New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-10-27


WAS about twenty-eight years of age when l
entered into partnership a stock and share
broker with Mr.. Paul IOmpRlns, pompOa>'
busting, portly looking parsonage, with Ddld;
domelike head. massive shlrt rom anu sehviI"i
was nv senior by some thirty years or more, t9und
the clientele and business experience whllsU l, OF
rather my father, a retired army onlcer, proNlu'"
the 1000 pounds capital with which we started.
NAV as well say at once that those 3,OOO POUNDS
were all that ! could ever expect to receive from
NV father. and that they were in fact more thah
was strictly entitled to, regard being had 10 inc
RIGHTS of other members of our family. HAVING
taken Offices in TokenhOuSe Yard, Mr.. IompKnS
and | began business in September, 1871, under
the title oil IompRihs " Asni'3' s'o'N "'iN '''''N
From the moment we opened our doors we were
bnsily and merrily at work-lndccd rather up
roariously so at times. The number oil MI. Iohp-
i,ins's clients was legion. How or where ne got
tLcm am sure 7 do not know, but comprising
rs they aid representatives OF nearly every ofdcr
of gpntility, they seemed to swarm the oihces, or
~ follow him like the tail OF q comet as he made
his way, 10 and fro between TOKcnhouSc 1afd ana
fhe Stock Exchange, where on their behalf, whole
matches Of orders were executed en- nioc. we
b"d tbrpe rooms in our offices clerks room,
q nrvate room where Mr.. TOmpllinS and sat, and
n large outer room for the accommodation OF our
clients In the middle of this latter apartment
stood an electrical apparatus which kept ticking
away from | a. m. 10 30 D. m. while II rOIed
off on a thin endless slip of paper called the
tape" the current prices of stocks ana shares.
The effects of this instrument on the crowd that
stood round it all day were at once various ana
incessant Sometimes the whole throng would
culver as though from an electric shock; soiiie-
times there would be heaNlng ana sWaNihS
in the mass: some pressing forward Win eager,
eyutant faces. others pressing back with NUT
tered expressions Of hate or fear; while sometimes,
though not often, the cOncnurSc, unable 10 re-
strain itself burst into loud cheer, TO the very
great scandal, as l then suspected, ana Suh>e-
qucnty learned, of a firm Of GovernInent brokers
who occupied the adjoining Offices. Mr.. l0mpklES.
II he were present on such occasions, would hold
up his hands. saying in pathetic. parental way
Oh, gentlemen, gentlemcn--'
WhercupOn there was usually n stampede 10
neiChbOrlng restaurant.
We did or at least appeared TO do, as much
business rs any six ordinary firms, and for some
time | felt very much pleased at being the MI.
Ashley of TOmpkrS * Ashley.
Gradually, however, began TO doubt the sound
ness of our business; so many of Mr. lompkn>S
clients had habit Of absenting hemselyes II they
lost. without paying their differences then |
found that Mr.. Tompllins and were contracting
a habit of speculating on our own account; pres
entity, to my intense annoyance, / had reason to
fbinl, that we were looked upon rather aslIant in
the House Finally, about the beginning Of
December. was forced 10 the conclusion th9t Nv
of the stock markets that he had in fact, no sre
ciai knowledge of stockhrOIing whatever: that
his clients were nearly all of them punter,
that my money was nearly gone ana that our hrH
was looked upon as a hucIet-ShOp"
." "punter,' | may mention, means person
who spcculnteS for small amounts, AT haccarat or
on the turf he operates. generally Tor Smllln@S,
balfcrovnS crowns. or Other the smallest amount
the banker or bOokmaker will accept In tins way
he is distinguished from the "punGer," who oDer-
atos for LARGE amounts 4 buckct-shop" Is
Stockholders Office which i frcquen'cd by
and kept for the convenience Of puntrrS; Sucn
institutions are may add almost invariably owned
By what are called "Outsdc brokers an industrious
and enterprsing class of practitioners who have,
however. no more connection with the Stock En-
change than they have with the Vatican:
PcrhapS before proceeding any further, il may
not he amiSs IT, for the benefit Of those who are
not learned in Stock Exchange matters. ! explain
The nqtuIe Of the operations which are tcchni.
