The Washington times., 1911-11-12
HAS APPROVAL OF TOBACCO PLAN
DRAWN FANGS FROM SHERMAN LAW /?
Wall Seems Think
Helped-Record of Surprising Week of Strength and Activity
' Movement Is Largely Professional
DATER.
Special Financial

! Special ]
NEW YORK, Nov. Eff a finan-
cial and commercial situation finds, on
each and every occasion. true refiec-
tion, in the security market, then one
would conclude from the Wall Street
demonstration OF the week that the
country had put all its troubles behind
It. While 1t is wholly unlikely that this
extreme view will continue for any
great length Of time, and while II may
| be doubted II, even now, II is indorsed
by the more important banking inter-
I ests. II remains true that many pro-
fessional traders regard the approval
Of the Tobacco trust plan by the Fed
| eral circuit court as robbing the sher-
man act of all its terrors and the in
| junction granted by the Commerce Court
In the intermountain rate cases as put.
ting period upon the annoying actiy-
tiles of the Interstate Commerce Com
! mission.
| course, In connection with the accent
ance Of the tobacco company's disin-
tegration plan, group of very impor.
| tant operators bought and bid up the
ent!re market. That some buying of
by the court action is doubtless true.
but IL the statements of the average
commission house are to be relied upon
such buying was of very modest prob
portions In comparison with that Of a
professional nature. The aggressive,
confident manner in which these latter
transactions were carried out on Thurs.
day and Friday struck terror to the
ahnr tnta
was, Of course. heightened by the fail
ure of two bear houses and by widely
circulated reports that other firms,
three Of considerable magnitude. were
stiil heavily committed to the bear side
Misjudging q Market.
1t Is an odd fact that some rather
important brokers in the Street woe
fully miscalculated the effect on prices
OF the courts approval of the tobacco
plan. Although the decision was not
announced until after the close of We'd
nesday's session practically all Wall
street knew that the opinion was COM
Ing, and the market was heavy tn con-
sequence. Some men, to be sure, heard
that the court decision would be ad-
verse to the company, but this was not
manH nm'1ormiy hIoksr the .o, case; However, very
some under the belief Of an adverse
opinion; some, who heard that the de-
cision would be favorable. on the theory
that as the market has already expert;
torney General Wickersham's concilia-
tory attitude the matter had been fully
discounted These latter argued tina:
prices were likely to decline on the
Although the miscellaneous short In
terest had been much reduced as a re-
suit OF the very considerable advances
OF the preceding week new short ac-
count was created by the selling move
ment Of Wednesday, and this was
driven to cover in turn, 80 that the 6
to point Improvement of the preceding
wssk was nearly dupliSsted during the
same issues. and notably in United
and Lehigh Valley Naturally. ad,
vances Of from 10 to Is points. and even
Is too rapid for healthful development.
AS a result one heard reports of some
selling OF the very best character to-
ward the close Of the week, by which.
by banks. trust companies. and bankers
Naturally, the rapid advance has in
vited distributive and realizing sales
from persons who bought at low prices
New Life In the Market.
While. as already stated, the profess
sional element in Wall Street. in its
flush Of enthusi asm over the approval
of the American Tobacco Company's
plan Of reorganization by the Circuit
Court. have interpreted 1t es a sweep
ing victory for corporate values and as
an action that practically nullifes the
Sherman antitrust law. there remains
with some brokers and with some bank
ers, as well. lingering doubt as 20
whether such will be the result in the
final analysis. OF course there is no
intention here Of throwing cold water
on the highly important constructive
born In Wall Street. The decision has
certainly put new life into the market
and the Attorney Generals argument
has revealed that Official in a light that
the brokers believed impossible for him,
that Is as a man bent upon a construc-
tive not destructive policy toward
big business.
As a result it is believed that men
will look upon two sides of the shield
instead Of one and 1t is felt in quarters,
even where enthusiasm is still re-
strained, that there is little likelihood
Of any immediate return to the ex-
lied the financial district for so long
time past. But while maintaining this
hopeful view these seIf-same men do
not subscribe to the idea that the APP
all the Industrial corporation problems,
and they do not encourage the idea
that Wall Street stands prepared fer
a long-sustained bull movement En-
tirely aside from the fact that Congress
Is about to assemble, that tariff reform
agitat ton is In the air. that numerous
investigations and much litigation is i'm
pending and that the country Is ap-
preaching Presidential campaign,
which contains alements of serious dis
turtance. these persons are not wholly
sure that the country has heard the
last Of the tobacco litigation.
Question of Government Approval.
Though the limitations contained in
news advices from Washington that the
Attorney General might oppose the final
acceptance of the plan before the Su-
preme Court. on the ground that most
of the Governments recommendations
were ignored-particularly with that
suggesting the entire cutting of OF the
United Cigar Stores from the trust
were not sufficiently defined to modify
speculative enthusiasm. they checked
the advance of American Tobacco Sc
curities Again 1t is pointed out that
Wall Streets response to the plan,
manifested by a ten to twenty point ad-
vance in stocks. may create anything
but a favorable imDreaaion in The In