The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-10-16
DEALING IN STOCKS.
How the Public Is Fleeced by Legitimate
and Gambling Transactions.

4. wheatley. in November Harper.
The ideal business of the New York Stock Elk
change is unquestionaby as legitimate as that of
the Produce Exchange, or of any intermediary
between the seller and the buyer That there
grave evils incident to its operation is equal
~ unquestonable. The war for the preserva-
ton of the national Union largely converted the
American people into nation of spectators
The rage for sudden wealth was further intensi-
fed by the discoveries of mineral oil and the
precious metals. These created innumerable
companies for the exploitation of mines. the
struction of railroads, and other objects Sud
den and violent fluctuations in the
port thereof i'll the newspapers. aegravate
the speculative spirit. Considerations of moral
ity and prudence are set at naught by those who
will be rich, and who dream of opulence by 9TH
er methods than by the slow and steady meas
ures of their fathers. Professional men, mer-
chants, manufacturers mechanics, farmers, wild
ows sad spinsters, blinded by the glare of sue
cess, and hoping to strengthen their slender in
come, have adventured their savings upon the
treacherous sea of Wall street. and lost them all.
To them the Exchange building is whited sep
ulcher in which fortunes lie entombed; a sea
IN which voracious sharks rend and swallow the
little fish who dare to enter its troubled waters
gambling saloon where deceit and desperation
wait upon the players. 1t may have been such
to them, simply because they made it such, not
because they availed themselves of its real func-
TONS
An immense amount of gambling is done in
piratcal relation to it. and in spite of the strenu
Gus exertons Of the stock brokers to prevent il.
The bucket shops" situated in the large towns
and cities of the country are the instruments
by which it is carried on The propretors of
these nefarious establishments surreptitiousy
obtain quotations from the Stock Exchange
Tickers are refused to them by the Western
Union unless four mem bers of the board vouch
for the worthiness of each applicant. The quo
tatons desired are furnished by persons who
have bound themselves to that telegraph com
pany not to do so. and who have obtained in
functions from the courts restraining the corpo
ration from removing their instruments. Former
insolvent members of the Stock Exchange, now
known as exempt members" among the
users of the knowledge thus acquired. Because
has compelled the Western Union to remove its
tickers from their ofices-a precedent that the
New York Stock Exchange will probably follow
unless this grievance be redressed.
In these bucket-shopS blackboard, with list
of stocks at prices quoted in New York inscribed
thereon. is displayed. Speculative clerks and
others are invited to bet upon these quotations.
under the pretense of the put-nnd call system.
For example, one is induced to buy, on margin
of 81 per share, five shares of Missouri. Kansas
& Texas stock at 1G4 If it rises to III he gets
back his margin and gains 50. If it drops to ISL
he loses his margin or bet The secret of ruin
in thousands of instances is to be found in the
gambling of bucket-shops. Yet the wealthy
pdtTOulZ0 anu are ueeCeU Oy Cnem. QulrK, OF
Knaveville, keeps bucket-shop, and receives
the quotations. He conidentially informs
his trusting patrons that he has certain
knowledge that an inactive stock is
about to rise in price-say, the Denver &
Rio Grande, now selling at 9-and persuades
them TO venture ST. per share to the extent of
$4,000 shares. This DONE he telegraphs to a
broker to 'sel 3, 900. D. and r. G.-quick, quick, I"
in blocks from 81 to g. The selling broker
alone or with assistance, makes his offers, which
arr app nfp6 nv thorh 70 vuhn n,1ir nj
has telegraphed to buy the stocks offered at
those prices The last quotation. g. fixes the
price. The telegraph announces it at Knave-
VILE The $4,000 margin, minus the onefourth
of one per cent brokerage on the fictitious sales,
is swept into the swindler's pocket.
While the Stock Exchange has legitimate and
invaluable uses, it is none the less true that it
has been and is converted into gambling arena
by the great speculative operators, most of
whom have sprung from the lower walks of
rural life, who control the management Of rail-
roads whose stocks are active. The fact of good
or bad harvests. freight or passenger traffic
rates of transportation. cannot explain the
fluctuations of their prices. The secret is to be
found in the parlors of directors There flaming
reports of prosperity are prepared, and unearned
dividends declared to bull" the stock. There
accounts are cooked" so as to exhibit decreased
earnings needless expenses for rolling stock and
improvements of permanent way incurred, float
ing debts swelled. acceptances issued for dis
count, and that will purposely be allowed to 60
to protest when due, earned dividends passed,
evil prophecies uttered to bear" the stock. By
ways that are dark and tricks that are vain"
the conspirators acquire colossal wealth.