Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1890-05-01
SYNDICATE PLAN.
THE REGISTERS PUBLICATION CREATES LOIS
OF TALK.
Mil Men Think the Negotiations viii Be Unsuceess-
hl-Something About the Cause Of the
Influx Of Foreign Capital.

The announcement, in yesterday
REGISTER. that an English syndicate
was looking longingly at a number Of
the iron aud steel manufacturing con-
Germs OF this city and vicinity, and that
the overtures as TO at least one Of the
mills-the STANDARDIZED made consid-
cradle progress, caused a good deal OF
talk throughout the city during the
dav. in both mill and business circles.
That the Wheeling mills, or even any
considerable proportion OF them, VIII
ever be transferred To any organization
OF capitalists, domestic or foreign, no
one expects. but the fact that the prop
critics have been adjudged good ones by
the very careful people who engineer
the English syndicate investments, was
Of itself "A matter of Importance, ana
was calculated to excite a good deal OF
comment.
As hardly any class Of American
manufactures has escaped the careful. en-
ouiry Of the promoters OF the foreign
syndicates, and rs the pending attempt
10 buy certain mills is the second time
these financial Sharps have given Wheel
Ing their attention, the first instance
having been any attempt TO buy up the
brewerieS. some outline of their meth
DDS. and the reason for this great and
sudden influx of foreign, and particu-
larly English capital, will not be devoid
Of local interest.
There are two great primary causes
for the heavy investments of English
capital i'm America. The first, and per-
hapS the most powerful incentive. Is
the accumulation OF money in England
beyond the powers OF that country to
supply safe investments for it, a foreign
outlet being thus necessity, which be-
came more and more apparent until the
syndicate idea was evolved, enlarged
upon. and put into actual operation by
a few of the most SagaciOuS and perhaps
also the neryieSt London bankers. The
second cause was a desire upon the
part of large proportion Of English in
VeStorS to accumulate money at more
rapid rate than was afforded 10y the 3
and even per cent. returns upon in
vestments so common in Great Britain
and upon the continent. This diSSatiS-
faction, with the slow returns of purely
English investments, existing, rapid
glance at the business world showed
that. all things being considered. Amer
lea presented the best opportunities to
the English man of money. and u test
investment i'm the brewericS, was quick
ly followed by others ion various lines OF
manufactures.
In
OF capital in England, aggregating
tens of millions Of pounds sterling
almost unproductivc. and within the
last three years this surplus CAPT
tal has been increased by the liQui-
dalton of about e23, 900. 900 of the Eng
fish national debt. This alone put
$4,000. 600 of cash i'm the vaults of the
banks, for which there was no present
need, and with a prospect that there
would be a further reduction Of Is, 600,
900 In the debt this year, the demand for
new and profitable investments became
more and more pressing.
With the success of the carly invest
mentS In America 20 fan this money
making spark intoa flame, there Sprang
up i'm both London and New York a
new class of financial gentlemen. who
took the strictly English term of pro
motcrS" The business of these men
was to seek out promising lines OF in
vcStmeutS throughout the United States,
obtain the fullest possible information
as TO capital stock. value of plants, an
nual outputs and the value thereof,
bonded or floating indebted
ness. etc., and with this information
map out am attractive scheme which
included not only the legitimate
profits of the enterprise, as man
aged by the original owners, but as
well the additional stock. both preferred
and common. bonds, etc, which might
be issued, i'm order To bring the net
returns down to about English ideas
of dividends, while at the same
time atfOrding "a large direct profit.
For instance, u rolling mill, or 4
number of such mills, showed "a net
return OF ~ per cent. ou valuation of
say 100000. This would bear the isSu-
Ing of $4,000 of preferred stock, bear
fng say per cent interest, 100000 OF
bonds. bearing about per cent, and
5000, 900 OF common stock, bear
ing say 3 per cent, and leaving
a margin or one per cent. The
promoters would then make an offer of
this scheme 10 the English fnancierS.
retaining a liberal share OF the stock
for themselves. and making big money
right at the outset through watering of
the original stock. Everything goes
with these promoters, in the shape of
American investments, from gilt-edged
brewery and mill stock To wildcat land
ventures, a sample Of the latter being
the recent attempt 20 float a scheme for
the purchase of 100000 acres of land on
the Kentucky side of the Big Sandy,
the attractions of the plan being set
forth ia glowing colors in column arti-
Gle i'm recent issues of the London
papers.
AFFAIR trial Of Hoods Sarsaparilla
for Scrofula. salt rhcum, or any ailec-
ton caused by impure blood. or low
state of the system, will bee sufficient to
convince any one of the superior and
peculiar curative powers of this mcdi-
cine. Buy il Of your druggist. 100