The Birmingham age-herald., 1914-02-15

of December and the first few DAYS in
January but in the estimation of a grea.
many people of good judgment IT is still
too high for conditions as they are now
existing.
Wait for Situation to Clear
There is enough going on to create
an active market and put prices higher
but as before stated the controlling IN
| iuences are against further activity in
the up direction until the situation clears.
1t looked as though Washington was ro-
ing to be source of announcement and
stock market courage, but the tone of
things appears to have changed pereen-
tfbly Neither the tariff law nor the new
currency and banking law gives entire
satisfaction in the financial and business
districts. The time has not vet been
given to try either of them out and II
| may be six months before the people of
affairs can understand exactly where
| they are under the new regulations. The
income tax puzzles everybody who comes
within its jurisdiction The LAWYERS ara
trying to make the most of 1t but IL is
at best complicated proposition and
II Is liable to be year or two before
a fun and understandable solution is
obtained.
1t looks so like steady and perma-
nent Improvement in prices and in con-
dltlons that the backset has been a Sc
we're disappointment TO the active inter
ests. Money suddenly got easy at the
| start OF the bull campaign and the whole
PUBIC Jumped in and bought. The insid-
| ers with banking and brokerage combina-
| tons had to let go of more property than
they wanted to and the course was still
upward. They not only sold out their
speculative lines OF stocks but got rid
OF bonds which they had been carry
ilng under wet blanket for months
sut at the same time they did not
want to see prices go higher. Such n
movement would be very likely to also
| have an effect on money The move
ment did not go far enough. however.
/ 10 mark up interest rates 1t so ham
pens that there is a large aggregate vol
| ume of bonds and short time notes ma
| turing between now and June and there
are complicated negotiations in the trans
| ferr1ng of the paper" The prejudice
against any sharp advance in interest
on money is excuse for the desire for n
reaction. There will probably be a gem
elai cleanup by the first of July and a
clean field for new business
Volcanic Oil Activities
little the most volcanic speculation IN
STOCKS since the panic of 1907 has been
going on in OIL issues. There has been
| very lively work in the Oil stocks ever
since the big trust was disintegrated
ABOUT three years ago from one big cor
poration into SO separate parts. When
4 the readjustment took place the narenY
company had outstanding s9S. .S2s 600 in
! snare capital (all common). (Call 1t a
round slO0.0000o0 for convenience It's mar
ket value had ranged from 5000 600 900 to
ABOVE seW'Ooo0oo during a period of sew
| eral years. The intrinsic value of m,
A1xv
$l00.000.000 in excess of the legal canltaI-
| ,zation. For several years prior to the
! dissolution Standard Oil had been listed
on the New York Stock exchange h,,t
as the ownership was very small. NOT
exceeding 5000 at the utmost, it was
stasnant specially. For DAYS and weeks
at a time there would hardly be trans
action and the papers would hardly con-
tam mention of the property for DAYS at
une. Ihls death in life (speculatiye
life is meant continued through sew
eral years and then came the volcanic
.. stoa s.upton nao incident to the distribution OF
sfV,cooOoO capital of the parent Stand
ara on corporation. They number "a
anu the pieces of paper that went around
among the 5000 stockholders giving them
ownership in subordinate companies were
ABOUT lbo,Wo. Then came the complex Ia six
ol reassemoiing the pieces. 1t was easier
10 unscfamble those eggs at one blow
than to reassemble the mass so that III
ownership would be in such shape that
| the mess could be understood 1t tool,
two years to do this and in the mean
time the whole country was stirred nm
as though by series Of earthquakes.
4 trading was on the New York Curb"
an outside adjunct OF the New York
stock exchange and the New York CON
soiluated Hundreds of thousands of
shares and fragments OF shares were
paded IN daily and wild excitement
was felt In every considerable COM
inunity in the United States A recent
estimate gave the number of indfvid-
ual shareholders AT about $4,000. Where
| tnere was such an amazing increase in
| the numerical strength of holders
| there could be only one answer to the
question where the stuff came from.
1t came from the strong boxes of the
Dig insiders who had been staying
with the company for an indifinite
number of years. Prices went to an
average elevation of at least twice the
figures that ruled when the big par
ent company nominally went to pieces.
| The total value for months ranged
from $500 to $1,000 for what was the
equivalent of one share OF parent
stock. Within the last few weeks there
has been break averaging 20 to 25
per cent and the certificates and con-
tracts for certificates are still pouring
in upon the market. There Is occas-
sionally rally but the underlying
trend is still believed to be down.
ward
| Rockefeller's Habits
! So far as can be ascertained no i'm
| portant or revolutionary changes have
taken place in the managements of the
minor companies. They are practically
| all directed from 26 Broadway as was
the case when there was no pretense of
| being more than one organization. 1t is
more than likely that actual ownership
| CONTROL has passed from the hands Of the
old Standard OIL coterie. 1t Is still call
ed the Rockefeller party and 1t always
/ has been since the "old man" divided
responsibilities That was about Is years
ago when he retired from active business
| to stave off death by drinking SKINNED
| milk and eating crackers. He subsisted
on this diet for several years but for
quite awhile back has enlarged his diet
and once more eats like other human
beings who have money enough to buy