The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1911-10-06

market to the effect that the furry
caused a decline in steel shares of ap.
proximately one hundred million dol
lars.
In the three days of the furry near.
ly one-third of the trusts $500,00O,
600 of common stock was sold on the
stock exchange in such volume that
the price was carried to new low lev
els, thus showing that the one hun.
dred millions in decline represent the
amount of money 1t is worth to the
trust is-to be considered immune from
the operation of the Sherman law.
Nothing has happened to indicate
that anything is wrong with the intrin-
sic value of the steel properties. The
mills are working as usual, and are
In exactly the same state of efficiency
they were in two years ago when the
stock was selling at its high water
mark. The shrinkage came because
of rumors that the trust was to be
prosecuted, and as the busines-the
real business-of the trust was not in
Jured in anyway, the one hundred mil
lions simply represents the excess
profits the trust stood to lose in the
event of dissolution under the applica-
ton of the Sherman law In other
words the shrinkage serves as meas.
ure of the value to the trust of Ii
cence to violate the law. When that
Hncence was threatened the trusts
shares fell Immediately, and this fall
in prices, simply the result of a scare,
is pretty sure to be used by the Demo.
Gratis as an argument for making Sc
curities keep down to their real value
through enforcement of the antitrust
law
Commenting on the fall of steel
prices. Chairman Stanley of the house
committee which just now is investi-
eating the steel trust, said that moth
ing could better demonstrate the nee
essity of enforcing the antitrust law.
1T is obvious" Mr.. Stanley said,
that the reason steel stocks fell
hundred million dollars is because the
trust was operating under an assump-
tion of immunity from prosecution
under the anti trust act The instant
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 ap-
plication of the law that will COM
pei the steel millionaires to put their
business on more legitimate founda.
ton. Otherwise their stockholders
will always be apprehensive, and their
methods open to suspicion"
That it was this fear of losing it's
icence to violate the law which caused
the steel trust to suffer is indicated
that the break" in stocks applied to
no other securities. Nor was there
any indication of lessening of the
demand for the products of the trust.
Market conditions remained normal;
the stocks of some of the railroads
Increasing.
The steel furry" was proof posi-
tive that the shrinkage in stocks. un-
der the conditions named, reveals that
the steel trusts license to ignore the
law is worth hundred million dol
lars to the trust.
The Aldrich 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 $2,500. Never the less, A.
Piatt Andrew is assistant secretary OF
the treasury at $4,000 per year, and
Ms right hand man to former Senator
AIdrich on the Monetary commission
he gets $4,000 more. Both are govern
ment jobs within the meaning of the
law.
Andrew is a bright young man, and
was picked up by Senator Aldrich sew
eral years ago. Later the senator in
duced President Taft to give him the
treasury job, and when that was safe
ly landed Mr.. Aldrich had him placed
on the Monetary commission.
All during the past summer he has
been in Europe studying finance"
Wiley Still Handicapped.
President Taft's exoneration Of DR..
Wiley carried with it to many minds
the impression that Wiley's authority
had been restored. That is mistake.
The doctor remains nonetity as far
as enforcement of the pure food law
is concerned. The board OF food and
drug inspection continues In control
of the administration of the pure food
law. 1t still consists OF Wiley, Nc
Cabe and Dunlap, and Is is inconceiv-
able that their relations will be more
harmonious because of the failure OF
the scheme of McCabe and Dunlap to
GUST DR.. Wiley.