Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-31
Financial News Letter
BIZ W. q. NICHOLS.

By W. q. NICHOLS
NEW YORK, December s0-The CROWN
Ing sensation Of the week was the rampant
speculation in Coppers." Interest CEN
tered largely In the shares of the copper
companies owning mines round about Butte,
Mont. The mines In this district are now
producing at the rate Of approximately 3d.
OoeOOO pounds month or something like
one half of the entire production Of the
United States. Very recent development
work In the new low levels Of the Anaconda
mine reveals the existence of veins and de-
posits greater In extent and richer in grade
than any yet encountered down to the depth
OF 200 feet These discoveries have a d.
rect bearing on the entire Butte district.
Inc geologic and mineral formation in the
vast copper bearing area whereabouts have
many points IN common and 1t is assumed
that the fabulous treasure uncovered In
Anaconda VIII be found to extend for con-
siderable distances and to underlie many
OF the adjacent and nearby mines of other
companies than the Amalgamated which
owns majority interest In Anaconda The
rich mines In the Heinze or United Copper
group are especially benefited by the great
Anaconda strikes. The Heinze mines are
second In importance to Amalgamated and
are yielding at the rate of about ZOO 600
pounds month. an output seen to be In
| N.NNN ~ oVoUoVp pOuHuS Il month. SEN
ator Clark's mines are producing at the
rate OF more than 1900, GEO pounds monthly
The Amalgamated output is In excess of
ZOOoO,GoO pounds a month.
The violent speculation in the several
Eutte mining stocks Is accompanied by
feViEal or talk of grand consolidation of
interests IN that section Copper producers
are making more money now than ever be-
fore and trade conditions justify expecta-
lions Of at least another year of huge prof
its. Mines are sold ahead three to six
months The longest time contract being
at only moderate concessions from cash
prices. Copper production for many years
past has regularly increased at about the
even rate of per cent per annum. This
years increase will be slightly above the
average and indications point to a still
larger Increase next year. the high quota
tons and growing demand stimulating the
opening up OF new mines and resumption
OF activity in many mines which could not
be worked at profit with the metal under
IA cents or 10 cents per pound.
The merger of New York traction inter-
ests is bet on the continued growth Of
the city and a capitalizing of probable
steady increase in the flood of nickels into
the Golfers of the transportation compa-
MES. Not less than 100000 people contrib
ute to the revenues Of the traction lines
and in a few years the number will be away
above 100000. From this viewpoint the
creation of S1OO, 600, 600 more or less of new
securities in connection with the merger
may represent something decidedly more
substantial than water into an already stu
UcuuOuS CdpltduZdtiOn. Inc manufacture
big batch of new stock for sop to Met
ropol1tan stockholders was absolutely neces-
sary. 1t was the only way the deal could
be carried through without fight with
stockholders who might object to a reduc-
ron in their guaranteed dividend from
per cent to a per cent basis. The new
stock will have an actual selling value and
the new . per cent guarantee is without
doubt very much sounder than the per
cent guarantee. The deal is a masterpiece
of high finance.
u,agnate, who kept Chicago in a turmoil for
Years and who then went to London to
build a system of underground railroads,
came horne to die. Mr.. Yerkes had not been
much in the public eye on this side of the
Atlantic for several years. and 1t was a
general surprise to learn that he was lying
grievously Ill at the Waldorf-Astoria Mr..
Yerkes was one of the most courageous and
audacious men who ever evaded the field
Of high finance After an unfortunate ex-
perience in Philadelphia he moved to Da-
kota. where he remained for year or two,
then established himself at a commission
business on a Chicago board of trade. He
cut a wide swath on the board, but did not
last long. There was no open failure, but
when he quit he owed a lot of money.
Among his creditors was Norman B. Ream,
who took $1,000 in settlement of claim of
500 coo
About that time two former Philadelphia
friends of his, p. A. B. Widener and W. L.
Eikins, had made a hit consolidating and
reconstructing Philadelphia street car lines.
Chicago had probably the worst street rail
roads of any large city in the country. Mr..
Yerkes conceived the idea that Chicago was
ripe field for that kind of exploitation
as Philadelphia. He secured from controll-
Ing Interests in the west side and the north
side system an option on their stock at
what then appeared to be extravagant fig
ures, but which afterWard looked very
cheap. With just about enough money with
him to pay his railroad fare he took his OPP
lions to Philadelphia and laid them before
Messrs. Widener and Elkins. They imme-
diately Joined with Mr.. Yerkes and secured
lines were owned by an old German named
Jacob Rehm, one time chief Of police of
Chicago. His price was S1.000.0o0. He re-
fused to take certified check for the
amount and Mr. Yerkes was obliged to load
dray with that sum in gold. which he
personally delivered to Mr.. Rehm at the
street car offices. Yerkes and his asso-
ciates are supposed to have cleared about
$50 600 600 on that Chicago venture.
After his Chicago clean UP Mr. Yerkes
moved to New York and bought splendid
mansion on 9th avenue. into which he put
$500 900 worth Of paintings, SO 900 bath
room and other adornments. Impeiled by
uncomfortable unrest he soon afterward
undertook the underground London railroad.
which he carried to a successful couclu-
sion. beginning with Chicago and New York
capital. but eventually unloading Lon
don interests. When he went abroad on his
conquest of London he privately stated that
he would never come back 10 America to
live Be that as 1t may. he came back to
die. With $4,000, 600 in bank and many
years of freedom from business cares ahead
of him Mr. YerkeS was asked to embark in
South African diamond and gold mines.
That was In Barney Barnate's and Cecil
Rhodes days. Mr.. Yerkes surveyed the
fields and dismissed the temptors with the
remark: 'T4ondon is the best diamond and
gold mine in the world. L am going TO work