The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-04-02
Pools and Frauds in wall street.

From the Herald.
The arrest of several New York stock ope-
rators, and the developments that have been
made consequently as to the manner of doing
business among that class of people, have Gre
ated an extraordinary lamentation in Wall
stock, around the stock boards, and at the
hotels. We refer to the arrest of Daniel
Drew, James Fisk, Jr., and William Belden.
They were arrested ON the complaint and
affidavit of Joseph B. Stewart. The names of
several others are mentioned in the complaint,
and conspicuously that of Leonard Huyck.
Subsequently Stewart himself and Huyck were
arrested on a charge of fraud connected with
the failure Of the Merchants National Bank
at Washington. The arrest of the latter,
though made, it is said, by the Government,
through James c. Kennedy, the receiver of the
MeIchants' National Bank, is evidently a
counter blow on the part of the parties first
arrested to embaTrass the matter and to save
themselves. A vast amount of money is in
volved in the transactions which led to the
proceedings.
As to the guilt of the parties, one side or the
other, we must leave that for the courts to
decide. No doubt the whole matter will be
thoroughly ventilated, and a great deal of
| light thrown upon the secret and fraudulent
| dealings in Wall street. The trouble arose
| from one set Of operators" as they are
called forming a combination and 'pool'' to
cheat others, and then cheating each other.
| The 'pool' was formed to operate in Erie
Railroad stock so as to control or exercise a
powerful influence on the market and thus
secretly to make money by catching the
gudgeons and cheating the public. The
parties charged with the operations for the
benefit of all operated for themselves and
cheated their partners, it is alleged. Such
combinations and pools have become quite
common, and wealthy men who stand high in
the community do not hesitate to enter into
them. Something similar to this occurred
, recently in operations in Pacific Mail stock
The biters were bitten in that case also.
, Now, in all other transactions in business
, we should call such conduct cheating and
fraudulent. Gambling at faro is not bit
more dishonest or demOralizing. The gambler
who secretly packs the cards to obtain the
money of his victim, does not act worse than
r these so-called gentlemen and Wall street
spectators who form pools to cheat the unsus-
pecting public and cheat each other. In fact,
1t is the worst sort of gambling. While this is
gong on we need not be surprised that the
moral sense of the community becomes
blunted, and that we have plentiful crop OF
crimes as the consequence. The Legislature
. ought to take the matter in hand, to protect
1 the public and punish the guilty. We have
, laws against ordinary gambling, though they
are not strictly enforced it must be confessed.
Why should not these gambling combinations
9 and pools be declared fraudulent and punish
ablet Unless something be done to check the
, growing evil Wall street will become so noto-
rious that respectable business men will shun
1t as they would plague and button theil
: pockets whenever they approach it. We call
| upon our Legislators to watch the develop.
, ments IN the case referred to, and to provide
, a remedy against such frauds.