The Birmingham age-herald., 1912-02-04
Further Important Depre-
 citation Is Looked For
SLUMP WAS EXPECTED
The Railroads Have Been Having Harder Time Than the Indus- trials in Keeping Up
 Appearances
By ". c. NICHOLAS


 to the floor. There will doubtless be recovery from such sharp slump as
 that witnessed this week, but conditions
 are unsatisfactory. on the whole and fur
 ther important depreciation in prices may
 be looked for. Such. at least, appears to be the opinion of representatives of the best. information and judgment in Wall street. The business and political situa- ton gives no encouragement to buyers of stocks. About the only thing bullish that can be taken into consideration is the superabundant supply of money in the banks and trust companies-money that cannot find profitable employment in industries or commerce. but which might be used in the stock market. This is the only real hope the bulls have at the present time of seeing improvement in securities prices.
 The slump in prices was not unex- pected. It has been known for several weeks-even before the ending of the old year-that insiders were unloading in a wholesale way, doing it quietly and with no desire to smash the market, but sim ply to get the most money possible for their goods. Following the usual practice, great majority of these insiders con cealed their sales by borrowing the stocks with which to make deliveries. thereby creating the misleading impression that a heavy short interest was being generated. An overwhelming short interest adds to the technical strength of a market for 4t.- .11 f..,. lative account have to be bought in again at some stage. In this case. the appear ance of technical strength was grounded on a false premise. The market was really technically weak instead of being technically strong, and the harsh decline in the leaders was conclusive proof of that fact. As before mentioned in street have been and are still dissatisfied 1 with the situation and outlook. They real | ize, as the mob does not, that tariff re- | vision Is a serious question, and one that | operates to the injury of business while the agitation Is on. They realize also | that political agitation carried on by an | aggressive radical element is disquietlng | to capital, large and small, nd sH 1r" tendency to improvement hs
 Wall street l. s4- quarters for the manufactu aHa 1tf securities, always does it's ll s8 lus courage investors to buy 9ads
 for that reason, the burdeI Ilant lI emanating from Wall stree full as circumstances will 'tale.
 conditions are dscouragin egan
 question.
 Railroads are having ha ardes laae sl industrials to keep mp app, snHe revenues smaller than a zfar aaH la with equipment run down eana they are doing the best tn r
 the burden of s500O0,000 tp sf
 creased wages and about tn in increased interest on now 1naat ness-a total of S100, 600, ,000 t1 sIaHHiyu The best talent that none on hf self interest engage, is at oH Cost of operation has been cut | down wherever it can be done. and dan gerous inroads have been made upon man. | tenance of way, structure and equlp- | ment The reduction in this department | of railroading runs from per cent to l 10 per cent or more below what it should | be. This kind of economizing is telling on the property, and cannot always be kept under cover. The story is told in the reports made by railroads to the in terstate commerce commission, and will eventually seep through into the under standing of the masses. Wall street | knows facts now, and is doing nothing to advertise them. That Is one branch Of publicity that is discouraged hereabouts |
 Wall street hears with undisguised sat- isfaction that Congress will not engage in the threatened investigation of the al- fruSf The existence Of a money trust ia unquestioned, but for reasons explained in previous dispatches. if would probably be entirely beyond the | mower of any committee or commission to locate the monster" in convincing or tangible fashion, The real money rust Is an impalpable community of interest, gov erned and controlled on the "gentlemens agreement" principle, carried to us hhest efficiency A Congress investigation could hardly do more than intensity popu- lar preiudice against Wall street, without practical good, and without giving relief. The power would remain and 1t would be exercised for sef pro lection and for profit as long as the great fiscal institutions remain in control or few individuals who get to the front by reason of their wealth or invincible per sonalities It is a problem too big and vet too intangible in It's present form for any committee of Congress to tacklc with hope of making headway. Like the issue of gold imitation, this is one or the big questions for the wise men oS ah- other day. to grapple with and overcome. There ia trouble enough on hand right now without taking on this one.
 The answer of the Steel trust to the suit for dissolution does not strike the street as being a very strong document or collection or documents which was at first overwhelming " committed to the theory that the gov er,ment action would fall through seems to he changing somewhat. The Wicker sham contention is now being given atten- tion. too. The action has undoubtedly an unfavorabe impression | abroad, and we are getting a reflection nf that feeling. There has been heavy selling of American stocks for foreign ac- count since the beginning of the year, and it is still going on. Investors abroad do not like the looks of things on this side of the water. There Is too much agitation, and not enough business to suit our friends across the water who | have put their capital into our securi- ties. They would like more quiet and sanity.
 The street does not accept at full par value statements from Washington that the President will surely veto any tarin revision bills which Congress may enact, regardless of what they may be. It is not generally believed that he is at all | certain to withhold his signature to mod crate revision. There is large and in- Huential element which feels that he made l a mistake last summer in vetoing revision | because it originated in a hostile camp. | As part and parcel of this conviction is | the theory that MT. Taft will not repeat | the political mistake, If it was a mistake, |