,allv known as bulling" and clearing A.
counts are adjusted on the Stock Exchange about
once a fortnight In other words, unless there
he special arrangement that the transaction Is
"a take place at once, if you buy stock the broker
paws the owner for il: or if you sell he de-
iivers il 70 the buyer ~ the next account. Now,
suppose TINT - week will clapsr before the next
account comes on, and suppose also that for
some reason or other yoU are led 10 think that
certain stock will get dea"er. go M aS II is
termed, in tho meantime It is evident nader
these circumstances that if You were 10 buy
certain amcGnt Of the stock to-day. and then
If the stock gets deatcr in the Intervening time.
TO sell u again. you would have two tranSaction
10 carry out on the account dav. and that yOu
would benefit by them. In the one case Won
wOuld have - pay The price AZ which Won agreed
10 buy the stock; IN the other you would have
10 receive the higher price at which Won agreed
70 sell it. So that by buving the stock at ono
price and selling il AT higher price Won would
make profit. This is what is called "bullmg."
nearing Vln" Inc converse operation. Inc
bcar' thinks for one reason or othcr. that
stock is going to get cheaper or TO " fall" in
price; Consequently. while the stock is dear
he soils il to be delivered or handed over TO the
purchaser at future date: and then. IT, rs
he expects it does get cheaper he buys il again
~ the cheaper price and makes his profit by
the higher price OF course if the stool; sbouId
get dearer. he tho ." bear has 10 Inv il nj tbe
dearcr price il he be not already possessed of il,
so as 70 complete his contract with the nurchascr
in which case he would make loss nv having m
give more for the stock than he octs fer il In
The same way. u hnl7 buys stock that falls
m price, he must, II he does not want Ia invest
his money in it, sell 'c stock ~ the lover ,r;o
IN which case 10 lose; the difference bot,vn,n
me two prices: This IS. generally SPEAKING the
theory OF a Stock EXchanc" account and ~
"bulling7 and "bclring" in practice boyyevor
bulling7 and bearing" are usually. aS NJ
iabouchere once said; merely betting transactions
AS lale. the "bull7 doe, not pay for an thc
stCek he has bought, nor doe, the bear deliver
al The stock he has sold WHAT they do in most
cases, Is merely 10 give or take check for the
amount which is represented by the difference
DctWeen The price of the stool; when the con
.facl was made and The price IL is at when tho
contract Is concluded. Still il is important to
hCuce that either party can legally call upon The
GIlef 10 perform the whole contract THE
bear; by rendering the stock sold. can dcn,nd
NV e , %h9lc OF the purchase money. The "bun.7
H. ehd"rhg payment, can demand delivery Of
the whole Of The stool; he las bought
e. me markets huctua'cd violently during the
NJ H. T Three weeks OF December. and in spite Of
IL. -0--'t''n9o iup>i tOAHIFlO pfcflict'OnN tho
changes We're almost invariably aroinet ms II
We pJusnT there was surc 10 be "a heavy fall; if
rise S0'I enrte was equally certain to he Il sharp
az, IiNeryoody about the Office seemed 10 ba
~ "ofT.e except Tompltns who hustled about
and VdI oneng as ever cxhorting and advising
could not bep i t5ib, he never lost heart"
little else 20 lo>e |'N' iOr III seemed 10 nave
nm sn we PIIandefed o. Tompdny always cheer
Iilon, until on the Christmas Eve '' co,i PpP1
Iestl yr aissulse ron myself that we were hon.
On tb sS S EN- ana thAt our end had come ar last
ou vas our position was briefly as follows: We
their accom- aeedn 800 pounds 0S to clients who had closed
money l. .i,ss t dnd were clamoring for their
SnrNtmas Day: Mondar an cour.. 90 la mIu-n i ~