Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-27

corporation is worth at least twice a.
much as 1t was at the organization nine
years ago. In that time It has doubled
nearly $4oo.000,oo0 Of earnings in plant
and new properties. and has actually
reduced fixed charges ahead of the
silent and unobtrusive operation Of the
sinking fund has accomplished this last
marvel: This analyst f1guees that If
there here Is no 70, change Of policy the book
close to 200 within the next Ave years.
He also figures that the corporation
can make money on colossal ssale
entirely wiped out. He does not say,
however, how the minor and independ-
ent concerns would fare under free
trade.
Fear Tariff Agitation.
The astounding results OF the con-
gressional election in the fourteenth
Massachusetts, district has given the
manufacturing interests very severe
jolt. To them 1t seems to foreshadow
an acute renewal OF tariff legislation
and the nearby revision of the tariff
law OF 1909. 1t was the hope OF the ois
industrials that there would be q tariff
peace for the next ten years, but in
this expectation they may have de-
ceived themselves. The political out
iOOh Is 1u4l OK IIOuUlo 1OT lilo udAu~
facturers, 1t is alleged. And that Of
itself is q distinct market influence
which will be felt increasingly as the
next congressional campaign draws
near.
Step by step plans are being carried
out for the great copper merger. This
week there was formally contaminated
the absorption by Anaconda of nine
copper mining companies Of Montana.
The deal consisted merely OF an ex-
-I, 20 %oys ftn
stock OF the other companies upon
basis agreed upon as equitable. By the
terms OF this arrangement Anaconda
increases its capital stock from $780,
100000 to $160.ooo.ooO, and Qf.the new
issue exchanges little over $4,000, 900
for the shares of the other concerns
and has left about $35.o0O,o0o with
which to buy other things that may
seem desirable. Amalgamated. as
everybody knows, holds a majority in
terest in Anaconda. and the share CAPT.
tai Of the two corporations now stands
$305. 100000. Since its organization
Amalgamated proper has produced
about 2. 500. 000. 900 pounds OF copper. 1t
Is that much poorer than 1t was at the
beginning. inasmuch as the copper
taken out can never again be mined
and sold. 1t has paid on an average OF
not more than per cent In dividends
and has charged off nothing for de-
probation. That 1t should now be sell
ing around 80 is one OF the mysteries
of the stock exchange. Experts on
mining shares hold the theory that the
market value Of that kind OF certtf-
Gates should be on basis Of to 10
per cent.
Bond Market Gone Stale.
The bond market seems to have gone
stale again. The result OF the flotation
of 100000 900 in Az per cent New York
city bonds gave a chill to the bond de-
partment. 1t also called attention sharp
ly to the tendency Of investment
in securities having a fixed earning ca
pacity. With the steadily decreasing
buying power of the standard gold dol
lar the world overcomes the necessity
for an increasing earning power on CAPT.
tai Hence the drift Of policy from bonds
into stocks which represent expensiveness
and the element OF speculative increase.
must increase. and those who are de-
pendent upon their income from the re-
turns on investments in bonds will more
and more feel the pinch Of the new order
Of things. This is one way of taxing
dead or inactive capital. and maybe In
a broad way. we are witnessing an. mex
orable leveling down process.
The passing of Western Maryland into
the control Of interests identified with
New York Central marks another stage
active participation in large CORPORATION
affairs. First leg is knocked off. and
then an arm The head went when Jay
Gould died. The trunk and the limbs
have been dying of dry rot ever since.
When George Gould started in on his
ambitious efforts to extend the Wabash
system to Pittsburg and thence on to
Baltimore. he was in the very heyday.
OF his power. He was closely allied
with John D. Rockefeller, and could draw
ON that unlimited reservoir for all the
capital he needed. In due course of time,
however, the ancient financier got cold
feet. and for several years past the
Standard Oil source of supply for Gould
enterprises has been dry. With the
withdrawal of active Rockefeller co-opera-
ton began the Gould backtracking, and
he has been continually trimmed down to
the present day. Mr.. Gould seems en-
tirely unable to keep abreast of the
times. fact which is reflected very
clearly in the stock market and in the
attitude of the powerful interests behind
the railroads and industrials.