New-York tribune., 1911-11-13
FINANCIAL MARKET
Sentiment and Prices in Wall
Street Show Marked
Improvement.

Improvement III recent Gays, 'uc hloNt-
ment having been based upon the ac-
ceptance of the American Tobacco re-
organization plan by the Circuit Court
in the Southern District of New York
and on more encouraging reports from
trade centres. In the financial commu-
nifty and in general business circles 1t
is believed a way has been found by
which our corporations can conform TO
the Sherman antitrust law without
jeopardizing the interests of stockhold-
ers, and in the same quarters it is now
believed there is no menace TO business
in tariff revision propositions. The po-
litica campaign Of the coming year is
likely TO be fought out on conservative
lines. and from current indications tut
ure government proceedings against the
so-called trusts will not be attended by
disturbance in our industries. The plan
for the readjustment of the American
Tobacco Company along the lines sug-
gested by the Supreme Court decision
in the suit against the concern has been
carefully framed under the advice of
some of the best legal talent in the
country, and its acceptance by the Cir
cult Court in the face of minor objec-
tions by the government apparently has
ended for all time the idea that the
Sherman law means the confscation Of
property. The Supreme Court says that
the law must be interpreted in the light
Of reason In view of this statement
and the fact that the United States
steel Corporation is not in undisputed
control Of the iron and steel industry
| I'm this country. there is no reason for
uneasiness over the outcome of the ac-
| tion Of the Department of Justice against
/ the corporation. steel common at its
| highest price last week showed an ad-
vance Of Is points as compared with the
low level recorded Immediately following
the announcement that the government
had brought action against the United
States Steel Corporation.
An enormous short interest was Gov
cred in last weeks dealings on the Stock
| Exchange. and the movement of prices In
| the current week doubtless will show
whether or not real bull campaign has
| been inaugurated Substantial interests
are heavy holders Of stocks, and the
public is buying more literally than re-
Gently reported. but quotations have ad
vanCed to a remarkable extent in short
time, while technical conditions have
been weakened by the elimination Of the
bear account. For these reasons, despite
the fact that the banking power evident
~ is in favor of higher figures, traders
who buy stocks on borrowed money
should exercise the utmost conservatism
IN their purchases at the moment. 1t is
not a market for the man who cannot
put up a large margin Underlying con-
ditions are sound and the actual volume
of business in the country, while still
confined in large part to immediate
needs, is heavy. reflection of which Is
found in payments through clearing
houses and in the gross returns of the
railroad companies. If stocks continue
improve it is quite probable forward
commitments i'm the business world will
increase and that railroad and industrial
corporations. will become active factors
in the money market.
Railroad earnings are especially en-
couraging in the South. the Southern
Railway. the Louisville &; Nashville AMI
the Seaboard Air Line. for instance.
showing for the month of October an es-
timated average gain as compared with
the same period i'm 1910 of about 6 per
cent. The early movement Of this years
heavy cotton crop and the effect of the
favora bile harvest on general business
have helped all the railroads in the
South. and from an investment point OF
view the securities Of the larger number
of roads ought to appeal to idle capital
Southern industries are prospering
Railroad earnings. with the exception of
those Of some Of the Southwestern com
panics. have shown an almost steady in
crease since the latter part of 1905
Western and Eastern lines arc begin
nl1S 10 present DellCT results DOtn IN
gross and net, and railroad managers
arc much less pessimistic over the out
look than they were a few months ago.
while they no longer are indulgins in
hysteri1 over the effect upon dividends
Of the refusal of the Interstate Com
merce Commission TO allow higher
freight rates Operating costs have been
heavily increased through increased
wages and higher prices for materials.
hut operating officers are gradually
learning the benefits Of scientific meth
DDS in handling their expense account
Expenses are now being cut without
weakening the physical efficiency Of the
properties. Dividends of the railroad
companies are not being reduced, and
there appears 10 be no likelihood Of a
general lowering of disbursements to
stockholders of the transportation and
Industrial companies
The passing Of the dividend on the
common stock of the American Cotton
oil Company reflects special rather than
general conditions. IN the twelve months
ended August 81 the company was CON
fiontcd with factors practically unprece-
dented in the trade. the year beginning
with high prices for raw materials and