Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-28

participates in the distribution OF shares
among small holders. but 1t is impossible
to obtain reports from them all The
Amalgamated Copper Company. which
has been the center of attack and has
suffered perhaps more than any other IN
terest from the depression. reports 5000
new stockholders within the last four
weeks: the sugar trust reports 1.JOo and
the steel trust people say that they have
no time to make calculations or even fur
nish an estimate of the new certircates
that are being called for at its transfer
office. Our new stockholders are too
numerous to mention, was the reply
made by one OF the officials to my in
quiry.
The newspapers are helping this new
movement along. Almost without ex-
ception they are advising people to buy.
buy. buy. before the market RECEIVERS.
Every day the pages of the New York
Herald are spattered with paragraphs
in italics stating what the future divi-
dends from different securities ought to
be at the present quotations.. and doubt
effect upon the public.
"Prices Too Low" Experts Declare.
The insurance commissioners Of eleven
states have been in session here for sew
eral days comforting about the valuation
Of the assets of the various fire and life
companies under their jurisdiction. Ev-
cry company must make a report of its
assets on December 81, and it is very
serious question whether the bonds and
stocks in which their surplus Is invested
shall be reported at the present market
quotations or at their actual value EV.
cry expert they have consulted has agreed
that the present quotations are abnormal.
varying from ) TO 80 per cent below the
actual value of the stocks estimated
upon their dividend-earning capacity.
Upon this advice the insurance commits
Ia
ommend that insurance companies max.
ing their annual statements for the pres
ent year to the various departments, In
determining actual market values of Sc
curities as of December 81. 1907, should
not be required to confine themselves to
present market quotations. We believe
that the valuations as reported by the
companies for the year 1905 more nearly
represent the true values OF such securi-
ties under normal business conditions
Commissioner Folk Of Tennessee, presl-
dent of the National Association of In
surance Commissioners. in carefully
prepared statement explained the grounds
upon which he and his ten colleagues had
arrived at this conclusion. and the several
insurance companies have had 1t printed
in circular form for the information or
their policyholders. Mr.. Folk says that
this action is taken for she protection of
the policyholders rather tlan the offlcias
of the companies. because if the present
temporary and fictitious values are to be
used as the basis for estimating dividend
Accommodations every policyholder will
suffer and those whose policies mature
next year will suffer very severely. Mr..
Folk says that he hopes the action
Of the insurance commissioners Will
have some influence toward restor-
ing normal conditions in the finsn-
cial world. AT present prices he
asserts, mo securities are being sold ex-
cept to protect credits elsewhere, and We
do not believe that the policyholders In
insurance companies should suffer from
these abnormal conditions"
A Remarkable Situation.
It is remarkable that every influence
should combine to boost stocks; 1t is ex-
traordinary that so many interests and
authorities in financial matters should
take such hopeful view of the value of
stocks and bonds. and show SO much con-
fidence in their advancement. Veterans
who have been on the street for half a
century, agree that such a thing never
occurred before, but they are convinced
that the predictions are justified by the
unprecedented prosperity of the country.
Everybody is a bull, but still stocks will
not go up They remain at low-water
mark, and many people believe there will
be no advance movement until the mes
sage of the President has been read to
Congress.