The Daily times. [volume] (Richmond, Va.) 1886-1889, 1889-08-25
TILE CRAzES OF THE DAY.
THEY ARE SPECULATION, CONSOLE
pATION AND DECENTRALIZATION.

] Tx fNIN- 81" W. ~ fN''t
pATlON AND DECENTRALIZATION.
walter vellman Has an fntervie" WIZ"
Assistant United States Treasurer n''P
ley IN This snbeot-Gulilsili'y oil '"'
English Investor.
Especial Correspondence
wAsnNGToN. Aug. s "A VIZ -
sncculation. consolidation and recapl'di-
izafion l. passing over the world, say
Assistant United States Treasurer " ne,P
lev Mr.. Whelpley knows WHEREOF ne
sne,is While other officials watch poll
,ics bo watches finance. lie sits where
mo heating Of the fiscal pulse OF the
country may be noted with unerring ac-
c,racv. where tho financial activities OF
the whole world are mirrored. lhis
wave. in my opinion. is one Of the most
remarkable things Of recent times aduS
Mr. WLolDev. 1T is not confined 10 one
country nor to one continent. Schemes
for organization. consolidation and re-
Capitalization Of Industrial concerns are
prevalent not only in Germany, France
England and the United States, but 10
Australia. Africa and South America.
The trust and syndicate idea has fairly
taken possession Of the oartn. People
apnear 20 imagine that if five concerns,
each worth 100000 and paying annual
profits Of 81. 600. can be brought under
one management their value will at once
lean to millions and their profits 10 hum
dreds Of thousands The craze for this
sort Of thing is almost as wild and IL
logical rs was the popular fever to In
vest in John Laws South Sea bubble a
century ago
How do you explain this tendency OF
the times"
"Weil, in the first place, investors are
suspicious of railway securities. Not
many railroads, in the United States par
ticularly, are making their usual profits.
There IS. moreover, lack of confidence
I'm railroad management. just at this
iuncture, when money is flowing less
freely than before into railroads, and
when there is such n glut Of money that
in London . per cent. is good rate OF
interest. and in this country our per
cent. bonds are held at premium Of y,
with New York city able 70 sell p per
cent bonds at q small premium, the
germ OF the trust and consolidation idea
appears I'm the formation OF big industrial
svndicatcs in this country and England,
whisky. sugar. cotton seed oil and steel
taking the lead here, and the Bass, GUM
ness and other great brewerics across the
water. There were many imitators Of
these trusts. At first the consolidation
idea was taken mp By the actual owners
of industrial properties. and syndicates
were formed 90 control interests of great
actual value and earning capacity. Many
fortunes were made in these cons0lida-
ti0us. and i'm % very short time the public
was Tea 90 believe investment in such
concerns the surest and specdicst read TO
wealth.
"Fr0m consolidation by owners. on q
purely mutual and thoroughly honest
basis. IL was bat step % consolidation
and rocapialzation on n fictitious and
cAae.ertcd estimate Of values. Sogreat
bias become public confidence in trusts
anal -vndicates that frauds of tho bold
c-t and most spccious character can be
ucc. 5luliy marketed both IN this coun-
try an Europe. III England particular
lv there Is craze for such investments.
ami when former United States Treas
mcr Wyman returned from Europe
short timo ago ho told me it was the
easiest matter in the world for n couple
of American concerns that had been
earning a little profit, and which had
some genuine assets, TO 90 over TO Lon.
don, consolidate and rocapitalizo at
v.iatioa five or ten times their actual
worth.
"Ihat Is just what is being done az
this time. London Is fun of such
schemes from the United States, South
America, Australia, Africa, everywhere
There seems 90 be no limit 10 the English
purse. uo end TO the crcdulity of the
English invc tor Take the Burmah
ruby mine scheme as an example. The
success of that liver was such rs 20
make law turn over ia his grave and
crack his bones in envy. According 10
tine prospectus the Burmah Ruby com
Dauv bad obtained from the king Of that
country monopoly of the ancient mines.
from which ubies could be picked los
the WAGON load. Moreover diamonds
were becoming so plentiful. owing to the
large output Of the Cape mines, dat the
ruby was fast supplanting the diamond
rs the most precious, most valuable and
most fashionable gem.
"Thi5 company was capitalized nj
100000. or So 500. 900. In 81 shares.
sub-cririi0n books were opened at the
Roib-cbild banking house in St. Within's
laro. and when Rothschild's clerks came
d..yn TO the bank on the morning of the
advertised day they were compelled 70
ASK tile assistance Of the police in getting
n.o the building. and then had to climb
I III