The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-06-26
Special to The Times Dispatch)


NEW YORK. June 27.-F>or the past six
months the market value of stocks and
bonds has steadily declined. Readers or
this column have been frequently told
In the past that conditions at the time
OF writing would warrant nothing else.
It was repeatedly stated that there was
an over production at the certificate fac :.
tory. Managers Of this special class OF
handsomely engraved paper vainly hoped
to have their output absorbed by the
general public. Disappointed, they found
It burden on their hands. 1t NJ, IS bette
OF these certificates should carry the
burden on their, broad shoulders than
It an s0u sh Ge tx the ~ Of
small investors. Millions. Judging from
the depreciation In values, have dlsap.
ss Many ehesa
millionaires have been those who manm-A
featured millions on paper and the NIL,
lions have been ony paPer
In a purely fanciful valuation given by
banks to, securities In accepting them as
good collateral for loans. Ban nf s Dasea
ties and market prices were sustained py
the manipulation Of their, manufacturers
dssne Of eredt
may be said, that the decline Of thirty
per cent. in securities has cut the borrow
Ing capacity of the new mi!llonaires fully
It is self-cvident that there must be
something wrong when the stock OF two
properties. both paying, four per cent;
month out one at $50 and the other at 40.
If tho. tornler. is not too high the other
must be too low; Il one Is too low y, I, the
" so even IL security, not income, is the
base OF these figures 1t is plain that
the market valuations are not based on
there has been no depreciation to equal
the depreciation in market values. 1t Is
simply due to the general public refusing
Street spiders; and to the interest charges
by banks on loans which have been
made to keep securities UP. In preserving
charges. and to meet these charges stock
has been sold in small quantities to a
few flies, thereby making lower
market.
Bad financing brought to distress the
United States Shipbulding Company. It
be expected Of an Industrial combination
It is talked Of as a $40. ooo. 600 proposition
that exploded as an oyerint1ated balloon.
AS matter of fact. onthe basis Of mark
OF values it never represented moro than
$40. ooo, 900. It's $50, 900 OF bonds at say.
% and its stack at 10; Over capitaltzation
cheney OF actual cash capital did The
distress OF this company 1t will be found
was due to the fact that 1T was not able
to realize sufficient cash from the sali
of It's securities to supply It's treasury
with funds adequate to Its needs in trans
acting an enormous volume of business.
And this was due to the unexpected re-
fusal Of the public to buy the bonds when
offered; the difficulty experienced by the
underwriters In taking up the bonds when
called upon to do so and the rumors re-
sulting In consequence which affected the
credit of the corporation at the outset.
strong syndicate Mt the outset many OF
the evils which confronted the United
States 6hipbuilding Company from the
day 1t started In business would not have
occurred.
Mr.. Nixon is to the United States Ship
building Company what Mr.. Schwab IS to
the United States Steel-the practical
man. Mr.. schwab has behind a. him II ~ IN
headed by George w. Perkins, of Morgan
&: Company. Had Mr.. Nixon the same
powerful financier behind him the Ia
inevitable story OF the United States
6hipbuildlng Company. would not now
be told. As 1t was tho work done BY,
Mr.. Leroy Dresses In starting the United
States shipbuildIng COMPANY when. de-
romantic and tragic stories of finance.
It was distinct triumph over condi-
tons It Is truo subsequent events over
weighted and DESTROYED his efforts and
buried him In the ruins. yet II IT had
rot been for nils energy, his grit, MS
faith, the Shipblildi.E Company would
have died Mt birth. It was, MS mis-