The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-10-27
SAY GOVERNMENT
IS RESPONSIBLE
HIGH FINANCTERs, FEEL THAT IT
Is NOT THEIR DUTY To
TAKE ACTION.
M A r K e r SITUATION
SUIT AGAINST STEEL CORPORATION
MAY CAUSE PANIC-REDEEM
ING FEATURE Is OPEN
FIGHT.
M A R K E T SITUATION
BY THOMAS c. sHoTWFLL,


NEW YORK. Oct. 2e.--Suit fo- dis
solution of the United States steel
Corporation was begun by the United
States government this afternoon. Be-
cause the suit was not filed until the
stock market had closed, the public
III general had no opportunity to cx-
press its sentiments regarding this
suit in the market. Directors OF the
steel trust, while they deny knowing
tho suit would be filed to-day, do
admit that they expected 1t soon.
This was the cause of the hasty
special meeting OF directors that was
held this morning. and at wkich Flr-
mai action was taken cancelling the
lease for he Great Northern ore
lands and reducing the rate on ore
over the corporations railroads In he
Northwest from 50 to so cents a ton
by King this hasty action the
trust will be able to plead In court
that these things were done before
the suit was flied, and this Ia sup
posed to be d legal advantage, The
pretext that the ore lease Is cancelled
because It's terms are unfavorable has
apparently been abandoned.
This dissolution suit comes at an
unfortunate moment for the ordinary
stockholder, The stock markets tech
nical condition has been weakened by
free covering of short contracts Near
ly all the professionals have been ex-
pecting a rally, intended TO take ad-
vantage of 1t for heavy short sales
The public in general has neglected
TO nquidate because most people plan
ned 10 sell out as the market adj
yauced
Market Condition.
The market il therefore In a vui
nerable position and Will yield easily
To any concerted attacks such as It
Is quite possible for several specula-
tive directors Of the steel trust to en-
gineer. The steel corporation has
more than 100000 stockholders, iii
OF whom Will be alarmed at this move
by the government. Standard oil ami
tobacco stocks verb closely held, and
action OF those shares after suit was
filed furnishes no precedent for tudg-
ing the present instance.
Not only are the steel shares wide
lv held, but they are in the hands Of
tens of thousands Of persons who are
already distrustful OF the high inan-
ciers In charge Of the steel trust, and
who will be quick to side with the
government IN its contention that the
trust Is Illegal European stoekhold-
ers will be bewildered by this move
rnent OF the government and are al
-ses..s%-4-E +.--sIata~-of aiaru1-----------
High flnanciers. who ordinarily
would support the market. feel that
1t Is not their duty to protect the
public under the circumstances. be-
cause the attack is made by the gov
ernnent and IT alone will be respon
lresr bs3Ef Il
these high iinaneiers may have work
enough taking care OF Themselves A
syndicate 10 protect the market would
probably be an illegal CONSPIRACY nm
N der. the Sherman an u TRUST, Law. Tne
situation is extremely serious, and
while tomorrow may pass without
panic in the stock market, there Is
no human being who can tell what
the 100. o00 shareholders OF the steel
trust may attempt to do under the
excitement of this suit.
All Are Illegal.
Resides II the steal trust Is coasid-
cred Illegal by the government prae-
ticaliy every other holding company
In America is Illegal. Thus stock
holders of every other combination. Of
whom there are several million, VIII
he ms much concerned in the market
Of Tomorrow as the stockholders Of
the steel trust win be. Every In
weston in America should be made to
realize what this suit against the
steel corporation means.
Fortunately readers Of this column
have had ample warning to get out
OF their stocks. but other millions of
Investors will be caught owning se-
curities WHICH the government has
now officially begun action to have
declared Illegal. There are thousands
OF Investors who do not like to own
stock in law suit. and they will
ssll even though they may believe
the steel corporation win prove its
LEGALITY after a long fight.
The security markets for most have
been subjected to attacks BY politi-
clans ard professional traders who
have made millions of dollars first. as
q result OF the partial crop failure.
ana second as a result OF the popular
fear That the great corporations would
be attacked by the wuverntnent. II
Il had not been for the crop disaster
the decline in stocks aleeAdy recorded
would have been . snficient discount
OF about hundred dissolution suits
that are to he filed by the govern
ment
$50 New in the Open
AT least tw0-thirds III the decline
MS ! direct result " .the crop dis-
asea1 nd ~ - .5ae 80 ~