Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-11-23
OIL TRUST CASE
AFFECTS MARKET
PRICES DURING FIRST HOUR OF
TRADING DECLINE
VALUES ADVANCE AS sPEcULA-
TIoN CONTINUES
coalers Make Sensational Rises, AL
though These Crops of Stock Are
Especially Influenced by the
Standard Company

NEW YORK, Nov. 22.-The finan-
cial community was as little prepared
today to make its final appraisement
of the import TO corporations of the
judicial decision against the Standard
OIL company as it was in the short
stock market session of Saturday
after the unexpected announcement of
the decision.
The disturbed tone of the market
and the marked lapse into dullness
when measures of support became eff
fective were significant of the impor-
lance attached to the decision and the
wish to await the final disposition Of
the case before going forward.
1t is in the uncertainty thus involved
that the principal harm is feared-not
only for the speculative position in
stocks, but for business activity. 1t
was for this reason that all commen-
tators were agreed on the Importance
of an early settlement of the appeal
in the case.
The most hopeful view of the situa-
tion from the standpoint of corpora
tion interests was drawn from an
analogy with the case of the commodi-
ties clause of the Hepburn rate law.
Dire harm was predicted from this
provision in its early stages and dur
ing the progress of the litigation to
test it, but In its final conditional af-
firmation by the supreme court the
speculative spirit drew actual encour-
agement and made 1t the basis for
some sensational rises in prices, and
especially in the group of stocks i'm
mediately affected-the coalers.
Says Trust VIII Continue
The long line of precedents touch
ing the Interpretation of various issues
growing out of the interstate COM
merce and the antitrust laws was
cited TO justify "a confidence that
way would be found for the great
corporations to continue to do bust
ness A faVorite citation was the fact
that while the Northern Securities
company was dissolved by the decree
OF the United States supreme court,
the merger aimed at by that fedora
ton exists in fact today.
The discussion of the situation which
has been going on among capitalists
and their legal counselors ever since
the news of the decision was received
seems to be bringing a concurrence in
the view that the drastic and sweep
ing consequences of the law as inter-
preted will serve to demonstrate its
absurdity and bring about it's modi-
ficatlon or repeal. That such an out
come will be advocated on behalf of
corporation interests and adopted as
common policy is a fair inference from
the days outgivings by Standard OIL
representatives themselves, as well as
by others in the financial district VINO
discussed the subject.
There remained the unpleasant rec
objection, however, that every other
important judicial decision of ques-
tions arising under the interstate
commerce and antitrust laws has
been followed by a period of disturb
ances and depression In the stock
market, each of such periods, more
,ovaafIarnhly nrnlOnRp6.
Contest Waeed Vigorously
The first hour Of today's stock mar
ket saw a contest vigorously waged
between the conflicting elements IN
the speculation, in which the balance
was fairly turned in favor of the re-
actionists, in spite of the most deter
mined efforts at support. During this
period of the days trading well nigh
half of the total business was trans
acted 1t is evident, therefore, the de-
mand for stocks followed the price
recoveries that followed the first hour
with some hesitation. The Duylns,
having achieved its purpose of check
ing the decline, diminished.
The copper stocks suffered particu-
larly from the assumption the new de-
cision would prevent the proposed
consolidation of the principal copper
PRODUCERS. United States Steel and
Union Pacific also reflected the special
bearing which the decision was sup
posed to have on these companies.
Reading, on the other hand, was
strong throughout and formed the
rallying point for the opposition to
the decline.
discounts eased abroad, but foreign
exchange held firm here and more gold
was engaged for South America.
Bonds were easy. Total sales, par
value. $685., 900. United States bonds
were unchanged on call.