The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-02-14
Business Review of The
Past Week BY Henry ClewS

1t is a source Of qualification To once ,
more be able TO take a more cheerful
view of the broad financial outlook.
Fluctuations in prices of securities
from day to day may, 1t is true. still
continue erratic: accidents may still
happen: but there are distinct indica-
lions that the storm is clearing In
deed the weight of uncertainty and
dread has already measurably tighten
ed and the more general disposition in
usually conservative circles now is 10
appraiSe the controlling factors OF the
security market in calm and sane
manner.
This does not mean that the funda-
mental situation itself has suddenly
changed. The real change is tempera-
mental. affecting chiefly the popular
Interpretation OF the situation. Threat
ened legislation, having been the pre-
text for numerous concerted drives
against a highly nervous market. is
now being appraised at its real value;
and ii is found that apprehensions
have had slight tangible basis. The
and serious break in the stock mar
ket was the fact that important inter
ests had forced the price level up 10
point not justified by dividend re
turns. either present or in prospect 4
! fact that was well known to these in
terestS. Amidst artificial enthusiasm
they were successful in distributing a
large part of their securities among
weaker holders. who have since been
compelled To take pretty severe losses
which they should charge off 10 eN-
perience and profit thereby: their en-
forced liquidation created a situation
that at times fell little short of demon
alization. Having sold out at high
prices these large market interests
We're not averse to taking the double
| advantage of profits on short commit
ments and of repurchaSing their sup
plies of securities at the resultant de
clines. extending in the instances of
| some standard stocks ~ to 80 points
from the high prices reached. There
upon the fear of adverse legislation
became opportunely unsettling and
was insidiously encouraged to take re-
sponsibility for the demoraliZed con-
ditions. being ably seconded by equal
| ly distorted views of the disorder to
result in the event of the supreme
court sustaining the lower courts by
declaring the Standard Oil and Ameri-
can Tobacco company illegal combina-
lions on the ground that they restrain
trade. The absurdity of this undue
anxiety has already been indicated in
these advices. 1t is worth while how
ever. TO once more look the Legislative
situation frankly in the face. begin
ming with the administrations pro-
posed new laws. Best information
from Washington is that neither the
administration railroad regulation bill
nor the federal incorporation bill will
be enacted at this session. The object
of their introduction has been to sub
ject them to the crucial test of public
discussion and criticism by which
their unwise or dangerous features
may be exposed or eliminated before
they are placed upon the statute book.
! 1t is a safe assertion that when the
administration measures are finally
enacted they will spell increased value
and solidity for the higher class of Sc
curities that are traded in on the New
York Stock Exchange. President Taft's
federal incorporation bill will. in my
opinion, be as drastically changed in
its provisions before it gets through
congress as it is drastic in its original
form. and when the sting is eradicated
it will be prefectly harmless to the
stock market. but beneficial to the Sc
change.
| And We are justified also in taking
an equally broad and liberal view OF
the result of the litigation soon to be
finally decided by the supreme court of
the United States. What will be the
net result if the decisions of the lower
courts are sustained? What will be the