The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1911-06-04

turned out those bankers and brokers
who a week ago expressed the opin-
| ion that 1t would be unfortunate II
American Tobacco should resume Its
| remarkable advance after the Su-
preme Court decision in that case,
borrowed a great deal of unnecessary
trouble The stock did not continue
| the Improvement, which, setting in
with the adverse Standard Oil de-
cision, carried the price up more than
so points; on the contrary the issue
| broke severely, and on Friday a few
shares changed hands at 379, marking
an extreme decline of 123 points In
barely more than a weeks time
which is one of the most extensive
| losses sustained by a stock in all
Wall Streets history.
1t Is rather a strange commentary
upon existing conditions in the spec
ulative market that while this very
remarkable decline was in progress
sentiment elsewhere was improving,
and with 1t the general security list
recovered. I have found myself won
dering If there was any possible con-
nection between the two. 1t seems
absurd, and yet II is unquestionably
the ldCLP IHdl many
proved highly of the upbidding OF
Tobacco stock Immediately following
the action of the Supreme Court, In
ordering the dissolution of the stand.
ard OIL Company. They feared that
such a demonstration upon the eve OF
decision in it's own case-whlcn
nearly every one believed must result
in the company's own dissolution
would have an unfavorable influence
Nhr4t,rhn,tt hn HnnnfrV
result in more drastic legislation.
The Tobacco Decision
Naturally there is the simple as well
as the complex explanation of the re-
markable advance and the subsequent
extraordinary decline N Tobacco
stock. AS stated a week ago Wall
Street was full of rumors of the great
potential value of the common stock
OF the company in liquidation, ana
estimates were current and credited
that this would figure out at least
$500 a share. The advance was nat
urally based upon this. but no one
apparently. had figured upon the pos
sibiIity of the action of the Supreme
Court in referring the final solution
of the case back to the Circuit Court
of Appeals, charging that tribunal
with the task of constructing raw
full company or companies out OF the
elements which compose the illegal
corporation. That naturally put
somewhat different aspect on the
problem of liquidation. and involves
long delay and uncertainty.
thoroughly convinced when the stock
market reassembled for business on
Wednesday, after the holiday OF
Tuesday, that the industrial trust
question was about as far away from
a definite settlement as ever, and IN
some quarters, that opinion still pre-
walls. 1t is thoroughly recognized,
of course, that the rule of reason
will play a very important part with
the lower courts in interpreting the
antitrust act, in each case that
comes before them. but very many
bankers and corporation managers
are anxious to see the results or the
lower courts work In reconstructing
the tobacco company before pro-
nouncing the problem as definitely
solved.
Decline and Recovery.
Just what proportion of the break
in prices on Wednesday is assignable
to the Tobacco trust decision. and
ust what proportion is assignable to
the general Icut in Steel prices, will
never be known. There are men in
Wall Street who assert that neither
the one development or the other
played any considerable part in the
reaction, and that a greater influence
than either was exerted by the re-
marks of Attorney General Wicker
sham on the prospects and POSSIBLE
tiles of criminal prosecutions Of cor
poration managers found guilty OF
maintaining monopolies and restrain
ing trade. In addition TO these three
t-a nfh
unsettling features in Wednesdays
market such, for instance, as the
ventilation of ancient grievances dat
ing back to 1907, which confused the
whole situation.
Since the general security list, in
the later days of the week, recovered
all the declines and advanced, It
would prove a protitless inquiry to
seek to determine the relative in
fiuence of the various factors which
said that in the larger commission
houses the topic most discussed while
reaction was in progress was the
delay of eight or nine months which
pany could be Strengthened out, and
the prospect of further Industrial
trust prosecutions. With the recov-
cry speculative sentiment underwent
change for the better, as is always
the case, but this does not alter the
pressed on Wednesday.
Active Professional Work.
If the late advance in stocks was
not wholly convincing to men who
listened to the complaints of the
commission brokers over the con-
tinued absence of the public, it was
certainly Impressive. In fact, If the
developments Of the week accom-
plished nothing else, they certainly
demonstrated beyond question the
great strength of the technical stock
market position. That the selling
which influenced Wednesdays decline
was chiefly of professional origin is
rather clearly shown by the subse-
quent rally, which had every appear
ance of short covering, and, in fact,
this improvement set in before the
close of Wednesdays session, which
cepted in the financial district that
the whole performance was of pro-
fessional origin.
The decline was checked before It
gained Roadway or reached a point
where real liquidation might have been
forced One heard those mysterious
stories, which at times pass through
origin of which one Is rarely, If ever
able to trace. On this occasion it was
to the effect that railway stocks could
be bought for an advance, though in
dustrials might languish. As matter
of fact the leading industrials acted
fully as well as the railways, but the
original stories that passed from broker
to broker, or came into various offices
over the telephone, did not have II that