The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-04-22
The Effect of False Rumors In Wall
Street.

A few days ago some rascal started
rumor in Wall street that the officers of the
Delaware and Hudson Canal Company had
voluntarily applied for the appointment Of Il
roceiyer Of the company's property. The
effect was to knock down the price of Della
ware and Hudson stock ten dollars per
share, and that Of the stock Of u kindred
company, the Delaware, Lackawanna and
Western, about as much. The ialslty 81 the
ruinur was exposed as soon A. the proper
Inquiries could be made into 1t, hut not
soon enough to prevent great loss
b some dealers and a corresponding
gain TO others. A day or two after
ward, another rumor, equally basclcss,
was put in circulation respecting the sale Of
the $1,000 unssued shares Of the Chicago
and Rock Island Railroad Company, and
this rumor depressed the price OF the shares
Of that company some five or six points be-
fore its true nature was discovered. On
Tuesday again a lie was set ahoat 10 the
bfoct that the lc-secs Of the Morris and
Essex Railroad had determined not 10 pay
the July dividend Oh the company's stock
The shares tumhled In consequence twenty
dollars per share, and have not yet gone
back 10 their former price.
OF course, the Orignators Of these false
rumors are scOundlels, and deserve severe
punishment. But what shall br said Of the
conduct Of the directors Of our great cor
porations, who by their conccalments OF
facts, have 80 debauched public confidence
that the absurdcst reports, instead Of being
~ once rejected on their merits, are backed
np hy n general conviction that they may
b. trucY The great MACS OF buyers and
sellers Of stocks are kept In such Ignorance
OF the value Of the securities they deal in
that they cannot tell what 10 believe and
what not to believe, They know that If any
thing goes wrong with Il corporation il Will
b. covered up a. long n possible 10y its oni-
GERS, and they hasten TO protect themselves
OIL the first alarm.
Tho secrecy practlscd by directors has
Also an evil result in the opposite direction.
Il enables SPECTATORS 10 raise tho prices of
stocks By lying rumors, as well as to de-
press them. For example, men are going
round Wall street at this moment with the
most fattriiug reports Of the business of
the Michigan Central Railroad Company, n
concern that has paid no dividends tor four
year.. and so far as any authentic facts can
showu, w'll pay none for four years to como.
ih'7' U'l profess 10 have priVnt" iuilrma-
hou THAT hNId"al7 are being rarrod hy the
road and viii be made as early as neat
Autumn If NOT earlier II what they say Is
ial7" the purchasers Of the stock are SWIM
died, If 1t is true the sellers and these. ms
part owners I'm the corporatob are entitled
uoRnow MS much ms anybody. Whichever Of
the two suffers loss, it viii be in con,c-
qucnc" ~ the ignorance In which the dirrc-
Tors mr." N"olug them, Somebody's sur" ~
be ch"atod and the directors. whether thcy
intend to he or not. are accom-! ic,. ln th.
cheat The same thing maybe said of West.
ern Union, launmn, Pacific Mail. and ,h,
other fnncies. They are put up as well n.
down by false runors, and there Will l.. Il,