Show THE BROKERS AND THE MARKET one of gur our morning papers last week published an article purporting to give the of nf a certain brokerage house of new york taking to task the members ot the salt like stock mining exchange for their action regarding many of the securities listed on all the exchange the article is headed roast brokers for depression it has also a subheading sub heading new york security seller blames local men alen for conditions the article has been carefully read and makes a good showing from the viewpoint of the booster there are many points in it however which may give a wron wrong impression in it is true that the members of our exchange cl iange are often blamed for the maiac conditions dit ions As a class the salt lake stock brokers we believe stand well in the community and we believe that they are in general conscientious in the representations which they make they are blamed L because often their clients give them orders to sell and the market is not broad enough to absorb all the stock thrown out and prices are consequently depressed many S speculators tors buy stocks on mar marins margins ins paying 30 per cent down trusting that there willbe will be an advance in the market price so that they may double their investment in thirty or sixty days if for any reason a considerable of a certain stock is thrown on the board and the price declines naturally some of the nia margin agin stock will be called out and there are still M more ore declines and more stock comes to the market the broker is not to blame for this I 1 the letter in question states that colorado with a capital capitalization of shares has paid per cent of the capitalization iza tion it is true that the company has paid in dividends this is per share the investor who bought this in june 1906 at per share has made a handsome profit on it we do not believe that the salt lake broker should be blamed for recommend recommending in his clients to sell this stock at per share in july 1907 the broker was conscientious in recommending such a sale the investor had already received ceia d per share in dividends and he was sure of 8 per share if he sold no loss would come to the investor if he followed this course while it is true that the coni company pany has paid and will add this month it is not true that the man who paid 8 per share for the stock has reec received ived per cent of his investment we do not think that the salt lake broker should bo be blamed if he recommended the investor to buy sioux con at 12 cents pr p r share early last year and further recommended him to sell when the stock reached six 5 the rhe man who bought and held on has received a large interest on his in vestment but the man who bought at has not yet received his principal the salt lake broker should not be blamed for recommending om orn the purchase of iron blossom at 21 cents last year and again recommending in the sale at before the company began the payment of dividends these comments do not reflect at all against the mines or against the management t for the management and the properties themselves are to be commended these are simple facts as shown by the record of the transactions on the salt lake stock and mining 1 ng exchange there are some brokers who seem to feel that investors should always buy and never sell there are times when mining stocks and other securities should be sold if a buyer can be found it often requires however more courage to sell than to buy the larger profits are made by investing and selling in accordance with the suggestions made in the early part of t these hese comments for this reason the salt lake broker may be warranted in recommending an investment in such a stock as iron king crown point and some other cheap stocks the broker however should be ready to recommend the sale whenever the stock has made a very profitable advance if the broker follows such a course and gives to his client the information called for and lead to an advance id vance or a severe drop in the notifies him promptly pron aptly of any cause that may lead to an advance or a severe drop in the price of the stock he should not be blamed in general we can state that it is not the broker that depresses the market prices only occasionally may there be some manipulation for which he is to blame |