East Oregonian : E.O. (Pendleton, OR) 1888-current, 1911-10-03
S1OO,OOO,OOO STEEL
FURRY EXPLAINED
AMOUNT REPRESENTS
VALUE OF IMMUNITY
Also Exec Profits EXactcd from
Public by Trust--Siiows Need of
Law Enrorccmcnl-Taft in Role of
DR.. Jcl<yll and Mr.. Hyde.


following the recent disturbance in
the steel market to the effect that the
furry caused a decline in steel shares
of approximately one hundred mil
lion dollars.
In the three days Of the furry
nearly one-third Of the trusts $780,
100000 Of common stock was sold
on the stock exchange in such vol
ume that the price was carried to new
low levels, thus showing that the
one hundred millions in decline rep
resent the amount of money it is
worth to the trust to be considered
immune from the operation of the
sherman law.
Nothing has happened to indicate
that anything is wrong with the in
trinsic value Of the steel properties.
The mills are working as usual and
are in exactly the same state OF et-
ficiency they were in two years ago
when the stock was selling at its high
water mark. The shrinkage came be-
cause Of rumors that the trust was
to be prosecuted and as the business
the real business-Of the trust was
not injured n any way, the one hum
dred millions simply represents the
excess profits the trust stood to lose
in the event of dissolution under the
application of the sherman law. In
other words the shrinkage serves as a
measure of the value to the trust of
license to violate the law. When that
license was threatened the trusts
shares fell Immediately and this fall
in prices, simply as the result of a
scare, is pretty sure to be used by
the democrats as an argument for
making securities keep to Their real
value through an enforcement of
the antitrust law.
at is obvious" Mr.. Stanley said,
"that the reason steel stocks fell a
hundred million dollars is because
the trust was operating under an as
sumption Of immunity from prosecu-
tion under the antitrust act The in
stant that immunity was threatened
the stocks fell. The very insecurity
of the basis on which the trust rests,
as thus shown, is sufficient reason
for an application of the law that
will compel the steel millionaires to
put their business on a more legiti-
mate foundation. Otherwise their
stockholders will always be apprehen-
sive, and their methods open to sus-
picion."
That i was this fear OF losing its
license to violate the law which
caused the steel trust to suffer is in
dicated that the break" in stocks
applied to no other securities. Nor
was there any indication of a lessen
ing of the demand for the products
of the trust. Market conditions re-
naming normal; the stocks of some
Of the railroads increasing.
The steel furry was proof posi-
tive that the shr,nkage in stocks, un-
der the conditions named, reveals that
the steel trusts license to ignore the
law is worth hunred million dollars
to the trust.
The Aldrlch Way.
The laws of the United states stip-
ulate that no one person shall hold
more than one position under the gov
ernment the salary of which is in eX-
cess of $25O0. Nevertheless. \. Piatt
Andrew is assistant secretary of the
treasury at $4,000 per year and as
right hand man to former Senator
Alrich on the monetary commission
he gets $4,000 more Both are gov
ernment Jobs within the meaning of
the law
Andrew is a bright Young man. and
was picked up by senator Aldrich
several wears aoo Totar tho sopot,,
induced President Taft to give him
the treasury job. ana when that was
safely landed Mr.. Aldrich had him
! placed on the monetary comm, ssion
All during the past summer he ha.
been in europe studying finance
Wiley still Handicapped.
President Tafts eXoneration of DR.
| Wiley carried with it to many mind,
| the impression that Wiley's authority
! mad been restored, That is a mistake
! Inc doctor remains noneuity as fal
| as enforcement of the pure food law
IS concerned.
The board of food and drug inspoC,
ton continues i'm control Of The ad
| mlnlstration of the pure food law. l
sun consists of Wiley, MCCabe an,
Dunlap, and it is inconceivable tina
their relations Will be more harmo
nous because of the failure of tn
scheme of McCabe and Dunlay t,
oust DR. Wiley.
Without thorough house clean
| ing IN the department of agricultur