The Daily News. FRIDAY, JUNE 3. RUSH FOR WEALTH.

Taranaki Daily News, Volume LIII, Issue 46, 3 June 1910, Page 4

The Daily News. FRIDAY, JUNE 3. RUSH FOR WEALTH.

London papers received by the last Mail are filled with prospectuses of oxi and rubber companies. For several months previously the boom had ibeen steadily growing, but about the middle of April it appeared to reach its height. "The whole country," said one paper, "is stilT gone rubber mad, and the wild rush for a share in the golden harvest of boom shows no sign of slackening." The list of oil propositions put before the publifl" is lengthy and varied. Petroleum concessions in Newi Zealand, Newfoundland, Egypt, Mexico, Palestine and Trinidad were all calling for capital to develop them and to release from the bowels of the earth the pent-up fountains of liquid fuel . "With each passing week," said the Petroleum Review of April 9, "the oil boom continues to increase in its sphere of activity, until to-day it is sale to say that almost every known petroleum field in the world is commanding the attention of the British capitalist." In one field alone, that or' Maikop, i» Egyptian territory, on the shores of the Red Sea, the striking of a few prolific gushers has led to an immense subscription of British capital. "The possibilities of Maikop," says the Petroleum Keview, "have captivated the whole or nearly the whole of the investing world, and a glance at the English companies which have been registered during the jpast few months, and in the majority of cases gone to public subscription, must of necessity impress one with the plain fact that to-day the British investor pins his faith to Maikop as to no other field in the two hemispheres." The paper states that £2,500,000 of English capital has already gone or is on the point of going to bring about the development of that field, and' it gives a very significant warning of the losses that may be incurred in these hasty flotations when it mentions that tke titles to may of the properties on offer are very insecure, and that some have actually been sold two or three times over. Whilst it must be gratifying to people in Newi Zealand to see capital largely subscribed for the prospecting for oil in this quarter of the globe, it is sincerely to be hoped that there will be no serious reaction from the boom sueh as might cheek legitimate enterprise, and that the confiding British public who have put their savings into heavily capitalised "consessions" will at least get a good run for their money. tn speaking of the rubber boom one London paper says: "Fortunes are made daily. , Up to now there are no losers, for the shares have gone steadily upward with little variation. Some of the fortunes that have been made are enormous. One Broad street firm of stockjobbers is stated to have made a million pounds in the last six months. Every day the rubber market in the Stock Exchange is packed with a seetning crowd "of four to five hundred brokers and jobbers, and a large proportion of these think nothing of clearing £IOO a day." These fortunes, It is hardly ne?ps*ary to point out, have not oeen made by rubber production but by trafficking in shares, and it will eventually take a powerful lot of rubber to be produced to ipay interest on the inflated capital of many of the companies. A pretty picture is drawn of the gamble in rubber shares on the London Stock Exchange early in April. The florin shares, which had the attraction of looking cheap, were taken in hand one after the other, and hoisted to absurd premiums. Public appetite demanded two--1 shilling shares, and it would have been contrary to human nature to refuse to supply them at the prices eagerly offered. Jobbers made no secret of the fact that they had lines to sell, that they were there to sell them, and that the public would have to pay higher and higher prices as the demand increased. In certain shares the dealers got caught short, and sold, almost in the dark, not knowing where to go to replace the sales, but hoping, for the turn of the tide which would send buyers streaming back to- realise after the fury had exhausted itself. From all parts of the country poured in orders to buy, buy, buy; and the market itself was sheer Bedlam. Brokers over and over again abandoned the attempt to deal, and wrote down their orders for jobbers to execute. The jobbers, making money at the rate of one to five pounds a minute, drove frantically into the crowd, which was radiating heat like a furnace, and made prices daily in shares of which they scarcely knew the name. "The scene drew men from every part of the* Stock Exchange to watch it. Dealers from other departments flocked to this wonderful arena, regardless of the discomfort and tlie exacting conditions under which the game was played. On the fringe of the ever-widening circle stood dealers from adjoining spots offering to go into that fierce scrum and execute, for a commission, the orders with which 'brokers wore overwhelmed. "You'll wet killed if you go in there," was heard repeatedly. While the jobbers made money hand over fist, the brokers were worked to death. Messrs Zorn and Leigh-Hunt, well-known brokers, set the whole of the .Stock Exchange talking by the issue of a circular to their clients Pegging for no fresh orders for a fortnight, in order that the clerical work might be overtaken. Another I firm handed printed notices to their j agents asking them to introduce no' fre=h clients until further notice. Yet I another large broking firm had under I consideration a suggestion for transact- j ing fresh business only on alternate i days of the week. Brokers in self-de-1 fence were obliged to raise their scale,

ibut even so the commission was paid willingly. One of the most remarkable examples of the rush for shares occurred in connection with the Keraia Rubber Estates. This company offered 180,000 shares at 5s each to the public, and ■by the first possible post after the prospectus was issued the shares were fully subscribed. When the lists closed the number of sliares applied for was 1,282,410—1,102,410 more than were offered to the public. The clerks employed in returning money to the disappointed applicants were working night and day, and l the company's bankers, who were also receiving applications, were compelled to employ an extra staff of forty clerks to send tack the money as fast as it came in. It was estimated that the total amount of money received would be sufficient to buy half-a-dozen rubber estates. As is known, more than one London concern is at present negotiating for the purchase of the Taranaki Company's property, and it is possible that the directors may shortly recommend acceptance of an offer from one of them. For the s'ake of the industry, however, it is to be hoped the industry will not get into the hands of market'riggers, exploiters or jobbers, for if it does it will be a bad lookout for the industry and the district. It would be infinitely better for the local shareholders to find further money to continue the development work, especially in the light of present prospects, which are brighter than ever they were. Were tiie works to be purchased by London oil magnates, it would be an entirely different matter, as they would develop the industry on lines that could not be attempted by the people of this Dominion. Whatever happens, the interests of the industry ought to be safeguarded.