River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1881-05-05
HOW THE Lambs ARE sHoRN
some OF the Tricks of the wall stree
Sharpers.
From tho New York Star.

| the thing can be done, was the reply,
"Please state some of the methods, -
persisted he seeker after information,
who was Star reporter.
"Well, if you will promise not tc
print my name will tell you how many
of the brokers fleece the unwary. The
J first step to be tax toward tieeclne
| the lamb is to pull wool over his eyes
| If there is certain stock to be unload
| ed upon him he must be made to be
heve that it is to his advantage to pur,
! chase.
How is that ?"
zone favorite method was illustrated
a few days ago, when certain parties
sought to unload st. Paul stock by
causing report TO be circulated that
corner was being formed in that
Wall street specially. They secured
| the insertion in metropolitan journal
that shines for all of bogus an
nouncement that prominent broker
was ut the head of a pool for making
the alleged corner The result was
that hundreds of amateur spectators
were induced to purchase st. Paul ut n
| figlre much above its actual value"
"Who are the lambsY
"Of course, they are not old brokers
or experienced spectators. They are
conf posed mostly of two classes. In the
first place, Il large number of raw re-
cruits are found among those who
know little or nothing of the ips and
outs of Wall street, but who have an ir
resistible impulse to try their luck on
the wheel of fortune. The other large
class is composed of persons VINO, hav-
ing extra cash on hand, desire to make
investments, so that their money will
not be idle. In this class may be found,
among others, elderly maiden ladies,
widows, retired tradesmen and profes-
sional men who have little store laid
by for rainy day. These people arc
easily misled.'
DO you mean to say that dupes are
to be found among intelligent profes-
sional and business menu
Certainly. Mr.. Henry O'Riley
Tucker business manager of the Troy
Daily Times, who is considered one of
the best and sharpest business men in
the state, was recently "fieeced" to the
extent of $4,000 in stockspeculations.'
WAS he swindled outright?"
"Well, he was not fleeced by what
could be called an Illegal method. He
was induced to purchase some mining
stocks the prices OF which had a serious
| tumble, | would not mention Mr..
fuckers case did | no, know that he
! makes no secret of the matter He is
wealthy man and can well afford to
sustain the loss.
"Do you consider mining stocks
especially attractive bait for the cap
ture of gudgeons?'
yes; they have been for some time
! all TIE rage. People are induced to in
vest i'll them by the promise that their
money will he returned to them doubled
or treblcd in amount"
How about oil stocks"
"Oh, oil is played out rs medium
for speculation. You see, the Standard
company has m@nopolized the business
by securing, either directly or indirect
ly, the control of all the wells in Penn
syvania. So, you see, the sharpers
had to turn their attention to some
thing else, and they hit upon mining
ventures. A mine is something like an
OF! well II it is unpro uctive there is
almost always hope that little more
( digging will reach the metal sought.
Even if the managers have no hope
that the speculation will pan out they
make the stockholders think that it
will pay to continue the enterprise.
| The shares are thrown upon the mar
ket, where they are gobbled up by the
| gudgeOns, who do not know that they
are caught until they feel the hook"
4 How about railroad schemes?'
cone of the latest bats thrown out
for the unwary is exp esident Grants
Mexican Railroad scheme. The spec
ulators who are interested in this en-
terprise expect to gain the confidence
of the public on account of the fact
that the Great American Present Taker
is in the management. | would not be
surprised if the time came when few
men who arr on the inside will sit back
on their easy chairs and laugh in their
sleeves to think how the small fry in
vestors were entangled in the net"
''Do you think, then, that ex-Presi-
dent Grant will lose no money in the
enterprise, no matter what may be the
result ?"
In reply to that question, | will say
th,t the ex-president has been secured
by several spectators az their figure,
head The chances are ten to one that
the shares held in his name are in reali
ty owned by other parties"
Then where does Grant expect TO
profit in the matter?"
"By receiving certain compensation
for the use of his name. You may
wager your bottom dollar that he does
IL f,,,4l G.,
is not the kind of man to do thing
unless he sees that the ducats are forth
coming"
Tell me something about Jay
Gould"
'Mr. Gould, so far as Wall street is
concerned, is like tremendous whale
among sunfshes. When the whale
moves his fins the small fry are knock
ed about hither and thither Mr..
Cculd controls things through the sheer
force of his money. He never en-
cages in small transaction. He must
have large game or he viii not conde-
scend to waste his powder-and his
powder is more effectual that nitro
glycerine or dynamite"
WAS there anything crooked about
recently disorg
ooh, no; not so far as the organiza-
ton itself was concerned; but the exist
enee OF such an institution afforded an
Opportunity for speculation TO some
mon who could not purchase seats in
the regular Stock Exchange"
Were there any lambs shorn in the
open Board?"
II presume so; but nearly all Of the
transactions we're on comparatively
small scale.
wlthe open board was All institution
so desirable to certain spectators, why
was it failure?"
because there was 50 much rivalry
among the members. The constitu
ton and bylaws were defective. There
are II few Of the members, however,
who are not willing to have the institu-
ton pass into oblivion. They are max
ing strenuous efforts 10 reOrganize the
open board on a permanent basis. A
hearing before a referee in the matter OF
a dispute will be had on Tuesday next.
The old stock exchange people are do
ing all in their power TO prevent the
open board from arising, Phmuix-hke,
out Of its ashes"
rs there any way in which man
can try his luck with investment in
stocks and securities and be certain that
lie will not lose by the transachon?"
There is no sure Dad 10 wealth a.
u, ~ Wall street speculations are con-
o. concerned nprson with "A moderate