The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-01-22
Some Timely Words of Caution.

Some Timely Words of Caution.
A recent issue of Rradstreet's calls
attention to movements which are re-
sulting in the continued combinations
OF large sums of capital in the develop
ment of industrial enterprises. The
same journal does not hesitate to issue
what may be accepted as a warning
against this tendency and reminds the
public that it might be we'll to con
slider the results of the Industrial
Craze in Great Britain, or the case,
which seems to afford a closer parallel
to the movement here, of the German
markets. where the severe complica-
tions at the end of 1898 were the direct
outcome of a course of excessive in
diligence in industrial capitalization
and combination. attended by an excess
sive speculation based upon it."
Every period of natural prosperity
quickens the speculative instinct Of the
Individual. But this instinct is not al
ways associated with good judgment,
and. in the absence Of the latter, the
former, when the spirit is unrestrained,
must inevitably lead to disaster This
IS especially true when the operator,
encouraged by a few lucky strokes in
the beginning, allows himself to be
BATTERED into the confidence that he is
possessed of the true genius which
must lead to success A successful
FWall street operator once remarked
that he was always sorry for the spec
tulatOr who made money in his early
ventures, inasmuch as he was general
ily sure to find himself soon without
any money with which to make more
in 1vbo
Industrial" or trust shares, such as
Sugar, Whisky, Oil, Tobacco and the
like, have been larger in late years be-
cause Of the general stagnation existing
tin the market for railway shares The
Spectator must have something to feed
his desires upon, and these were at
tractive in that connection. At the
present time railway shares have at
tanned 50 high values that the more
conservative hesitate either TO buy or
sell for a speculative turn. There is
however. an abundance of money, and
this is finding its way, as indicated
above, into combinations for the exploit
tatiOn of industrials. Many new cor
pOrations are being organized, and the
capital of others is being increased
notably that of the American Steel
and Wire company to the sum Of $780,
600 .O0O-and this is with d view Of en-
bracing within the combination es-
t&hlishments which have hitherto
operated independently as, for instance,
the Washburn & Moen company and
seine other smaller concerns in this
particular industry Larger lines of
stock are issued and placed on the
market for the mere purpose of specu-
lation. And all these schemes are en-
gineered by men who are thorough
masters of their art and know when
the time is ripe for practicing it with
the greatest deftness
Business shrewdness Of the highest
order is a gift of nature, just as any
other intellectual quality that NAV be
reflected in a successful career. no
matter under what classification it
may be recorded. The man who be-
gins the activities Of life by calculat-
ing results in advance Of his under
takings is usually found to be pos
sessed of a plan or formula which he
strictly adheres to in all the process of
applying means to ends. Through
practice and experience he becomes
by degrees so proficient In his opera
tons that he is able, at last to COM
pound his skill, so to speak, and In
manner. to apply a mechanical smile,
not unlike the distribution of steam.
whereby force is secured with which
to drive the engine Thus he becomes.
In the end, master in his particular
branch or speciality. Being possessed
of this instructive shrewdness or ge-
MUS, he is prompt to detect the spirit
of weakness or incapacity or hesita-
ton in others and to avail himself
thereof to his own profit.
Such a man can always command
unlimited sums of money for the per-
lection and successful conduct of his
schemes. Indeed, this natural gift is
of itself capital, and often stands in
that relation in some of the largest
business enterprises, at least in their
inception. 1t is here, oftentimes, that
the latter-day trust" has it's origin.
and the monetary and industrial and
speculative conditions of the present
are especially favorable to the foster
Ing of these enterprises which become
in their practical operation, monopo-
lies. There can be no question as to
the RIGHTEOUSNESS of these schemes
They are born of the spirit of specula-
ton, and, in the end, cannot fail of
proving destructive of the highest or
der of national industrial activity and
energy
Bradstreets computes the amount of
capital being thus attracted to the
Industrial corporation movement at
the round sum of $1,000, 00O, 900, and
says: mot even in any of the former
periods of activity in railroad building
and the creation of corporate stocks
and obligations which accompanied
them has there been such an expan-
sion in the amount Of new securities