New-York tribune., 1905-02-12

day the Ironunciamento OF a certain great
financial light as to a copper stock in which
he happens to be very deeply Interested In It
the public was sagely advised to buy. and buy
heavily, Of this particular stock. which now
happens to be somewhat in the doleful dumps
1t was asserted that. II something which was
being attempted should 90 through. TIE shares
would be nth $50 at the very least; that. IL
the mysterious thing did not go through, why
the stock Is now and always has been, worth
over s25.
Worth s25?" What does worth mean IN
this particular instance? And what makes it
worth anything at all?
Here are the facts: From the day this COP
per company was formed (and which, by the
way, Is modestIy capitalized at S6O000o0 it
has never paid one cent in dividends For the
past two years there has not been a stroke OF
work done at it's mines. There seems TO be no
immediate prospect Of any resumption Of labor
there The stock is now selling in the vicinity
of $40. And yet its chief boomer has the calm
assurance to say that this stock, which has
never paid a dividend. and shows no sign OF
ever paying any, is worth its par value, SO
/ imagine that there are those VINO will ac-
cept such peculiar proposition as gospel truth
and forthwith put some Of their good money
into the stock. But it must be simply as
gamble; NO one In his senses could dream OF
calling such thing an investment For tnose
who have money TO lose il may pay them IN eX-
element But for the average man or woman
to get into its depths is suicidal You might a.
we'll try TO swim broad and tumultuOus river
blindfolded.
Ny notion OF what a stock Is worth is rad
icalIy different. and. I make bold 10 assert,
somewhat more logical
The first question / ask is, What does IL pay
In dividends?" The next. What is its par
vaIue:" and the third. What can IL be puT-
chased for?' With those elements determined
the proper rating OF stock is simple Nhen
nv clients ask me to use my Judgment IN Sc
lecting safe and profitable securities for them.
7 have definite. sensible logical basis TO work
upon The results that am getting snow that
my system is best for myself and best for the
thousands who accept my advice in matters OF
such importance.
But cannot a copper magnats put up the
price of his stock II he wants toP" some one
asks.
He can-in certain way, and that certain
way is the way about nine-tenths OF the stocks
dealt in on the floors OF our great exchanges
are put Ip-
Many brokers' spectators and manipulators
maintain extensive laundry establishments for
this very Purpose-for the purpose or washing
certain stocks at intervals until they shine and
gliSten in the eyes OF investors with radiancS
that is wonderful 10 behold
For, in spite OF the stringent rules OF the va
rious stock exchanges against washing. the
great laundry factories run ght and day. Only
I q
in a responsible newspaper, TO the effect thar
one OF the great exchanges was about to IN
vestigate the wash" sales Of certain stock
which had been manipulated In manner bra
zenly suspicious. The charge was made that
in transactions of a single day, covering in
round figures $1,000 shares. less than 5000 rep
resented genuine bona fde sales
/ That was plainly game too often played.
at which investors are invited 70 participate,
wherein the dice are loaded against them. And
perhaps a lovely. benevolent. sweet-faced gen
tIeman engineered the DEAL
observe that the lawmakers OF the State OF
New York are thinking seriously or preparing
and passing a bill to levy a State tax OF 81 on
every hundred shares OF stock bought and sold
In the New York Stock Exchange Such meas
ure is. suppose. expected TO discourage and
make more restricted the frenzied dealings that
take place around the boards in the great Wall
Street chamber.
But will il?
Not a bit The brokers who own seats
the exchange will shout and yell and tear each
others coats Just about as formerly, and Incl
dentally make the public pay the 81 tax II any
one believes that the kings or princes or even
baronS OF finance are going TO settle with the
State in such a matter as that. he Is too unsO-
phsticated for this tough old world The game
| viii so merrily on. the dupes OF fortune Will
| lose their money in the same old way and in
| cidentaIly stock spectators all over the coun-
| try will chip in TO the tax budget OF the State
of New York.
| I am often asked what I consider decent
/ return on money invested-mOney. mind you.
! of the great masses of the American people
| money that has been saved up at some sacrifice.
| To queries Of this sort l invariably reply that
| an investment that yields from per cent to u
/ per cent ought To be satisfactory 10 anybody
| but the confirmed gambler sometimes can
/ find stock that will pay more. and Yet be safe.
hut not often. But 10 get less than per cent IN
| these days OF great profits in financial and IN
| dustriaI undertakings is folly. not TO say stu
/ pidity.
| OF course the savings banks more OF less
| presented To me as examples OF nne SOld1ry and
| desirable repositories of the peoples money
/ They are solid enough. I grant, but so would
| be hole in the masonry OF your cellar wall
| And il would pay almost as well the saw
| ings banks Your money in savings bank
| does very little for you, but a great deal for
! the savings bank.
The trouble with the vast majority In this
/ world is that they lack the spirit OF investica
| tIOn I'm things financial They let their money
| dry-rOt In the trust companies or the savings
| banks because these institutions are handy.
They never stop to reflect that there are ways
| of making the savings of few years actually
| pay part of the household expenses. Or. they
| pride themselves on their conservatism. and do
| Just as their fathers did before them
| As an example OF Just what can be accom-
| plshed by intelligent investing point with q
| degree OF pardonahle pride To the fact that.
! during the past year have placed In the hands
/ of investors COED sound securities, one OF which
Is yielding 16 per cent. another IA per cent an
| other 10 per cent another 1Oi2 per cent another
| per cent and the very lowest per cent any
/ one of which may be readily disposed OF to-day
/ at from 20 per cent to 100 per cent In advance