The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-12-15
WHY A CONSERVATIVE
COURSE Is PROPER

James a. Pollock & Co, bankers and
brokers, furnish the following, received
noon:
Paine. Webbcr & Co.. Boston-Both
markets continued TO drag today, with
| only small rallies. Amagamated showed
! greatest pressure in the New York list
and this affected the local coppers. Lo-
cally the selling is all coming from en-
| hausted margin accounts ana IL Wiil
| take some time TO clear the situation.
Most OF the diyidcnd-psying coppers are
now selling 10 return from I to 10 per
cent and intrinsicaly they should be 4
conditions we think they will probably
sell lower. We advise cash purchases
on scale down, but advise Tightening
all margined accounts to avoid necessary
severe break.
Logan & Bryan, New York-The stock
market displayed very little resillency
today and operations We're mostly OF an
evening up nature: that is, on the part
OF scattered longs. there being little evil
dcnco OF nervousness among shorts. The
rather confident predictions to the ef-
feet that the supreme court next Mon
da would make know It's findings In
some of the Important cases under con-
| sideration of interest in the financial
heavy pressure on Reading In the last
half hour. and the grangers, particu-
| larly the northwest lines. did not act as
| though extremely favorable conclusions
rate case findings were handed down
Quite a little time has been devoted
of the decision in the Union Paclhc
| merger suit. but even so, the full sig
| niiicance of the same in its probable bear
ing on other lines does not appear to
| have been fully realized, The tre-
| mendous significance Of the findings
| seems TO lie in the fact that many rail-
road combinations and industrial con-
| solidations heretofore considered i'm
mune are likely to be subjected to the
| test OF the Sherman laws application
that is. based on the latest construction
OF the latter-which, in effect. appears to
be that the scope of combinations and
their power to suppress or stifle oompe-
tition OF create monopoly is what gov
crns the application OF the act.
stifle, whether exercised or not. has be-
come the issue, and a close reading of
the decision makes it quite apparent that
the law looka at the substance Of a
seemingly controverts the generally ac-
copied Idea that dominant control Is not
In existence unless the same embraces
over 80 per cent Of an output or SO per
| cent stock ownership II one were to re-
fleet over the Capitalization which has
taken place during the past score OF
years, that is, in fields of corporate en-
deavor. many instances would promptly
come to mind which would suggest that
quite few OF our corporations will have
problems ems trn to GraPRs with aS and that
are likely to be forced to alter their
corporate forms in keeping with the ac-
ton of the Union Pacific.
We mention all Of the foregoing: as
we believe it worthy of consideration.
but In connection with same 1t should
oe borne IN mind that conflscation will
not be the order Of things. though ad-
mittedly corporate profits are likely to
be reduced as consequence OF increased
competition and administration expenses
growing out OF such conditions as those
TO which we have referred We believe
that a very conservative course is ad-
visable In. the security markets and we
strongly advise the reduction of long
lines. particularly industrials