New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-12-06
FINANCIAL MARKET
STOCKS IRREGULAR.
Monetary Conditions Still
Serre TO Restrict Speculation.

ing stocks on declines. and are making
no secret of their belief that eventually
quotations will show higher average
for both railroad and industrial shares.
No great efforts are being made at the
moment. however. TO bring about an &C
tive bull movement and as a rule the
professional element In the Street is
bearish, though covering its sales within
narrow fluctuations and showing decided
caution I'm its operations, as reflected in
advances at the close of the week. Tech
nically. the position of speculation is
stronger than il has been in many
weeks and IL IL were not for the re-
straining influence of monetary condi-
tions there doubtless would be some
thing ina the nature of a bull boom i'm
the closing weeks of the year. espe-
cialIy as there is no uncertainty over
the future of the country's business and
as prices for the larger number of stocks
arc Well under the high points estab-
lished I'm the early part OF October. The
adverse effect upon sentiment of the
Standard Oil decision is disappearing
and a more reasonable view of the gov
ernment's attitude toward corporations
is developing. The Sherman antitrust
law can be made effective, but there is
nc occasion for alarm over the extent TO
which IL may be applied against COM
binations that restrain trade and Kill
competition.
There are many combinations in this
country which foster and promote trade.
and a careful reading of the recent de-
oision Of the federal Circuit Court in the
Standard oil case furnishes no reason
for the assumption that industrial COM
binations in general are illegal and can
as easily be made amenable 10 the anti
trust law as the Standard oil Company.
The United States Steel Corporation was
not formed for the purpose of restrain
ing trade. but to encourage expansion in
the industry to an extent that would be
impossible of attainment by the compa-
MES composing the combination work.
ing as independent units. The Steel Cor
poration handles about 80 per cent Of
the iron and steel business of the United
States. and independent concerns are so
well pleased with the operations OF the
so-called trust that harmony dinners
are given and loving cups are presented
by the outsiders 10 the head Of the big
steel organization. Competitors of the
United States Steel Corporation testify
20 the fact that there is no monopoly in
the steel trade and no cause for action
against the corporation as i'm the case Of
the Standard oil Company and the
American Tobacco Company.
Recognition OF the intention Of the
government 10 enforce the law in the
case of corporations that do not live
NJ TO the letter or spirit Of the law and
that have been formed for the purpose
OF unduly restraining trade and compe-
tition will work for the best interests Of
the country and will encourage transac-
tions. seeking 10 bring all companies
within the law. that eventually will add
intrinsic value 20 American investment
securities. That there can be under the
law no combination of competing and
parallel railroads is beginning TO he
more fully realized by railway and bank
ing interests. q reflection Of which Is
contained in the official announcement Of
the Rock Island management regarding
the sale Of the control by that company
Of IFS holdings OF the st. Louis & San
Francisco Railroad. the statement say
ing that lone of the reasons for the sale
was the legal advantage. if not neces-
sity. of a separation of the Rock Island
and Frisco properties. a question having
been raised both by the federal govern
ment and certain state governments as
TO the two roads being parallel and COM
peting." There has been complete
legal severance OF all relations hereto
fore existing between the two companies.
and II is quite probable that under the
new arrangement the securities of both
companies viii he strengthened in actual
worth.
The Rock Island company will save
tho interest IL has been paying on it's
collateral bonds secured by Frisco stock,
as the bonds are 10 be redeemed by the
purchase money on the sale Of this stock
10 other interests, and the saving thus
effected will amount TO more than / Der
cent on Rock Island preferred. which is
slated for the dividend column in 1910.
And il is likely that St Louis e. San
Francisco second preferred also will be
placed on a dividend basis in the new
year. In addition TO the Rock Island
Frisco announcement in the last week
there were several other important
changes i'm railroad ownership and
rumors OF other coming changes were
heard. New interests have-gone into the
Lehigh Valley, and il is believed that
this company al no distant time will,
with the Wabash as a connecting link.
give the Rock Island line 10 tidewater.
Control Of the Wabash and Lehigh VAL
Icy by tho Rock Island through stock
ownership would not constitute a viola
ton OF the laws affecting railroads. while
II would work for the mutual advantage
OF tho properties concerned. The anti
trust law is violated IL corporation en-
gagged in interstate business secures con-
troll OF one or more companies also en-
gagged ia interstate commerce If such
corporations if acting independently
might compete.
Conditions ia the money market ap-
parently foreshadow firm rates for funds
for many weeks 10 come. Bank re-
serves. though stronger than recently
reported, as a consequence of heavy con-
traction IN loans. are not large enough
10 warrant active speculation i'm securi-
ties. particularly as trade demands for