The Birmingham age-herald., 1913-02-02

- disappearing. The advance in the sub
sid'ary stocks of oil and tobacco was an
eye opener, and turns out to be an in
ceatlve to quick action by the trusts them
selves. This peaceful reimbursement PROM
1ses to do away with the necessity of
government litigation to break up the big
combines. There are hints that United
States Steel will adopt the same plan and
Peacefully break up into its original parts.
These reports are denied ct the headquar-
ters Of the Steel trust, but nobody pays
nfach attention to official statements of
that description. It is being discovered
that good deal of misleading informa-
tion has originated in the Steel trust
headquarters and for that reason the
label offieiaf' no longer carries weight.
Those who are intrusted with the work of
scouting for news in Wall street attach
slight Importance to statements that cam
rot be verified by known facts outside
Of headquarters" This statement, OF
course, does not apply to all of the cor
rorations, but notably to those that are
at present most conspicuous in the public
eye.
The latest financial report from the Steel
trust gives net earnings for the year at
ebout Sl0S,000.000, an increase over last
year of about S4.o00,0oo The last quar-
ter's earnings, ss5,ooo.ooo. is about what
had been anticipated. OFFICIALS of the
trust are talking optimistieally about the
prospects for the calendar year 1913 and
redict net earnings of s125000,000 with a
large appropriation for plant. In view of
the possibility of the disintegration of the
Company these figures may seem wild and
unnecessary. They are being indulged in
nevertheless, and afford the statisticians
more or less satisfaction. With the prar-
teal certainty of tariff reduction it Is
very difficult to see how close figuring
can be done. The seat of greatest uneas-
mess because of the impending revision OF
the metal tariff is found in the offices of
the independent companies They are the
ones that will be hurt worst by any ma
terial cut in duties. In their calculations
the independents allow for disadvantage
of 50 to IS in competition with the trust.
Better Stock Market Feeling
A better stock market feeling has been
developing of late, although it is not ap-
Parent in all quarters. Traders ON the
stock exchange notice that it is easier TO
sell than to buy. The floating supply of
stocks is not as large as Il WAS. That has
become manifest Whether The greet mass
OF securities that was liquidated during
the period following the break three
months ago and during the subsequent
seasons of depression has been distributed
10 the public or remains lodged with the
strong banking combination of New York
is one of the unsettled problems of the
street. Traders would like to have a
clear idea as to Just the location of the
stuff that may~c come on the market any
| time, either on the occasion of slump
or a big advance. The theory which
seems to meet with most approval is that
the banking interests are the chief hold
ers, and that their loans on this class
of collateral are still very heayy--uncom-
fortably so, some think. Meantime the
money situation remains easy. Call
hcney is cheap and time loans are being
made at rates which are proving attrae-
tive to many of the more important bor-
rowers. Arrangements for the remainder
! of the year at AZ per cent are being made
by scores of the strongest houses in the
street.
Roads Want Increased Rates
Railroads are industriously at work on
their campaign to educate the statesmen
at Washington and the public at large
that they must have increased freight
rates If they are to make improvements
in transportation facilities which are be-
ing demanded. 1t is no new thing for
railroads to make a poor mouth over
revenues, but this is one of the times
when there is an actual need for more in
c,fne In order to enable the roads to inn
pi owe upon their terminals and other fa-
oilities for the quick handling of traffic
This is a fact which has become SO plain
that 1t cannot fail to be an Important fac
ter in future action by Congress and the
interstate commerce commission.
The vexatious feature about this freight
proposition is that the big, strong, rich
systems would be the chief heneficiaries
instead of the impoverished lines which
are dragging on the lines of self preser-
vation--having almost no surplus over and
above fixed charges TO put back into plant.
II some plan could be devised whereby
the roads in greatest need of capital will
get what they want and leave the rich
systems where they are, the statesmen
who have the solution of the question in
hand would be very much Obliged. There
is a feeling that it would be cruel to give
such systems as Delaware, Lackawanna,
I.ehigh Valley, Lake Shore and lines of
that type the same benefits that would ac
crue to Wabash, Chicago and Great West
ern, Pere Marquette and others of tha.
class.