Bisbee daily review., 1911-06-08
HARVEST FIELDS NOW
 CONCERN THE MARKET
Trust Decisions Out of the Way, FinancierS Wal:
 Crop Reports

Oil decision. But while, like Stand ard Oil the company must dissolve. the court specifically provides for the continuance of the business on proper and legal lines and instructs the lower court to pass upon the final form that he reconstruction may assume The decision. therefore. in reality merits consideration as favorable factor in the financial mar ket and furnishes a valuable prece-. dent for the solution of the industrial combination situation as a whole. The important point in connection with both of the recent trust decis- ions is that the entire industrial un- certainty has been well cleared up as & general stock market influence. The attitude Of the court is at last fully and definitely known and the subject cannot again come up ex- ~e i1 the minor way Of affecting individual concerns.
 Cause of Decline.
 It would not be fair to ascribe the sharp decline that took place early in the week in the Stock Exchange price level primarily to the supreme courts action. More effective than this was the further development oi the steel trade war and the reduc- ton in prices in which the Steel Cor poration, entirely against its own will. was finally forced to participate. In addition, there has been the rather sensational testimony before the Stanley investigating committee of the house that is inquiring into the affairs and organization of the Steel corporation. The testimony in connection with the corporations ac- quisition of the Tennessee Coal & Iron company suggests a thorough and perhaps antagonistic inquiry into that feature that may prove suscepti- ble of acute misconception and mis- representation and is of a character that will naturally appeal to. as well as inflame, popular imagination.
 But the cut in steel prices is not, in itself, necessarily an adverse fac tor. It is one of the natural prerog- atiyes of trade, and is at once the safety valve for over production and excessive curtailment When sup plies of manufactured products are found to be accommodating. or when, as has been the case in the iron and steel industry for some little time. there has been a gradually increasing AELtCSlAf iDl ldNlIk Oll buyers of steel products become extremely wary. They argue that lower prices are in sight and they themselves, therefore, curtail their purchases to the very smallest volume that theil day-to-day requirements will permit Thus the mills are without forward orders and are in their turn con- peiled to operate very largely on a day-to-day basis. Under these cir. cumstances the necessity generally develops Of clearing up at one bound this uncertainty Of buyers and at the same time meeting the reductions in price made by the smaller class of manufacturers who. not having as a rule sufficient capital to carry them over periods of business depression. are compelled to offer inducements by marking down their quotations to obtain whatever little business is available This he larger corporations i"'- 0sitions of holding the tleir smaller competitor --F rra in time Gas was recent CT 1Eed) the smaller people are found to be getting too large q proportion of the limited business that is offering, the larger people are finally forced to meet the lower range Of prices. The effect will. in the long run, prove ben efcial to brsiress. since the fear of further price reductions is now -r-. H--a-"llv removed and rail roads, builders and others requiring construction material will feel that they can enter their contracts with out fear of their competitors later on securing more advantageous terms. The steel price reduction therefore may, I believe, be considered in the light of a re-assuTing influence in any Iongrange views of the stock market situation.
 All Eyes on Harvest.
 The prospects for the harvests continue the main feature to watch during the next few weeks. These urospects constitute the fundamental influence on which experienced oper- ators base their market calculations. Couplaint of dry weather in some winter wheat sections has been heard this week: but this has not as sumed important proportions, and II is always desirable to bear in mind that crop damage that is local can at times become Guite serious with ont in any way affecting the coun- tTy's production as a whole. It is well to recall. for instance. that the ,rsuter wheat area this year is. in --.s---5 --,--,F,ars. ASe million acres Local damage could therefore, be severe and even quite extensive with out in any appreciable degree affect ing the general result from such a treuenaous exDanse of territory. In Texss. Oklahoma and in some parts of Kansaa winter wheat harvesting is already in progress and every dsx from now on will mean just so rnnch additional area out of canger sro-- esfher drouth or Insect lie Soring wheat according to sutnori' tst5ve accounts. is from one to two ueeks in advance of normal and is .aiso doing very nicely. The gov ernment will issue on next Thursday fts monthly report on grain cond' t,ops. and it can hardly fail 10 prove satisfactory document The cotton acreage this year reflects the stim nJus of high-priced cotton. The aTe''