New-York tribune., 1911-12-04
FINANCIAL MARKET
Conditions in Wall Street Gen.
orally Favorable, Although
Bank Reserves Are Low.

grace issues, Inc plOlSSSjOlldl rlcLiSAi'
in Wall Street is counting on develop
ments in the forthcoming session OF
Congress to carry prices for stocks to
lower levels, but in banking and busi-
ness circles there is no evidence Of un-
easiness over new laws that may be
enacted. Wall Street believes our legis-
lators will do nothing that will upset the
country's industries Furthermore busi-
ness men are quite confident the whole
country is awake TO the fact that the
time has come when attacks upon our
coruorations must cease, and that our
corporations have made up their mlnds
TO operate on a basis that will provide
no argument for government suits
against them under the Sherman anti
trust law. Politicians who hope to make
themselves popular by telling their con-
stituents the trusts must be busted" are
not likely to have their names perpetu-
ated in the Hall of Fame, for the good
reason the rank and file Of the business
con. .munity has reached the conclusion
that destructive policies are bad and
that combination under certain restric-
tions helps rather than hurts the coun-
trys industrial interests.
The courts are compelling corporations
that are not operating within the law 70
mend their ways There is nothing
bearish in a court opinion that upholds
the law. The Standard Oil Company
and the American Tobacco Company
have been compelled TO reorganlze 10
conform with the Sherman law, but the
process of reorganization has not IN
volved the confiscation Of property OF
loss to the actual owners OF the com
panies' securities. The oil and tobacco
business will continue to prosper, anu IL
the government should win It's suit
against the United States Steel Corpora
tion the iron and steel industry will not
be wiped off the industrial map. Secu-
rifles of the United States Steel Corpora
ton. which are widely held by investors
are not declining in intrinsic value be-
cause of the action Of the Department OF
Justice against the company or the FAR
cical Investigation by the Stanley Con-
gress committee, anG it is worth noting
that home and foreign capitalists are
still buying the concerns issues, espe-
ciallv the preferred, which is considered
one of the best industrial investments in
the current market.
The business Of the United States Steel
Corporation shows Improvement New
orders are coming in at the rate OF about
$4,000 tons day. and it is expected that
the statement of untitled tonnage, which
will be published on December lO, Will
show a material increase as compared
with the November exhibit. Prices for
finished steel materials are still at low
levels. and the margin Of profit IS small
but in view of conditions now developing
this situation doubtless soon will show
substantial change for the better. In
creased buying Of steel products and the
marked gain in the volume Of business
in the copper industry supply trust
worthy indicat tion of expansion in all
markets Both bank Clearings and rail-
road earnings make favorable compari-
sons with this time a year ago, while
the commercial agencies which cover
oil sections Of the United States, report
large volume Of day-to-day business
and signs, which have been lacking for
many months, OF a disposition 10 finan-
cial and business quarters to make com
mitments for the future. The bears in
the stock market may be able to bring
about passing reactions, but according
to the ideas Of the Oldest observers Of
Stock Exchange movements the real
bear feast is over.
The big bear money has been made
and doubtless spent in large part, and
unless there should be a radical change
in general conditions profits on the short
side of speculation should be confined 10
the results Of Operati tons for quick turns.
Current earnings of the larger num-
strengthen confidence in the theory of
dividend stability, while the earnings OF
some companies, together with their
large surplus funds, suggest the pos
sibility of extra distributions. In the
case Of the Union Pacific it appears I'M
probable that its rich treasury assets
will remain undistributed for any great
length Of time. The government has a
suit against the company now pending
in the Supreme Court, and it is not likely
that any segregation plan will be
adopted until this suit has been dis
posed Of, but Il is a good guess that
with the termination of the litigation
stockholders will be invited to share in
the tremendous assets accumulated by
the company since the time that Mr.
Hartman took hold OF the property.
Southern Railway issues are being alb
sorbed by good class Of buyers wholly
Oh the record earnings reported by the
property and the Improvement in the
roads physical condition in recent years
by the judicious expenditure of a large
amount Of money on roadbed, equipment
and general Improvements. The road
is being highly maintained. and II is
estimated that out Of every dollar Of
business received about - cents is being
returned TO the property.
More remunerative figures have devel-
oped III the call money market, and 4
slightly firmer tendency is reported In
time funds. Higher rates for loans at
this centre doubtless will serve the use
full purpose OF attracting currency from
the interior in the current month and
encourage q more active demand on the
part Of borrowers for future needs. De
maud loans advanced to 6 per cent last
week, the movement being due 10 tho
preparations for the December interest