New-York tribune., 1911-10-30
FINANCIAL MARKET
No Evidence Actual Owners OF
Steel Securities Intend to Part =
with Their Holdings.

the selling so far has been wholly spec
ulative in character. 'and offerings have
been taken by the strongest interests IN
the street. who are convinced that the
governments points are not we'll taken
and that the big steel concern Will be
able to disprove the charge that II Is an
organization operating in restraint OF
trade. or course. until the case Is finally
determined and until the entire corpora
tion situation in its relation to the anti
trust law is cleared UP capital is not
likely 10 move actively into new enter
prises. for the good reason that capital
is tinid and wants 10 know where II
stands before IL goes ahead. Opinions
in Wall Street differ regarding the prob
able tendency Of prices for the Steel
stocks pending the settlement OF the SUIT
hut if quotations follow the precedent
established by those Of the Standard OIL
and American Tobacco companies they
gradually will work to a higher range
though I'm view of current conditions In
the steel trade st does not appear likely
that material enhancement will develop
I'm the immediate future.
on November Il, 1906. the day before
the governments suit was filed against
the Standard Oil Company the stock oil
the CORPORATION sold at 56j and on the
dav after at $50. on May 19, 1911 the
dav before the decision of the Supreme
Court dissolving the concern, the price
of the issue was at 675. while on the
dav following the dissolution decree o'S
was recorded The price of American
Tobacco common shares was quoted at
9q5 the dav before the governments SUIT
u.ss brought TO dissolve the company
ond oSO the day following Just before
the decision Of the Supreme court
against the trust. little less than four
,.eors after the case was filed, Tobacco
common sold at asa and the day after
at 5oO The stock is now quoted well
under the latter figure. The suit against
the United states Steel Corporation has
been brought without any demand Oh
the part of it's competitors or the con-
sumers Of steel products, VINO, as Il
matter Of fact. do not desire to see the
company dissolved, as its operations al
yavs have been fair and above board
and have tended to increase competition
rather than to stifie IT,
The capacity Of the independent COM
panies. like the Lackawanna Steel the
Petblehem steel, the Republic Iron and
steel. the Pennsylvania Steel and the
tones & I.aughHn steel companies. has
grown more rapidly over the last ten
wears than that Of the United States
steel Corporation, and healthier ana
more prosperous conditions have pre-
vailed in that period than ever before
rcnorted in the history Of the iron ana
steel industry In the old days the slo-
gan was the survival Of the fttest
and independent steel men believe tiaI
the splitting up Of the United states
steel CORPORATION would lead TO the old
condition Of affairs and have a demoral-
izine effect upon the trade in general
II the government is looking for the
same support from the business rivals
Of the United States Steel Corporation
is il has been getting in the case OF lhe
American Tobacco Company ana the
STANDARD Oil Company it is inviting a
big disappointment. But the government
is honest In its present crusade. II be-
lieves that certain corporations are oper-
atjug in violation of the Sherman law
and that the test Of its belief must De
fought out i'm the courts. II certainly i
be tier To have the question settled once
and for all than to have IT drag on III
definitely. and for this reason many puSl-
ness men, while not in accord Wlll ule
nroyisiOus Of the antitrust law, welcome
tbe present suit against the Steel Cor
roratiOn on the idea that it's outcome
tyiU finally dispose OF the uncertainty
over the relation Of all business concerns
to the sherman measure.
Roth the STANDARD Oil and the Amerl-
can Tobacco companies have been de-
clared monopOlies, and II Is geheraHI
admitted that no other decision lhaH
that rendered by the supreme C0uI. III
fhc governments suits against the TWO
concerns could have been given under
the provisions If the Sherman law, Dut
it is contended that the United states
Steel CORPORATION and many other com
raI1ies that may be brought into court
differ so much in their organization from
the tobacco and oil corporations, ana III
their transactions bear such a dlnereht
relation To the trade i'm which they are
engaged. as compared TO that of the
standard oil and the American Tobacco
cCmpanies. that they will be found not
guilty Of being monOpolieS under the
sherman act With Judge Gary we be
leve it is a time 10 keep cool WIN
disposition patiently TO wait results.
knowing hat in the end Justice VIII be
done TO all interests
al n
try are sound. and while now money IS
not moving actively into the channels
Of trade the general volume Of business
il heavy though Of daN-to- day char
actor The requirements Of our big pop
ulstion are large and the mercantile de-
nand for the necessities Of life Is heavy
Forward business however is not active
enough to find employment for bank
funds and this fact together with the
restricted offerings Of new securities and
the absence Of 4 big stock speculation
based oa borrowed money, is encOurag-
ing extensive lending by our bankers in
foreign cities whore rates are more at
tractive than they are in the United
States We have heavy credits abroad
and they arc being utilized there Al
though Improvement is reported IN finan-
cial conditions in Europe and while no
pressing need for gold exports from here
is apparent. the course Of our foreign
exchange market leads 10 the belief that
the yellow metal win be shipped from
here i'm spite Of our steadily growing ex-
cess OF exports of merchandise over i'm
ports.
The interior is not drawing money
from New York incident 10 harvest
financing purposes. as II generally does
at this period cf the year Indeed. re-
C.ipts of currency from out f-toWn
points exceed shipments, while some Of
the larger banks in the West are lend
ing their surplus funds abroad There
evidently is no possibility Of materially
higher rates for money I'm the rest Of the
Ii