Columbia University Libraries Digital Collections: The Real Estate Record

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December 18,1880 The Real Estate Recori\ im companies. Rival telegraphs are always bought out or consolidated and the fights among transportation lines is simply to se¬ cure a larger percentage of the final pooling arrangements. What lends interest to the course of prices in Western Union is the fact that WiUiam H. VanderbUt, D. O. MUls and others of the largest holders of the stock, sold their hold¬ ings from 105 down. It is a moot point in the "street" whether this was done after an understanding or a quarrel with Jay Gould. Rumor has it that an arrangement had nearly been perfected for the two tele¬ graph companies working together, which would have put telegraph stock up ; but Vanderbilt and his friends suddenly sold their Western Union stock to the loss of Gould and his friends, who were long. AU that is really known is, that Vanderbilt did sell out, and there is a suspicion that the two great speculators had a private understand¬ ing, Gould to give Vanderbilt control of the Union Pacific and VanderbUt breaking the price of Western Union to enable his^friend Gould to get possession of the telegraph system. And here comes in a consideration which should never have been lost sight of. The telegraph transmits the news of the world ; it gives the price daily, nay, hourly, of every article bought and sold by the human race. Other governments protect the community against manipulation of the markets by the persons jvho control tele¬ graph lines. It is more than probable that before one year is over, Jay Gould will have the whole telegraph system ol: this country in his hands. The press wiU be at his mercy ; he will be able to control the prices in every Exchange and market in the land. In a day, by doctoring quotations, he could make fortunes larger than the Rothschild family could build up in a century. Gould probably understands that were there any danger of his getting this absolute control of the telegraph system, that the country would unanimously demand the purchase of the telegraph system by ths government, and what he buys for a few millions he probably expects to sell for a hundred miUions. If the present Congress was wise, it would offer a fair price for the Western Union as it now stands. If that was refused, it could order the construction of a new, national telegraph line. The nucleus of a national line already exists in the wires now owned by the government to perfect its weather- signal system. Of course, it would not be profitable for a telegraph company to run wires to the top of mountain peaks ; but the signal stations were forced to use the tele¬ graph, and many thousand miles of wire are to-day owned and operated by the govern¬ ment, but generally in out of the way and unprofitable places. As to our international cables, those running under the seas of the world, they clearly ought to be owned by the govern¬ ments interested, and operated exclusively for the benefit of the commerce of the several nations. Some local statesman should start an agitation for the purchase of th© telegraph lines by the government, and the Secretary of State who would bring about an international telegraph system, would render himself iUustrious for all time. THE TALK OF THE STREET. Mr. Yerkens, a well-known Philadelphia stock broker, was in town on Thursday and he expresses a very favorable opinion of ihe future prospects of New Jersey Central. He says the public do not as yet begin to appreciate the im¬ portance of the Baltimore & Ohio connection. So far, the Pennsylvania road has succeeded in em- barassing the running arrangements between the Baltimore & Ohio and the New Jersey Central, but eventually that matter will be adjusted and a very large addition will be made to the reve¬ nues of the New Jersey Central. It is true that the New Jersey Central will shortly lose the oil traffic of the Standard Company, which will soon begin to pour its oil through its own pipe line, but this will be more than offset by the growing business of the road in other respects. Mr. Yerkens is also of the opinion that the coal roads are a purchase. There is an immense and growing demand for coal. The cessation of out¬ put at the mines does not mean a stoppage of la¬ bor, for the mine is being opened and developed when the work of taking out the coal is stopped. Mr. Yerkens thinks that the market has not yet reached its highest figures. He is a believer in Green Mountain, Cherokee and Gold Stripe mining properties. It is stated upon the highest authority that James R. Keene is " long " of Western Union at $95. President Norvin Green bought 5,000 at $92. General Thomas Eckert is also known to be "long," at about the same figures. All these people say that Western Union is really earning eleven per cent, and they do not think that any competition could reduce its profits to less than the seven per cent, which they now generally pay. But the stock continues weak because it is known that Vanderbilt has sold out, and that all the Californians, save Keene, have followed his example. A well-know operator was asked what he thought of