New-York tribune., 1911-09-25

railroad companies 10 meet new con-
ditions born OF the increased power Of
the Interstate Commerce Commission,
unrest in labor circles the world over,
extreme measures advocated by unwise
politicians and expected forced or volun-
tary dissolution of corporations that are
operating IN violation Of the Sherman
antitrust law serve to encourage un-
easlness in business and Stock Exchange
circles: but this uneasiness will pass,
uncertainties will be eliminated and the
country again will move into period
Of prosperity based upon its own natural
wealth and better methods of conduct
alarm over the future. There is no good
reason for the sacrifice Of investment
securities. There is no warrant for &C
cepting the current course Of stock mar
ket prices as a forecast of the country S
industrial movements, except, perhaps,
as regards the next few months This
nation has been through many political,
business. labor and financial upheavals,
and withal has prospered. II will pros
per in the future, and, bearing this fact
in mind, idle capital will make no mis-
take in moving into the securities Of our
high grade properties.
The United States Steel shares suf-
fered a tremendous depreciation In their
market values last week because Of Hqui-
dation by frightened holders based upon
the professional pressure against the
issues, which in turn was based upon
the unsatisfactory conditions IN the iron
and steel trade and the idea that the big
steel corporation would be compelled to
dissolve in order 10 prevent action
against It by the Department Of Justice.
voluntary dissolution doubtless will be
undertaken by many corporations so as
10 meet the ruling Of the Supreme Court
in the Standard oil and American To-
bacco suits, but the operation will not
involve the passing of the business Of
the various properties which will con-
tinue 10 produce and sell their products
under reorganization acceptable 70 the
courts Old methods Of doing business
are 10 be superseded by methods that
will not stife competition and that will
eliminate dishonest practices. Investors
who sacrifice United States Steel pre-
ferred just now viii live 10 regret the
operation The holders Of the issue
under possible reorganization will not
suffer. They will continue 10 receive q
satisfactory return upon their invest
ment. for the good reason that the steel
Industry te not going out Of business.
The Supreme Court has ordered the
Standard oil and American Tobacco
companies to dissolve, but the govern
meut has not confscated their proper
ties which are making money for their
stockholders.
There will be new tobacco and oil com
paries. and 10 doubt new sugar, har-
vester and steel companies, conducting
their operations however, at the old
stand. If the segregation Of companies
forming present day trusts involve an
increased cost Of conducting business
the consumer will pay the difference.
The farmers have been clamoring for
the dissolution Of the international Har-
vester combine. and il viii be the farmer
who will stand any cost that may de
velop from the new order Of affairs.
Stockholders will not lose, but the
farmer may be compelled 70 pay more
for his plough. Irrespective Of the cor
poration situation bear traders find in
current trade conditions enough reason
for aggressive attacks upon stock mar
l-et prices. especially as their operations
meet with no interference from the sub
stantiaI financial interests who are do
ing nothing beyond accommodating securl-
+ie. on q scale down. Steel trade opera
tIons are now more unsatisfactory than
they have been in many months past,
while the general business situation pre-
serts few factors that tend to encourage
the expectation OF a resumption Of &C
tivitv in the immediate future.
While money rates are easy IN this
country foreign discounts are much
higher than recently reported, both open
market and bank quotations having
been advanced 10 new high levels for the
wear in the last few days. The Bank Of
England the Imperial Bank Of GERMANY
the Bank Of France, the Bank of Aus
rria and the Bank Of Belgium have
placed their minimum rates on higher
level the action by the Bank Of France
beinc the most noteworthy, owing 70 the
fact that the French institution seldom
makes "a change in It's official figures.
Paris is taking means 20 strengthen IT'S
gold holdings. which are now SJoWoOOo
less than they were AT this time last
year. and TO fortify its position for pos
sible contingencies incident 10 the Mo-
roccan situation our bankers recently
have advanced "a Berlin large sums, and
il is uuite probable the Bank Of France
will be able 10 add 10 its gold account
bv importing the metal from New YORK
Exchange rates here are still quite
distance from the gold exporting point
hut owing 10 the ease OF New YORK
money and the advancing tendency
abroad the movement Of foreign eX-
change Is in the direction Of q higher
range, and II the Bank OF France Is will
ing 10 paysinterest on gold IN transit the
day may not be lar away when II VIII
call on this centre for shipment Heavy
selling OF American securities Tor Euro
IN FfFf. a