The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-10
vINANCIAL AND ooxHE sc1AL.l
THURSDAY. April ..

Tho first observation that must % maoe
from financial point Of view Of the decision
Of the United States Circuit Court handed
down at st. Paul to-day sustaining tbs oon-
tention Of the Government that the Northern
Securities Company u q corporation formed
in violation OF the Federal antitrust laws
Is that the decision could not have been
timed 90 as TO produce less disturbances In
the financial community than 1t did or may
yet do. The announcement comes upon
what SPECTATORS call -sold-out' stock
market. when 'liquidating process that
has run for over two months has reduced
outstanding commitments for the riee TO
comparatively small proportions and when
the money market, whose hardening tone
produced this liquidation, lis growing easier
It also comes, happily. just preceding long
market holiday. both in this city and In
London, 40 that financial interests, great and
small, will have an opportunity to consider
the matter carefully in all its bearings.
Moreover. the decision Ii nero preliminary
one, and will, OF course, be appealed to the
court Of last resort in our country, WHARF
action cannot be taken before next fall at
the earliest. The community will be thus
gradually prepared for an affirmance OF
the decision, even assuming that such
affirmation Is likely. II to-days decision
had been favorable to the Northern Securi-
ties Company It would not have been ffnai;
yet il would. in all probability. have pro-
duced a great outburst of speculative &C
tivity directed toward higher prices. Then
il the decision had been reversed. the effect
on the market would have been far worse
than any seen to-day or likely to he seen
in future.
But, after making all allowances. 1t must
be admitted that the ruling OF the United
States court to-day makes for stock market
unsettlement. While only the br1efest sum
mary Of the opinion Of the court was avsh-
able before the close OF business on the
Stock Exchange. and most operators
therefore, held that II was unsafe to pro-
nounce definitely concerning Its exact
meaning and probable influence. II seems
TO be clear that the legality Of the merger
pr inciple. OF holding company idea, by
means of which not only the Northern
Securities Company was formed, but many
other consultations Of parallel and COM
peting railroad lines effected. has been
seriously assailed. It Is true that ono OF
the Judges joining In tho decision to-day
has been generally regarded as semi
Populist but 1t ia also true that the opinion
Of the court was unanimous and that one
of the members Of the court has long been
considered to be extremely friendly to
corporations. being, indeed. at one time
the attorney for ono Of the corporations
concerned in the present case. 1t can
hardly be denied, therefore, that the doc
trine Of legal chances favors the affirmance
of the decision by the United States Su-
preme Court. All this, of course. 10 quite
irrespective Of the great benefits which
those in responsible control OF our great
railway syst ems declare would flow from
such a consolidation Of interests as has
been attempted in the Northern Securities
Company, and, indeed, Of the absolute
necessity of such consolidation II the rail-
way business Of the country Ii to be con-
Quoted economically and profitably under
modern conditions. II Is confidently be-
lieved by many that q way will be found
Of maintaining this community Of interest
in a permanent and corporate form, even
IL the Supreme Court Of the United States
holds that the organization Of such com
panies as the Northern Securities Company
il illegal Yet 1t must be remembered
that the Northern Securities Company
represents the best efforts Of trained lawyers
in this direc ton, and that the result OF
another experiment must be at best un-
certain.
Wall Street was clearly inclined to regard
the situation to-day II not with optimism,
at least without pessimism. The remark
most often heard was that the railroads OF
the country were still here. doing the great
est business in their history, that money
was easy, the crop outlook splendid. and
that the stock OF the Northern Securities
Co mpany was lodged in the strongest
hands and was worth more than II was now
selling for, even upon the supposition that
the certificates OF Northern Securities
stock stand for Great Northern stock ut
1856 and Northern Pacific common stock
at IFS. One point upon which information
was lacking and which obviously will have
an important influence in speculative
quarters is whether that part OF the courts
decree enjoining the Northern Securities
Company from distributing dividends will
bc sta;rd pending the appeal Of the case
to the Suprc me Court. The news OF the
decision, indeed. interrupted q strong and
active upward movement in the market,
and although stock was flung over in grt ct
quantities by spectators as soon as the
fact became known. the prices OF many
active securities closed higher or but Try
little below yesterday Afternoons final
figures. The Northern Securities shars
on the outside market declined lees than
three points. The general news to-day
was favorable, although q much higher
rate for call loans In the afternoon added
70 the nervousne ss and feverishness Of the
market.
Stock Exchange loans made day can
not be paid OF until Monday, but this fact
hardly explained the 10 per cent. money
rate sen in the closing hour. The Bank
of England made a strong weekly return OF
it, condition. Consols advanced further,
and the figures of tha transactions Of the
local banks with the Sub-Tre asury and the
interior movement OF currency augur q
favorable bank statement so far az cash
r serves are concerned on Saturday. But
all these matters wero, Of course, lost sight
of after the announcement at st. Paul.
New York stock Exchange Sales. April ..
vSIrsp STATES AND STATE Doyps us Si.ooos,.
.LosiSo PsicSs ov rxIrso STATS BSHes
Bid. Asked. Bid Asked.
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1850 LOOK io7 ,sas. ...IsoH 1919
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