The Washington times., 1911-05-21


NEW YORK! May A.-WaH Street
during the week was treated to an old
time market, one which cheered the
hearts of the stock brokers, who had
gotten very much into the way OF
thinking that business had left the n
nancial district for good and all. The
volume of speculation increased fully
three-foId in stocks, with prices Tor
the active standard issues advancing
all the way from two to seven points.
Dealings in bonds also showed mark
ed increase, and distinct strength was
the feature of the investment division.
Bonds of the very best class. such as are
available for savings banks and indi-
viduals who are governed by considera-
tions of safety rather than income yield.
were in excellent inquiry.
The reason for the increased activity
and strength of the market was, OF
course, apparent to everyone. 1t was,
in fact, a market of 'one event." but
that event. the liberal Interpretation of
the Sherman antitrust act by the Su-
preme Court, was sufficient to cast a
food of sunshine into the financial dis
trict, which has long been darkened by
the fog of uncertainty arising out of
the trust cases. OF course it is fully
recognized in influential circles that there
are other problems to deal with and
other trust cases to decide, but all Wall
Street and all industry as we'll has been
encouraged and heartened by what has
been accomplished.
Character of the Trading.
In the buying operations of the week,
in stocks, short covering naturally play
ed a very considerable part, and aside
from that certain large operators were
the persons most active in the market,
but this is always the case at time or
upon an occasion like the present. The
public response always follows, 1t never
leads. In the quieting down Of activity
In the latter days of the week, and in
the slight easing of prices, there really
seems nothing that modifies the satis-
faction over the trust decisions Anoth-
er decision is coming shortly. and this
is a between-season period at best. and
will continue as such until the outcome
Of the crops is determined and the
country knows something about the tar
iff changes. So a quiet market may be
eApSCltus Dul IL Will pIODdDty DC n
ed by strength and not weakness.
1t is rather interesting to note the fact
that speculative Wall Street was very
much confused over the purport Of the
antitrust decision when the result was
announced. and the first impression was
highly unfavorable. This was due in
large measure to the wretched synopsis
which appeared on the printing ma
chimes in the brokers' offices, which,
for the most part. merely emphasized
the fact that the Standard Oil Com
pany had lost the case and must dis
integrate, without bringing out the i'm
portant feature of undue" and ''un-
reasonable restraint of trade which,
when 1t was comprehended llter on,
created such a favorable Impression in
financial circles.
Cheerfulness Supplants Gloom.
Many brokers, perhaps the majority
of brokers. had left the Street on Mon
day afternoon under the impression
that no opinion would be rendered in
the trust cases, but they hurried down
town again on receiving notice from
some member of their clerical force
that Justice White was reading the de-
cision Of the court. Those who relied
for their Information upon the synopsis
of the news agencies took a gloomy
view Of the outlook. and l have heard
1t stated repeatedly, since Monday,
that had the news, in the form it took
in the first agency reports, appeared
while the market was in session that
prices would have broken severely.
AS It was. some very pessimistic
opinions and some heavy selling orders
were cabled to London, and this ex-
plains the weakness of American stocks
in the early London curb market Of
Tuesday morning. Some shrewd pro-
fessionals, to be sure, discovered. in
the decision early Monday evening the
Chief Justices declaration that free
dom Of control in business affairs is
not necessarily abridged, and that the
application Of the antitrust act in any
given case must be determined by the
light Of reason guided by the principles
of law" The manner in which this
paragraph was picked out and has since
tire future Of the industrial corpora
tions and of the market, Is remarkable
in view of the early adverse impress
sions
The Broad Interpretation.
Little aside from the trust decisions
was talked about in the financial district
during the balance Of the week, and
there was no mistaking the favorable
influence that the outcome exerted upon
market sentiment While holding the
Standard Oil guilty of conspiracy and
ordering It to resolve itself into its con-
stituent parts within six months, the
court, by majority opinion, has placed
such a. broad Interpretation upon the
application Of the act, as to monopoly
and restraint of trade, that the Street
has entirely lost sight of the conspir-
ing corporation and its future, and 1t
also lost sight, apparently. of one
feature uDon which II formerly laid
great stress which was that the court
would show the corporations how they
could do business lawfully.
Quite naturally, after the first flush of