The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-25
WALL STREET NOTES
"BlueSt Christmas in Years"
Is Opinion OF Traders.
YEAR is a DISAPPOINTING ONE


erS-HiH stocks Weakness One of
the Features of Depressed Mar
ket-Ore Land Valuation Too High.
New York. Dec. 2A-"The bluest Christ
mas in many years" is the way the room
traders regard the present festive season,
viewed from their own profits. These
operators have contributed enormously 10
the volume Of transactions on the stock
exchange, and yet few of them have made
much money, while many have piled up
a big balance on the wrong side of the
ledger. TheS held on in the expectation
Of an Improvement in conditions toward
the end OF the year, but the past week has
brought only disappointment Of their
hopes
The present week cannot by any chance
make up for the disappointment of the
preceding fifty. and the average trader
has no very cheerful forebodlngs Of the
future in view Of the continued stringency
OF the time money which deprives the
lower level Of rates for call of any spe-
cial significance.
The banks and the State OF New York
have been the largest gamers by the ac-
tivity in Wall street during the year. The
former have profted by the high rates
for money. and the latter has derived
handsome revenue from the tax on sales
contributed by traders. who. for them
selves. have made little or nothing
Hill stocks IL becomes evident that the
floating supply Of these issues was larger
at the time. the decline began than most
people supposed. The sale Of large
part OF the Union Pacifc's holdings prior
to the close of the last fiscal year and
since seems 10 have added to the supply
in the hands OF speculative interests. but
good judges of value say Great Northern
and Northern Pacific are not dear at pres
ent prices. considered purely from the
standpoint Of value. Well-informed in
terests assert that they can see nothing
on which to base conclusions that any
serious differences have arisen between
the Hin roads and other large systems in
the West.
Great Northern Ore certificates were
comparatively strong, in spite Of the IT,
port that the State of Minnesota would
tax the ore lands on the basis Of a 800
osoyo) valuation. Probably the reason why
the story had SO little effect was that the
street regarded it as buster more than
anything else. Presumably the ''valua-
ton was arrived at by taking Mr.. HIS
estimate of 5o0,G0o000 tons as the ore con-
tent Of the lands. and an average price
Of 80 cents ton. This sort OF thing
might be all right as a slap at Mr.. Hm-s
optimism, but il should not be taken Sc
rously. Ignoring every other considera-
ton. it is perhaps interesting to recall
that Steel Corporation officials have al
ways regarded Mr.. HilTs estimate as too
high. Why. then, should Mr. Hills
opinion be taken as establishing Il basis
for taxation without further investiga-
ton?
OF course. no valuation for taxation pur-
poses can be established by the price of
50 cents for ore agreed upon in the Great
Northern lease TO the Steel Corporation
That price IS made as a fair average of
the ore taken out during fifty years. and
nobody suppOses that if the whole prop
crty was sold for cash to-day il
would bring that price, or anything like
IT, The Steel Corporation would never
think Of buying on such terms If Il had
20 pay cash and provide interest on the
capital used for that purpose A deal has
been made on an equitable basis. and the
value is not represented by 1500.001 ore
certificates 10 which the stock market
has given a value of less than $50 each. or
q total Of less than $l20,000.l00 for the en-
tire property.
If the state levied taxes on full valua-
ton this would be approximately the
maximum limit. but Minnesota. like other
States levies its taxes on an assessed
valuation far below the real value of the
property within its borders.
In 1895 the taxable valuation Of the real
property in Minnesota was sos. 30l. 30 To
tax the Great Northern ore lands on
valuation Of $4,000 900 would add more
than 50 per cent to the taxable valuation
Of real property in the State-a practical
assumption that the ore lands constitute
more than one-third Of the real property
In the State. Absurdty could go no
further. II it is true that the lands have
heretofore been taxed on a valuation OF
farther If it is true that the lands have
been, and that there are no arrears TO
pay As to excessive taxation in the fU-
ture, there is the constitutional question
as 20 the rights of a State in what viz
tually amounts TO the cOnfscatiOn of
private property
So many people say, nowadays. when
Reading is mentioned. that they never
touch IT," that the wonder is where all
the following came from for the bull
movements in the stock when it was
one Of the most active of railroad issues
4 curious thing about it is that a great
many of the people who now say they
have never had anything to do with the
stock are known to have expressed bull
ish views on it at higher prices not so