The Alaska daily empire., 1914-03-07
RAILROAD BILL IS READY FOR PRESIDENT WILSON
FOX FARM PROFIT
 AND HAZZ

the fox farming industry, brings out two things with startling clearness:
 CD That the prices of silver grey and
 black foxes for breeding purposes have reached enormous proportions in the East, and that the industry has become highly speculative,
 The Daily Consular and Trade Re ports. issued by the Department of Commerce. recently contained the fol lowing from Consul Frost's report: , "A score or more of silver-black fox companies from the Charlottetown con sular district are vigorously canvass , ing for American investors, particu- larly in New York and New England, and additional cOmpaaies are forming with the same procedure in view.
 "The value of frst-quality Prince Edward Island si!ver-black foxes for breeding purposes rose from $10,O0O per pair in october, 1912, to about $l2,- 900 or $13,000 per pair in January, 1913. In the early winter of 1912-1S it was possible to secure options on unborn spring progeny at $10,0O0 toI S12,000 per pair. Ten per cent. of the price was required to be deposited with the prospective vendor, to be re- turned with interest in case of failure to produce the whelp5 on September 1, the common date for deliveries. Per haps 40 or 50 different groups of pro- motors advanced deposits under this Arrangement, frequently also undertak- ing to purchase one or more pairs of all breeders to be rauched along with the young animals, and proceeded to organize companies with these options and contracts as assets.
 Advance In Prlces
 'Tn April and May, 1913. 1t became ap- parent that the quantity of offspring would be far short of anticipations, and an almost instantaneous advance in price ensued Quotations rose from $13,000 in April to $14,00O or $15,000 in May. and finally to $17,500 and S1S,- 900 in June. Numerous transfers were made at stil higher figures, but the majority ranged from $15,000 to $l6,- 900. Many promoters who were sell ing shares on the faith of options which the givers could not or would not fill were hard put to adjust their financial positions. After few weeks a natural reaction set in, and, in mid summer, fox trading was for a time . prices fell to $14.000 or even lower.
 When the time actually arrived for deliveries in September, 1913, no grave difficulties were forthcoming. A fair amount of outside credit made its ap- pearance, and although in some in- stances the same funds served in the settlement of. several different trans actions, the period of changes of legal ownership passed of on the whole with success.
 Profits Exaggerated.
 By early November most of the available island-bred black foxes had been disposed of; and as the demand was slightly greater than the supply, l the price for 1913 young was S14,000 or $15,O00 per pair for best grade stock. Options for 1914 whelps were in more active demand than at corresponding | period in 1912 and ranged in price l from $1O,OO0 to $12,500. The price of 1914 options may be said to'be based | on confidence that outside investors will buy into the industry in sufficient amount to hold up present values. A careful calculation of the amount of American capital already invested places 1t at $900,0O0, and it is still steadily coming in. British capital, ! which has been slower to arrive, ap' peared in good quantities in the aut- umn of 1913 and may be placed at $15O,OOO
 "So soon as the September deliver | ies were completed those companies which had been formed in season to have increase of foxes in 1913 were in position to pay dividends; and even those companies whose foxes had no offspring took advantage of the rise in fox values to recapitaliZe their or iginal animals at high figures and, by selling shares of this inflated stock, were able in most instances to declare dividends of 20 per cent. or more. The facts regarding these profits were promptly seized upon by careless or credulous promoters or feature writers and were distorted and exag- gerated.
 'Tn it's turn the pelt demand, too, met exaggeration. A statement was widely circulated that famous Lon- don fur company had declared that no amount of pelts could break the pres ent high prices of silver skins. where as, in reality, the firm had said: If the number of fine black skins to come | forward in the future were to be ap- preciably increasedi we have no doubt | that the prices would be lower, but it is impossible for us to say to what eX- tent It has been noted in this con- nection that the five-year closed sea son for fur seals will terminate about the time the island fox ranches begin chtnpnnntg pelts to the market.
 Great Need for Caution.
 "The consensus of intelligent opin- ion, both on the part of local business men and those who come from abroad to look into the situation, is to the effect that the fox industry presents a highly attractive and promising spec ulation CD if the quality of the foxes handled be positively known, and (2) if the management, of the ranch or company be capable and wholly hon est. As in any strikingly remunerativeI business, the character of the promot- Iers varies infinitely so that in every case the fullest possible information as to the personality of the men in charge of the proposition should be sought out. Capitalizing even the fin est foxes at high figures should also be considered with great caution. As a prominent island newspaper has stated editorialy, There will probably be weeding out of weak companies when the market reaches the pelt , basis The fox expert of the Canadian Commission of Conservation, Mir. J. . Walter Jones. in his excellent official bulletin on fur farming. gives the following warning: Although there is ample basis for sound industry In fox farming, it is necessary that the general public should realize that the industry is becoming highly specula- tive one and that the individual who puts his money into companies loaded