The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-02-16
STOCK MYSTERIES.
an Explanation Of the Manner In Which
Prices Of Stock Are Maneuyered
by Brokers.
Fears Of Another Snow Blockade
Entertained in Chicago Like
That of Last Week.
HOW STOCKS ARE DOOMED.
And How the Big speculatOr tn WALL
Street Unloads on the Little Ones.


NEW YORK, Feb, Ito those who watch
the Wall street fluctuations in stocks, and
wonder about the causes, this weeks quota
tions must have been mystitying. Speak
ing generally, it may be said that there are
not more than a round dozen men who are
able TO be controllers of the chaugeful figures
and even they sometimes fail in their at
tempts. Their names begin with Gould
and include Sage, Mills, Woerrishoef-
er, Cammsok and Vanderbilt. The
smaller operators are gamblers pure
and simple, With no power for
manipulation. During this week the pro-
cesses of stock boom and depression have
been in unusual use, and it is good time to
explain them. The cardinal principle is the
dissemination Of misleading rumors. Secrecy
is the second doctrine. Quite as often as
not Mr.. Gould does not trust more than one
agent in a movement, and it is not until the
activity has been increased by the renewal
two or three times of MS order 70 buy an
sell a big lot that he begins to work his
wires. There are in Wall street half doZ en-
agencies FOR the distribution OF news They
send out every hour printed sheets like
small newspapers, or manifold copies OF
their information. These agencies are then
used by Gould TO put his information before
the public. 1t runs something like this, as
the Union Pacific deal begins to develop:
The recent activity in Union Pacific is
tIibnted TO buying ny Mr.. Gould. His
friends say he is very bullish on the stock
whose earnings for the six months Just end
ing will show very large increase"
A baf hour later this announcement is
made: Some of the largest capitalists in
the street are with Mr.. Gould in the Union
Pacific deal, and very much higher prices
are predicted for the stock
Then comes something like this:
'The January earnings of, Union Pacific
show an enormous increase over those of
year ago, and they justify the predicted in
crease IN the March dividend. Friends of
the road say that il never was so prosper
ous"
Then il is that the average Spectator be-
gins to wonder whether he had not better
buy little Union Pacific, or increase his
holding il he has bought and while be con-
templates in rushes a wide awake young
man waving slip Of paper about the size Of
any ordinary bank check, shouting: Sell
YOU put on Union Pacific for thirty DAYS
100 shares 80 for 1925 The stock Just sold
for 81. Cheapest put you ever saw. Signed
by Sage, 100"
This announcement simply means th at
Sage will insure any one who will give him
Sl25 against loss from the decline of Union
Pacific below 80 during the next thirty days.
1t is pretty conclusive proof that Sage be-
| lieves that Union Pacific is to advance. Just
then another news agency slip is handed in.
| 1t says; Instead of an increase in the
! regular March dividend of the Union Pacific
! Road il is now said that there will be a stock
| or a scrip dividend of about 20 per cent.
Mr.. Gould is very much annoyed because
| this information has been public before he
ard his friends have acquired ali the stock
they wanted. 1t is evident that there is to
| be great rise in the stock"
And so all dsy long flows the news in a
dozen different ways that Union Pacific is to
| boom. The put and call brokers carry il
| from Office to office. The newspaper fnan-
cial articles all discus it. The stock is very
| active in the exchange and is advanciDg. It
| looks ss though it would never stop going
/ up. Every body who speculates at length
| hes purchased. IL he did not get in az the
| beginning of the deal he is sure tn at the
end. If be did not believe the stories about
the magnificent prospects of Union Pacific
/ when they nrst came out, he is sure to now,
| for they have been reiterated hourly from
/ the first. The stock has advanced from 81 to
/ 90 The reports are that il will 60 TO lOj or
| ITO. The reports have all proved true thus
! tsr, why should they not prove true here
! after? So be buys. The stock holds very
/ firm for a day or two, but does not advance
/ any more. The good news begins 70 fall of.
| The put-and-csll brokers are offering privi-
| leges on some other stock. Nothing more is
/ heard Of an extra dividend The price be-
gins tc decline. Now il is "a, now 93A now
| 90 f. now % What's the matter with
Union Pscidc2' cry the spec1lators in
alarm. 'Oh, Could is unloading" say the
bears. The spectators rush to get out.
1 Down goes the market under their offerings.
They have sold at loss. Gould has IN
| loaded on them. He had sold them the
stock they bought at %. and ten to one he
buys ii back OF them when they unload at
/ 90 or 921z. And so the Wall street game
goes on year in and year out. 1t is IoIing
| game every time for the beginner, and nsu-
/ ally for the veteran speculator.