The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-07-03
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

The decision of the circuit court
that the Union Pacific's control of the
Southern Pacific by stock ownership
does not contravene the Sherman an
tinct Importance. 1t removes bar
rier that has existed for some time,
preventing the open, concerted oper-
alton Of non-competitive lines to trans
portation. Coming at this time when
court rulings have been so uniformly
against formal cooperation among our
great industrial and railroad cOmbina-
tons, it will exert a steadying influ-
ence on the mind of the investor, as
it is direct evidence that the courts
may be depended upon to protect
property interests as faithfully as they
do public interests.
The sharp advance i'll the stock
market price level that accompanied
the decision received somewhat of a
check, however, as result OF the
weeks additional and conclusive evil
dence of the disposition on the part
of the administration to continue to
probe the current methods of our
large industrial corporations. And
there is evidently substantial ground
for the belief that until after the presi-
Dental election of next year both of
the great political parties may be de-
pended upon to make as great spec
tacular display as possible in the di-
rection of appealing to popular preju-
dice by attacking trusts-in less digni-
fled language of continuing a trust
busting" campaign. Each political
party is jealous of the other in this
connection and the one in office is
hardly likely to leave any stone I'M
turned that will permit important ad-
vantage to be taken by competitor
in the approaching political campaign.
Thus, we have still in sight a period
of unsettlement. There has this week.
for instance, been the action of the
local Federal grand jury in filing Grim
inal indictments in the case of Off
Gals and corporations including Steel
Corporation subsidiaries) in connec-
ton with the wire price agreement
of some years ago; and this follows
similar Information connected with in
vestigations of the steel corporation S
cement activities. The bureau of cor
pOratons today furnished to the presi-
dent report giving the result of its
studies into the iron and steel indus
| try in this country In this report the
commissioner, Mr.. Herbert Knox
| Smith, presents statements to show
that the steel corporation is a much
| greater dominating influence, though
chiefly as a result of its ore resources,
than has been generally supposed.
| The report as whole is favorable
to the corporation, but it will never
theless constitute what may be term
ed a textbook for campaign orators
of both political parties to denounce
trusts" during next years presiden-
tial campaign.
Thus, we have before us in this di-
rection incentive for no little irregu-
larity in the market for stock ex-
change securities. On the other hand
fundamental influences are certainly
favorable and the outlook, therefore,
suggests a period of active fluctua-
lions that will constitute an ideal and
prOtracted market for traders.
| Looking at the more favorable in
fluences that present themselves. we
have in the first place what are I'M
deniably excellent crop prospects.
Rains in North and South Dakota have
measurably improved the spring wheat
harvest outlook. An excellent winter
| wheat yield is already assured, and
corn, while still subject to the vicis-
STUDIES of weather, is thus far in good
shape. Cotton gives every promise
of satisfactory yield at excellent
prices, resulting from an accumulated
demand. Hay and oats are rather dis
appointing and will. therefore, stimu
late the demand for corn as feed. But
the harvest outlook, considered as a
whole, certainly suggests another link
in the long, unbroken chain of years