The Birmingham age-herald., 1913-07-06
Street immensely Pleased
0YaI settlement of Union
Pacific Difficulty
MORE MONEY is IN
SIGHT FOR BARGAINS
Railroads Have Banner Year in Irat-
fic Carried and Gross Income
But Operating Expenses
Show Large Increase
nv w. G. NICHOLAS

Nv w. q. NICHOLAs
New York. July -(Special)-The stock
market seems to be resting on a stronger
foundation than at any time in months.
There is no speculative enthusiasm SO tar
as can be discerned, but every time prices
recede stalwart support is encountered.
Brokers' offices are full of buying orders
/ to points under the current range and
every time there is a setback fioating
supplies of shares pass into strong hands.
There is in the present situation the
making of an ultimate bull market.
Every unfavorable development that can
be thought of has done its purpose for
the depression of values. Tariff revision
has been worked for all it Is worth for
the bear account Later on, when the
liquidation of labor sets in, as a result in
the reduction of duties, there may be fur
ther disturbance and shrinkage in the
industrials
A great deal is already being said on
this subject and the majority opinion ap-
pears to be that the impending distur-
bance in the manufacturing fields has
also been made the most of by the bear
contingent and that little remains to be
there will be very material readjust-
ment in wages after the tariff bill is
signed, but that has probably been dis
counted almost to the full extent Labor
Is well organized in the industrial field,
but the forces are scattered. Railroad
labor is better concentrated and organ
lied than any other branch of industry.
None the less discussion as to the possi-
BILE labor disturbances during the next
year will be likely to figure as a market
agitator.
Widener Takes Plung
For the time being, however current
influences control the minor fluctuations.
There is no big broad feature u the
market beyond that announced in the
opening paragraph, viz: The reappear-
ance of the money man as an investor,
or buyer for a long wait as a speculation.
There is a great deal of this latter line
of operations Usually 10 per cent is the
trading margin In brokerage offices. Now
1t is nothing for customers to put UP 20
per cent and even more. This is very
strong evidence of the courageous and
competent spirit behind and under the
market
One man in Philadelphia, for instance.
whose name does not appear aften in
quoted by his friends as having bought
$4,000 shares of Union Pacific within the
last six weeks-this, in addition to pre-
viously held line fully as large. Mr..
/, Wideners name is rarely heard now in
Wall street and 1t is said that he seldom
speculates. He has an immense fortune
and is growing old. In fact, he is old.
Fifteen or 20 years ago Messrs Widener.
Elkins, T. r. Ryan and William c. Whit
ney formed a daring and dashing combi-
nation for the devastation of Wall street.
One of their big killings was a campaign
in the New York fractions. The clean
up on that occasion is said to have been
not less than s75,o00,0O0 Metropolitan
was sold in great volume about 240. In
the course of a year or two the price
was down to next to nothing. Somehow
the control of the Traction systems has
always remained in practically the same
combination, although there have been
important individual Withdrawals from
time to time.
Settlement of Pacific Troubles
The street is immensely pleased over
the settlement of the Union Southern Pa
cifc difficulty. although the swap of
Southern Pacific for Baltimore and Ohio
stock Is a feature that is likely to be
talked about and speculated on for long
time. There is in reality very little in
that end of the deal for the gossips to
waste time over. The incident seems to
-be eminetly satisfactory to railroad men
generally, particularly those high up
ewho have part In the management of the
leading systems east and west.
In taking over Pennsylvania interest
In Baltimore and Ohio the way is not
} only paved for the adjustment of the
difficulty in the west but relief Is given
to an exceedingly delicate situation in
the east. PENNSYLVANIA has long desired
to dispose of its s4O,OO0OOO holding in Bal
timore and Ohio, and this opportunity to
make an exchange for stock of equiva-
lent value in one block was an opportu-
nifty to meet with most cordial reception
by the control of the great eastern trunk
line Theoretically Pennsylvania has had
voice in the management of its rival in
Baltimore and Ohio. AS a matter of cold
fact 1t has kept its hands entirely off
Baltimore and Ohio, and the relations be-