Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-02

trade war and its victorious conclusions
as could be imagined Is exhibited in the
annual report of the Distillers' Securities
Corporation, which says:
The management of the company some
time since determined upon a course which
would lead outside spirit distf1lers to real
ize that certain well-considered business
methods should be pursued by all engaged
in that branch. Accordingly this company
has so conducted its spirit department as
to result in the adoption of business-like
ana conservative course by the outsiders
The fact that this company has other ave-
nues of income from It's various other
branches is an advantage possessed by no
other connection.
'Since May of this year the profits of
the spirit department of the company have
again become normal and if they continue
as they are (and 1t Is believed they with
curing the current year, profits Of the COM
ptHy Will snow a considerable advance
over the figures for the year Just closed In
accordance with the heretofore announced
policy of economizng in the admiuistra-
ton expenses of the different underlying
companies, another one of the subsidiary
companies was dissolved during the wear
The standard distiIling and distributing
company was dissolved and In consequence
tnere viii be material saving in the
taxes, of expenses, etc
IL Is contemplated. during the current
year, to dissolve other subsidiary comma
mes Tor similar reasons. The outlook for
lhe current year Is as good If not better
imam 1t has ever been in the history OF the
company. The prospects Judged by actual
existing conditions and returns Justify tba
anticipation of substantially larger profits
for the current year"
Robert Goodbody &c Co saw in tba,r ,,a,,x
ly market letter:
1T would seem as If the money rates dur-
ing the coming few days were likely to he
rig nhsner IMAM we shall have during NEST of
Der. Money is, however too fully emnlovad
all over the country to make it reasona HE
TO expect cheap money until toward the
middle OF january. What. then, is the SUBJ
Ject market likely to do? We have been
struck by the great number of peonIe who
think the level of prices for the standard
STOCKS very high. and who also think the
money can be more prof1tably invested in
ioW,priced stocks Goth railroad and indus
triaD. or IN fiotations of running business mr.
of new securities issued against the securi
ties of old companies
The truth is that the big railroad COM
panfes could not be built today for the cap
ital represented by their bonds and stocks
At present prices, and that as the country
continues to grow the cost of building COM
peting roads Will grow rapidly. It is also
true that the roads which are generally SELL
ing In the market at low nominal prices are
also selling at far more per mile than MANY
of those the public think dear. The same is
true OF business turned in to stock COM
panies and of old local companies whose Sc
curities are exchanged for new bonds and
stock.
In the former the capital is generally alb
surdly inflated, which means that the prices,
though apparently low, represent far above
any intrinsic value. In the latter probably
so-called bond will be issued with a bonus
In stock. The result is a quoted price for
the bond and stock together which is alto
gether more than any one in his sober
senses would have given for the old stock,
and In most cases any one who buys the
new securities as investment Is likely to be
a heavy loser. That losses will come later
does not alter the fact that just now our
Wall street business in sound securities is
temporarily affected by the tendency"