The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-06-02
OPEN MARKET
STEEL PRODUCTS
Most Important Development In the
Industrial World Since the Stand
ard OIL Supreme Court
Decision.
EXPECT DEVELOPMENTS,
Frank M. Huston's Weekly Financial
Letter is Optimistic With tho
Good Outlook on Crop
Conditions.
Especial to The Gate City.1

loPSSAoh W 1h6 1dSO SAtS ~
CHICAGO, June 2.-Without exag-
gerating its Importance as some
speculative stock market interests
are inclined to do, the declaration OF
the long expected open market in
steel products is by far the most im-
portant development in the industrial
world that has taken place since the
Standard Oil decision, not excepting
the American Tobacco decision. The
finding Of the supreme court in the
American Tobacco case has been a
foregone conclusion since the Stand
ard Oil Co. received it's Knockout
blow some two weeks ago. In fact,
for months it has been generally ex-
pected in banking circles that the
American Tobacco Company would be-
forced to reorganize along the lines
permitted by the Sherman antitrust
law, Just as had been looked for in the
case Of the Standard OIL Company of
New Jersey. The chief benefit, there
fore, to be derived from the decision
of the supreme court, handed down
last Monday, lies in the fact that it
dlloIuST lbOIS VI lCoS uu~
certainty from the list overhanging
both the speculative market and the
industrial world.
Up to date the effect on the steel
consumer has been rather disappoint-
| ing, for he stin continues to hesitate
and possibly will do so until he Is cer-
/ tain that further reductions will not
b< r,,oda Cop,porad ,,,.o,,Io,,e
years, prices for finished steel have
not been unreasonable, for prior to
this cut they have been from SO to Sc
a ton lower than they were in 1907.
| But 1t should be borne in mind that
| in 1907 industrial conditions were far
| different and the mills were crowded
to their capacity with orders, with
and willing to pay premiums for
prompt shipments. Today the steel
! industry shows trade conditions prac-
tically the reverse, and with an
production capacity at the
mills. situation which has been dis
turbed still further by virtually
paralysis in the pg-iron industry The
u uoV6lODU1eUJS oI LuS HSAl Low WSthSs
therefore, will be closely watched by
those eager to get line on the fu-
ture course in business. IT, after the
first hesitancy caused by the reduc-
tion In steel price, orders begin to
come in as they did in 1909, there
will be justification In the conclusion
that the country has turned the cor
ner so far as the present relaxation
in Industrial activity is concerned, for
such a development will start the
mills going and in turn will be felt by
all lines of trade and industry.
Added to this of course Is that
fundamental factor in the business
world. the crop situation, which at the
present time is very propitious. Wealth
and soil conditions are exceedingly
satisfactory, and advices from ali
sections of the corn and wheat belt
promises an abundant yield, devel-
opment which should go far in elm
mating the unsatisfactory conditions
in the interior banking situation. The
marketing of a big crop should con-
tribute very materially toward the
farmer reducing his Indebtedness at
the local banks. AT the same time 1t
should be kept in mind that big
crop carries with 1t heavy burden
: on the CITY as we'll as the country
banks for money in large volume is
required to harvest and move the
crops to the market.