequence to business than commonly supposed. Judge Gary head of United States Steel corporation. holds practically the same view.
 MacYeagh Called Narrow
 Secretary MacNeagh's recent express sions are regarded as thinly yelled prejudice against Wall street-that Is, they are looked upon as such In Wall street He Is being severely criticised for alleged narrowness. The complaint is that he is not broad enough to un- derstand that government money de- posted in New York directly affects and benefits the whole country and is not, as he intimates, for the special help of speculation. New money In Wall street is nutriment to the whole United States. As well might he ob- ject to feeding a spring lest some of the water find it's way into the bellies of Wall street hogs, or shut off sup plies from an irrigating ditch because some of the water might fructify weeds as well as the crops. The one fact that stands out plainly is that $50, 900 or $60.000.000 lying idle in the treasury could be serving a use- ful purpose in supplying the needs of legitimate business instead of being locked up and kept out of employment.
 Railroads Make Fine Reports
 Railroads are making splendid reports of business. Their earnings for october and November have been the maximum and prove beyond a doubt that every wheel and car has been in motion. Traf- iic for December will be on a par with the preceding two months, although win ter may interfere somewhat with the prompt movement of tonnage. What they have lacked in equipment of rolling stock hos been more than made up by the in creased efficiency on the part of the transportation companies. Nevertheless, the strong companies are making prepa- rations for heavy increase in business next year. Orders are in for an im- nense number of cars and locomotives for 1915 delivery, and more rails will be bought and laid than in any previous year. The poorer roads will not be able to do as much for themselves and they
 
 commerce commission and their represen- tatives in Congress for. relief in the way of higher rates. How this will work out remains to be seen.
 h. order to make it tacticaly easier for the weaker brethren the stronger roads will put back into plant d larger percentage of gross earnings than usual. The managers of the rich systems look upon ttis sort of reinvestment of earn inC lac Dnsa1lp fn iol, they can be put. It is putting fat and meat on the lones. 1t s making provision fl good times against lean seasons. That has heen the policy always followed by James J. Hill ard is looked upon as the essence of wisdom in railway manage ment and operation. Pennsylvania and Baltimore and Ohio lead in the pursuance of this wise policy among the great east ern systems. This is where their spare surplus goes, after allowing for liberal margin of safety.
 The failure of American Can to cut large size melon has been a severe dis aprointInen. 10 a very considerable gam bling clement on the stock exchange. Wall street gossip has persisted that the directors at their meeting this week would in some miraculous manner finance the accrued back dividends of & per cent on the preferred stock and thereby let the common stock in on distribution. 1t now appears that this talk was entirely unauthorized. Cen has been making an immense amount cf money the last year officially stated at $i000,000. It has been the policy of tie management to put back earnings into plant and to expand it's business. JD this way an immense indus try has been created from very small beginning, and now that profits are ac cruing as Il result of 10 years of wise management. the future looks very bright. It was little rough on the gamblers to let them nurse rhe delusion that the Reid Moore-GI aham party would reverse it's policy and scatter a lot of money about in order to bolster up speculation. but that was the fault of the man who made the mistake. They preferred to give heed to wild gossip rather than take for their guide the known conservative policy of the men actually in control of the prop- erty. The incident caused a great deal of comment. but the excitement is dying ont.
 Volume Falling Off
 Experts admit slight falling off in the vc'uine of orders for steel and iron prod- ucts. although the let up is from an ex- tremely swollen condition of business and is seasonable. Both the Steel trust and tie independent companies report q rec ord breaking receipt of orders during Oc- tober and November, with business enough on the books to insure colossal produc-