The Washington times., 1912-03-31
INTERESTING WEEK IN STOCK TRADE &c..
WITH PUBLIC TAKING SOME NOTICE
Distribution But Stocks Well TaenTwoSided
Nearly DaySome of the Most Important Factors Were Ignored
~ Steel Corporations Boowing-Nloney Frmer.
BY
ntat Nuns

properties of the concern to provide,
among other things, $17,00O,000 additional
working capital. OF course, matter
of this kind is subjected to various in
terpretations, and naturally the bond
Ing of the Gary plant after the Street
had gained the impression from state
ments of officials that its cost would
be met from surplus earnings called
forth some adverse comments.
II must be apparent TO every one,
however, that the situation has changed
materially both with the corporations
and with the industry temporarily, since
the company announced its intention of
meeting the whole cost of new plants,
extensions, and improvements from
surplus. No one questions, for instance,
that an amount OF money very many
times more than $9O,5OO,0oo has been put
back into the corcern from its earnings,
and since the present depression of the
iron and steel industry has been excep-
tlonal and severe the company proceeds
In thoroughly proper manner to pro-
vide itself with needed funds through
a mortgage loan, and in doing SO one
should not overlook the Government
suit for a dissolution of the company,
which, no doubt, alters the company's
status as a borrower of money to some
extent. No man or corporation with
law suits hanging over their heads, in
Volvtng the title TO property, is in the
same position rs those whose title is
unquestioned, and the feature may play
some part in the present change in the
company's policy.
The Chicago Packers Suit.
But as to trust suits it may be said
that another feature of the week was,
from the corporation point of view,
wholly reassuring. The incident was.
Of course, the failure of tine Govern
ment's suit against the Chicago pack
ers under the conspiracy or penal
clause of the Sherman antitrust act
1t has long been known that the Gov.
crnrnent is very anxious to secure a ver-
dict in its favor on the penal provision
of the law, and that It bent all It's ener-
gies in that direction in the case of the
packers, which, II was held, was much
easier of demonstration than others. In
fact, Attorney General Wickersha.n n
was most emphatic in speaking of the
case in his famous White Mountain in
terView last summer.
That there was a combination among
the packers is not disputed. but the
figures and statistics produced by the
Government appear to have been too
complicated for the jury to grasp, and
as they could not find that the con-
sumner had suffered from the price fixing
of meat products by the combination.
they brought in a verdict of not guilty.
Without doubt this is something of
relief to numerous persons associated
with conspicuous trusts. Realizing that
the mere dissolution of the combina-
tions has worked no injury, many of
them feared that the penal provisions
| would be pushed more vigorously, which
seems TO have been the case. In conse-
quence the failure of the Government In
this case, goes a long way in minimiz-
! Ing the terrors which the antitrust
/ prosecution at one time had for promi-
| nent citizens
Money and a Bank Deficit.
Bank exchanges have shown a de-
cided expansion during the week, and,
| although a larger amount of business
in the West and South is in part re-
sponsible for this. as is shown by an
increase OF 12.4 per cent in the clear
ances of interior cities, the most con-
| siderable gains are undoubtedly due to
the revival of speculation at this point
the exchanges OF New York city alone
| showing an expansion of no less than
week last year. As natural result OF
! an increasing demand, money rates
have hardened. Call loans again
touched 3 per cent, and time money ad-
| Vanced about Il per cent, ruling at 3h
to 3a4 per cent for ninety days and Sa4
| to per cent for four. five, and six
months. Heavy borrowing by Germany
at and per cent was reported. and
| the money situation in that market is
being watched with great interest.
| Another deficit in the reserves of the
! banks was reported in today's bank
statement of banks alone" this being
| the second which has occurred since the
panic of 1907. OF course, the new
method of reporting the bank state
ments, showing the returns of banks
and trust companies combined. instead
of separate, Conceals the impaired re-
| serves from the rank and file, other
wise Wall Street might get a nervous
| fit AS 1t Is. however. the actual state
ment OF all institutions, banks and
| trust companies, shows excess reserve
| of but $4S7, $50. No doubt the April
| disbursements had much to do with
| such violent changes, as a loss OF SILL
147. $50 in actual surplus reserve and of
SO, 1874, 900 in cash holdings, Loans eX-
panded $13,S29.oOO.