New-York tribune., 1910-09-20
BANK STOCKS ON STOCK EXC
FINANCIAL MARKET
Holders of Sugar Stocks Not
Alarmed Over Government Suit.

Alarmed Over Government Sult.
Transactions in yesterdays stock mar
Izet were light in volume and made up
in large part of the operations OF the
professional element Price movements
showed great irregularity. weakness IN
the morning being followed by firmer
tone i'm the afternoon, fluctuations on
both sides of the account generally pelng
confined to small fractions, with final
figures presenting more net gains than
losses. On the advance. which was most
pronounced in Union Pacihc, st Paul'
Reading and United States Steel there
was no indication Of outside buying, ana
from +be attitude of commission house
interests it was considered unlikely that
ANYTHING in the nature of an active pup
lie demand for securities for speculative
purposes would develop in the lmneoldte
f,,ture. In spite of the bull literature
sent out by various Wall Street houses
the trading element takes no stock IN the
idea that much lower prices VIII not oe
recorded in the stock market in the
course of the next twelve months. AS a
"a
shat the country is entering period or
extended business depression and that
stocks will not be a, purchase for long
mill until the acute stage of such de-
preston develops.
Politics. the railroad rate SITUATION 'he
nossibiIity OF higher interest rates ana
Government efforts to regulate corpora
,io,,s are advanced as sufficient reason
fo, bearisbness OH the immediate future
Of the stock market Against TINS argu
,nent the probability OF a total produc-
tion from the ground in this country 70
+ba value of more than SS0oooo,pp
e. tho current wear. sound fundamental
conditions affecting business and a prlce
rovel on the Stock Exchange that shows
O decline from the high range of year
400 Of from 90 to 90 points is dismissed
as immaterial. From an investment
,,oint of view good stocks and bonds are
worth buying at prevailing quotations.
The local bank situation IS not as slrols
as il was a few weeks ago OWING 10
el,iprnents of currency to the interior anu
an increase in loans in the last elgit
,roelss of more than sos. 100000 but cur
,ort conditions do not suggest the de
,-.,on,,,en+ of real disturbance I'm the
money market. Loan rates were uh-
changed yesterday, while sterhhg eA-
change was heavy.
Weakness in the common stock or the
American Sugar Refining Company IN
Yesterdays operations was due 10 hsh'
speculative sales based on the announce
mon, that a suit would be begun TINS
1vael- nv the Department of Justice ask
ing for the dissolution of the corporation
as combination in restraint OF trade.
The action will be similar in character
10 the proceedings brought against the
American Tobacco Company ana uie
Standard oil Company. and 1t is not
likely that its prosecution VIII be accom-
named by any greater uneasiress on the
mart of sugar stock holders than has
been noticed among the owners OF TO-
bacco and oil securities. The comblna-
,ion can be dissolved If the Supreme
Court holds that II is operating as
corporation contrary TO law, but the ma
terial property of the American sugar
Refining Company cannot be oes'ro!t tu
nor the vested rights Of capital IN the
company be jeopardized by the outcome
az the proposed suit The Standard OIL
COMPANY and the American Tobacco
Company already have made prepara-
tions to adjust their affairs to possible
ruling against them by the Supreme
Court. and the American Sugar Refining
Company viii do likewise.
II is worth noting that in the nineteen
wears Of its corporate life the American
Sugar Refining Company has returned
nor cent a year TO it's preferred stock
holders and n total Of 1S4i, per cent to
the owners Of the common. record
hard to raraIleI. especially as the com
many has not paid dividends at the OK
rense of working capital or made dis
tributions which have prevented II from
continuing replacement work The con-
cern has paid to stockholders upward of
Sg4oo0oe00 since it's organization.
Moreover. the company in the last year
has paid from earnings an enormous sum
TO the government on back customs dues
The government is not attacking the
American Sugar Refining Company or
any other corporation with the view OF
driving legitimate producing concerns
out OF business, but ii is bringing ac-
tions 10 find out whether or not the In
corporafion OF these so-calied trusts
has been I'm conformity with the law ana
whether or not their methods OF operat-
ing are in restraint of trade. A decision
in favor of the government simply VIII
mean reorganization on a different and
safer basis.