Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-21
Financial News Letter
RAILROAD BONDS.
BY W. G.. NICHOLAS.

NEW 1oESh, JdHudTy 10, lSOO.
The public is unquestionably in the mar
ket, and under it large scale, but not
with that tumultuous eagerness which al
most invariably marks the approaching
elimination of a grand bull movement The
public is buying stocks literally, 80 to 15
points above the level at which investments
might have been made a year or more ago.
1t was kept out of the market for a va
riety of reasons, chief of which was keen
recollection of punishment inflicted during
the two years slump following the North
efn Pacific corner. This caution Or TIM
idity was accumulated by the teachings or
false prophets like Lawson OF Boston, and
by che warnings of ultra conservatives.
Posing as the unrelentiag enemy OF the
systems, Lawson contributed in no
small degree to keeping the public out OF
the market when it might have gone in
with enormous profit. To the extent of what
ever influence he might have Lawson scared
spectators and investors out of participa-
ton In general average advance of about
80 points, a sum representing in the aggre-
gate many hundreds of millions of dol
lars-roughly stated, about $500, 600, 900.
Throughout the entire period of this great
advance in values the rich men who COM
posed the System and their allies the
big plungerS. have been the largest winners.
The profits which might have gone into the
pockets of the multitudes went to fatteh
the already plethoric accounts of the
Weather class
The steel issues have been the corner
stone of the market lately They were
scheduled some time ago for leadership and
are fulfilling their mission. Steel preferred
has long been favorite with the rich in
siders and specialists in the iron trade
The contention is that the senior issue
properly belongs at 1870 or above, and that
II Will get there this year About 100 will
satisfy the bulls the first quarter. of tho
year The common stock is more popular
with the strictly speculative element than
the preferred, and there are lively ex-
peetations of resumption of dividends N
the no-distant future. Tennessee Coal and
iron, Colorado Fuel and others of the
lesser steel stocks have been industriousIy
worked up. The Colorado corpora ton
seems 10 be slated for absorption by the
steel trust or else by the younger and
equaiiy AMBITIOUS combine being engineered
by John w. Gates and his associates There
IS supposed to be still big money in the
Wall street end of this combination besides
huge profits at the manufacturing end.
The grand combination of copper and
smelling properties about which everybody
has been talking for the last month Is
swelling up all out of shape 1t is being
enlarged ION paper) every day until now it
takes in about every copper mine and cop
per prospect between Mexico and the north
pole. 1t is being used by everybody with
any kind of copper on hand as an agency
booming his particular stock and as many
OF these affairs are fakes 1t has come TO
pass that lot of rotten propositions are
being exploited at the expense of the big
deal. AS nearly as can be ascertained
there is substantial basis for the reports of
negotiations TOR consolidation or close
working arrangements between AmaIga-
m cd aud tlan 0,,,n4 ~G.s No.
will include also the United Copper or
Heinze group in Montana and some of the
other good mines in that section. If there
is anything beyond this the insiders who
are doing the real negotiating know nothing
of 1t. The combination as it is likely to be
carried out will be a sure-enough colossus
leaving out Of consideration all OF the odds
aiiJ ends which are seeking a connection
with the giant combine 1t will involve a
capitalization of not less than 5000, O00, OG0
anu will be the oyershadowing industry In
the mining world.
x x
Many a big Chicago fortune is directly
traceable to Marshall Field. He put his
money behind many enterprises which grew
TO prodigious size and made everybody
connected with them rich. 1t was his back
ing and friendship which enabled the late
George NJ. Pullman to establish the Pull
man Palace Car enterprise, and he has al
ways been one of the largest stockholders
in that corporation. He was close I'D be-
hind Pullman from start TO finish. When
Mr. Field broke with his old partner Levi
r. Letter. 1t was question of buy or sell
Mr.. Letter had been the financial director
of the firm, and honestly believed himself
to be the indispensable member. To his
surprise DIR. Field took the buy end of the
proposition and 1t was many years before
the retired merchant could reconcile himself
10 The fact thar Mr.. Field was making a
colossal success of the business ID
They were estraaged for fifteen or eight
cen PEARS. but were brought together again
when MIR. Letter became hard pressed 10
raise S10,o00,000 to settle with TIE Chicago
banks after the collapse OF joe, letters
wheatcorner, some seven or eight years ago.