Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-06-13
VOICES OF the PRESS.
Ethics Of Speculation.

About two weeks ago, AS we are informed,
the largest bear operator in General Elcc-
trio stock in New York came over to Boston
with two of his associates and met the three
largest holders of the stock in New Eng
lani. This Was the time, rs will be readily
recalled, when General Electric experienced
a break to 10. The New York peo-
pie found that it was not so easv
work as they had expected to break
the price to the exceedingly low figure
which they had in mind, and their visit to
Boston was for the purpose of getting help
IL is reported that they met the large New
England stockholders on two separate occa-
sious and labored very. hard with them to
get them to sell their stock the following
Monday. They offered to return the stock
to them at less than So, and agreed to give
bonds for the performance of their agree
ment. The three New England stockholders
declined to listen to any such plan.
This incident is suggestive in many ways.
In the first place it draws attention to fact
which most persons who have any cOnnec
ton with the stock market are familiar
enough with, but which is not always as pa
tent to the general public rs it might be,
namely, that but a fractional part of the
business done in Wall street and other finan
cial localities is based upon legitimate bust
ness methods. BY far too many speculator-
in stocks are what are termed .'manipula
tors That is to say, they do not
buy and sell securities with
any eye to the investment value of these.
but their operations are entirely analogou.
to what in poker is termed game OF
bluff" In the case in question, the bear
operators had no regard for the intrinsi'
value of the stock they were operating in
They relied for THEN profit upon making
credulons persons believe that those mos
heavily interested in the General Electric
Co. and most familiar with its affairs hal
utterly lost confidence in the concern.
whereas this was very remote from being
the truth, it being reported that the tire.
stockholders above mentioned instead OF
selling bought more of the stock.
This incident further signifies that Their,
is inherent in stock speculation a pow'i
which tends to diyest those who cngag'
therein of part of their consideration foi
humanity. Men who are undoubtedly OF
exemplary conduct in other relations in life
appear to become devoid of the ordinary
feeling of humanity when engaged in manip-
ing stockholders of the General Electric Co.
complied with the request of the New York
operators whom we have referred to above,
they would have caused incaloulablc loss to
large numbers of persons who depend for a
very considerable part of their living on their
ow ning a moderate amount of the stock OF
this company. Still further, while it is
customary to speak of such transactions in
cuphnisms, what better are the persons
who father them than thieves and liars?
If everybody who owned General Electric
stock were engaged in the same sort OF
game as themselves, it might be possible To
restrain ones Indignation at such course
hut in this case. and in almost every case
that ever occurs, there arc large number
of persons who hold stocks because they
believe them to be intrinsicaliy worth wha,
they paid for them, and to deceive these
persons by games of bluff into parting with
their securities at a loss is in no degree
abort nf rascality