The Elk County advocate. [volume] (Ridgway, Pa.) 1868-1883, 1875-07-29
FRAUDS IN WALL STREET.


Sums of Money ure Snid to be Mndc---
How the Fraudulent Operations nre
Carried On---Victims all Through the
Country---Lcttcr from an Unfortunate
Philadelphia Woman.
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 may be made
in stock speculations; and the advertisers
pretend to have peculiar facilities which
enable them to "control large numbers
of shares with an insignificant amount.
Some of the advertisers also offer to
send, free of charge, n pamphlet coEtain-
ing full particulars of the mode in which
their transactions are effected, and when
called upon actually do send q book con-
tanning what purports to be an explana
tion of their way of doing business. The
so-called explanation consists of plausi
bly, constructed theory of speculation,
well calculated to deceive. A very
liberal use of the street terms is employ
cd, and "margins," "puts," calls"
privileges" "spreads," bulls"
"bears," ETC., are referred to in such q
way as to essentially confuse the mind of
the reader. 1t is also claimed by the
advertisers that they have combinations,
! by which the amounts contided to their
care cannot fail to give large returns,
and that they cannot be lost from the
fact that the strength of the combina-
tions 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 victimized, 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, as the persons cn.
gagged in the business are too wise to al
low themselves to be caught in any
transaction that would involve them in a
criminal prosecution. This point seems
to be well settled, as legal advice has
been sought in several instances, and
the opinion of the counsel consulted has
always been that there is no legal rene
dy. The money sent to be invested is
w blS uNtNtl-
tisers for investment as 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 be to
bring 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
the advertisers put forth firm name, it
would be impossible to find the persons
representing it, from the fact that they
do not exist. The amount of credulity
brought to light by the correspondence
referred to is wonderful. Letters have
been received from all parts of the United
States, not only from persons who might
not be expected to be better informed,
but from business men, and lnen in posi-
tions which would seem almost to exact
q better knowledge of the world. Under
date of June 10, railroad man writes
to the president of the Stock Exchange
from Wisconsin,, inclosing circular,
asking to be informed whether certain
persons or firms are members of the
New York Stock Exchange, and in good
standing as bankers and brokers, as ad-
vertised. He also wants to know wheth-
er their mode of operating in stocks
knownas "puts," "calls" and 'sprcads"
are used in speculating on the Stock Ex-
change. He goes on to say that there
are "parties circulating this circular,
and advertising quite largely in this
western country" He says that if they
are good, reliable firms, and will do what
is right, there are persons there who
wish to speculate in stocks and securities
on tGat system.
Another man writes to the president
from Indiana that he would be obliged
if the president would give him the
names of some of the most reliable and
responsible brokers in Wall street, as he
has seen certain advertisements and cir
culars and had felt considerable interest
i'll the movements III stocks and gold.
These men, although led away to a cer-
tain extent by the brilliant promises held
out to thcm, had yet sufficient caution
to inquire into the standing of the per
SONS making them before confding theil
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 "a, 1875.
SIR: 1t is with considerable anxiety
and expectation that 1 write this lettel
to you. will state tho case to you as il
, is. l am saleslady in - street
Meeting with losses L was obliged to g
, into the world to make living. Las
September L read a'work on stock spccu
lation, which is the property of the firm
| [ wrote for the work and it was sent t,
| me. The firm in New York from whom
, l received the book advertised at tina
1 time in the Philadelphia papers. Til,
5 work gave accounts how money wa,
> made SO quickly and easily that becam,
convinced L also could do the same
BY great saving, and strict economy, and
depriving myself of the common com
forts of life, had accumulated by de
!. grees the sum of 1925, which L saveC
carefully, thinking of the assistance i
would be to me should 1 be deprived 0
; my situation in a store. l read the bool
;; carefully and finally concluded to writ,
, to the firm in New York asking thei
advice. They replied, giving encourage
ment. wrote again, and still received
the same encouraging answers. 1 wrot'
to them of my being unacquainted witt
stock operating, and would leave every
/. thing in their care. Their answers al
, ways gave me so much courage that
concluded / would send the money Il