The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1883-10-18
Wall Street RuInors.

VI luAoiIy. AL tIAt CUluuiIlS Oh neWSpd-
pers could be filled with contradictions
and details of rumors circulated on
Wall street.
Some rumors, of course, foreshadow
an actual event. They are exaggera-
tons, but there is something behind
them. But most rumors are actually
manufactured to suit some purpose of
the inventor. The greatest ingenuity is
exhibited in originating them, and the
most elaborate machinery employed to
put them in circulation.
1t is not, however, ordinarily very diff
ficult TO start a rumor afioat. Let a
member enter the Stock Exchange and
say he has just heard "so-and-so," and
with lightning rapidity ''so-and-son is
in everybody's mouth, The messenger
| boys who crowd around the entrance of
the exchange are sometimes employed
to float rumor on the market. The
boy, while waiting for message, re-
peats to the member employing him
the report outside. If it seems plausi-
BILE the member is sure to repeat it to
someone else, and thus the rumor is sent
on its rounds.
One of the most persistent of rumors
| is the report of Vanderbilt's death OF
fatal illness. 1t is sure to turn up every
| two or three months. In some in
stances itmay have Legitimate origin, as
| for instance, the great capitalist NAV act
ually be indisposed, and this fact, after
many repetitions, grows into report OF
his death. But there is no reason to
doubt that the rumor generally is
| started by someone who wishes to de-
press prices and is willing to resort to
this device to effect his purpose
One of the anecdotes of the street is
of an operator on his last legs who
made desperate effort to recover him
self. He hired man to stand on the
| corner of Nassau and Fulton streets
and quietly announce that Commodore
| Vanderbilt was reported dead, That
was when the Commodore was living.
In an incredible short space of time the
rumor reached Wall street. Prices de
clined in consequence, but in the even
| ing the Commodore in person vigorously
| denounced the originator of the re.
port.
A well-concocted lie will often effect
a decided change in the price of secur-
ity. The originator of rumor that is
! to be effective must make 1t plausible
and so mix truth and fiction together
that even the most astute dealers will
be deceived, Hence the art OF making
rumors has in fact reached high STATE
OF perfection.
A prominent banker last week, speak
ing of the Denver and Rio Grande Rail.
road and the efforts of the directors tC
find a suitable man for President tC
succeed Gen. Palmer, said that it spoke
pretty well for Wall street morals when
so many had declined a position worth
S75, 900 a year-$25, 900 in salary anC
$50, 600 in Prerequisites
.'Perquisites?' repeated the reporter
What do you mean by that?"
| 'Weil, mean that the President o.
the Denver and Rio Grande can, by VIZ
tue of his position, make $4,000 in adj
dition to his salay. And he can dt
this by methods that are considered lie
Ultimate. At any rate there are very
few men who would not employ them
Of course the $4,000 Is made by deal
ing in the stock of the road. The Pres
ldent is in position to do this safely
Like the keeper of faro bank, all tn
chances are in his favor. He has tn
advantage of knowing the exact con
dition of the road and of what change
are to be made n its management
Suppose, for instance, he sees larg
] block of short. All he has to do is t
casually remark to some friend VIII
would be likely to repeat it, that tn
company might be compelled shortly t
make new issue of bonds. In fey
hours this information is in the posses
sion of the entire street, and the stoc
declines several points when the Pres
dent covers at a handsome profit. Abou
this time newspaper man calls on tn
President and inquiries concerning th
reported new issue of bonds. TIL
President denies that any such issue
: contemplated, and Indignantly al
tributes the rumor 10 some stock-jobbe
who desires to raid the stock of this CON
pany. Half the rumors on the stree
are started in some such way as this
Don't you believe it? Well, l tell 20
it is true. 1t is this opportunity fo
gain which makes the Presidency of
road whose securities are actively deal
in 80 much coveted This has bee
done so much by the officials of certai
roads as to bring the stock into disrt
pute.
Something should be done by tn
Stock Exchange as well as by the Stat
Legislatures to in some measure rem
edy this evil. 1t cannot be prevented
but the trainers of the corporation ca
be so restricted as to largely abridg
the opportunities of its officers to carr
. on this sort of thing. l tell you it
not the free listing of securities to OF
$ exchanges that operates against Amer
can stocks on the London market; it
the very evil l have been speaking {
that does the mischief. The Londo
spectators fear the powerof the Amer
: can railroad:kings to operate stocks
= their own advantange.
There are two other classes of peopl
on Wall street who are engaged
making rumOrs. First there are me
called pointers, pitiable fellows gel
orally They are men, perhaps, ono
brokers or spectators, but now T.
duced in circumstances and compelle
to live by the sharp exercise OF the
wits They coin rumor. general.
and then endeavor to sell it .as
. "point" They claim to have got the
information from an inside source, al
they magnify its Importance. The
there are sharpers in the pay of u
scrupulous operators, whose business
is to whisper rumors into the ears of Il
"lambs' to induce them to buy VIII
the operators are secretly anxious
- get rid ON Y World
Bachelors in History.