The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-01-17
Market Quotations Not Based
on Present Earning Capa-
city of Companies.
INVESTORS WONDER If
VALUES WILL REMAIN
Bingham Consolidated Not in
Boom, Although Company Is
Making Money.

The report that reached the city Mon
day from Boston regarding the consoli-
dauon OF various properties. some OF
which aro included within the boundary
lines OF Utah, and which was to tho ef-
-fecr that the nero fact that a consoli-
dation while n probability had succeeded
n appreciating the stocks CT the several
companies involved several million dol
lars. has arous,c 7nsiderabe conjecture
among mining met and investors of this
city and State as to whether or not the
hIgh level OF stocks can be maintained on
such q basis, For speculation purposes
s'gTeat expectations" arc very comfort
able things TO have around. but II is
agrced that TO maintain the present prices
GfI enormous and heretofore impossible
output and consequent earning capacity
is absolutely Imperative
Must Have Something to Sell.
come to the rescue of a busted boom
n values unless there Is something TO
Issll proportlonately grent as the expect
~ations or investors, and the output must
- be In proportion To the size or the or
sanitation In question and the amount
,- of capital involved. When Boston agrees
many millions interested ones won
derins how long the investing public will
ne contented 10 dream OF what may or
nay not happen some time within the
future
Has Present Earning Capacity.
or oil the copper stocks now booming
IN the East, few If any represent a COM
psny that has greater earning capacity,
, present earning capacity, than the Bing-
ram Consolidated, and which stock, by
the way, is about one-third in amount on
/ INC market as the average boom stock.
| Yet this stock has not partaken OF the
boom in the Eastern markets If this
boom, IL Is argued. is based on present
rGrning capacity and dividend paying
ability. Instead OF having mere specula-
tion as the foundation, with the price
ot copper where II is and I'm the face OF
what the Bingham Consolidated is doing
ana is capable of doing. why does not this
stock take the elevator also?
Is in Excellent Condition.
Then the Bingham Consolidated is In
! excellent condition. II has numerous mag
! niucent properties which arc producing
5 with unbrokcn regularity. and under the
present skiliful management that char
lcteriZes the running of the organlZa-
aons interests, 1t IL enjoying a career
OF steady remunerative production that
few other organizations can boast of
Among the many producers of the com
lany could he mentioned the Dalton and
LARK group the Commercial and Eagle
ana Blue Bell properties, all OF which are
paying big These groups are continually
Sdding their share TO the great output OF
the company. and the operation OF the
the organizations paying activity that is
a tremendous source OF revenue
More Than Probabilities.
The Bingham Consolidated is simply |
mentioned by several who have given the |
subject much thought as an example of
what might be the case should the basis |
OF STOCK valuation be present earning |
capacity and not speculation. MANY OF |
the companies whose stocks are now
? booming have prospects of future great |
earning capacity, and the almost incon-
ceivable amount OF Improvement going on |
may pave the way for producing metals |
10 On extent heretofore impossible but |
I me present market cannot be based on |
present earning capacity as that means |
more than probabilities
What Would Result Bep
Hence 1t is a source OF speculation here |
as to how permanent are the present high |
levels and many are wondering what |
would happen should the consultations |
which so appreciated the stock market |
( not be carried out according to the ru- |
n-ors.