The Cairo bulletin., 1910-01-31
Special.
New York. Ian. % 1917


The market has received fresh
shocks this week. showing marked de-
ciines and corresponding rallies with
unexpected frequency. Fears concern
ing the forthcoming decisions of the
United States supreme court on the
Tobacco Standard Oil and Union Pa
cific cases We're the main causes of
weakness. The decline was accelera-
ted by increased aggressiveness on
the part of the bear contingency;
whose operations were. chiefly inGited
by working. upon thaSe .apprehensions.
1T is known that a number of our lead
ing capitalists are quite concerned
about the tenor of, these decisions
which may come very shortly or may
be deferred for several months. Should
they be unfavorable, it will, of course,
be necessary for many unlawful cor
porations to reorganiZe. This will in
volve some disarrangement of plans;
more or less temporary disorganiza.
ton, and possibly some disappo:nt
ment in certain financial circles.
No Ground for Anxiety.
There is, however, no ground for
undue anxiety regarding the effect of
these decisions. Previous decisions
by the supreme court In its interpre-
tation Of the Sherman antitrust law
have always been on the conservative
lines, and there i: 70 reason for an
ticipating any serious departure on
this occasion. 1t will be remembered
that financial chac- was predicted in
the event of an unfayorable Northern
Securities decision. That decision was
unfavorable, yet he effect was not
what was anticipated. The companies
concerned Immediately complied with
the law and went on doing business
as before without injury. The same
will probably be true regarding the
great corporations now under trial.
They may be obliged to reorganze,
with more or less temporary incon-
veniences, but they are quite likely
to continue in the business Of refining
oil, preparing tobacco and carrying
freight just as before AS Mr.. j. J.
Hill tritely remarked the other day:
What difference will it make whether
owners have one green certificates to
represent their interests or two red
ones?" AS for the policy of President
Taft, there is no reason to anticipate
that he will carry it ont in reckless
fashion. Mr. Taft's disposition is to
conserve and not destroy property in
terests, and in any event he can do
neither more nor less than aid in the
prosecution of law-breaking corpora
tions. Not q few of our large corpora.
lions have been illegally put together.
and proper reconstruction will in the
end do good and not harm. Especially
where monopolies are checked and
their power for injury prevented will
the effect of the decisions be bene-
fetal. Some day investors will come
to realize that no industrial security
earning large profits based purely on
value of permanent stability. In
dustrial monopolies-those based on
patents excepted-are regarded as
against public welfare and will always
be exposed to popular attack; hence
their undesirability as investments.
Money Market
The money market shows somewhat
easier tendencies. Funds are return
ing more freely from the interior and
the surplus reserves are rising in con
sequence. The situation abroad is al.
so favorable in this respect, consider.
able ease prevailing in London, Paris
and Berlin. The great foods in France,
causing loss estimated at between
100000, 900 to 200000,000, must have
some effect in Paris, although the re-
construction work which will be re-
CURED cannot make any sudden de,