New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-01
THE GENESIS or RAILRoAD VARS


Ii the Leg slative Committee would Ike lur'
.her information about corners aud option
sales let tnem turn tue light on the dOngs. OF
last Monday in the Stock Exchange 1t was
an Infamous swindle." says the Street. But 1t
does not yet appear that the Street has any IN
teution Of stopping the performances which
make such swlndle easy, profitable ana IN
viting.
As all know the railroad war was virtually
settled" SatuId " night, and settled still more
in some papers of Monday morning. This par
ticulas variety of falsehood, it appears, the
Legislature does not hold misrlievOus for tie
new statute which was carefully drawn and
pas ed to punish lies calculated to dcpreclate
the value of securities, every one one can see
was never intended to apply to those patriotic
persons who tel lies for the purpose OF fraud
ulently inducing the public to buy securities.
Of course it was the duty OF the Legislature to
protect stock operators as for the great pub
lie, it may protect itself, II 1t can. 30 the
" settlement on paper took place before break
fast Monday morning At 10 O'Clock a settle
| mept of Il very different nature began. SuDdry
persons who were not the happy posseSsOrs OF a
great deal of stock which they had sold began
to get it. By judicious bidding, they were in
vited to climb after it, and prices mounted
upward nicely. A delighted public, seeing
that the railroad war was all settled, partci-
pated a little in the climbing and the buy ing.
| Then, everything being ready, a few shiploads
of stock were emDtied into the room.
In forty minutes after the opening Al 900
shares of ST. Paul common stock were sold III
two hours, $4,000 shares and in the whole day
about 10000 shares. The whole capital
stock is about 100000 shares. Other securi-
ties were handled in much the same fashion,
though less actively. The supply was as lib
eral as a Thanksgiving dinner, and, to some,
even moro indigestible. For it became known
at night that one Of the persons who had
settled the war i'll the morning had unsettled
it again. In three minutes, on Tuesday mt rn-
ing prices dropped much as they had risen
ia two days. That was "a matter that concerned
the gamblers only, to be snre. But the cause
of this spree concerns the public.
The innocent who supp0ses that 100000 or
10000 shares of single stock were really
sold on Monday needs nice place III quiet
asylum. But would there have been any rail-
road war, i'm this and other instances, it there
had not been a strong body of persons who
they had sold at high rates7 Some managers
OF road No. /, having judlctously parted with
their own stock to a confdlDg DRblic, proceeded
to sell some stock of road No 2, let us say.
Some managers of road No 2, having unlOaded
in like manner, kindly supplied the public also
with some borrowed shares of road No. 8.
Some festive directors of No. 8, ia their turn,
borrowed aud sold shares Of No. !. Having
thus foI titled themselves against calamity, tlese
persons witnessed a gradual decline In prices
with some cOmposure, but loneed for larger
and more rapid decline. To bring that about,
vigorous war" became necessary, so that a
conliding public III. ght have reason for getting
rid of It's securities. While the world was con
siderDg how the warning roads were being
ruined by certain foolish managers, the afOre-
said foolish managers were gathering IN the
stock Which they had borrowed, and realizing
largely "mcreased earnings" for themselves
personally. Next, IL seemed fair aud Gtting to
soueeze the Street. To that end, peace or
settlement was requisite. The peace lasted Just
long enough to compel great many lambs to
cover. and TO enable few foolish managers to
sell stocks again by the shpl Dad. Then, of
course the settlement was unsettled and about
that time the Street began TO consider the per-
form ance objectionable and TO call persons
hard names.
The fact that this milking operation was re-
peated on Tuesday and Wednesday, with more
or less variation OF detail, will surprise no one.
If men can make money SO easily 10y having
war which they are pretending to settle or to
have settled. why should they settle 1t, and
tins Kill the goose that laws for them such
golden eggsY But. the public. not caring