The Washington herald., 1911-05-20
WALL STREET NEWS
American Tobacco Case Is
Awaited by Traders.
SHERMAN LAW UNCERTAIN
Decision of Supreme Court Il I'm
Doubt-An Trusts May Be Hit.
Stock Market Advances-Moderat
Reaction Results from High Record
Prtces-Cotton Oil IL Weak.

New York, May ia factor OF some
importance in to-day's stock market was
the prevalence Of a feeling that, graft
flying as the decision of the Supreme
Court in the Standard Oil case was. there
would be perhaps better understanding
of its character when 1t was read in the
light of the decision in the American To-
bacco case, which it is to be hoped will
be rendered a week from next Monday,
when the Supreme Court adjourns for
its long midsummer recess.
This feeling was emphasized to a con-
siderable extent by the interview pub
lished in some of the morning news
papers with an eminent corporation
lawyer in which he took the ground very
strongly that although the Supreme
Court now holds that only unreasonable
restraint of trade is prohibited by the
Sherman law; that the word "un-
reasonable" itself is an indefinite term.
and that the Sherman law still requires
elucidation and construction before the
extent Of these prohibitions can be made
plain.
Mr.. James NJ Beck, who made the
statement in question, maintained that
the Sherman law, even as left by the
pronouncement of the Supreme Court on
Monday, would still be a source of fruit
full litigation and general business un-
certainty; and 1t was learned on trust
worthy authority that his views were
Shared by other corporation lawyers no
less distinguished than himself.
The disposition in Wall street Of the
moment was not iilogieally to incline
TO the opinion that If the Supreme Court
would hold that corporation organ
lied like the American Tobacco Company
was not in violation of the statute,
that all fair doubt as to the scope of the
Sherman law under its latter-day con-
struction would be removed.
If, on the other hand, the court held
that the American Tobacco Company,
quite irrespective of the conduct of the
corporation, but only as concerned its
legal structure, was an unlawful corpo-
ration there was at least room for ar
gument as to whether the validity Of
the organization of the United States
Steel Corporation and other large COM
panles of a similar sort was secure.
Decision Is Forgotten.
This way of looking at things was, OF
course, encouraged by the sharp ad-
vance that the stock market has lately
enjoyed, and the large profits still re-
naming to be taken by spectators upon
purchases made earlier in the week.
Therefore, to-day's market displayed more
general hesitation than in any stock ex-
change session since the Supreme Court
decision was announced, and for the first
time closed at a slight decline.
There was no pressure Of stock and no
movement of any kind visible in the
market except an extremely moderate
and orderly reaction from the high prices
Of record. Nor was there anything in the
news of the day to excite financial pessi-
mism.
The stocks of the Cotton Oil-Fertilizer
group were as weak as any, perhaps be-
cause of apprehension that the continued
high price of cotton might make high
prices this year for cotton seed, the raw
mater Iial used by these companies in their
manufa ture.
Crop weather reports were not quite
as uniformly favorable as they have been
lately, but this did not avert a renewal Of
heaviness in the grain market.
The announcement that the government
had begun a suit under the Sherman
law against the Eastern States Retail
Lumber Dealers Association was proof
that antitrust activity on the part Of
prosecuting officers is in no way dormant
1t must be said of this proceeding, how
ever. that if the allegations contained in
the governments complaint are true a
rather plain and altogether foolish viola
ton of the Sherman law has been in
dulged in.
Little attention was attracted by a
semi-official statement that the Missouri
Pacific Railroad Company was about to
make an issue of somewhere between
$50 OCO. 900 and s25, coo 900 of short term notes
Money rates were somewhat sitter in
necessary response to the larger call for
funds made during the week in stock
market commitments for the rise.