The Washington herald., 1913-04-08
STOCKS WEAKEN
IN LAST HOUR
Market Gives Good Account
of Itself When Influences
Are Considered.
NO RATE DECISION
Expert View of the Minnesota Case.
Tobacco Companies at War.
Gossip of the Street.
BY !. A. FLEMING.

BY j. A. FLEMING.
Under the circumstances. the stock
market gave a good account of itself
yesterday, although declines averaging
about 81 of a point were established and
some of 1a2 points. But considering the
continual rise Of last week. the limited
extent of profit-taking. the uneasiness
over the foreign situation. where danger
turks in the bullying of the little fellow,
of the tightness Of money, comparatively,
OF the tariff fight. with the certainty of
making that venerable old fellow
Tarif-look like 80 centimes, after Con-
gress completes the operation-consider-
ing all these, the market acted very
We'll indeed.
But there was more than the burden
noted to be taken into consideration.
Once again the street has passed a day
waiting on the pleasure of the Supreme
Court-waiting in vain for the Mime
sofa rate decision. Verify, our honored
justices of the highest court must have
found weighty matters bearing on this
case that it takes months for decision
and the street has been led TO think IL
simple.
The only important case, from a mar
ket standpoint, was the d. per cent sales
agreement between the Reading and a
number of coal companies. The decision
was simply a remand to the lower courts
on technicalities and adds one more
mystery i'm the haze around Reading.
The commodity clause is modified out
right. so far as the Pennsylvania Coal
Company is concerned, but remands
other cases
Market Acts Well.
Immediately following the opening the
market eased of but came good and
strong again. and was but a fraction I'M
der the closing prices on Saturday up
TO the last half hour of the session, al
though there were specialties that were
weak throughout. especially Mexican Oil
and Chesapeake and Ohio. while Copper
WAS easier on the drop in prices in Lon
don. - /
But in the last hour. when il became
known that there would be no decision, |
the selling movement was materially in |
creased. bears taking chance of max /!
ing a turn and finding stocks unsup- |
ported. forced declines of 5-Sal and &C. |
casionally 1-2ae points. Reading. which !
had sold up to l66 IS and off to 164 ga, |
closed at 165 is, a nominal loss for the
session. Union Pacific lost a point. |
Chesapeake and Ohio dropped to &C. or
> 3-S of and back to Sc 81
Mexican Oil lost nearly points. South |
ern Pacific. ! 3-S and New York Gas /
] 81 Cotton Oil was off IA
Beet Sugar. on the persistent efforts
of tho President for free sugar. dropped /
off : points.
The delay in the Minnesota rate case
and the unsatisfactory Reading decision
destroyed the theory advanced last week
that some one had leaked.
The Minnesota Rate Case.
General Solicitor Rich of the Boston
and Maine. says: There has been un-
due apprehension as to a possible ad-
verse decision in the Minnesota rate
case. The Circuit Court made definite
findings of law on facts presented. It
would be surprising if it accurately in
terpreted the law in every instance. 1t
might be necessary to send the case
hack to the Circuit Court with instruc-
lions 70 proceed under some other in
depreciation on some particular point.
IF the decision of the Supreme Court
supported the Circuit Court on every
point il would be decision of ire
mendous Importance and stablish the
railroads on a financial ba sis impregnable
to assault by State or Federal Legis-
latures or commissions 1t would take
from State governments practical con-
troll of most State rates thus accentu-
ating the movement toward Federal con-
determinatio of the principle that a
railroad is entitled to at least Z per cent,
not on present physical valuation, but
on the cost of reproducing.
1T could be safely said, then, in case
of. for instance, the New Haven, the
fair value would be not merely hun
dred million in excess Of liabilities as
Commission. but probably s2o0ooo,0Oo ex-
cess assets
Up to the present, the Supreme Court
has decided that a railroad is entitled
TO a fair return on fair value of prop
erty. in the Minnesota case the Circuit
Court attempted TO determine elements
entering into fair returns and fair value |
i certainly would be strange IL the Cir
cult Court had not erred in some OF the
points
IF the decision of the Supreme Court |
should be adverse and the case remanded
to the Circuit Court, ii would probably
be under instructions to be used as a
guide in rendering A new decision. Finan-
cial interests must not be disappointed If
the Supreme Court does not go as far as
the lower tribunal
Tobacco wa-.
The three large tobacco companies
American Tobacco Company, Liggett &
Myers. and the Lorillard Company-haye
'hNii t'iiSc-SottiHS WdT vi ClS-
arettes that was started early last year
on the strictly scent bra nds The pres
ent price-cutting involves higher-priced
cigarettes. chiefly on the Decent class
This latest trouble has apparently been
provoked by the Lorillard Company In,
which distributed some valuable slips
with two of its Decent brands of cigar
cites. Hardly had the new order gone
INTO effect before the American Tobacco
Company responded with an announce
nent that il would distribute two silk
rugs with one Of its competing brands.
Today the American Tobacco COMPANY
has gone even further and announced
hat four coupons, each redeemable ut
)ne-half cent. viii! be distributed with
,ne brand. The Liggett & Myers Com
oany is expected to meet these heavy
price reductions of its strong competi- ]
ors
Those on the inside in the tobacco in 4
iustry are wondering what the end will
20 in this price-cuttinG war.
SuccessfuIIy JnauEurated.
The temporary quarters of the Security q
evings and Commercial Bank at 100 /
'inth Street Northwest, was a veritable
over OF roses when the doors opened this
lorning. Roses and complimentary de-
osits were sent to President Julius /.
'eyser from many uptown banks. and
hey were accompanied with best wishes 80
pr success in the upbuilding of WASH
igton's baby" bank. although no one
an tell how soon the title may be taken s,