The Birmingham age-herald., 1913-03-16

Is per cent dividend, and has declined in
the market price 40 points. only lost 1000
shareholders SO far. Union Pacific is not
as well distributed as it might be, and
the losses incident to the decline of 50
points falls on people who can stand the
punishment. The shrinkage in Atchison,
Pennsylvania, New York Central, Norfolk
and Western, Louisville and Nashville,
Southern Pacific and quite a number of
high class industrials, has not been really
heavy as measured by actual ngures. The
hundreds of thousands of large and small
capitalists who have money in that kind
of securities are never stampeded by the
events and convulsions that affect the
speculative element.
Heavy Short Interest
The belief is generally entertained that
a very heavy short interest has developed
in the stock market. This condition is
believed to affect definitely and personally
a large number of heavyweight operators,
men of large means who trade in groups
or individually, and whose market inter-
ests are sometimes colossal. There are
men who have accounts of $1,000 to 10000
shares whose names are never mentioned
and whose Identify as spectators is un-
suspected except in very limited way.
Not few of the larger brokerage houses
get fat on the profits of the trading Of a
handful of customers who do their busi-
ness entirely over the telephone and who
would regard it as the betrayal of a
sacred trust if any hint were given of
their operations.
There is more of this going on than any,
one outside of the elect of the financial
community dream of. AS rule, this class
of traders stand for big losses or big
profits, but when the spirit of excitement
gets beyond control they are quite as sus.
ceptible to current influences as the little
war - ic raae IN, l,a15 hot
here is located the great short interest
which is believed to exist. 1t might take
quite an advance in prices before the giant
shorts begin to cover, a fact which Is
taken into account by experienced traders
in trying to form judgment as to the
future.
Want Newspaper Friendship
1t is almost laughable to observe the
lengths to which the New York Stock ex-
change Is going in an effort to curry pub
lie favor. 1t has even gone to the extent
of fitting up expensive quarters in the sa-
cred Stock Exchange building itself for
the accommodation of newspaper men.
The management advertises that financial
writer's will be very, very welcome to
take advantage of the facilities which
will be placed at their disposal. Hereto
fore it has been the habit of the ex-
change to set the dogs on the newspaper
is too good for them.
Furthermore, the membership of the ex-
change is beginning to become reconciled
to many of the supposedly impossible re-
| forms which are about to be perpetrated
upon the organization by the legislature
at Albany and by Congress. Practices
which We're regarded by the exchange as
! sacred. but which the public unhesitat-
| ingly denounced as next door to robbery,
are about to be changed almost without a
murmur. 1t is not impossible that GUS
| toners who have securities in the hands
of brokers will be protected against the
msuses of their property as collateral "in
jack pot loans" This is something that
the membership of the exchange almost to
a man agreed could not be done. They
are changing their minds. 1t looks as
though the abuses of over-certification OF
checks might be passed over, although
some of the wild men in Washington may
conclude to hold the stock exchange menu
bers down to the same rules in that re-
spect which govern the rest of mankind.
The proceedings of the arbitration COM
mission in the locomotive fremen wage
contest are being watched with great in
terest in Wall street. Railroad men them
selves appear to be reconciled to an adj
verso finding, and to look forward to a
long period of exactionsS from employees.
They will try to turn this into an argu-
ment for permission to increase rates as
the only offset. ~