Iron Mountain. " I won't deal in it," said he, " oecause it is a Gould stock. Texas railway property ought to be a purchase, in view of the rapid development of that State, but the Gould stocks always hang fire. Wabash to-day is cheaper than it was last year. So is Missouri, Kansas & Texas, and if a road is constructed to the City of Mexico it will be out of the profits of the roads running East and North. In other words the stockholders of Missouri, Kansas & Texas, who now have a valuable property, will have to pay for the running expenses of the un¬ profitable road which is to be built through Mexico. Jay Gould gets his profits in building railroads and consolidating poor roads, which he does own, with good roads which he don't own. No, I prefer not to deal in Mr. Gould's stocks." A correspondent says that the silver dollar is worth only 88 cents; bnt then the paper dollar is worth just nothing at all. Yet, if one wants to buy a house, a horse, a ship or a barrel of flour, you can tender gold dollars, silver dollars or paper dollars and the seller is forced to take whatever is offered him, as they are alike legal tenders under our laws. Nine-tenths of the trans¬ actions of daily life are in coins of less than a dollar, the intrinsic value of which is far below that of the gold dollar. It is a waste of time to be discriminating between the varying values of gold and silver and paper, when each will be equally useful in tbe purchase of commodities. The real phenomenon, which has occurred in the relative values of gold and silver, is not the de¬ preciation of silver, but the enhancement of the value of gold. When Germany decided to use an exclusively gold unit of value, France was forced to stop the coinage of silver. This led to the greater employment of gold by the commerce of the world. Simultaneously there was a falling off in the actual production of the yellow metal, and this led to the over-valuing of gold, which showed itself in the reduced price of all commo¬ dities, silver included, which losted from 187.3 to 1878. Silver, during this period of depression, as was shown by the East Indian Parliamentary Commission, would purchase as much of every commodity as ever it did, but, as the course of prices showed, gold would purchase more because of its enhanced valuation. From what is taking place in Prance and Germany, it seems tolerably certain that silver will be restored to its old po^ sition on the Continent, and we will again see ifc quoted on the London market at 61d., which would make the silver dollar three per cent, pre¬ mium over gold, as it was when demonetised in 1873 and for some time previous. ABOUT MINES. THE STATE LINE. The California people, who achieved so much discredit in connection with Chrysolite and the other LeadviUe mines, have purchased a property known as the State Line Mine, situated in South¬ ern Nevada, near the boundary. The insiders have taken up the stock, and in due time it will be offered to the public; but meanw^hile the most extravagant stories are told of its fabulous wealth, &c. All our information is to the effect that the mine is a "fluke," to use a mining vulgarism; that it has some rich ore, but the formation is broken and but little depth has been reached in the sev¬ eral openings. George Roberts and his friends will probably make a good thing out of selling the stock; but we advise investors to give it a wide berth. The past reputation of the owners of the stock ought to be sufficient. Then the mine itself is situated in a locality which is unget-at-able. Again, we say, avoid the State Line Mine. THE BOSTON CONSOLIDATED. We have, time and time again in these columns warned investors against Boston Consolidated and the persons who were manipulating it. So bad was the reputation of the latter that, more than a year ago, the New York Mining Ex¬ change declined to list this property. Then itself may in time get on a paying basis, but until it passes into other hands tho stock should not be touched. Despite our warnings and the bad character of the manipulators, a deal was gotten up last week in this swindling stock in which the members of both mining boards par¬ ticipated. It resulted, as those who road the daily papers know, in a number of brokers being badly injured in their pockets. It served them right. THE SILVER CLIFF REGION. And now news comes that a very rich strike of chloride ore has been made in the Silver Cliff region. So far, the ore in this region has been low grade, although there was an abundanceof that. Ifc cannot be denied that so far this district has been a sore disappointment. When the new mills get to work afc the Silver Cliff, and ifc is expected they'll be running by February next there will probably be a deal in the stock. The Silver Cliff, the Platte Verde and the other mines in that region ought to prove excel¬ lent properties, if expert testimony of the highest character is to be believed. But there seems to have been some difficulty about working the ore. This, of course, will in time be overcome. THE PLUMAS COUNTY MINES. The Gold Stripe has declared a dividend of 15 cents for the quarter ending December 15; bub ▼ery little of this stock has been sold lately. In-