Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-11
Financial News Letter
BY W. G. NICHOLAS.
NEW YORK. March !

It is very doubtful if the general stock
market undergoes further important shrink
age Some few stocks may still be on stills.
but as a whole the list seems to have set
tied back far enough. The foundations I'M
der the market are again solidifying, and
the merchant class of traders are once
more loading up with securities, confident
in the faith that the trend of prices Will be
upward for the next few months Soon the
sap will begin to flow upward, and as WIN
ter gives way to spring warmth, new life
will naturally be infused into speculation
That is the routine chronological action of
the stock market 1t usually turns heavy
after the new year. and not infrequently
develops liquidating phases. followed later
by Improvement lasting well along into the
early summer months. In May and June
all nature is bursting with the promise OF
bounteous crops and the future looks
bright.
The phrase "healthy reaction" as applied
to the recent break in stocks. proVokes
smile, yet as a matter OF TACT that is just
what 1t was. The market had Workea lh.o
an .overbought'' state, and a setback was
next to inevitable. The speclalt1es whlcn
had been objects of pool manipulation ana
which had been unduly skyrocketed We're
the most vulnerable and suffered most Sc
rously on the break.
Wherever there is mystery interest cen
tiers and popular curiosity will not be salts
fed until the light is turned on. From
the start everybody felt that something
was being held back in the story Of the
transfer of the Heinze properties in and
around Butte to the Standard OIL interests
identified with Ama1gamated. CONTINUING
developments since the sale have Verlned
this suspicion. Firstly, the price was Slo,-
o-I,i ,1c4 If a :
stated. Then 1t was given out that go
OooooO was part In cash and part in securi-
ties The next version was a stralghtout
denial that the United Copper had been
given any securities and that the deal
was for cash and no other consideration
Still later there foated through the street
a rumor that HeInZe had been given some
thing on the side to bring him to terms.
Still further along the specific quantity WAS
named 100000 shares of Amalgamated at a
figure considerably above par, with the fur
Their agreement that the market for Anal
gamated should be given to HeinZe" to en-
able him to put the price to 100, thus af-
fording him a chance to work out of his
big line at a huge profit, he having PEE
viousy been heavy buyer from 20 all the
way up.
A heart-killing thing to Heinze was the
humiating discovery made by him that he
had been tricked, and by his ancient en-
envy, Henry II. Rogers. The promises
which had been made him that he should
get the big figure in the giant copper mer-
ger had been made without authority and
had been repudiated openly by Mr. Rogers
but not until the Heinze mines had been
turned over to Standard Oil interests and
the money paid. The arrangement for
turning over the stock market to HeinZe
had met with the same ignomihous fate
For that, however, F. Augustus HeinZe did
not care, but to be tricked cut into the core
of his heart His enemy had taken him up
on top of high mountain, and after prom
Using him the kingdom of the earth had
contemptuously thrown him over Share
holders in United Copper are saying among
themselves that 1t was the pictures of the
glory that was to be his which induced him
to sell the company's mining properties for
% per cent or less than the apraisement
put upon them in the authorized Heinze
literature a few weeks before. They are
trying bravely to put backbone into their
faith in HeinZe and seeking to make them
selves believe that S10,5o0,000 in cash in
their treasury is as much as So, 900, 600. and
that the unsold part of the companys as
sets are of fabulous value Mr. Heinze may
continue to be an active factor in copper
mining but with all his money he cannot in
five years get back to the size he was few
weeks ago, when he fell a victim to the
wiles of Machiavelli Rogers. Meanwhile
there Is uneasiness among the preferred
stockholders in United Copper as to where
they coming in on the divide of that
$40, 500. 900. The major part of the COM
pany's visible assets in mining properties
having been converted into cash ("liaui-
dated is the Wall street term, the re-
quirement of the preference shares at 125
would seem to be In order. There was some
talk of this right after the sale, but no for
NAL steps looking to that end have been
taken and the price has dropped from 11S
to par. If that Butte deal does not yet
develop a bigger sensation than anything
yet seen in connection Herewith the gos-
sip brigade will be disappointed