New-York tribune., 1903-04-19
Financial.
The Financial World

That assertion was based on a patient s.,a.
Of the document. The unsettleTnent came ra4bo
suddenly; for almost with the opening Monas
morning, prices began to weaken; and bAeo
the day out, a drop Of three to fo1,r -.
cent had been recorded. So sudden a fau ,roD.
such a cause, was bound to be followed bv
recovery; and a slow recovery did follow Y.~
terday, nearly all the leading stocks had No,
only returned to the level from which they sau
Monday morning; but some had got above II.
This was the case with such stocks as Union
Pacific y. & o., Missouri Pacific. PennsyIvanfs
Atchison. St. Paul, Manhattan Illinois Central
and some others. Reading. which Monday
fell from 90 to 81. had got above 50 again on
Friday: but yesterday morning the press an
nounced that tomorrow the Inter-State Com
merce Commission would begin inquiry in
respect to it, along the lines indicated in the
Securities decision: and Herewith the stock
fell back to 80; the decline giving temporary
chill to the whole list
That such an inquiry coming. was re-
ferred to here last week; when it was pointed
out that the far reaching character OF the de-
cfsion made it possible to strike under it at nu-
merous points Of national railroad system
wherein the separate entities are bound to-
gether by agreements and combinations at least
half of which are under the ban as being in
restraint of trade" They were so declared 70 Be
bv the Trans-Affssouri decision; but action under
that was dropped by tacit agreement This last,
and most drastic decision, rsvives he danger
In pamphlet published two years ago by
Mr. Joseph Nimmo, so many years the stats
tician of the Treasury Department, he pointed
out how serious disruption Of the most necss-
sarv railway arrangements was possible under
an INTERPRETATION OF the statute which made
"auy" restraint Of trade Illegal instead OF any
unlawful restraint Of trade Ine ute OF tne
Act is: ITO Protect the Public against Unlawful
Restraint of Trade but the word "uniawfuf'
was omitted from the body OF IL. nence Ihe 0e-
cision Cby a majority OF oneJ that any re-
straint was Illegal; and in view OF this. Nj.
Sinomo depIored the Act as Legislative mis-
adventure
The one good in the affair is that we nave
sudden and needed check given TO the craze for
consultations with incidental imitation OF capt.
talization, which was running to dangerous
lengths. A pressing danger is that the decision
NAV start any number Of ambitious D1sulcI-
Attorneys thirsting for fame as trust Dus.eiS'
into cunning expeditions against corporations
all o,,er the country The anthracite roads are
the first to be gunned for. What is to come
next?
said. probabilities-it would be rasn 70 cohC4ude
that the unsettling power OF the Securities &C.
ctsion Was exhausted speculatively IN last NOR
days drop.
For ohvious reasons Metropolitan had move
-oen+s individual to itself. against the general
trend of the market Its sudden break on FRI
dav afternoon, followed by quick recovery may
or NAV not have been bear raid II a o4ocA o.
long stock had to be sold. the best way 70 seLI
IL under then conditions was to give the safes
the appearauce Of a bear attack Inis IS an Oid
device.
People will suspend Judgment on this mixed
IN Natronoutan controversy until the charges
have been more thoroughly threshed out As
the inquiry proceeds, public attention VIII prooa-
bIv become concentrated on two or three nam
no;nts The loose talk about S3O.OOOOOO being
stolen is absurd on the face OF it, The properly
is not big enough TO stand half that II cou-d
probably stand six eight, for II Is
graat money maker. If it should turn out
that any stealing at all has been DONE II
will doubtless be found in two directions one.
in the purchase OF properties at one price anu
turning them in TO the company at srea'IS
enhanced price; two. in the construction ac-
counts All this would ante-date the lease TO the
METROPOLITAN Securities Company Construction
accounts used to be objects Of deep suspicion
in Wall Street in the old days, and 1t may D.
recalled that the famous Tweed Ring steallngS
were done under cover of construction and re-
pair accounts, yet Controller Sweeny's book
were conceded by all 70 be models OF book
keeping.
One of the small plays in the market may oe
noted in respect to the San FranclscO-1'ocN
Island deal. The former stock was rushed Up O.
high figures with flourish Of trumpets on IN
combination with Rock Island The insiders
seem TO have then unloaded all the market
would take. a tTif1ing drop of twenty TO tnirt'
points followed. At The lower level IL was given
out that the deal had fallen through, because o.
financial and legal difficulties. This scared the
unfortunates who had bought at higher prices
into dropping their holdings. The insiders hav-
ing picked up the Ieavings, proceed now to again
mark up the stock at the rate OF three TO hv'
points on a move. We shall soon be told that all
difficulties have been overcome a brilliant
future is before the road in connection with the
fast growing Rock Island system. and that the
stock is a great purchase.
One feature in last Mondays drop was that
the bond list was as badly hit in its way as the
stock list. All that class Of bonds which may
be described as still in the Unplaced stage thar
IS. net yet absorbed in bulk by investors and
taken from the Street. were poured out in quan-
tity, and suffered decIincs-a sufficient indication
that the scare which lit the stock market was
genuine affair. And while on the subject Of
bonds. the attention of Controller Grout may be
directed TO the fact that if the city continues
turning out bonds at the rae it is doing. he will
have much more reason than he has TO
complain about their falling market quotations.
The market is rapidly cecoming so gIutted with
new issues that buyers are fighting shy %
taking them.
The outlook for the moment is a little CIouded.
but II seems as if there were fair chance for
an advance of some points yet IN the leading