Omaha daily bee., 1905-08-13

For the information Of parties who may
be interested in speculative securities we
have made ARRANGEMENTS with Mr.. +. q.
Druiding OF Chicago, an expert writer on
financial topics and deliueator Of stock eN-
change prubB bilities, to furnish a weekly
review OF the salient features OF current
financial topics cleaned from the various
exchanges.
We desire, however, on the part Of The
2ccurateness Of any forecast Mr.. Druiding
may make concerning future prospects Of
any investment or enterprise.
All special inquiries about the present or
prospective value Of any particular security
should be addressed direct to Mr.. r, q.
Druiding, No. 524 First National Bank
To the observer it would seem that the
eastern opponents Of high finance methods
would In the course OF time exhaust them
selves Of sharp tricks and financial juggling
fCats, so that eventually the unsuspeCtng
Investor would come into his own and be
able to place his money where Il might
net good returns without the necessity OF
sacrificing safety. Such, however, is not
the case; some so-called financial genius
the flimsiest collateral is strengthened to
such an extent that a heavy borrowing
power is developed. Then all OF those sharp,
shrewd promoters 10 whom the public gen
orally ascribes consummate ability to keep
awake and watch what Is going on, immedl-
ately avail themselves Of the new system
months the entire country is flooded with
new and startling evolution inaugurated
frenzy.
Perhaps no phase illustrates this premise
so thoroughly as the manner In which bond
Issues have been foisted upon the public.
As a matter Of absolute fact the entire
tendency OF the country has changed;
everybody wants bonds, and every corpora
ton wants to sell them. 1t makes no diff
ference whether the corporation owns some
swamp land down in Louisiana or a noun
tain peak in the Rockies, Il has bonds to
sell This craze Is so thoroughly under
stood by promoters, who make a business
OF studying public sentiment that in their
efforts to vie with one another situations
have arisen that are really amusing.
A little road known as the Colorado n
Southern has just asked its stockholders
to authorize an issue Of lOoOOOON, which
is really enough to build two or three roads
just like the one upon which the bond
issue is to be fixed
The Pennsylvania road also Is offering a
round hundred million dollars OF ga con-
vertibes.
Recently a company was organized in
| Chicago for the sole purpose OF selling
real estate. Until this time securities Of
this character have been called mortgages,
but in order to thoroughly comply with
the sentiment OF the public this house,
which is doing a business Of almost 5000
! 900 a year. promptly proceeded to devise
| split up into sections in amounts from $50
up. These blocks were then called bonds.
! The amusing feature lies I'm the fact that
when this new institution was selling
| straight mortgages, 1t was doing a business
| Of about 100000 a year; after the bonds
! were offered 1t was found that $6.OOO.O0O an
nually had been sold This condition of
| affairs throughout will continue until
/ these loans are to be renewed. Then those
bond holders who spared themselves the