The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-06-05
cLEWs' LETTER.


Z
The Supreme Court ruling in the
American Tobacco case did not fully
meet the expectations that had quite
generally been entertained for IL. II
reflected very closely, IL is true the at
tltude of the Court as expressed I'm the
STANDARD oil decision. But while, like
Standard oil. the Company must dis
solve. the Court specifically provides
for the continuance of the business on
proper and legal lines and instructs
the lower court 10 pass upon the final
form that the reconstruction may as
sumo. The decision, therefore, i'm re-
ality merits consideration as a favor
able factor I'm the financial market and
furnishes valuable precedent for the
solution OF the Industrial combination
situation as a whole. The important
point in connection with both of the
recent trust decisions is that the entire
industrial uncertainty has been well
cleared up as a general stock market
influence The attitude of the Court is
at last fully and definitely known and
the subject cannot again come up cN-
cept i'm the minor way of affecting in
dividual concerns.
II would not be fair 20 ascribe the
sharp decline that took place early in
the week I'm the Stock Exchange price
level primarily 10 the Supreme Courts
action. More effective than this was
the further development Of the steel
trade war and the reduction I'm prices
i'm which the steel Corporation, en-
trely against its own will was finally
forced 10 participate. In addition
there has been the rather sensational
testimony before the Stanley Invesu-
eating Committee OF the House that is
inquirng into the affairs and organic
alton of the steel Corporation. The
testimony i'm connection with the Cor
poration's acquisition of the Tonnes
see Coal & Iron Company suggests a
thorough and perhaps antagonistic in
uuiry into that feature OF the Corpora
TONS organization This is a feature
that may prove susceptible of acute
miscoucoption and misinterprctation
and is OF a character that will nat
urally appeal TO- as well as indame
popular imagination.
But the cut I'm steel prices is not, in
itself. necessarily an adverse factor.
II is one of the natural prcrogatiyes Of
trade, and is ut once the safety valve
Tor overproduction and excessive cur
taiment when supplies OF manufac-
turcd products are found 10 be ac-
cumulating. or when. as has been the
cesc in the iron and steel industry for
some time, there has been "a gradually
increasing necessity for laying off Ia
Dor, buyers of steel products become
extremely wary. They argue that lower
prices are in sight and they them
selves, therefore, curtai their pur-
Ohasos 10 the very smallest volume
that their day-to-day requirements will
permit. Thus the mills are without
forward orders and are in their turn
compelled to operate very largely on a
day-to-day basis. Under these cir
Cumstanccs the necessity generally de-
vclops of clearing up az one bound
this uncertainty of buyers and at the
same time meeting the reductions in
prices made by the smaller class of
manufacturers who, not having as a
rule sufficient capital to carry them
over perious Of business depression,
are compc 'p offer Inducements by
marking doWL ----ir quotations to OBJ
tain whatever little business is avail
able This brings the larger corpora
tions into the positions of holding the
bltr for thpir smaller councillors and
when in time CAS- was recently dcvcl-
opcd the smaller people are found To
De getting too large proportion of
the limited business that is Offering,
the larger people arc finally forced to
meet the lower range of prices. The
effect Will, in the long run, prove ben
ofcial TO business, since the fear of