New-York tribune., 1911-10-28
FINANCIAL MARKET
Heavy Sales Of United States
Steel Stocks on Governments
Suit Against Corporation.

The stock market was weak through
out the day under the influence of bear
pressure and actual liquidation induced
by the governments suit against the
United states Steel Corporation. In the
London market Steel common declined
upward of I points before the opening
on the local exchange. while in the first
hour OF business here the issue showed a
maximum decline Of more than . points
and a final loss Of 6as. The preferred
lost ass points All the Morgan stocks
were attacked. but they were well sup
rorted. declines being relatively small
in view Of the tremendous selling re-
ported. and AT the end of the day
brokers' books showed the transfer from
weak 10 strong hands Of heavy blocks
Of United states Steel Reading. Erie.
Lehigh Valley and Southern Railway.
Offerings Of Union Pacific. the Hill
shares. Southern Pacific. Amalgamated
CoDrer and other representative issues
likewise found ready buyers. If the suit
against the United States Steel Corpora
tion follows precedent it Will require
from three 20 FIVE years before a final
decision by the United States Supreme
Court can be reached. In the mean time
the demand for iron and finished steel
products will keep handlers of iron ore
and manufacturers Of steel materials
busy. and the country VIII continue %
do business at the old stand. though
perhaps In reduced volume until cor
porg tions adjust their affairs 20 the
Sherman antitrust law, either volunta-
rny or by order Of the courts. The
United States is strong enough % sur
vfve present uncertainties and while IL
is distressing 10 see stock market prices
for securities knocked down by govern
nent activities against the so-called
trusts IL should be borne in mind that
we have a government elected by the
ueopIe. who will not permit the govern
ment 70 do anything harmful 20 the weI-
fare OF the country. The people have
rraved for the prosecution Of the trusts
and the government is responding. Re
form movements generally are overdone,
bu- in the end good results as a rule are
obtained. We are not bearish on the
furf,re of business in this country, and
we are not advising the sale Of stocks
and bonds. Indeed, we believe that on
.a1 declines securities Of merit are worth
hr,virg. Steel preferred should not be
sold al it's present price. The story In
detail Of Yesterdays stock market will
be found in the news columns Of this
paper.
Tbe United states Steel Corporation,
according 10 the idea Of our ATTORNEY
General is an organization in restraint
~ trade Mr.. Wickersham. representing
the federal government has instituted a
suf+ against the big steel concern on the
ground that its operations constitute d
nonopoIv and that consumers Of finished
steel products are not getting fair
deal The United States steel Corpora-
tioD is not worrying over its future. and
there is no reason why the owners Of us
securities should part with their hold
fnps because the bear element on the
stock Exchange is putting out short
Contracts ON the idea that the time Is
ripe for "a "huing" in steel ISSUES.
There win bee no conhscaton Of prop
ertv if the government wins us suit
against the United states Steel Corpora
fion. II is difficult 70 understand why
this CORPORATION should be- called mo-
ropolv. as % controls less than 0ne-ndlf
of The steel business In this country.
while n is compelled 20 hght for every
order il receives. From the point Of
view OF men actively identified with tho
iron and steel industry competition ~
the steel trade has been f0stered rather
than stified by the operations OF the
Uniteu States Steel Corporation. and
from the point Of view of the great cor
poration lawyers who had a part IN ef
fecting the combination there is no pos
sibility that Attorney General Wicker
sham's suit will be successful Just
80. cu-s,o, 90 aOo~aluf.ra -or, paf ~ an