The Birmingham age-herald., 1913-05-18

The foregoing description may sound
| like an overdrawn and even fantastic
product of imagination, yet 1t is a
| truthful picture of the Wall street sit
uation. Many of the greatest person
alities of the financial world have
passed away and settlement of their
estates has been going on in a stimuli
taneous but not concerted movement of
the survivors to put their houses in or
der. The unconscious combination of
mighty forces in hidden action has
thrown the financial world into a state
of confusion and semi panic never be-
fore witnessed. 1t has been one of the
principal stock market factors during
the past five or six months-unknown
and unappreciated excepting by secre-
tive eoteries of real insiders, whose
mouths were kept sealed by motives of
self -self-preservation. By COM
parison with these subterranean devel-
opments such things as tariff revision.
Balkan wars, the fight over the Harri-
man railroad systems, labor strikes,
railroad rates and trust proecution were
incidents more or less trival-eXcept-
ing that they contributed to the hys-
terical fears of the big rich,' and
nastened action for self-preservation.
Even now the solution seems as dis
tant and as uncertain as at the day of
| beginning.
Money Not Doing Most Good
In the west and southwest the banks
and farmers are dividing the burden
of carrying quarter to third of
last years bumper crops, as yet un-
distributed. In the east the banks are
grOaning under the pressure of un-
digested stocks and bonds. 1t thus oc-
ours that an immense sum of money
and crediN is tied up doing the least
good. 1t is being kept away from
where it should be in active use. En-
terprise and investment action are en-
barrassed in consequence Manufactur-
ers and commerce show signs of abate-
ment--not much as represented in
high protection literature and oratory--
but enough to be felt in many quar-
ters.
The railroads are having about all
they can attend to comfortably but
quite a percentage of the current traf-
flc represents the movement of old
business being worked through mills
and factories, whose books do not
record normal registration of new or
ders. With a near certainty OF another
season of enormous crops interior banks
everywhere are already planning for
the financing thereof. Eastern money
centers are not likely to carry as many
or as large balances for out of town
institutions and customers as usual,
and their needs are almost certain 20
be abnormal.
Reduction of Rates
The eastern railroads, whose petition
for a per cent raise in freight rates
is now before the interstate commerce
commission, express confidence in the
result, although they admit they will
not have an easy time of 1t. The rec
ords Will probably show that the rail-
roads are paying around $75,000,000 a
year more for expenses of operation
and maintenance than they were three
years ago and that net earnings have
increased about $4,000 900 annually.
The difference is made up by most
lines by slSimping wherever saving
is possible.
The claim is made that unless given
the relief of a point raise in freight
ates the result will be deterioration
of property and efficiency-that tho
service demanded by the public must
necessarily be the sufferer The alter
native is loss of income to stockhold-
ers, who stand in the gap. 1t is be-
lieved by the carriers that the COM
missioners will recognize merits of the
plea and that if the records prove the
mathematical accuracy of the conten-
ton the relief asked for will be granted
decision may not be reached before
midsummer, although the transporta-
tion companies nope TO DePln the neW
fiscal year on the new basis
Big Profits in Gas
BY book calculation the Consolida ed
Gas company of New York, which has
monopoly of gas and electricity in
the metropolis, amassed a surplus of
about 100000 in the last three years,
and minority shareholders are planning
a crusade against the company to com
pei larger distribution among the en-
tire ownership. The company earns