The Weston Democrat. [volume] (Weston, W. Va.) 1875-current, 1875-08-02
FRAUDS IN WALL STREET.

Pretended Combinations by which Large
Sums of Money nrr said To be Mntlc---
How the Fraudulent Operations nrc
Carried On---rIctims NIL Through the
Country---Lcttrr from IN Unfortunate
Philadelphia womRn.
The president of the New York Stock
Exchange has for some time past been
in the receipt OF letters asking for in
formation concerning certain advertise
ments relating to Wall street operations,
which appear in many OF the newspapers
throughout the. United States. These
advertisements give glowing accounts OF
the ease with which money mag be made
in stock speculations; and the advertisers
pretend to have peculiar facilities which
enable them to "control " large numbers
of shares with m insignificant amount.
Some Of the advertisers also offer to
send, free OF charge, pamphlet coEtain-
ing full particulars Of the mode in which
their transactions are effected, and when
called upon actually do send book con-
tanning what purports to be m cxplNna'
ton of their way OF doing business. The
so.called explanation consists of plausi-
bly, constructed theory Of speculation,
well calculated to deceive. \ very
liberal use of the street terms is employ
cd, and "margins," "puts," "cllls, "
privileges" "sprcads,' bulls, y
"bears," etc, are referred to in such Il
way rs to essentially confuse the mind Of
the reader. 1t is also claimed by the
advertisers that they have combinations,
by which the amounts contidcd TO their
care cannot fail to give large returns,
and that they cannot be lost from the
fact that the strength OF tho combina-
tons is such that they are able to resist
almost any pressure. Many of the re-.
spectacle banking houses down town
are also constantly receiving letters from
persons asking for information regarding
these advertisements, or from persons
who have been victimizod, asking them
to indicate by what means they can OBJ
tain the restoration OF their money.
Unfortunately, there seems to be no
redress under the law, us the persons en-
gagged in the business are too wise to nj
low themselves to be caught in any
transaction that would involve them in Il
criminal prosecution. This point seems
to be well settled, rs legal advice has
been sought in several instances, and
the opinion OF tho counsel consulted has
always been that thOre is 10 legal rene
dy. The money sent to be invested is
intrusted Internationally to tho adver-
tisers for investment MS they may deem
best, and if they report that it has been
lost, no one can prove that such was not
the case, and even If it could be so
proved, all that could be done by the
loser to recover his money would BIO to
bring n suit for breach OF trust. Besides
this there would be great difficulty in
fixing upon the person against whom
the suit should be brought, for although
tho advertisers put forth firm name, it
would DO impossible to find the persons
representing it, from the fnct that they
do not exist. The amount of credulity
brought to light by tho correspondence
referred to is wonderful. Letters have
been received from allparts OF the United
States, not only from persons who might
not be expected to be better informed,
but from business men, and men in posi-
tons which would seem almost to exact
n better knowledge Of the world Under
date of June 10, railroad man writes
to the president OF tho Stock Exchange
from Wisconsin, inclosing circular,
asking to be informed whether certain
persons or firms arc members Of the
New York Stock Exchange, and in good
standing MS bankers and brokers, MS adj
ycrtised. He also wants to know wheth-
or their mode OF operating in stocks
linownas "puts," "calls" and "sprcads"
arc used in specializing on the Stock Ex-
change. He goes on to say that there
are "parties circulating this circular,
and advertising quite largely III this
western country" He says that il they
are good, reliable firms, and will do what
is right, there are persons there who
wish to speculate i'll stocks and securities
Oh ttat system.
Another man writes to the president
from Indiana that he would be obliged
if tho president would give him the
names Of some OF the most reliable and
responsible brokers in Wall street, rs he
has seen certain advertisements and cir
culars and had felt considerable interest
in the movements i'll stocks and gold
These men, although led away to 4 Ger
tain extent by the brilliant promises held
out to them, had yet sufficient caution
to inquire into the standing Of the per
sons making them before contiding thcii
money to their care. Not so, however
was it in the case Of the unfortunate
writer Of the following letter, addressed
TO the president Of the Stock Exchange
PHILADELPHIA, May 81, 1875.
Sin: 1t is with considerable anxiety
and expectation that l write this lette
to you. l will state the case to you us il
: is. l am n saleslady in - street
Meeting with losses was obliged to g
into the world to make living. Las
September l read work on stock spccu
lation, which is tile property OF the firm
| wrote for tho work and it was sent Il
me. The firm in New York from whom
, l received the book advertised Mt tia
| time in the Philadelphia papers. Thu
5 work gave accounts how money wa
, made so quickly and easily that l bCcam,
convinced l also could do tho same
by great saving, and strict economy, and
dGpriving myself Of the common com
forts of life, l had accumulated by de
grecs the sum Of Sl2j, which l savet
carefully, thinking of the assistance i