| OCR Text |
Show BROKERS' VIRTUE IS ITS OWN REWARD Market Saved From Annihilation. Only the brokers and those professionally connected with the market realized the grave peril that confronted the infant boom in Tintic stocks last Monday. The danger signal was the opening of Beck Tunnel at 43 cents after a close on the previous week at 35. It was perfectly plain that the property was not worth $430,000 even on the higher level attained by all Tintic shares, yet when the brokers looked at their order books taey found orders whose execution promised to kite the price to 50, 55, or even 60 cents a share. Black Jack, r. -ting at 21 was hardly less effervescent. It appeared for the first hour as if the rush of purchasers, local and eastern, would inflate the price bubble to the bursting point and bring to a premature collapse the long-expected and eagerly-awaited market re vival. Something had to be done. The brokers did it. By midday messages were going In every direction di-rection to clients known to hold the shares that were apexing the boom. "Now is the time to take your profits," was the burden of these com munications. Selling orders did not come precipitately, pre-cipitately, but they came enough of them to steady the market and set the flamboyant issues back where they belonged. By the time the caller rapped for the adjournment of the afternoon after-noon call the market had settled down to its sober pace. The catastrophe had been averted. The thoughtful and heroic brokers did not go away unrewarded. They did not forget to charge up the selling commissions to the clients whose orders had enabled them to stay the tide of speculation and these added to the buying orders executed made the practice of virtue a profitable proceeding. Where did the freshet of orders come from? 1 A considerable part rolled in from beyond the Mississippi river as a result of the praise of Tin-tics Tin-tics by the New York curb brokers. But the local traders and speculators are not idle. The men who "retired" from the mining game a year or two ago are coming back and bringing with them their sisters and cousins and aunts as well as their male relatives. Real estate proved disappointing, dis-appointing, irrigation enterprises too slow, so there was nothing left to do but resume the pursuit pur-suit of the elusive ore body. The Tintic campaign cam-paign of the eastern brokers is assisted by the semi-stagnation of the Now York exchanges and J (Continued on Page C.) BROKERS' VIRTUE IS ITS OWN REWARD (Continued from Page 3.) the difficulty of finding profitable employment for idle capital in that section. Conditions at home and abroad are decidedly favorable for a continuance of the active market. Although it has been said that the riot of orders on Monday threatened to lift prices to an unconscionable height it should not be inferred that the limit of safety has been reached. On the contrary quotations can go much higher without with-out becoming exorbitant. But the mines must have a little time in which to develop a foundation founda-tion for their expanding valuations. Men may believe, as many do, that Beck Tunnel is going to open a new Colorado ore channel running south from the Uncle Sam. With such a resource re-source the stock might be worth dollars a share. Belief, however, is not evidence. The folly of overdiscounting a probable strike was demonstrated demon-strated in an unforgettable way by the Iron Blossom Blos-som speculation of three years ago. A marg'n must be left for advancement after the strike is made or the market and the investor will both suffer. In every part of Tintic the mines are nearing 'new ore bodies, getting ready for enlarged en-larged production from plethoric reserves or pushing into territory where finds are probable. , The stock market has only to modulate its pace to the steady advance of the miners to avoid pitfalls pit-falls and keep its footing. 1 Woolley Puts Pioche Merger Through. Thanks to the energy and persistence of Ernest It. Woolley, the Nevada-Utah, Prince Consolidated Con-solidated and Ohio-Kentucky properties in the Pioche, Nev., district, have been welded together and the Amalgamated Pioche Mines & Smelters corporation is a substantial reality. The capstone cap-stone of the edifice was the ratification by the stockholders of the Prince and Ohio of resolutions resolu-tions giving the officers of the companies power to transfer the assets to the merger. A vote to this effect was recorded at the special meetings of stockholders in this city last Saturday. The minor shareholders had perceived no official statement state-ment as to the terms of the consolidation, but they accepted the assurances of the negotiators that the terms were reasonable and the unof- I ficial outline published in these columns two weeks ago. That that statement was correct is tacitly admitted by the negotiators of the deal, unless Mr. Woolley decides to teM the story himself him-self no one will ever know what a splendid piece of work the organization of this merger has been. m Other parties to the deal know something of the obstacles surmounted, but Woolley has done practically all. the -work .and he. alone can narrate nar-rate the intricate details of the negotiations. In advance of the launching of the Amalgamated Amalga-mated other Pioche companies are hastening to market with their wares. The Pioche Demijohn set the ball rolling by enlisting on the Salt Lake exchange. The Eastern Prince Gold & Silver Mining company has followed and the Pioche Double Dyke met here last Tuesday and authorized author-ized a Boston house to market 250000 shares of treasury stock of a total capitalization of a mil-' mil-' lion. To make the sale easier holders of the is sued stock will pool their holdings. Practically all of the Double Dyke shares are owned in and around Boston. Ray Con. Now a Producer. The Ray Consolidated Copper company is now a going concern. Beginning on Monday, March 20, the mill commenced its regular operations, thus materializing the ghost of increased low-grade low-grade copper production which has haunted hte dreams of the red metal magnates for two years. Other ghosts the Chino, Inspiration and Mason Valley are rapidly assuming material form and if Giroux is not intensifying the horrors of the red peril it is not through altruistic consideration considera-tion for the producing mines. Now that the new porphyries, represented by the Ray, have actually entered the field the copper world will await breathlessly the returns-from its operations. Estimates Es-timates have placed the cost of its finished product pro-duct at 9 cents a pound. Even the most careful estimates, however, Involve more or less guessing and in practice the cost may run a cent or more on either side of the mark set. Should the new company attain a production figure approximately that of the Utah Copper and the Nevada Consolidated Con-solidated a veritable panic may be expected in the ranks of the old line operators. On the other hand-a cost well-in excess of the estimate would give them much joy. |
