The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-07
FINANCIALREVIEW
OF THE PAST WEEK
Decision In Steel Suit q New
Franchise Of Corporate
Freedom.
HELPFUL TO ALL VALUES

II 10 no wonder that the stock market
made such q violent Jump upward last
Friday morning in response to the news
overnight about tho sweeping decision
rendered by the United States Circuit
Court at Trenton in favor Of the United
States Steel Corporation in tho Gov
eminent suit brought under the Sher-
man antitrust law nearly four years
ago. That quoted values after their
early advance seemed to be subject to
check did not In any way qualify the
significance OF the first forward i'm
pulse. At present prudence imposes
certain restraints on the expression OF
financial optimism. restraints derived
from the continuing uncertainties OF In
ternational relations. Making all due
allowance for prudential considerations,
however, the tendency which the stock
market promptly displayed In reflection
Of the outcome of the Steel suit was an
unmistakable token OF the way in which
the result OF tho litigation commended
itself to financial Judgment n was a
hint of the momentous contribution
made by the decision to the strength OF
present arguments for maintaining a
hopeful view Of tho financial and busi-
ness outlook.
The frst effect OF the decision ~as to
give an accelerating impetus to the
momentum in the direction of improve
ment which great forces for the better
ment Of economic conditions In tho
United States have been perslstently
imparting to volumes and values In all
a-tl- H. $4,000 80. IA-,lt. a,,taTH-
cial disturbances n setbacks. The ul-
innate effect Of the verdict In the case
Of the Steel Corporation, constituting as
II does something more substantial than
the mere outlines of a new franchise Of
freedom for corporate enterprise, Will
be to assist enormously the operation
OF factors now wording TO enable the
American banking and business com
mundty to make progress against all
obstacles. first in complete recovery and
then to an unprecedented expansion OF
prosperous activities.
There 10 no standard now for meas
ur,ng the enhancement of confidence
which will follow the court ruling In
the Steel suit. II has released corporate
endeavor and all the fabric OF financial
effort dependent thereon from the vast
fear Of and appalling disruption OF the
country's economic organization. for the
ruling Is 50 clearly in line with the
Supreme Courts Interpretation OF the
antitrust law that its chance OF being
reversed IL utterly remote. Nor Is there
any Immediate measure of the actual
strengthening of the country's economic
Institutions which will ensue on a wider
appreciation OF the liberty which the law
Of the land. as IL has come TO he con-
strued, confers or corporate industry.
Yet in all respects. and especially In the
Of n decision which cannot
fail TO conduce 20 the fuller restoration
Of domestic sentiment in financial and
business circles during the period OF
tremendous strain caused by the Eu-
ropean war. the ruling OF the court In
v of the Steel Corporation must be
counted as a great additional factor for
business and financial betterment.
In the unanimous agreement OF the
bench which rendered II and IN the cN-
haust.ve character OF the opinion. sis-
tanning the organization OF the Steel
Corporation in all its large integrity and
approving the conduct OF It's operations
as we'll within h scope OF the letter
and spirit OF the law, proof is afforded
tina the property managed In he pub
lie interest Is protected by public opin-
ion. for In the last analysis the verdict
obtained by the Steel Corporation Is not
so much a victory for h corporation
as n victory for the people. 1t comes
very close TO marking the termination
OF the long political war which has
been waged on business in the evidence
which II supplies OF the establishment:
OF the popular desire as the rule oil
action in the business world fhe desire
OF the people being Enthusiastically de-
fined as the inslstence hat n purpose oil
fair dealing shall control all business
t. ,Ar,. lie q nxfnnf fhe
Steel decision ills In the gaps in the
chain of proof furnished by events IN
the past year that the differences which
have divided business and politics for a
decade OF destructive turmoil are ap'
preaching reconciliation. What this
means will be clearly understood by
all who know how In recent years Amer
lean enterprise has been slowing dowr
because OF the ever increasing uncer.
tainty as to what would be permitted
as legitimate enterprise.
There Is every reason TO believe to-
day that In time to come the fndins
of the Circuit Court in the case Of the
Steel Corporation will be looked bach
upon as one Of those occurrences ir
financial history which deserve to b'
called epoch making. II lends q fresf
security to investment. 1t renews In
centive to enterprising endeavor In thu
exploitation of promising opportunities
for trade and Industrial profit. II sane
lions TN idea that capttalistic courage
and ambition. which have done 90 much
in our past to develop the material re-
sources OF tho country for the genera
benefit by resort to enlightened eco
nomic methods, will receive popular
support. There can be no other mean
ing in all this than that new enterprise
which has been languishing among us
for years, will be supplied with new
incentives for revival n that thu
American people are soon likely to fnd
themselves forging ahead In an era OF
prosperous expansion.
Clearing Up Business law.
In two great particulars there has
been going on lately a Qualification OF
business law which has opened up
far less clouded prospect for enterprise
than has been apparent for a decade
Beginning two years age the interstate
act la been so expoundet
by the Supreme Court that the Inter
state Commerce Commission has at last
felt competent to frame a policy OF
regulation which will allow the rail
roads to earn some money. This policy
Ia more likely than not to be illustrated
by a grant OF increased freight rates
10 the Western carriers on the petition
under which the taking of testimony
concluded n few weeks ago. The chang
ing attitude denoted In public pOlicy