The Birmingham age-herald., 1914-02-01
CAUTION IS STILL
MUCH IN EVIDENCE
IN STOCK MARKET
Many Think Optimism Gre
ated by Wilson Message
May Go Too Far
RAILROAD MEN ARE
ON ANXIOUS SEAT
Failure TO Get Desired Increase in
Rates Promises to Be Severe
Blow to Whole Busi-
ness Situation
Hx ". q. NICHOLAS


wide publicity that has been given to
statements that the business of the ma
tion-especially that part of it in which
the large units of organization have been
affected-has started up from the severe
depression it has undergone, has been re-
ceived with more than a little skeptlsim
by those whose knowledge of business
conditions should be accurate. The coin
cidence of these optimistic statements, as
we'll as interviews, with a much more ac-
tive stock market on advancing prices,
has left the impression with the more
thoughtful that stock market movement
was undertaken that was more largely
based on psychological opportunity than
actual improvement. That new "atmos-
phere" has been created by the Presidents
message is undoubtedly correct, and men
of affairs would like to accept as ac-
complshed the good feeling set forth by
the Presidents helpful words, but the
caution engendered by the political de-
velopment of recent years still holds them
in check. They appreciate that the Pres
ident thus far has been able to impress
his will for conservative and fair dealing
with business upon Congress and they
have sincere hope that he will be able
10 continue so to do. However they are
not convinced that this is possible and in
the face of impending legislation, which
was largely responsible for Kle depressed
business conditions, it is felt that the
business world will hesitate before eX-
panding. The trust legislation is so vital
-. ba al Of IN ma tinn
and the definition of competition or
restraint of trade" in forthcoming legis
lation has such a erious importance that
hesitation until there is full knowledge
of the legislation would seem to be but
fair, sound judgment. There are some
features of the proposed antitrust regu-
lation has such serious Importance that
without danger to values, but it is certain
that Wall street will meet these questions
in an effort to solve them fairly.
Bitter Medicine
Bittey medicine in the business situa-
ton: When representatives of the man
agements of the 60 eastern railroad sys-
TENS east of the Mississippi went before
the interstate commerce commissioners
nearly four years ago and petitioned for
an increase of 10 cents per ton on freight
they encountered representatives of their
workmen asking for an advance In pay
that would amount to $40,000,000 per year.
Inasmuch as the freight rate raise asked
for would be approximately $60,000000 per
year to the railroads, the suggestion was
made that both sides go before the COM
missioners with as near a joint agreement
as could be reached. 1t was explained
that as matters stood the railroads could
not pay the new assessment of $40000,000
annually allowed as wage advance un-
less means were provided for earning the
additional revenue. No serious objection
was raised TO the tacit understanding and
after a brief period of time the men
were granted the equivalent of $40,0000 600
annual lift in wages Almost simulta-
neously the commission turned down the
demands of the employing railroads cold.
The spokesmen for theS commission ex-
planned that by the exercise of proper
economies the roads could get along with
out serious trouble. The commission soft
ened the blow by suggesting that the new
arrangement be given a trial, and if after
three-year test the results proved the
existing plan to be unfair, relief might be
asked. Beyond that no definite promise
was given, however.
Early last summer a second application
foIf a raise in freight rates was asked
the rate mentioned in the second applica-
tion was cut from the original 10 cents to
. cents. We have given the existing plan
a careful three years test, said the
spokesmen in substance and find it Sm-
possible on the existing revenues to fur
nish satisfactory returns to either own
ers or the public. The data has been pre-
pared and can be laid before you any
time, was the supplemental statement. 1t
covered the three years period suggested,
and all salient facts were included in the
reports.
The essence OF the commissions reply
was that a 10-year record was the indis-
requirement for the search to
cover. a period seven years beyond the
limit originally specified. Protest was
hopeless, and half a year was put in by
an Amy of experts spread over dozen
states collecting the new data demanded
tat the expense of over 81 100000. A sta
ustica wizard was employed by the COM
mission to plow through the trainloads of
data supplied by the railroads for thN
commissioners. The public had taken
kindly to the courteous attitude of the
railroads. Nine newspapers out of 10 took
sides that way on the editorial and news
pages. The greatest orators in the coun-
sry spoke for fair play" 1t looked like
. victory for the railroads
That was before the wizard was intro
duced into the situation. He was not af-
fected favorably. and after few weeks
OF study the commission bore down on the
railroads with a peremptory further ex-
treme demand for complete answers to SO
new technical questions bearing on the
operation of the 50 railroad systems, for
the entire 10 years Judging from the
burden and tone of comment n decision
Will be deferred until sometime in the dim
future.
Wet Blanketing Market
The continued recurrence of delays in
the settlement of a simple problem ia wet
banketing the stock market and business
situation and apparently creating a state
OF deepened distrust throughout the length
and breadth of the land. Railroaders
knowing the merit of their plea and ap-
preciating the enthusiastic Endorsement OF
the press and the public. had permitted
themselves feeling of confidence From
the first they have been decorous and
courteous in every respect being careful
IN the incest particular to observe the
full propreties. Wall street. originally
of one mind, is nonpnssed at the mind
changing in Washington, and fearful of
the possible injurious effect on public
sentiment. Politicians are given credit for
mixing into a problem with
which they have no rightful privilege of
te king part. AS the situation now stands
impartial business men complain that it is
charged with bad medicine and vol
ume of disasters.
The prophecy most often voiced is that
while money is quite likely to soon be in
over-supply in New York and other fav-
orded fiscal centers il is NOT ant to no In