Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1911-12-04
WALL STREET AND BUSINESS.

1t is difficult to realize today that only a
few weeks ago the financial community in this |
country was plunged into darkest peSsimsm
by the uncertainties surrounding the govern
ment s program for the enforcement Of the Shcr
man law and the fear that business III corporate
form could not be brought within the require
mentS of this law without ireparable injury.
Held in the thraldom of this thought. Wall
Street. was as blue us indigo BeariSh views
and predictions were carried to extremes and
revulsion Of feeling was inevitable. This
change in sentiment has been brought about
primarily, however. merely by assurances voiced
by federal court. and by the United States
supreme court and by the United States attor-
ney general that business and the Sherman law
be so reconciled to parallel lines
and not conflict at numerous points. without i'm
posing any lasting harships upon the corpora
tons which have fallen under the law en-.
forccment or are still to be made to conform to
it. Thus have fears been diSS pated and the
influence which heretofore prevented these mar
kets from rejecting the gradual Improvement in
business been removed. Market sentiment has
changed within the last fortnight from darkest
pessmism to brightest optimism for, with the
spread of the belief that the workings Of the
Sherman law can now be reduced to something
tangible which may be brought within the scope
Of judgment instead of being left in the realm
Of uncertainty, dominated by fear Of its effect
upon business, has come the clear perception Of
improvement in those barometcrs Of business
condtions-the iron. steel and copper industries.
y practical demonstration of the Importance
TO the business of this country Of the applca-
ton to the Sherman law of the rule of reason,
laid down by the United States supreme
court on May 10 and %, has now been supplied
by the United States circuit court in its APP
proval OF the plan for the reorganization Of that
portion of the tobacco industry controlled by
the American Tobacco company and by the re
q allow he indpDpO1pOt n
bacco interests to intervene in the ease. as well
as by the attorney general, III his announcement
that he will not appeal from the lower court S
decree. No obstacle of any real moment now
appears to- be left in the way of putting into
effect the American Tobacco companys plan.
Similarly, the Standard Oil company is encount-
ering serious obstacle in effecting the disso-
luton and reconstruction OF its business and it
is unlikely that the International Harvester
company will experience any great difficulty or
hardship i'll arranging and carrying out the dis
indignation and reconstruction which the attOr-
ney general has outlined as IA guide for it in the
recreation Of its business. The principle that
mere bigness in trade manufacture does not in
itself constitute crime, which first prOmul-
gated by this newspaper several years ago is
now being voiced not only by the attorney gen
cral but by former president and many other
authorities on economics and constitutional and
corporation law who pointing out the fact
that the antitrust decisions, made to date, have
opened the way for constructive application
Of the court DEGREES under the Sherman law to
the solution of the corporation problem, in
which much progress has now been made.
With the removal Of the cloud of uncer-
tainty, distrilst and fear which hitherto had
overcast the business and financial horizon by
suggesting unnecessary hardships to corpora
tions whose business must be made to conform
to the Sherman law, increasing commercial
activity had been noted all sides. In the
steel trade the railroads shave re-entered the
maret for large tonnageS Of steel rails, struct
ura material for bridge work and for new roll
ing stock, including many hundreds of new
freight and passenger requiring large ton
nageS of plates and steel shapes, nuts and bolts
The augmented output of the steel mills has
nccessitated the buying of more basic and hes
semer pig iron and has stimulated the demand
for foundry and forge iron as well as for the
aforementioned steel making varieties The
margin Of profit available for the steel manu-
facturers has been curtailed by recent price re
auctions some Of the finished and semi-fn
ished products, but the increased volume OF
business is practically compensating for this di
minution of profits and, with the general re
vival of the demand for both iron and steel !
gradual and normal restoration of the prices OF
these products to their former levels is looked
for The copper industry has enjoyed CORES