The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-05-15
A BUSINESS REVIEW or THE
PAST WEEK BY HENRY CLEWS
fAmerican News service)

american News Service)
New York, May 1.-THE close ap.
proach Of the supreme court decisions
In the trust cases seems once again to
have retarded trading in Stock Elk
change securities. 1t is, of course. i'm
possible to foretell with any definite
claim of accuracy the action of our
highest tribunal, which, very properly.
keeps its plans and movements to it.
self. l am of the opinion. however.
that one. II not both the trust rulings,
will be handed down about noon next
Monday.
The supreme court has already so
clearly indicated in recent decisions
its determination to place nothing but
the strictest interrogation on matters
pertaining to trade restraints, that the
popular expectation of adverse rulings
be understood that it is not within the
province of our supreme court to out
line to the corporations concerned
how they may readjust their affairs
to meet legal requirements. The pro-
vince of the supreme court is to deal
vasion of legal practice. The court
can show wherein the law is being vio-
lated. but, after that. 1t will rest up
on the proper officials to adjust the af-
fairs of their corporations according
ly. In this respect, however. there
will be no special difficulty experience
ed. as the executives of the Standard
~ nhoh oY
the American Tobacco Co., have in
the past shown themselves to be such
shrewd and efficient business men
that 1t would be childish to believe
arrangements have not already been
considered to promptly take whatever
action may be necessary to comply
with the decisions whichever way
they may go.
With the trust decisions out of the
way, the outlook can hardly be view.
ed in other than a most favorable
light. 1t Is true that the current Ia
riff legislation has not yet assumed a
definite trend, but it will simply be re-
peating precedent to say that when
ever such a trend becomes available
and 1t must in the very near future
1t will not take the stock market Tong
to fully discount the improvement in
general business that will necessarily
ensue. Recently we have been going
through a protraeted period of bust
ness and industrial recession which
means that consumers have been
clearing up surplus stocks of merchan-
disc in all the various channels of
manufacturing and distribution that
from the mill down through the vari-
Gus handlers end with the retailer.
When the improvement which must
eventually come does begin, 1t must
assume a spectacular impetus. all the
more active because of the accumulat-
ed demand.
This country is not one to stand con-
tinued depression. Its natural re-
ed; its farms and it's mines produce
each year volume of new wealth that
cannot fail to prove invincible in the
direction of encouraging enthusiasm,
energy and progress. And this new
wealth constitutes the fountain-head
of natural cycle of development that
applies to all branches of finance,
trade and industry. Depression under
such circumstances is largely matter
of temporary sentiment. In dull
times people prepare for curtailment
and are not inclined to any way risk
their principal, which is their share
of the capital that is SO necessary for
the normal development of our great
country. But as soon as business and
industry begin to expand. confidence
quickly follows in the wake, and it
does not take long for the savings OF
the people to seek employment in the
security markets, and thus provide the
capital which our railroads need for
their proper upkeep. improvements
and extensions. The railroads in their
turn are by far the largest customers
of the iron and steel industry. When
that industry in sequence becomes ac-
tive and profitable the natural order
of events is for these favorable de-
velOpments to spread automatically to
all the other branches of the financial
and industrial family. The financial
upheaval of 1907 started more espe-
cially as the result of the inability
Of the railroads to obtain the neces-
sary new capital to finance the gigan-
tic improvements that under the
stimulus of the unprecedented period
of Industrial and mercantile activity
was then in progress. To lesser de-
gree the current recession in business
must also be attributed to the indispo-
sition of our railroad managers to go
into debt to purchase supplies in suf-
ficent quantities to keep our iron and
steel mills fully employed. The in
creased cost of operation. especially
of labor, made it necessary for the