Alpena weekly argus. [volume] (Alpena, Mich.) 1871-1893, 1884-01-02
Wall Street Rumors.

every DranCn OF business.
So thick are these rumors that thu
newspaper reporter who ''covers" Wal
street finds that his main business is &c
run them down and ascertain their truth
or falsity. All the columns of newspa,
pers could be filled with contradiction.
and details of rumors circulated on
Wall street.
Some rumors, of course, foreshadow
an actual event. They are exaggera.
tions, 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 70
put them in circulation.
1t is not, however, ordinarily very diff.
iicult to start n rumor afloat. Let a
member enter the Stock Exchange and
say he has Just heard "so-and-so," and
with lightning rapidity "so-and-so" is
in everybody's mouth, The messenger
boys who crowd around the entrance of
the exchange are sometimes employed
to float a rumor on the market. The
boy, while waiting for a message, re-
peats to the member employing him
9he report outside. If it seems plausi-
bic the member is sure to repeat it 10
aymeone else, and thus the rumor is sent
on its rounds.
HGOne of the most persistent of rumors
is the report of Vanderbilt's death or
fatal illness. 1t is sure to turn up every
two or three months. In some i'm
stances itmay have alegitimate origin, as
forinstance, the great capitalist may act
ually be indisposed, and this fact, after
many repettions, 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 willno to resor' %
this device to effect his pu. ,,Us,,- .. :.
,Nr- - she anecdotes of the st, oet 10
made despvI,.vo sflvI1 20 r6coyer him.
self. He hired man to stand on the
corner of Nassau and Fulton streets
and quietly announce that Commodore
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 a 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 astutc dealers will
be deceived. Hence the art of making
rumors has in fact reached high state
of perfection.
4 prominent banker last week, speak
ing of the Denver and Rio Grande Rail-
road and the efforts of the directors to
find a suitable man for President to
succeed Gen. Palmer, said that it spoke
pretty well for Wall street morals when
SO many had declined position worth
S75, 900 u year-S25, 900 in salary and
$50, 900 in 'perquisites.
"Pcrquisitcs?' repeated the reporter.
"What do you mean by tho,p'
"Well, | rrAs,n that the President OF
tbe Der-,er and Rio Grande can, by vir-
tuc of his position, make $50, 900 in adj
dition to his salary. And he can do
this BY methods that are considered le-
gitimltc. At any rate there are very
few men who would not employ them.
OF course the $780, is made by deal
inc in the stock of the road. The Pres
Idcnt is in q position to do this safely.
ike the keeper of faro bank, all the
chances are in his favor. lie has the
advantage of knowing the exact con
are TO be made IN its management.
Suppose, for instance, he sees n large
block of short All he has to do is to
casually remark to some friend who
would be likely to repeat it, that the
company might be compelled shortly to
make new issue of bonds. In few
hours this information is in the posses
sion of the entire street, and the stock
declines several points when the Presi-
dent covers at IA handsome profit. About
this time newspaper man calls on the
President and inquiries concerning the
reported new issue of bonds. The
President denies that any such issue i,
contemplated, and Indignantly at
tributes the rumor To- some stock iobbei
who desires to raid the stock of this com.
pany. Half the rumors on the street
are started in some such way Us this.
Don't you believe it? Well, tell you
it is true. 1t is this opportunity for
gain which makes the Presidency of a
road whose securities are actively dealt
in 50 much coveted. This has been
done so much by the officials of certain
roads rs TO bring the stock into disrc-
putc.
"Something should be done by the
Stock Exchange rs well as by the State
Legislatures to in some measure rem.
cdy this evil. Ii cannot be prevented,
but the trainers of the corporation can
be so restricted as to largely abridge
the opportunities of its officers to carry
on this sort of thing. | tell you it is
not the free listing of securities to oui
exchanges that operates against Ameri.
can stocks on the London market; it is
the very evil | have been speaking OF
that does the mischief. The London
spesulators fear the powerof the Ameri-
can railroadIkings to operate stocks to
their own advantangc.
There are two other classes of people
on Wall street who are engaged in
making rumors. First there are men
called 'pointers," pitiablc fellows gen
orally. They are men, perhaps, once
brokers or spcculators, but now re.
duced in circumstances and compelled
to live by the sharp exercise OF thcil
wits. They coin a rumor, generally,
and then endeavor to sell it as q
"point." D." They claim to have got theii
information from an inside source, and
they magnify its importance. Then
there are sharpers in the pay of un.
scrupulous operators, whose business il
is to whisper rumors into the ears Of the
"lambs' TO induce them to buy what
the operators are secretly anxious to
get rid of.--N. y. World.
Il rw days ago Philadelphia ply