Bisbee daily review., 1910-02-26

MEM 1Okk. REQ. Zo.-il Is q
source of qualification TO once more
be able to lake a more cheerful view
of the broad financial outlook. Fluctu-
atoms in prices of securities from day
TO day may. it IS true still continue err
ratio: accidents may still happen; but
there are distinct indications that the
storm is clearing. Indeed. the weight
of uncertainty and dread has already
measurably lightened and the more
/ general disposition is usually conserv-
alive circles now is to appraise the
controlling factors of the security mar
ket in calm, a sane manner.
This does net mean thai the funda-
mental situation itself has suddenly
4 changed. The real change is tenn
permental. affecting chiefly the popu-
lar 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 its
real value: and t. is found that appre-
tensions have had slight tang'b BILE
!
recent rapid and serious break in
the stock market was the fact that
I important interes 5 had forced the
price level up TO a point not justified
| by dividend returns, either present
or in prospect fact tina, was well
known to those interests. Amidst
artificial enthusiasm they were sue
lcessfuI in distributing a large par
Of their securities among weaker
holders. who have since been com
PEELED 10 take pretty severe losses.
which they should charge off to ex-
perience account and profit thereby;
heir enforced liquidation created
situation that al times fell little short
of Generalization. Having sold out at
h gh prices these large market inter
ests were not ayerse 10 taking the
double advantage of profits on short
commitments and OF repurcaasing
their supplies OF securities a. the re-
sultant declines. extending in the in
stances CT some standard stocks 20
20 so points from tn high prizes
reached. Thereupon the fear of ad-
verse legislation became opportunely
unse tied and was -insidiously encour-
aged TO take responsibility for the de-
moIalized conditions being ably sec
onded b. equally distorted views of
the disorder to result in the event OF
he Supreme Court sustaining the low
Ter courts By declaring the Standard
Oil and American Tobacco company
illegal combinations on the ground
that they restrain trade. The absurd
ity OF this undue anxie-y has already
been indicated in these advices. It
is worth while. however, &C once more
look the legislative situation frankly
/ in the face, beginning with the Admin
/ istration's proposed new laws. Best
/ infor nation from Washington is that
neither the Administration Railroad
Regula ion bill nor the Federal Incor-
Grafton Bill viii be enacted at this
| session The object OF their introduc-
/ ton has been 10 subject them 20 the
crucial test of public discussion and
criticism BY which their unwise or
dangerous features may be exposed
and eliminated before they are placed
I sertion chat when he Administrations
measures are finally enacted they will
/ spell increased value and sondIty for
the higher class Of securities that are
/ traded in on the New York sock Elk
I change President Tafts Federal IN
corporation Bill will, in my opinion be
as drastically changed in its prov.s-
lions before ii gets through Congress
as II is drastic in is original form,
and when the sting IS eradicated il
will be perfectly harmless sto the
stock market but beneficial 20 the
securities dealt in AT the New York
Stock Exchange.
And We are justified also in taking
an equally broad and liberal view OF
the result OF he litigation soon TO be
finally decided by the Supreme Court
q the United States. What will be
the net result if he decisions OF the
/ lower courts are sustained? What
, VIII be the worst if the Standard
: Oil company and the American To
3 bacco company are in formed the!
: have been operating on Illegal lines
We already have the answers In th'
decision of the Northern Securtie
case. in which the court merely re
3 lqu'red that affairs must be put il
3 proper legal order; property was no
& lconfiscated and stockholders were no
4 IN any important degree losers. A
4 fairs were quickly adjusted in iegs
way and the roads continued 20 do bus
f mess and make money for their man
4 owners. There is no logical reason
l. expect a different result in the case
& now pending. even if, as already noted
!; the worst" happens. On the othe
4 hand. .hese approaching decisions wi
a m any event have the compensation
, benefits that they win provide an il
30 depreciation by the highest tribun;
= Of tn land on the highly contrOversi;
4 question OF what the Sherman ant
: l.. & y. -...-- 1890. lo4
Erie ...... $500 -.---.. ~ .
g Northern Pacific ...... 49,. 1856
Union Pacific .. o.. &C.. 1877 ;