Telegram-herald. ([Grand Rapids, Mich.) 18??-1892, 1889-08-18
CRAZES OF THE DAY
waiter ~ eIiaaAa HIS a. Iaterslsa Uith
Assistant LAlte4 sstas fr-4s4Fer
Hnsiyisg 90 Ihis ,l4Iest- s.liti-
LiAtg ~ ths as ilsA dassstsr

-t-,i4t CON eI.o'1'ir-2call
wAsFSGIOE AK IA wave =
speculation. Consolidation and rscapltal
lz4Uon i passing over the world. Says
Assistant Cn.tea States Treasure Nhslp-
ley Sir Whelpi-y 4no~s whereof Ae
sneasa 81 llie char 1illcis = watch poll
ties be 1a-eAes finance. he ais here
tie heatinz u tLe fiscal pulse II the
country nav Re uofst alth 4nerfing &C
curacv. ~ mere the financial activities II
t1e - hole world are LirroFed This
wave. "a nav oplnlon. Is one - the most
r~las ~4aole tAlnEs ~ recent times adds
hr Wae4gley. ~It is not confined u one
country nor to one continent Schemes
Tor organization. Consolidation ald 70
capitalization u Industrial concerns are
prevalent not ouiy IA Germany, Francs.
England and the Cnited States. but ~
Australia, Africa and south America.
The trust and syndicate idea has fairly
taken possession 0f tile earth. People
appear O. imagine that II five concerns.
each worth 500 00O aud paying annual
profits 4 =, 200. can 10 brought under
one management their value sill al once
leap ~ millions AMI their pronCs 70 hun
treds OF thousands, The craze Tor this
sort q thing Is almost as wild and il
logical a. was the popular fever 10 IN
vest IN John Laws South Sea bubble a
century ago
How 10 you explain this tendency Of
the times
Nv ell, Ia the nrst place. investors are
suspicious OF railway securities. Not
many railroads. la the United States par
ticuarly are making their usual profits
There Is. moreover. a lack OF confidence
Ia railroad management Just at this
juncture, when money il flowing less
freely than before into railroads. and
when there is such glut Of money that
ia London ? Per cent. Is good rate OF
interest. and IN this country our per
cent bonds are held az premium Of y,
with New York city able 10 sell p per
cent. bonds at small premium, the
germ OF the trust and consolidation idea
appears In the formation OF big industrial
syndicates Ia this country and England,
whisky. sugar. cotton seed oil and stce!
taxing the lead here. and the Bass. Guin
Ness and other great bTeweries across the
water. There were many imitators O.
these trusts. At first the consolidation
idea WIS taken up by the actual owners
Of industrial properties. and syndicates
were formed 70 control interests Of great
actual value and earning capacity. Many
fortunes were made in these consolida
lions. and In a very short time the public
was led 70 believe investment IT. such
! concerns the surest and speediest read to
wealth.
Prom consolidation by owners, on a
/ purely mutual and thoroughly honest
basis, il was but a step 10 consolidation
and capitalization on a fictitious and
exaggerated estimate Of vaNses. So great
has become public confidence in trusts
and syndicates that frauds OF the bold
est and most specicus character can be
successfully marketed both in this coun
Try and Europa Ia England particular
ly there Is a craze for such investments.
and when former United States Treas
urer Wyman returned from Europe a
short time ago he told me it was the
easiest matter in the world for a couple
OF American concerns that had been
earning 4 little profit. and which had
some genuine assets. 10 20 over TO Lon
don. consolidate aud recapitahZe at a
valuation five or ten times their actual
worth.
That is Just what Is being done at
this time London Is full OF such
schemes from the United States, South
America. Australia. Africa. everywhere
There seems 10 be no hmi, u the English
purse. no end TO the credulitv Of the
English Investor Take the Burmal
ruby mine scheme as an example. tn,
success Il that Eyer was such as e
make Law turn over IN his grave and
crack his bones m envy According e
the prospectus the Iu-mah Ruby com
pany had obtained from the king Of that
country = monopoly u the ancient mines
from which rubies could be picked by
the wagon load. Moreover. diamond.
were becoming 50 plentiful. owing 10 the
large output # the Cape mines, that the
ruby vas fast supplautins the diamond
as the most precious. most valuable ans
most fashionable gem.
This company vas capitalized a
$500 COO. or $500 eco. in Il shares
Suhscrirtion books were opened at th'
Rothscald banSin- house in So. Within
lane. ana when Tarnscaiils clerks came
down to the bank .n Che morning of th'
advertised l7r th.s were compelled Z.
ask -ns assistance of t.e police iu gettiu.
into ths hmllny. and then bad 90 climl
iu che windows by means - ladders
Thousands upou thousands 4 person
crowded around the bank. eocsr for
chance 90 subscribe ro the stock b
noon A. shares were worth $50 each
- closed f1r the day AZ $3.50 Il tb
-srital stock had been ffsv million. O
I..a-s probably it would al have besl
soa>tria.l far
For months the newspapers have beei
SLED with accounts If English invest
rsouts in 81 sorts p American proper
res-in western lands. cattle ranches
faur mills. fr7 goods stores theatres
horse car lines. ga coma qauies ETC
Some IF these reports are true. some no'
There Is 10 doubt. however. = the mag
rit,lia ~ English investment IA Ameri
can brpSeries. have seen At suthentl
Fst ~ The hrewrries sc.t O. fareix
svnsi.--e g. and ere total sum invoive
Il nearly So 0oo eco Two Nsw for
b-svvrrie-. nst large ones. are cona0lfsist.s
snl carf-sG7eI st s45ooot0 = N@7
Earushi-e hrsvvar~ 3. psr in a. 81 80