Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1883-01-24
WALL sTREET SCANDAL.
A Queer StosS Told on The Street
BY tue Brokers.
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N. Y. Herald, 20.
There was much excitement in the
vicinity Of Wall street yesterday,
caused by a scandal concerning a
member Of the Stock Exchange. To
each Of the more active stocks, as is
generally known, there is devoted a
sertain space upon the floor, and
those desiring to buy or sell any Of
these can always find a "croEId" upon
the allotted spot. In front Of the ros
trum in the Board room there is a
space set aside for dealings in miscel-
laneous stocks, in which there are very
few transactions. Some ofthe miscel.
laneous stocks bought and sold in this
space are in SO little demand that
sometimes no quotations for a particu-
lar one can be obtained for several
days, and hence it is difficult to know
Just what has been the latest bid for a
particular stock in this crowd, or what
was the figure at which it was last
offered for sale. This being so the
buyer or seller had TO rely in q great
measure upon the honesty OF the
broker he employs to make a
true report of the price at
which be has bought or sold.
There have long been dark
hints in the Board room to the effect
that some OF these brokers would
dispose of shares for a certain price
and report to their principals some
what lower figures, pocketing the
difference as clear profit in addition to
their commissions. With the ready
if somewhat Inaccurate wit which
characterizes them the members OF
the Exchange lave given to the place
under the rostrum the name OF "Jeri
cho," 10 allusiOn TO a certain man
who, going down from Jerusalem 10
Jericho, fell among thieves, the
brokers ignoring the fact that it was
"by the way" that he fell in with those
gentry. 1t appears that a New street
firm several days ego gave to a "Jeri-
che" broker an order to sell 100 shares
of a stock bought and sold in that
place Of which he was a regular
habitue. He reported that he had
sold the stock at a certain figure.
Later in the day he appeared at the
b Office Of the firm and said he had made
a mistake that be had as a matter OF
} TACT sold the stock two per cent higher
J than the price he had first reported.
, and that he was willing to hand the
! firm his check for the 5000 difference.
/ The firm, as is understood, declined Ia
accept the explanation and said he
must sell his seat In the Exchange,
as they would report the case to
the Governing Committee, in
which event the seat might be
lcon6scated. The broker sold his seat.
/ His friends say that his explanation oil
the occurrence is satisfactory to them;
6 that be had long contemplated selling
{, his scat, as his vile was in poor health
and he puTposed taxing her to Europe
: for a prolonged sojourn. 1t was prin-
/ cipally for this reason, they alleee.
t that be disposed Of his seat. Hi.
!. friends further state that they called
b yesterday upon a we'll known lawyer
aud that he, upon the statement Of
their case, asserted that the ex.brokel
in question has good cause for damages
against the firm which had frightened
him into selling his seat. This lawyer
fdrthersaid that the firm, if its owl
representations be correct, was guilty
a Of compounding a criminal offense.
1t is understood that the firm, hav
ing for some time suspected that suct
0 practices we're prevalent in" Jericho,
9 had given an order tn another hrakel
in that crowd to buy 100 shares Of tn,
same stock simultaneously with thu
5 order to the delinquent to sell l0I
shares. The first broker, u~nknowingly
sold the stock which the firm bough
b from him through another broker, ant
the discrepancy in the two reporter
prices led to the expose.