New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-01
FINANCIAL MARKET
American Tobacco Decision En-
courageS Heavy Selling
of Stocks.

Decline in Yesterdays stock marke,
merely represented profit taking on
securities bought at lower levels, the
liquidation Of weak bull accounts ana
bear pressure induced by the expectation
that the ruling by the Supreme Court IN
the government suit against the Ameri-
can Tobacco Company would lead 70
selling by holders Of stocks not well in
formed regarding the real meaning OF
the courts decree. There is nothing in
the decision that will make the tobacco
business in this country less profitable
than recorded in the past. Property OF
the American Tobacco Company is not
TO he Conf1scated. vested rights are not
10 be weakened and combinations based
on economic laws are not TO he inter
fered with Both the American Tobacco
Company and the STANDARD oil COMPANY
have been ordered to readjust their al
fairs 10 comply to the law Of the land
Such an order does not involve the
wiping out Of the business of either con
Germ. but Wall Street-that is, the pro-
fessional stock market part Of the Street
| is endeavoring for financial reasons Of
its own to convince the investment com
munitv that under the ruling Of the SUI
preme Court in the oil and tobacco cases
! all corporations eventually must go to
pieces Of course at the moment the
/ situation as regards the American To-
| bacco COMPANY and the Standard Oil
COMPANY is mixed and complicated but
| il is absurd to entertain fol moment
| the idea that the best legal talent in the
country employed by these concerns will
not be able u draw I'D plans for reOr-
gsnization that will conform 10 the law
and provide full protection 10 every cent
| invested in the oil and tobacco business.
! The country has no use for monop-
oies and the sooner they are eliminated
the better for money and business. Max
/ imum declines among the active issues
ran from more than ! point 10 more than
. points. while on the curb American
/ Tobacco common recorded decline Of
more than 100 points from the high level
reached following the STANDARD oil de
cision. sales. however. being confined to
a small total In the bond department
Of the Stock Exchange American To-
bacco is declined from an opening at
1O6i. 10 under 104 while the Is adj
vanced from the first price Of S11q to
above 90 both issues moving on the
theory that in any reorganization Of the
/ IL trd at
rar. 4 weak bull account was sold out
i'm the course Of the day. while weak
bear account was created. Big houses
we're BUYERS for big men. The substan-
tial financial interests made no attempt
10 advance prices. but they appeared
quite willing 10 take stocks on the de
cline-that is, holding the bag FOR the
bears who doubtless Will experience
! difficulty in retiring their contracts at
some subsequent period American To-
bacco preferred on small sales was the
weakest feature on the Stock Exchange
list. selling down more than points
The general market closed with prices
ranvins. Chesapeake q Ohio was the
| GaN { one SlIOiS l'dlui's 'ol''i 'Dilililpii
was sold in enormous volume with n net
loss Of only rs. offerings Of the issue
were taken by substantial houses.
owing to the large shipments Of gold
coin i'm Canada through Withdrawals Of
the metal from the Sub-Treasury the
local banks have lost a large amount Of
| money on their operations with the gov
eminent i'm recent days but the loss has
not been heavy enough To bring about an
advance in money rates. Bank reserves
at this centre are enormous. The re-
serve above legal requirements Of the
clearing House institutions. as shown in
last Saturdays bank statement is larger
than ordinarily reported at this period Of
the wear. and from current indications
there will he no material contraction IT,
cash and surplus holdings in the i'm
mediate future, as the Canadian demand
for funds on this centre is subsiding,
while interior exchange is running in
favor Of New York az q time when the
local inquiry for accommodation is light.