Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-01-30
Floods in France,

One Of the important factors contribut-
Ing to the late weakness In the stock
market Is the news of the Immense losses
IN France from foods. The influence of
this disaster on prices can hardly be ap-
preciated by those who are not familiar
with the intimate social and financial re-
lations between the old world, and the
new. There IS a great millionaire popula-
ton with interests almost as close in
Paris and London as in New York. These
people have been affected in a closely
personal way by the stories that come
to them Of the floods In France. They are
very greatly disturbed by sense Of what
the conditions are to be In the gay Parish
an capital during the next year In their
minds they picture q scene Of WTeckage
and epidemic at the very Start-off of the
Paris season, beginning in April and
May. To tens Of thousands this is quite
as real as though the disaster had &C.
CURED in New York, in many. many cases
even more so. 1t produces a feeling Of
gloom and what might pass for actual
distress, state Of mind directly infuen-
tial In the stock market, strange as it
may seem to those not in close touch with
this phase of international sentiment.
The wild and woolly maneuvering in
connection with the copper merger has also
exerted very decided bearish influence
on the general stock market situation
The scheme involves the manufacture and
fiotation of an enormous volume of the
rfdiculously wind-blOwn securities based
on copper mines scattered over the west
ern map from British Columbia down into
the bowels of Mexico. The stuff is being
showed out with utter disregard of real
values. and a determined effort will be
made to unload the goods on the public
Hundreds of millions of dollars in stocks
will be set afloat that are not worth 10
cents on the dollar, and the public will be
asked to buy them at par or as close
thereto as may be possible. A more
audacious movement to make and sell
inflated securities has never been attempt
ed in this part Of the world. The cam
paign is so horribly absurd that 1t has
Thinking. men who have the welfare of
the stock exchange at heart because
their selfish interests incline them that
way, or possibly because they are gen.
timely patriotic to the street ideals, OPEN
~ express fear that the crazy demon
stration will be followed by malodorous
scandal: Just now the stock exchange
mas mad Surfeit of evil along that line
and is in no mood to take on any more.
Stupendous Copper Merger.
This stupendous merger of copper in
terests is really terrifying to sensible
people. If the capitalization could be
scaled down Is to 80 per cent then the
properties connected up would be rated
at very much more than they would
bring as strictly mining and smelling
propositions. If the men who are en-
cheering the scheme succeed in landing
any considerable part OF the stuff on the
public, there is dead moral certainty
of a slump that will involve everybody
concerned and q multitude Of onlookers
In wholesale ruin. Here Is one Of the
times that the stock exchange ought to
step In at the very outset, and take meas
ures to prevent the slaughter. BY TAX
Ing cognizance now of the intent Of the
awful job the exchange authorities can
save the public countless millions OF dol
lars. By neglecting to use preventive
methods. 1t will lay itself open to the
charge of being party to what will one
day be recognized as a stupendous bub-
BILE. That the insiders can afford to pay
single lawyer a fee Of $775OOO for
doing the legal legerdematn shows the
profligacy of the scheme. That fee null
tiplied many times will be paid by the
securities being ground out by the or
ganizers. With the springing of this
monstrous speculative abortion, there has
been born creature, which will be a
curse to the stock exchange Il 1t is given
standing and recognition by that organi-
cation. The issuance of stock is being
made in utter disregard of underlying
values. The steel trust was VIGOROUSLY
foated on basis Of about one-third
value and two-thirds wind. This latest
greater imitation. Since it's organization
the steel trust has taken meat on the
skeleton, and has built up to something
like its par capitalization. No such
chance opens for the copper trust In
the first place. it will control only a minor
percentage of the copper mines of Amer
lea, and it will be as. impossible for 1t
to control production or prices for a
very long time ahead as it would be to
corner the air. II It can make the pub
lie believe it can work miracles and
keep UP the deception for q few months
or a year 1t may be able to accomplish
the main object, which is to sell the
gaseous stocks on a deluded public and
realize thereby enormous unhallowed
profits.
STANDARD OIL Casa