The Washington times., 1911-05-16
FOREIGN MARKETS
FLOODED BY SHORTS
IN EFFORT TOCOVER
Wall Street Found Little
Sleep Last Night-Sav-
/ ing Clause Found.

NEW YORK, May 16-wan Street, in
dividually and collectively, did not sleep
much last night. There was fear in all
hearts and dread of the opening of the
Stock Exchange today.
Along toward midnight 1t was 7whis-
pered among consulting financiers that
there was a saving clause in the opin-
ion of the Chief Justice of the Supreme
Court; that the court, with the excep-
ton of the veteran Justice Harlan, had
agreed that there really was a differ
ence between reasonable and 'un-
reasonable restraint.
Wall Street interests saw a CLEAN Of
light and they flooded the London Stock
Exchange with buying orders. sending
terror through the bear hordes who
had been celebrating the victory and
were preparing for the gathering Of the
spoils in the morning.
The result was that all-night openings
were held in brokerage offices, and the
thoroughly scared shorts were UP be-
times in an effort to cover at the ex-
pense OF the foreigners. Orders were
also sent to the Paris and Berlin
bourses, and. instead of the expected
smashing of values, there was a general
upturn that continued during the entire
morning, with every prospect of the
close Of the day showing a large per-
Centage of the gains held.
Ready for Slump.
In every brokerage and commission
office crowds gathered, but they were
present to witness the dumping Of
stock and had not expected the rally
that marked the Streets understand
ing of the ruling that has been so
long expected, even dreaded. and yet
hoped for as the one thing necessary
to bring back lost activity.
AS showing the full effect CT the de-
cision on the Standard Oil stock alone
it opened at s675, as compared with
closing at S679 Yesterday. and immedi-
stely rose TO sCS5, dropping back to $3.50
a share on very limited operations.
AS the session wore on careful OBJ
merits of the decision, the general opn-
ion being that 1t could not have been
otherwise with regard to the Standard
Oil Company. and that, while II might
lead other corporations in a long file
under the guidance of the Attorney
General of the United States before the
Supreme Court, that individual status
might be passed upon, still there was in
the decision assurance that a corpora
ton holding to the letter of the law in
the matter of competition. and not fol-
lowing the admitted grasping and COM
petition destroying tactics of the Stand
ard Oil Company might be safe against
interruption in the conduct Of its busi-
ness.
No one cared particularly about the
Tobacco decision, the attitude % the
highest court having been specific and
with an eight to one vote.
q To Obey Decree.
M. F. Elliot, chief counsel OF the
Standard OIL Company. said: The
Standard Oil Company will obey the
decree of the court All the COM
panies embraced in the courts de-
crees will carry on business as usual
s under the directions of their officers
and through their separate corporate
: Organization"
Z Wall Street interests commenced
figuring on the immense cash surplus
= Of the Standard Oil Company, and the
opinion was freely expressed that this
vast treasure would be distributed.
Most of the early trading was by
traders who were caught short of the
!. market and who expected that the
decision would be against the big oil
combine and therefore enable them to
make a handsome turn.
Practically everything on the list
moved up and sharply. Not in months
has there been anything like the a
tivity THAI characterized the opening.
Prophets who have not prophesied for
months talked freely of the bull market
between now and the Presidential cleo
ton, and the Street as a unit congratu-
lated itself on the ending of the weary
waiting. What the aftermath may bring
remains TO be seen-no one seemed to
care, the present was alive with interest
and action.
& The Street also looked on the decision
as settling the much mooted question
rs to whether the alliance between the
Union Pacific and Southern Pacific sys-
TENS was in restraint OF trade" and
decided that It was not, and therefore
that the suit Of the Government for the
dissolution OF these relations would not
be ordered when the case finally reaches
the Supreme Court. The gains in the
general market varied from a point to
Z s15 points, and everything shared in the
advance.