Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-05-28

lishcd companies have paid huge divi-
dends-60. 100 and In one instance $50
per cent--with the certainty that their
dividends viii be still larger when they
share with their stockholders the
profits accruing from the sale OF their
rubber az the present prices-over SO
a pouns
Tha rush Tor shares In the new COM
panies. and their inflated premiums
are based on the utterly un-
reasonable assumption that they win
prove equally profitable The faUacv
Of that is easily demonstrated That
the present high price Of rubber win
be long maintained is impossible Tho
areaa devoted 20 rubber cultivation are
rapidly Increasing. II only one-half uf
the now companies mako Rood--or any
thing near 1.-THE promises ~ their
glowing prospectuses. the production
81 rubber will be increased 90 such a1
enormous extent as 10 outrun tho de-
mand for II save az greatly reduced
prices.
HARVEST FOR NEWSPAPERS.
Another most potent factor en- pro-
noting tho rubber gambling mania is
the attitude Of the newspapers towards
H. The London daiiies are reapiug a
gnlden harvest olit ~ the boom in the
shape ri Advertisements Day after
day they print columns of prospcctusos
OF rubber companies. An elght-page
ona-ccnt Newspaper recently had ~
eolunns OF such Advertisements
With the newspapers everything Co..
VIE shape ~ rubber prospectus finds
prompt acceptance az ADVERTISING rates
Wild cat concerns organized by rogues
20 secure promoters prohts-such as no
respectable newspaper would aid and
abet IN Fleeing the public-Ect their
column or two-column advertisements
printed along with those of sound and
stable enterprises
But that Is not the blacklist part OF
II. Because these advertisements nay
so weiL with one or two slight excap-
lions no hostile criticism OF such com
panies Is allowed TO appear in the
financial column OF the newspauar
printing them. And the financial coll
umn Is ostcnsibly published 90 afford
honest guidance u the money-investing
public. The rubber boom pays a hand
some tribute o. the staid and dlruined
London papers and therefore they sup
port 10 through thick and thin Expos
ures there are none. only such inter
views are printed as will help prolong
the boom. As for the interests OF the
public-they don't count one financial
editor frankly told me that II would be
as much as his job was worth lf he
dared TO write his honest opinion of.
or tell what he knew about. some Of
these much advertised rubber nota-
tons.
As with tho gullible public and the
venal newspapers 50 with the London
stock exchange. Everything seems to
go that brings grist 20 that mill There
is no trouble in getting rubber shares
listed there that would be barred from
the New York Stock exchange and
dealings I'm them restricted TO curb
stone brokers and bucket shops.
BREAKERS AHEAD.
Another thing that has helped the
boom considerably is the fact that 10
struck the public when the public un-
expectedly had something like 100000
600 In its pockets In the shape Of un-
collected income tax owing 10 the fall
ure Of last years budget 70 90 through
the house of lords.
Trouble viii begin when the fancy
premiums have 70 be paid in hard cash.
Speaking Of the recent inflated dealings
In rubber shares. W X. Lawson.
sound English financial authority. says:
From a purely financial point OF
view such wild speculation must be
suicidal, no matter how profitable the
subject may be on which IL Is based
Even II s. rubber were guaranteed five
year, ahead the boom could not be car
ried IN for a half or a quarter Of that
time. simply because C could not be
financed. There are too many wild
men In Il. too many small gamblers
and worst OF all, too many West End
plungers II is said that smart clubs
in Piccadnly and Pail Mall have under
written new issues so eagerly that they
took everything offered TO them They
will inevitably be landed with thou
sands Of shares, when Capei Court and
Mincing lane have no further use for
them"
Sir FIunk Swcttenham, late governor
Of the Straits Settlements where the
estates OF several Of the new rubber
are located, has also had the
courage 10 speak out.
Il think" he says, there are far too
many new companies being promoted
Il is difficult 20 understand how the
of one or two. and sometimes
three. companies a day can possibly be
justified No doubt some of the COM
sound. but there are many that none
but a lunatic, so one would think,
would dream OF trusting with his
RUBBER KING.
Unlike All previous big stock j1bbing
booms. this rubber boom has evolved
no great central dominating figure. The
man who has the best claim To the title
OF Rubber king," by virtue Of the eN-
AfIiN OF Ills AlAAfAfHAn anu A|hIllAkNf ~
Keith Fraser Arbuthnot lie is a d.
rector In no less than "a rubber COM
panies and IS popularity credited with
having made s5,O000o0 out of the gam
bic.
The hungry and disappointed stock
jobbers who did not succeed DO getting
in on the ground floor OF the rubber
boom have started an oil boom within
the last few weeks, 10 has a less sub
stantial basis 90 go on, us "a matter OF
fact. than the rubber boom. for there
has boen no big advance iu the price
OF petroleum. But by the same meth
DDS that have proved so successful iu
creating tho mania for speculation IN
rubber shares. oil shares iu new COM
panies are Anow being unloaded on the
public with almost equal rapidly az
fancy prices I have no space left,
however. 20 do more than bracket ia
with the rubber boom.
PRIEST TO RESCUE.
To obtain an unbiased view OF tho
rubber craze / left tho marts of
mammon I'M the city and went 90 the
rectory Of Father Bernard Vaughan,
the famous priest whose asCotic life
and fearless deuunciauou OF the sins
of society have won for him the title
OF "the modern Sdvonarola.'
Father Vaughan was just as busy as
tho brokers But I'm "a different way
Not dividcnd-huntcrs but souls iu dis
tress were ciamorlug for his miuistra-
tious Not "a minute could Doe spared me