New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-23
REVIEW OF THE
WEEK IN FINANCE
Administrations Anti Trust
Bills Far Less Drastic
than Was Feared.
RFDISCOUNT PAPER
TO DISTURB TRADE
Hope of Better Business When
Warmer Weather Comes
Money Abundant.

Money Abundant.
Trading in securities was again loi
the most part dull and listless through
last week, general price movements
being based OH professional operations
with little outside buying or liquida-
lion save that furnished by operations
for foreign account. Bond transactions
showed small investment demand, with
the more speculative issues prominent.
Confidence to encourage revival or IN
dustry as we'll as movement I'm secur1-
ties is still lacking here and abroad.
London was depressed by the Home
Rule crisis. and the rather unstable
position in Paris was further unsettled
by the assassination Of the editor oil
lie Figaro" by the wife of the trench
Minister OF Finance. The two anti
trust administration bills introduced
last week 10 prohibit improper hold
ing companies and to establish an in
terstate trade commission were con-
siderably less drastic than had been
feared. Hope is being manifested that
with less hostility in Washington and
spring buying this country may see an
Improvement in business such as is eX-
pected in Europe.
The Interstate Trade Commission, as
outlined in the administration bill,
practically Is TO take over the power OF
the Bureau Of Corporations with 1t
tie more discretion as TO how far 1t is
to 60 in making public the information
it obtains. If it is conceded that
federal commission is the best remedy
for corporation abuses, wise begin
ming has been made by creating such
a body with a rather limited field of
activity. As the commission sees the
need Of greater power and wider duties
II can obtain legislation required for
its development.
State Laws Call for Subsidsr
The bill to prohibit unlawful re-
straint Of trade through holding COM
panies, as introduced, would extend the
provisions Of the Sherman law already
applying so as TO include the lessening
Of competition. This rather ambigu-
Gus expression may be modified later;
otherwise the bills seem drawn with
the attempt TO avoid interference with
those forms Of holding companies that
are properly Of benefit in the develop
ment OF industry. For one thing. such
devices are needed in this country be-
cause Of the varying jurisdictions of
different states. If subsidiary concerns
were not allowed, parent companies
would often be compelled to pay taxes
on their entire business TO many diff
ferent states in which they operate.
Again, as in Pennsylvania, companies
TO own real estate must be chartered
under the law Of the commonwealth in
which the real estate is located. In
addition TO these many jurisdictions
within our own borders, foreign sub
salaries are needed to comply with the
laws of other nations.
The great growth in public utilities
during the last few years has been in
a large measure made possible by
holding companies that have supplied
to small gas. electric and traction cor
porations capital to meet the needs Of
growing communities. Independent
local concerns are often unable. with
their comparatively limited field from
which 10 borrow, 10 raise funds beyond
the requirements Of original construc-
ton. When plant, tracks or equipment
depTeciate there is often no way TO
float securities to replace them. In ad-
dition, II takes broad view OF bust
ness conditions 70 understand that in
creased earnings depend on expendi-
ture OF capital beyond present require
ments. Holding companies can supply
the needed funds through their larger
issues Of securities covering many local
concerns. and can also give the service
Of their experience in engineering man
agement as well as in financing. These
two uses Of the holding device are 10
be preserved by the proposed law, and
the provisions Of the law are not made
retroactive.
The position Of investment COM
panies, more common abroad than in
this country, is not so clear When
small investors unite through the
agency Of great banking house TO
purchase the securities of a company
that distributes It's investments
through the bonds and shares of many
corporations. it is possible that some
OF these may be competitors. In this
country, too. some Of the great char
liable and philanthropic foundations
must include in their holdings securi-
ties Of competitive companies.
Commercial Paper Disturbance.
Unfortunately the requirement of
the federal reserve act that commercial
paper eligible for redlscount in a re-
gional bank must arise from the pur-
chase OF commodities will apparently
cause a disturbing readjustment Of
trade practices. TO make our none
tary system more elastic, currency is
TO be based on mercantile bills that