Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1899-05-11
New Jerseys wondrous Charters

The news of the day informs us that the
Amalgamated Copper Co, capital SO
000, 600, and the L. States Flour Milling
Company, capital S2j, 600, 600, the Amer
lean Alkali Co. $50, 600, 600, the Rubber
goods manufacturing Co s25, 600, 600, the
Federal Sewer Pipe Co. $25, 600, 900, and
hundreds of other companies and alleg-
ed companies have lately been incorpo-
rated at Jersey City, Trenton and 9th
er points in the State of New Jersey.
Almost every day we see similar state
ments and so it is not out of place to re
view in a lump what has been been done
by way of making charters for specula
tive and promoter purposes. Most OF
these chartered enterprises are rated as
Industries. Some of them are moth
ing more than capitalized prospectus.
That il certainly not trust, or consoh-
dation of substantial firms or corpora
tions. Yet the public has been biting,
or asked to bite at ali sorts of industrial
shadows. sometimes based on nothing
more than circular promising extrav-
agant dividends Promoters have never
been buster than since the first of last
year. The figures tell striking story:
In the last fifteen months amalgamated
companies have been capitalized at 81
1S5. 1856. 700 The first two months OF the
present year brought forward forty-two
separate enterprises, capitalized at ST.
LOG 300 600 Last month added S4SO-
600 900 more in authorized capital
The total capital of all the manufac-
lures in the United States in 1890 was
ST. j39. 391. 3S5, or but third larger than
the industrial capitalization in the last
year and quarter. Only a comparative
lv small fraction of the manufacturers
of the country haYe gone into these com
binations vet the capitalization has reach
ed into billions. 1t is estimated that IN
four billions of the new industrlals the
real value is not over one billion. OF
course there is a furry when 1t becomes
necessary TO size up such paper emblems
with actual cash Beyond doubt some
of the industrials are sound property
The essential point, as in all business
affairs, is to discriminate prudently be-
tween real values and the mushroom
deyises of tricky or visionary promoters
That all spectators will be cautious Is
past hoping for Nor will they lack
temptation, especially in flush times
AS far as the industrial development OF
this country is concerned it is rapid and
promising in every legitimate sense.
The future of American manufacturing
is not in doubt. At the same time cap
italizing industrials at the, rate of S4O0,
900 600 a month suggests an unthInking
rush. with panic lurking behind. A
deluge is quite different from plentl-
full and fruitful rain. Industrials with
out solid industry as a foundation can
be doomed until the excitable invest
their money, and then comes collapse.
Wall street is neither better or worse
than in former days, nor haye iudustrlalS
or trusts changed the nature of its risks
Those who stake all there are reason
ably certain to be wiped out. and those
who invest blindly anywhere are sure
to come to grief.
There it some hope. how ever, II the
fact that the Stock Exc change of New
York purposes taking cognizance of
those industrials which can show no
substantial property to warrant their
existence. This is well, because we are
on the high road to prosperity which
not only makes money plentiful, but
men saguine and reckless. Gver-specu-
lation may bring on another panic all to
soon. 1t is well for the press at large to
warn people to beware of industrial
stocks If you buy water You are only
throwing money in the face of a cy-
clone. The best thing to do is to give
prompter schemes a wide berth