The Washington herald., 1918-04-13
COAL SHARES
BRINGING $3.50
Holland Writes Of Wonder
full Property Located
in Texas.


tions for the stock of a coal COM
pany. owned in New York. but To-
Gated in Texas. have reached the
phenomenal figures of $3.50 q share.
Notwithstanding the intense interest
which is centered in the attempt
speedily to absorb the Third Liber-
ty Loan and also in the war news
from Europe. this quotation has
been the cause of a great deal OF
comment for several reasons.
In the first place it Is reported to
be the largest increase within q
like period Of time in the market
value of a stock Of which those
who are familiar with security mar
ket transactions for years have any
knowledge. For the stock of this
corporation was quoted three or
four months ago at a little under
$500 a share.
In the next place the high market
value Of this stock does not reflect
any speculative attempt to manipu-
late It. It appears to be a legitimate
increase representing real values.
Some weeks ago the president of the
company published an advertisement
which was unique since never before
in the history OF corporate activities,
so far as they related to the securities
market. has an announcement OF that
kind been officially published. The
president OF the corporation called
attention to the fact that the mar
ket price Of this stock was beginning
TO appreciate. He earnestly advised
those who were in possession of the
stock not to venture into the market
with intent to take advantage OF this
increased price. His intimation was
clear that there were to be develop
ments which in all probability would
serve still further to increase the mar
ket price. As the stock was only
closely held there would be little op-
portunity for attempted speculation
in it.
As the president Of this corporation
is a man who has gained high repute
for integrity and business ability and
IS prominently associated with one Of
the leading private banks Of New
York, the announcement was accept
ed as having been made in good faith
and without any attempt to inHuence
the market.
A Great Appreciation.
Some years ago Blair Brothers. a
firm that Is numbered among the
leading private bankers Of New
York. became interested in q coal
Icining property IN Texas. The
property covered about fifty thous-
md acres. 1t was a fairly remu-
Icrative proposition. 1t was well
.,anaged by President Marston. 1t
W as not a speculative undertaking.
II has pursued its course conser-
vatively and successfully for
number of years. That is shown by
the quotation for the stock which.
although it was closely held, was
maintained for sometime at about
$500 a share.
sition became an unexpected and.
as is believed, a magnificent oil
producer. The squirting forth OF oil
in large amounts caused the great
oil authorities of the United States
to give heed to this unexpected
phenomena. They made investiga-
ton. They were satisfied with
their results of this investigation.
y new oil field that gave unusual
promise Of long maintenance had
suddenly revealed itself.
The Standard Oil people and the
Blair Brothers began conferences the
result of which was the association
by the oil men with the proprietors
of this coal mine. The oil men knew
how to handle the product. The own
ers Of the coal mine were not IA
miliar with the oil business. There
fore an arrangement which was Of
mutual advantage was entered into
with the result that those who we're
fortunate enough to be in possession
Of stock in the coal mine found them
selves enriched by reason OF the great
appreciation in value Of the prop
erty due to the oil production. OF
course the appreciation is in part due
to the great demand for oil at this
time. Veterans of the financial dis
trict say that appreciation OF this kind,
not due to any speculative adventure.
but solely to the discovery OF M
expected riches in the coal property.
Is without any precedent in the his
tory OF the securities market. There
have been other great appreciatIons
gained within a short time. Some of
these were due to speculative move
ments; some Of them to conscliSa-
tions or the absorption Of various COM
panies. This appreciation stands apart
and Is likely to become traditional.
Blair Brothers have been interested
IN other coal ventures. This banking
house was, with the late Norman B.
Ream and T. Jefferson Coolidge, Of
Boston, the promoters OF the develop
nnent Of the CIinchfeId coal district
and the construction Of that model
railroad which reaches from the
Clinchield district in practically a
straight line with low grades and
inexpensive curves to Spartanburg,
South Carolina, where connection Is
made with the railroad which con-
yeys the coal to the new and great
terminal facilities which the company
has established at Charleston, South
Carolina
A Great Gamble.
Prosepcting with intent to discover
md develop oil properties Is an even
Ereatsr gamble or risk than any that
has been associated with prospecting
with intent to discover new gold
mines. Those who are competent to
gpeak say that almost as much money
aas been lost in gold mining pros
pecting and attempt to development
mines that proved to be small pro-
iucers as has been taken out OF sue
cessfuI gold mines, with oil pros
oecting and development. II is rec
ognized and in fact frankly acknowl-
edged by leaders in the oil business
hat prospecting with intent to devel-
Dpment has involved the loss OF many
Millions. And yet the rewards are
20 rich when prospecting and de-
geIopment are successful, as in the
Ease with gold, that capital is always
ound in plenty for undertakings Of
his kind.
They are still speaking in the finan-
siaI district of an extraordinarily sue
.essful "gamble"-so to call it which
IL TaF