The Birmingham age-herald., 1913-08-10

as one Of tie strongest bullish features
in sight
The money market is working easier
and as the financial tone softens bulIish
sentiment In stocks becomes more tan
glble proposition. With call money
down to 2l2 per cent and bankers
throughout the east and west agreeing
That there will be capital in abundance
Tor crop moving purposes without gov
ernment aid, the speculative and invest
ment spirit brigntens. As before stated,
however, there Is nothing. whirlwindy IN
the prospect. The open handed willing
ness of the Secretary of the Treasury to
give relief to any crop moving strinsency
was one of the moving factors OF the de-
velopment of a bullish tone. not only in
securities, but in general business affairs.
Policy of Steel Corporation
The unprejudieed are beginning to be-
lieve that United States Steel has en-
tered upon a permanent programme of
saving large percentage of net earnings
hitherto spent on Improvement and ex-
pansion of plant For years it was the
habit to jeer at steel for its alleged gro
tesque over capitalization and extrava-
gance, but the records show that the
companys expenditures on plant came
from current income almost exclusively.
Hundreds of millions OF dollars that
might have been charged to capital ac-
count or gone into dividends went into
new mills, coal ana iron Mines a costly
lake fleet, railroad mileage and a thou
sand and one forms of upbuilding. I'm
mense capital was provided out of earn
ings for the development of a foreign
trade. More than half a billion dollars
from clean earnings was reinvested in the
property, which is now estimated to be
intIinsica1y worth so over and above
mortgage indebtedness. The corporation
IN n ,f ct bp1darg than
any other American company, and con-
siderably in excess of Pennsylvania rail-
road with its 5000 share owners.
A feature of the ownership is the loyal
and tenacious friendship for the manage
ment and what 1t represents. The ar6u-
ment of the later day bulls in steel is that
its growth will never cease and that
eventually Charles Schwabs prophecy of
a net income of S250,0OO000 will be, real
lied, for distribution to security holders.
The present interest and dividend obliga-
ton is over $100, 100000 annually 1t is
said that even Mr.. Carnegie. by the way,
has recovered entirely from his disap-
pointment in not getting back his mills
under foreclosure-plusa lot OF assets ac-
cumulated after he had sold out
The uncertainties surrounding the Union
Pacific and Southern Pacific adjustment
plans continue to afford an excuse for
endless gossip, and are the cause of daily
price fluctuations of a pointer more. The
so-called news columns on the financial
pages of the newspapers are filled with
the imaginings of the news Yenders. The
more traders read the wise calculations
of the scrbes and specialists the less they
know. No two accounts agree and sIB C.
ulation on the complex problem is idlest
waste of time. In the course OF human
events the matter win be settled, the
equities adjusted and the two systems
will continue to handle freight and pas
sengers as though nothing had happened.
and on his return things will probably
be a doin'." Absurd and pointless as
much of the talk is on this theme it real
ly constitutes quite a factor at times in
the making of minor fluctuations and the
supplying of financial copy"
In a well considered statement President
Willard of the Baltimore and Ohio and
chairman of the freight rate committee
of railroad presidents, has set at rest
disturbing and groundless reports of fric-
tion between the railroad high officials
and the commission. Mr.. Willard makes
it plain that rela ations are cordial and
that every move taken by the railroads
are with the acquiescence and approval
of the commissioners. The gossip was
annoying for a time, but with the publi-
cation of the Willard explanation quiet
was restored in the publics mind.
Money for New Haven
The avidity with which New Haven's
quick loan of $10.000,000 was put through
was something of a revelation. The rate