The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-07-07
FOOLED BY A TELEPHONE.
A Sharp Trick Played Upon Couple Of New
York Operators by Chicagoan.

New YORK, July G-The investigating COM
mittee of the Stock Exchange has had under its
secret process OF examination about the most
curious and funny cases of stock manipulation
ever known. Men who deemed themselves too
snrewd to be fooled were ludicrously taken in
by telephone that pretended to run to Chicago,
but really had its other end in the cellar of the
same building where it began. That was all
there was of long-dstance telephone scheme so
enthusiastically advocated by w. d. Miles.
When this young man came to New York he en-
tered the Produce Exchange and drove thriv-
ing business as floor trader. AS he had
formerly been employed by H. A. Armour the
Chicago Spectator, it was generally believed
that he represented that house in the Exchange.
He did actually execute some orders for Armour,
and so it came about that the other brokers on
the floor watched his actions closely.
When he bought they followed So he made
money fast; for if he bought in a given
line of stocks, it created such an immediate de-
mand that the price always rose several points,
whereupon Miles soi1 at handsome profit.
When the boys at last saw that he was specuiat-
ing for himself, and not acting on instructions
for Armour. they changed their tactics, and
when he bought they sold. Miles, of course, lost
good deal of money before he in his turn dis
covered that he had exhausted the possibilities
of his scheme He has hair and beard of a very
exchange many days before he was nicknamed
mo. 2 Red" after variety,of grain and by that
soubriquet he is universally known to-day. He
has pleasant address, and won many friends.
MOI long ago he began to take up long distance
telephoning 1t was generally understood that
lie possessed himself of rights in great improve
ment that would render communication between
such points as New York and Chicago simple
matter. After a while he announced that he had
gone to the expense of getting temporary con-
vVf riry nv ffia lake nd had nj I'D
telephone in his Office. He was so brilliant
fellow, and withal attractive personally, that
he found little difficulty in interesting his
friends in the enterprise. 1t was the same old
scheme, to start off with capital stock of 5000 00C
of which 10 per cent should be subscribed to
pay for advertising, construction expenses, per-
haps and other OUTLAWS. But he did not want
anybody to put money into it before it had been
tried, and gentlemen interested might investi-
gate the contrivance at will in his Office He
was now a member of the Stock Exchange, AID
several operators went down to his Broad-street
Office and trsed the telephone 1t worked to
charm. The Chicago mans voice could be heard
with perfect dstinctness. They inquired about
stocks quotations in grain, the weather, and all
questions were answered promptly and clearly
They compared the advices received with the
ticker and found them correct in every rartlcu-
lar. 1t was big thing. The boom starteG. and
it grew.
me up when get there and let me talk to you"
On the day appointed his friends applied their
lips to the transmitter in Broad street, and in
Spouse to their ''How de do came the we'll
known voice Of mo 2 Red with his Same to
you, thank ye.' 1t was wonderful. One would
have thought the auburn haired operator was no
further away than Wall street, or Hoboken at
the most. Stock was freely subscribed and the
10 per cent paid in it is asserted to the tune of
$4,000. Some of this was certainly spent in ad-
vertising. but mighty little in Construction"
But one day. rs the business did not seem to
develop very fast, one skeptic, hard hearted and
nnkind. made an original investigation and dis
covered the Chicago end of the wire in mo 2
Reds cellar. There SILENT or rather an I'M
known, partner in the enterprise sat beside a
ticker industriously communicating with New
York mo. 2 Reds visits to Chicago were ex-
planned and the only query is, did he live in his
cellar all the timer The investors were much
ashamed of themselves. They were inclined to
keep it quiet, and let the ingenious Spectator
off on the repayment of 60 per cent. of the money
paid in, but it has leaked out and Wall street
has been laughing Then those who were bit
ten moved with more energy. and Mr.. Miles had
to offer his seat in the Exchange for sale under
threat of trial before the managing committee, a
proceeding that would undoubtedly have resulted
in his expulsion The sale took place yesterday
ana Miles is miles away