The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-04-05
THEIR SCARE ENDED
HOLDERS OF RAILROAD STOCKS
SEE A WAY OUT OF DEMORAL-
IZATION.
SUPREME COURT DECISION
CONSIDERED NOT WHOLLY JUST IN
PREVENTING A REGULATION
OF TRAFFIC.
EXEMPTION OF ANTITRUST LAW
Will Be SOught-StOck Markets Solid
Henry Clews' Weekly Finnn-
ciaI Review.
Special TO the Globe.

or the financial situation, Henry Clews says:
In Wall street the past week opened with
still demoralized feeling growing out Of the
decision of the United States supreme court
In the case of the Trans Missouri Freight as
soclatlon When, however, the legal counsel
OF the railroads recommended that no new ar
rangements be undertaken at present but
that the existing associations continue their
present arrangements in force until a de-
cislon upon the appealed case is reached by
the supreme court, there was a very marked
Improvement of feeling. 1t was seen that
the danger of cutting rates and of lapsing
lnto violent competition pending a possible
period OF chaos had been reduced to a mini
mum, and the tone with which the advice of
the counsel was delivered was suggestive of
some considerable hope on their part that the
supreme court might find differences between
the case of the Trans Missouri association
and that of the Joint Traffic association,
which would warrant a favorable decision
IN the latter case, This probability was
considered all the stronger from the fact
that the Trans Missouri decision was carried
by majority of only one member Of the
court so that change in the attitude of one
member Of the late majority might carry
decision In favor of the regulations existing
under the Joint Traffic association. This
cnance is also strengthened by the fact that
the late decision has produced such a pro-
FOUND disturbance in the chief source of
investments in the country, and that it has
met with strong disapproval among our most
Intelligent and conservative classes, and also
Dy the possibility that the defense may adj
duce conclusive evidence, not introduced I'm
the Trans Missouri trial, that the makers of
the Sherman antitrust law did not intend
that 1t should apply to railroads but only
10 persons or corporations in purely indus
trial and commercial pursuits as the former
were amply provided for by the interstate
commerce law.
Arrangements have been made for adyanc-
ing this second case on the calendar so that
the question may reach the stage of final
legal settlement without delay. This leaves
ample time for the railroads to consider pro-
plans n talK
effect in the Of the impending decision
being against them. 1t is to be presumed that
the managers of the roads will adopt that
prudent precaution, that in the event of
an adverse decision instead of affairs being
thrown into revived confusion, the COM
panies will be found prepared with plans
which, whilst legal, would protect them
against the evils of unbridled competition
and which they could Immediately adopt.
Also the possible action of congress during
this interval deserves consideration. There
are sufficiently urgent reasons why congress
should intervene in a matter of such para
mount Importance and public interest, and it
may be taken for granted that something
will be attempted in that quarter, but what
is the question. Congressional Intervention
may as easily be obstructive and grangeristic
as anything else, or it may be an honest effort
to reach sound and equitable adjustment Of
this harassing question. The well-known con-
sentative and wholesome predictions Of the
administration afford some ground for hope in
this direction, and the fact that the anti
corporation element in congress is in a min
ority encourages a like hope. Congress could
take short cut towards ending danger from
the supreme court, namely in the adoption
Of law or resolution to the effect that the
Sherman antitrust law shall not apply to
the railroads. This would at once end the
troubles arising out of Cne recent decision
OF the supreme court and prevent any such
future YerdictS, and the question of deViSing
any new legal regulations authorizing pool
ing revising the relations between the roads
and the interstate commission, and for hold
destructive pn1Ild
be easily left over for more mature consd-
GRAFTON. The question is a great, compli-
Gated and difficult one, and its final solution
by legal enactments can only be reached by
calm and more or less protracted elaboration
1t therefore seems highly desirable that a
first step in congressional treatment of the
question should be to arrest the progress Of
public decentralization and the needless sacri-
fee of investments by the prompt adoption of
law eXempting the antitrust law from APP
plicatlon to railroads, leaving further legis-
lation to a maturer formulation of the pub
! lie Judgment. No really final adjustment of
the question of railroad competition how
ever can be accomplished until the law es-
tablisheS conditions under which the rail-
roads and the interstate commissioners can
cooperate more tremendously than they have
in the past Mr.. Foraker has introduced a
bill, practically the same as that which Mr.
Patterson brought into the house last SEES
sion, which aims at a clearer definition of the
rights and powers of both the interstate
commissioners and the railroads Undoubted-
ly some discussion Of much interest will
arise from this measure productive of bene-
fetal results.
Upon the whole, it is reasonable to ex-
pect that the exciting phases of this event
have been passed Time is now pro-
cured for readjusting relations between the
competing companies, and the railroads lack
nothing in anxiety to avoid affording any oc-
casiOn for a revival of hostile relations. 1t
is taken for granted the street that the
crisis of the danger is past and that the only
ground for misgivings lies in whether any
new arrangements which may be adopted
would be as effective in preventing competi-
ton as those which have been or may be dis
rupted by the supreme court Having
reached this stage, the selling movements in
stocks and bonds has disappeared and those
who have parted with their holdings through
fear are now gradually taking them back as
opportunities permit.
The market has sustained a sharp shock
from the accidental flooding of important
coal mines in the Wyoming valley Mines
controlled by the Central of New Jersey the
Delaware & Lackawanna, the Delaware & Hud-
son and also by private operators, which are
employing altogether 3,750 men, are shut down
and may remain unavoidable for two or three
months. This has a serious effect upon the
business Of three leading coal companies and
their stocks have suffered correspondent Civ
with a sympathetic effect upon the general
list. In spite of these untoward events the
stock market still retains solid intrinsic
strength, and, from all appearances may be
expected to show an improving tendency
! during the coming week Wall street has
its eye upon the coming improvements in the
roads of the interior and the abatement of
the floods which will contribute to-