Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-21
AND BEARS

Special Dispatch to The Star
NEW YORK. November 21.--John STAN
ton says of the copper metal situation:
Producers are experiencing no dinfculty
In selling their product at IL cents
pound, and large quantities for future de-
livery are being sold above that figure.
Stocks on hand amount to practically moth
ing. We are not In favor of further adj
vance, but 1t now looks as though higher
prices could not be prevented The de-
mand comes from all over the world. and
understanding the upward tendency OF
prices. there is nothing artificial In the
market, and 1t Is also free from specula-
tive buying
1t is difficult to see why the fetish of
independence should be allowed to stand In
the way of merger of the leading iron
and steel companies in the south. Fully
half billion dollars of capital has been put
into southern development since the war;
and as much again is likely TO be invested
there IN the present decade alone. con-
sentative combination In the southern Iron
and steel industry, IL made now. would be
in position to take advantage OF the ex-
ploitat'on of the resources of the south that
promises to be the leading feature OF IN
dustrial activity in the United states IN
the next few years.
The south has literal mineral kingdom
in Tennessee and Alabama and 1t has long
been the dream of far-seeing men that the
time would come when the south. through
its ore and coal deposits. would rule the
markets OF the world 1t Is only In the
last year however, that much new money
has gone into the southern iron and steel
industry, and today Tennessee Coal and
Iron Company's capitalization is practically
what 1t was in 1850. 1t Is only in the last
year, also, that determined efforts have
been made to effect real merger in the
iron industry in the south.
In one direction alone a southern iron
merger would result In an immediate gain
in earnings at the present tfme-wfth
further increases in the future from the
same source-suff1cient to pay per cent IL
year on 50,006.0o0 capital. Manufacturers
south of the Ohio river buy annually now
100000 tons of pig iron which the pro-
spective merger companies sell to them at
cut-throat prices precisely because the iron
producers are all independent and Compel
ing for business. '.-- = ~
There is no good reason apparently why
that iron should not be sold for the same
prices at which 1t would have to be bought
1t Pittsburg, and IL the sale was so made
there would be added at once about $500
coo year to the earnings Of the southern
iron companies. So far as the attitude OF
the so-called interests In the Tennessee
Coal and Sloss Sheffield Companies are
concerned, 1t is said with some apparent
show OF truth that merger could be eff
fccted without their consent, although 1t
would be deemed desirable to have every
DOQy SATISFIED.
While the so-called Hanover Bank crowd
Is the most important single interest in the
Tennessee Coal Company. ii is more than
barely possible that control of the company
has rested in Wall street at price for
some time. Since the recent new stock is
sue of the Sloss Sheffield Company espe-
cially 1t ts said that control of the COM
pany has been in the market.
A leading western wire house writes: 1T
Is notable that every day there Is @ quota
OF tips distributed which the bullish con-
tingent proceeds TO make good before the
close of trading. Such proceedings suggest
manipulation, of course, but there has been
SO much pool work of late that any such
time to preach conservatism, when stocks
are advancing steadily and when the profits
are all on the long side OF the account
1.-The tide Is all one way and no one can
predict the ebb. Nevertheless the ebb Is
likely to come and It will be expedited by
speculation for the rise that is not kept
within bounds. 1t Is true that the money
situation is improving and that the time
draws nearer when funds will float back to
this center from the interior, but 1t Is
absurd to suppose that a bull market can
be built on 5000 600 surplus reserve. Such
an idea would be equivalent to speculation
twenty-five banks were below the legal re-
serve last Saturday week. there were thirty
banks below Che legal limit last Saturday
One bank that is identified with the Reading
pool has been consistently below the re-
serve limit for weeks.
u
at may be logical to bull stocks on such
considerations, but the logic is not obvious"