The Paducah evening sun., 1910-02-14

IMPROVEMENT
Is NOTED BY HENRY CLEws ON
CHANGE.
Thinks Fear of Legislative and Judi.
ciai Tinkering is Subsiding at
Last.
LAW Is ALWAYS CONSERVATIVE

New 1Ofk, rep. Ia. Especial J.
II Is a source of qualification to ono,
more be able to take a more Cheerful
view of the broad financial outlook
Fluctuations in prices and securities
from day to day may, Z is true, still
continue erratic; accidents may still
happen; but there are distinct indi
cations that the storm is clearing
Indeed, the weight of uncertainty ant
dread has already measurably light
ened and the more general disposi
tion in usually conservative circle.
now is to appraise the controlling
factors of the security market in 4
calm, a sane, manner.
| This does not mean that the fund.
amental situation itself has sudden
by changed. The real change is ter.
lperamental, affecting chiefly the pop.
lular Interpretation of the situation
Threatened legislation. having been
the pretext for numerous concerted
drives against a highly nervous mar.
ket, is now being appraised at lis
real value; and il Is found that ap-
prehensions have had slight tangible
basis The real influence behind the
recent rapid and serious break in the
stock market was the fact that inn
portant interests had forced the price
level up to a point not justified by
dividend returns, either present or in
prospects, fact that was well known
to these interests. Amidst artificial
enthusiasm they were successful In
distributing a large part OF their Sc
curities among weaker holders. who
have since been compelled TO take
severe losses which they should
charge of to experience account and
profit thereby; their enforced liquida
tion created a situation that at time;
| fell little short of generalization
Having sold out at high prices these
large market interests were not
averse to taking the double advant.
age of profits on short commitments
and of repurchasing their supplies oil
securities at the resultant declines
extending in the instances of some
standard stocks 20 TO 80 points from
the high prices reached. Thereupor
the fear OF adverse legislation be
lcame opportunely unsettling and wa.
linsidiOusly encouraged to take re
sponslbiEty for the demoralized con
ditions, being ably seconded by equa
ly distorted views of the disorder tC
result in the event of the supreme
court sustaining the lower courts b,
declaring the Standard Oil and Amei
lean Tobacco company illegal com
binations on the ground that the,
restrain trade. The absurdity of thli
undue anxiety has already been IN
dicated in these advices. 1t is worti
while, however, to once more lool
the legislative situation frankly II
the face. beginning with the admin
istration's proposed new laws. Bes
Information from Washington Il
that neither the administration
railroad regulation bill nor the fed
eral Incorporation bill will be enacted
at this session. The object of theii
introduction has been to subject then
to the crucial test of public discus
sion and criticism by which their un
wise or dangerous features may b.
exposed and eliminated before they
are placed upon the statute books. Il
is a safe assertion that when the ad
ministration's measures are finally
enacted they will spell increased
value and solidity for the higher
class OF securities that are traded in
on the New York Stock Exchange
President Taft's federal incorpora.
tion bill will, in my opinion, be as
drastlcally changed in its provisions
before IT gets through congress as Il
is drastic in It's original form. and
when the sting Is eradicated 1t will
be perfectly harmless to the stock
market, but beneficial to the -securi.
ties dealt in at the New York Stock
exchange.
Litigation.
And we are justified also in taking
an equally broad and liberal view OF
the result of the litigation soon to be
finally decided nv the al nrema coug.f