Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-17
Financial News Letter
Ri ". c. NICHOLAS.

L
NEW YORK December 16.-aiotous do
ings in industrials and Wall street going
crazy over copper stocks. smelling stocks
and all kinds OF mining properties have con-
| spired to make speculation very busy. So
| far. big board stocks only have been men-
tioned-there Is equal enthusiasm on the
curb In the little cats and dogs. wild ad-
vances appearing In Nevada Copper. Utah
| apex and similar stocks. There is, of course.
no doubt that much OF this speculative ac-
tiyfty is based on solid facts The situation
OF copper metal was never stronger.
| Last weeks story Of control by John w.
Gates. Grant b. Schley and e. j. Berwind
Is confirmed. The merger with Republic
Iron and Steel and perhaps with sloss-
does not talk-he acts. This western char
acteristic is puzzlng to local critics. Gates
Is an earnest. impressive personality. with
boundless ambition to go down to history
! as one Of the upbuilders of American en-
/ terprises. Gates has large and enthusiast
tic following; He has made millions for
| his friends. However, the old fogtes of the
| street still have fits whenever a Gates deal
| Is announced.
/ Following the flasco of the temporary ac-
| QUESTION by Erie of Cincinnati, Hamilton
/ and Dayton and the return of that road to
i J. P. Morgan Co., comes the queer story
! that Morgan & Co. are to sell the road back
again to Erie, Invested of it's Flint-Pere
| Marquette appendage. There is nothing of
/ fetal in this, but action of the kind would
| surprise nobody. OF course, 1t is quite pos
| sible that a deal advantageous to Erie may
| be arranged Mr.. Morgan and Mr. ]. + Hill
being large holders of Fries stocks.
Meanwhile, Erie failed to float its bond
| CARDS in the security market. There is sus-
picfon that the heaviness of the stocks is
| due to the desire of the Morgan-Hili party
| to acquire still larger holdings before per-
mitting quotations to advance. On earnings
and prospects Erie common should be SELL
| ing much higher. Dividends on 1t are quite
| possible within year or two. with or with
| out the aid Of Cincinnati, Hamilton and
/ Dayton.
Railroad Stocks.
While industrials are doing remarkable
stunts railroad stocks take second place.
| Still there Is evidence of good deal OF
| quiet buying. and here and there some ex-
| ceptional advances. The junior Vanderbilts
maintain their new levels, helped by per-
sistent rumors Of the organization OF a
| big holding company. Such rumors are not
really necessary to account for the promi-
| nence of these stocks. their earnings being
| simply phenomenal.
! Union Pacific leads the whole railroad list
| In point Of activity and creeps steadily up
| ward. It's annual statement, showing liz
per cent earned upon it's stock, encouraged
buying. And this 111a per cent is just
| through earnings-takes no account of APP
| probation in value Of Southern Pacific and
Northern Securities assets. Reading con-
| tinues to be absorbed by investment inter-
| ests. Some light Is thrown on the estimate
in which Reading is held by insiders by
| pamphlet just published by Dominiek &
Dominick. Reading coal mines contain
| more than half the unmined coal of the
/ country and are good for operation for the
] next 2OO years. All other known anthra-
| cite deposits will be exhausted in less than
| fifty years. it is said, by which time Read
! ing will have monopoly of the anthracite
| business.
OF course this is not matter considered
| by Wall street Spectators. but it undoubt-
| edly influences the coal kings, who know
| all about 1t.
Southern Pacific does not respond much
| to the Union Pacific rise. and hopes of an
| early dividend are decidedly weaker than
they were some time ago. The companys
| earnings, however, are more than good in
| both gross and net, and there would be no
astonishmenf at further appreciation of
| value. s. V. White predicts so for the
stock before 6s. Chicago Great Western
sadly tries the patience of its friends
Every time it gets up to % 1t Is promptly
sold down. Traders do not like the way
| this is MIXED.
| Points are numerous that at last the
| Gould stocks will join the bull procession
| Certainly Missouri Pacific shows refreshing
! strength. Talk of reduction of its dividend
can be dismissed as idle, and on Its hve
| per cent basis it is far below parity with
! kindred dividend payers.
baltimore and Ohio is another standard
| dividend payer selling too low in COMPARE
| son with similar properties.
| Money Market.
| CAN loans are subsiding from the ex-
! tremely high levels recently reached, but
are still pretty stiff. One prominent broker
| states that the % per cent or higher rates
| that were paid were not legitimate-that
| they were brought about by those whom he
| termed the kids of the board, who rushed
| into the loan crowd and bid money up. The
| high rates exerted little or no influence on