New-York tribune., 1908-03-29
The Financial World.


in Wall Street-was benefited by the dramatic
. event this week of the United States Suprems
Courts determination that state laws must be
fair in their treatment of corporations; and that
laws unfair unconstitutional.
Wall Street nthusiasn-national enthusiasm
is justifabe. Again it is demonstrated that
in the ordinary processes Of law justice and
equity are be obtained by American citizens,
whether they be doing business individuals
or under corporate form Moreover. there Is
satisfaction in the fact that the decision was
rendered in practically unanimous manner-onIy
one Justice out OF nine dissenting from the
majority opinion This practically settles the
question involved for a long perfod-it not be-
ing conceivable that overv heluling vots
could easily be changed
Actually this decision Is not much ruling
on the vexed question of States rights versus
national rights as it is the determination that
individuals cannot be coerced-cannot be ridden
over rough shod at the whim of passing popular
nassfon or political exigencies. The due rights
of property are authoritatively asserted and
fo,,nd To be lust as valid they have
been under the form of government ordained IN
the wisdom of our fathers Conditions may
change and do change. but fundamental prin-
ciples remain in full force and vigor Beyond
doubt this Supreme Court decision will be ire
mendousIy helpful-wilI give heart and courage
q
neratively demanded by population and general
trade prowth)-wiI silence shallow critics and
give impetus TO genuine business effort. In
every way it is salutory- It's immediate Wall
Street influence is reflected In substantial mar
ket inprovement-sentiment becomes more
cheerful, even confident
Another factor making for better sentiment
is the successful reopening of the Knickerbocker
clio sing last WAS
the signal for ensuing panic That so great an
;,s.,,u,ion can emerge from insolvency into
.o1x-sncv with SO little friction is gratifying evi-
sa,ca or the inherent strength of American
finance All praise is due 10 the assen'lns oe
nositors who indorsed the plan OF the eo1lnn'-
tee so ably headed by Mr. Heroert oal'eriee-
throughout the transactions lnvoiVed IN tue re-
onenfng of the trust company there mas Deen
ra,ionaI action and honest trustfulness. NOT
can the subject N dismissed "lthou' IVl1-0Co
.. ,ha eminent service rendered by the State
,.,,..,dan, Of Banking Clark Williams. who
80 r,ost conspicuousIy proved to be the rigni
40, 4, the right place commanding IN an elile-
,arc,, calling for rare executive anlAlE-
certainly the resumption of business oy the
IrricLerbocker Trust Company may De eApe0'0u
N mark the end of that douot anu
u.bicb for over Ave months nave eAer'su pei
.1,,ic effect upon the business world AS ol'sn
stated In this review. the paint WINS"
,,o, recorded. did not spring from any reaI can
o.,lation OF values, any loss or crops any S-
- % international trade, nor faHlhs OF u
o-,,t,,, ax,snt Of consurnptive denand-fr
- o,ary- the offspring OF sentiment; and VIII
.f,a,+ reversed 1t follows lneNlldOis 'i-
,ta-a r,ust be tonic change oheeis anu "
nuendoes flung peIl-rnel upon the
ter, are calmly confuted by the quieI - =
r,;,b which recuperation appears =
,;saa in this Knickerbocker lncldeh'
10 eai5 without fear OF reasonable eoll'i
that no other financial centre IN the - =
- rshounded from the shock OF las' iH'-
nave 80. =. hos Ne,y York And this holds
80 IL comfort for the present but assurance
- A. .,,,,,re-iustifying all that at the cIl'lI4
M - 90. dome bv j. Pierpont Morgan anu n-'
associates.
The technical position OF the IilHA
ra.1s unexpected strength Beyono uOu
INWARD movement which started d l0"
ago owed its initiative to the GOVERNS - -,
.e..oa sbort interest which found itSel ul'Ao''
-, ,io,idation. But since that covering tn7
- a,,s Wall street elenent--Stll s'rO--7-L
ti.,;, has at the new higher Levels efllIisi
<ost sbort commitments whlch. SO Tar .
, bs Judged by available tests. are "7"'i.-
.ha, those of a month back 90 i''s q -
..b,ical situation continues receSSl'H
&C must be limited and upward spurts ll7
o,,a,t-and this market phase can te o-l-'ii'A"'
in daily transactions
II is tr,,. that railroad earnings remain O--
isfactorv. comparing with year ago p@
tit as 10 net results but signs are not want
IN, of turn in the tide of business cohdl''-'
-, must find subsequent reflection IN rai'-
-, .arrines-a very notable case in point o7-
,,- steadv recIIperation in the steel business
7, may we'll be that are not through '"o
Deriod of dividend reductions. Dut "hrie ~
no1i-y is adopted IL will I've the policy OF o'-i'1
a+isnn and safety. II is also reasonaelS C-''ai- -
reyr borrowings security hota'-O-'S
he uncommon. but is there anything III o.
sr,,,se alarm our railroads have oeen S'ii'l
s,.o,,vb recent financial strees 10 follow manu-
tonoouth policy and that they now oe7'" y
<o-,ifv- themselves with cash tor neceSSalS .
,.eIonment is proof that they believe IN oe''V'
times Certainly. population grows N'i' -
deve,ops old railroads must be exten'e" SI- ~
railroads built The American railway SSs
Is not going 10 travel backward ana thes7 O'-'
struction problems are not dodsedoie
Looked at in this light. come recent u'te'@'l~
attributed to Mr. Hin and Mr. Hartman ueS
much more hopeful interpretation than ac''l'.1
TO them by an ever gloomy Wall SteS' ''''
60 general is the contraction in railway earn
ings that exceptionally notable are eN@upiSs
that of Colorado Southern. whose revenues o't'
gross and net have continuously expanded
sressive management in this particular case eN-
plains much and high standard of physicaI Gun
dftion explains more. for the Colorado southern
before manic disturbance started was broush'
into = state of superb efficiency And VIE"
-. .aaSsarta,I there will he lsaderShlp