Wichita daily eagle. [volume] (Wichita, Kan.) 1884-1886, 1885-03-21
STOCK POOLS.
HOW THEY ARE FORMED AND HOW
WORKED
Booming the Stock-Liberal Induce inents
to Investors Large Prospects That
Generally Result in Small Pro-
fts-Iiow 1t L. Operated.
I",Ietroro!,, in Pioneer Press.l


A Wall street broker ia, been telling me
how pools are operated. The first step is TO
make the a -reement and secure the cash.
Ten men. sav. agree TO put up sl,0Oj. 900 to
advance tie pr,ce OF Northwestern They
ia. III OK a, ii starter, ami then begin to
manipulate Tor b. guer prices. They talk the
stock u. work the Wall street news aSen-
Gle, fir al the are worth, fire ont most
favOrabl. financial exhibits # the prospect
Of the company. and tel every broker and
operator they meet that the stock is worth
mach more tnan 1t is selling for. The
praises O.: tic security are reiterated far and
rear Ia Wall street, a. everywhere el-c.
refer ton la = tremendous effect. \ story
81 N5rtune>t's pTpsn, ritT told Oh Monday
may Lave httie pr M effect, tut toll every
day in the week thereafter is accepted as
go-p'l truth uu Saturday. Tie pool hope,
therefore, by buyin.; and by lying 10 &c. tie
entire street t. bug, and thus aivanr. the
price. " hen i has gone M a long way the
pool sells its holdings and divides The profits
But thousand obstacles have been in the
way. and the profits have been small
First, the pod has not been kept secret Ii
was not a blind pool tut the more common.
culinary Wall stree: pod. Every member
u It has told his Intimate friends all about
Its plans, and the news gels around very soon.
The s'rrct bcsinS to profit by the Inlorma-
ton that an attempt ., being made To hoist
Northwestern Men try "a little bit OF 1t To-
day an l sell cut Tomorrow. II hen they sell
the pool has to take the stock The bear,
hear OF it. ami knowing that nothing l. more
certain than that the pool must Eqgidat.
some time, sell the stock after the r.se has
been somewhat accomplished Moreover, the
greatest danger is from the members of the
pool selling out on tie pool While the pool
stock i being fought the chances are that
each member Of the pool Is buying as much
more ON his own hook. This stock he intends
10 sill just before the pool sells. II he can do
that he reasons, he Will have assured him
self of IA lair Profit, and # tie profits OF the
pod are nothing be will still De ahead So
he sells his own stock at high prices. AMI the
pool has to buy i; to sustain the price
Mr.. Jay Gould can propatly sell out TO
pool little quicker AMI To n little better
aivant sc than any Of the capitalists of the
day. He encourages pools in these days, for
lie - tull On the market. and lie always
goes into pool when ASKED to, for the
advance IN any one stock helps advance the
others. But Mr.. Gould is all the time look
ing out FIR his own precious interests, ami
II is gravely limited that he sells out 10 the
pool before the pool Is fairly organized.
Thus the pD"l rs rulc has hard tIms # 1t,
aud pool profits are ualiy small. There
have been very success -ful stock manipula-
tons like the Llckawanna pod that was
run throughout the year 1854 by ). '.
White which, according - all trustworthy
reports made fortune Tor White aud
very handsome profit f0r the 9th r members.
There has been, toe. some money mldl 10y
the Pacific Mail pool, although Ii has not Vet
lquidatei, but taeSc TWO are the onlT pools
that have attained any measure of success
in q t last year and half or two years IL
las Teen IA falling marSet, and the pools
nave had natural causes which tented
toward depression to contend with in add
tiou u the usual obsta les.