The Birmingham age-herald., 1913-10-12

the issue of about $4,000, 900 addition
al annual income. Reverse action will
leave the railroads in a worse position
tnan ever and in many cases would
probably result in physical deteriora-
ton and bankruptcy: A favorable rul-
ing would vitalize the whole business
structure and fill 1t with q "goIng"
force for which it is in distressing need
The street" will realize with incrc.s-
ing clarity the tremendous and far
reaching Importance of the commits
sion's ruling as the hearing and inves-
tigation goes on. 1t will develop into a
price-making influence of greatest
weight. 1t is very doubtful If much
time will be consumed in verbal testi.
mony or long arguments. Both sides
nave professed willingness to let the
facts speak for themselves.
Stock Market Loses
The stock market has lost a very
large part of the advance that culmtn-
ated few weeks ago in the boom that
signalfzed the dissolution of Unicn ana
southern Pacific and blazonad the
promised cutting up of big melon.
Action was deferred, however, and af-
ter the gossip changed to the possibility
of biting disappointment street SEN
timent underwent revulsion. The army
OF buoyant bulls that had been proph-
ecying 5000 for Union Pacific began
to soften in their faith. but not until
the professionals had realized large
profits on the bulge and prices had
started heavily down, did suspicion de-
velop into real nervousness and fear
For three weeks the trend was down
ward, the action being punctuated by
nasty breaks There was stubborn
bull element in the market, however
and on every suggestion of definite re-
covery from the recurrent slides, the
bulls renewed their buying vigorously.
Invariably there was replacement OF
sold out lines of long stocks and the
open interest remains broad
The field of speculation in indus
trials and public utilities" has broad
ened to such an extent as to serious
ly impair interest in the old list of
standards which once virtually inonou-
oliZed action in securities. There should
be no mystery about he falling awav
of interest in that quarter. Venture
some capital seeks occupation where
the chances are greatest and for that
reason the industrials have won a pref
erence over railroads as the field In
which to operate for quickest returns.
Speculation In the stock market has
narrowed in comparison with the ont
side play. Almost numberless indi-
vidual fortunes have been amassed bv
leaders IN the manufacture and sale
of specialties and there seems to have
been no limit to attainable results. Az
enterprises develop into big thines'
a place for their securities is easily
found for them. first In the local fields
anu then not infrequently in the larger
general markets. Some of the most
lucrative enterprises continue to be
owned locally and the profits realized
are reinvested al home. 1t never reaches
Wall street. through the old channels.
and 1t has come to pass that the spec
ulative spirit finds diffused play in
stead OF being forced to concentration
at n single great center.
On the reaction from the bull move
ment that eliminated three or four
weeks ago the loss In prices ranged 8
to al points. The reignine quotations
are to 20 points lower than they were
around this date last year.