The Washington times., 1911-12-31

ed upon the reciprocal trade agreement
with Canada as prospective stimulat-
ing influence. Upon the passage Of that
measure by the special session OF Con-
gress there was some little upbidding
Of stocks but II soon became apparent
that II takes two to make q bargain
with nations as with individuals, and
when the Canadian parliament failed to
approve the reciprocity measure the Do
minion government took its appeal to
the country. The outcome is only too
proposal by the most overwhelming ma
jority ever resulting at Canadian elec-
ton. The entire, long-drawn-out spe-
cial session OF Congress was, In conse-
duence, rendered entirely barren Of re.
suits except for such disturbance to
general industry as may be traceable
to its deliberations concerning tariff
changes, trust, investigating, and the
like.
Disappointing Decisions.
But. without doubt. tho most serious
disappointment which Wall Street ex-
perienced during 1911 was the failure
Of the Supreme Court decisions In the
Standard OIL and American Tobacco
Company cases to re-estabtsh conf
dence or definitely settle the Industrial
trust problem. For many months the
opinion had prevailed. among bankers
and merchants. that whether these
cases were decided for or against the
companies the findings of the court
would establish certain principles to
which other industrial trusts could con-
form and thus establish their legal sta
tus according TO some clearly defined
standard. Acting upon this theory,
when the Supreme Court. In May, rem
dered an adverse decision against the
Standard Oh Company. ordering that
corporation to resolve itself into its
vance In stock prices.
A considerable degree of enthusiasm,
created by the courts dictum that the
question Of monopoly and restraint Of
of reason and ''the principles OF COM
mon law" soon oozed out. There were
practically no signs OF enthusiasm
when, a few weeks later, the Supreme
bacco Company and ordered it's disso-
luton. Both companies were granted
six months to carry their dissolution
into effect. and they have but recently
siderable difficulty and much oppo.i-
ton from outsiders In the case OF the
Tobacco trust. Although the final out
come OF the Tobacco read1ustment has
not been harmful to the old controlling
interests. It is now realised that the
rule of reason IL too indefinite to guide
the trusts in dissolving. and since num-
berless new suits have been instituted by
the Government to disrupt them bankers
and brokers are prone to regard the
industrial corporation question as far
from a definite settlement today as be-
fore the court decisions in tho two big
cases.
Violent Liquidation.
Despite thssss yery heavy HANDBAGS
money was cheap gnd crops were highly
promising in the spring. and stock prices
improved during June and July, but in
August an acute situation developed be-
tween France and Germany over Mo-
rocco. and these countries, and all
Europe as well, began to strengthen
bank resources and curtan credits
This resulted in very heavy selling by
foreign holders of American securities,
particularly Union Pacific. Wall Street
was much mystifed by the enormous
volume of liquidation. and fnally It be-
came alarmed. All supporting orders
appeared to be withdrawn, and prices
went to pieces. To add to the unsettie-
ment the great cereal crops. which had
been bee highly promising At the outset Of
terioration. and this, together with
threatened labor troubles. resulted in a
highly demoralized stock market.
To make bad situation worse, at the
very time that the market was at It's
started upon his great swing around
the circle, and at Detroit and again at
Waterloo, Iowa, his remarks upon the
enforcement Of the Sherman ANTITRUST
act were 30 pointed as to leave little
doubt in the minds Of the financial
community that a suit to dissolve the
United States Steel Corporation was un-
der consideration. Then. too, Attorney
q In. AZ
contemplated Government actions. men,
toned 100 trusts as the number against
which dissolution proceedings might be
brought. This started liquidation afresh,
particularly In the Industrial trust
shares. and finally the Government filed
. bill of complaint against the Steel
Corporation. The suit for the dissolu-