The sun., 1895-04-17
STORY OF STOCK JOBBING.
A SAMPLE OF PRESENT METHODS
IN VAIL STREET.
Bold Attempts to Misiead tho Public Re
GRrdiHE g SuEgcsted Negotiation that,
ms q Matter OF Fact, Failed at the Start.

Bold Attempts to Mislead tho Public Re
gHraiHE g SaEgcsted Negotiation that.
ms a Matter OF Fact, Failed at the start.
Not often has Wall street been so persistently
and Systematically misled No 1t has been during
the last thirty days regarding suggested
change in the relations between two great COM
petng corporations namely, the General Elec-
trio and the Westinghouse Electric and Manu-
featuring Company. At meetings OF the direc-
tors of those two companies. something over
month ago. the suggestion was made to each
Board that an advantageous alliance might be
negotiated that would reduce competition and
result in the establishment of uniform and
staple prices for their respective products.
1t is understood that this suggestion had its
origin in the famous Bate decision of the United
States Supreme Court. which affected seriously
the life of number of important patents cover
ing electrical apparatus. That it was made in
good faith no one has questioned, but it was
soon found that 1t was prac cticable to act upon
1t; STILL until 1t definitely and formally re.
jected yesterday by the directors Of the General
Electric Company 1t was made the basis Of what
appears to have been a deliberate scheme TO
mislead tho speculative community and work
the stock market.
1t is understood that the suggestion rs present
ed to the two companies was the outcome OF in
formal and purely personal conferences between
DlrcCtOr IL. MChay lWOmDIcy Ol tHe
Electric Company and President George West
inghouse OF the Westinghouse Company. Acting
upon tho suggestion, the directors OF each COM
pany appointed a special committee of three to
investigate and report upon the advisabity OF
an alliance relative to the patents owned by the
two concerns. Tho committee for the General
Electric Company consisted of President c.
A. Coffin, c. II. Coster, and Z. Jefferson
Coolidge. Jr. and of the Westinghouse Company
of President Westinghouse. Marcellus Hartley.
and Charles Francis Adams. As repeatedly
printed in THE sun during the last three or
four weeks. these committees have never met
in joint session. Tho General Electric sub-com-
mittee has held one meeting, ut which it was
determined that the basis Of the proposed alli-
nnce was upon fundamental lines that precludcd
the opening of negotiations with the sub-com-
mittce appointed by its competitor. At tho
regular monthly meeting OF the General Electric
directors, held yesterday. the report OF its SUBJ
committee was accepted and adopted and tho
| committee was discharged from further consid-
| Grafton of the subject.
| This In brief is the inside history of the mat
| ter. The stock Exchange history is longer. but
not less interesting. During tho first half Of
| March General Electric stock was only moder-
| ately dealt in at prices ranging between 90 and
| %. About the middle OF the month the stock
| began to be more extensively traded in. and
with greater activity the price advanced stead.
lily and then more rapidly until on March II
| about A., 900 shares were dealt in At n sharp adj
| vance on that date TO 35. On that day news
| agency which appears to have been selected for
regarding the matter published the following;
We able to that 5n n, are
for an agreement betwssn the prlnTIai electre com
pan!es and EartcMnry the W"stnghonsn a. nnn a,r Ten
pool their patents in such n as TO onsle con"
companed the business. Thorough accord exists be-
tween the two on The subject Wf fTc sTa
y ia w h
On the following day the price OF the stock
| took a further jump to ~. and the chosen me
dium OF the operators manipulating it published
the following:
places advisable 70 state that the facts IN ths
e as paSsaeiby US Yesterday nornus and that the r.
port stating that these are premature Is absolutely
arrived at, and on all imrortant POINTS wnich needs
| mai signatures.
The denials referred to in this statement were
printed In number OF newspapers. and in the
| thority. This, however. did not discourage the
| stock jobbers and their news agency. for the
this:
We able to sta,s that all den!aIs and srasons to
aSsol%tey correct in very parc1isr; Thers haTs
S,Mesn s "a & Of the
The agrccme respecting the patent situation reached
c prces Which should be ma,eraliy bensaeia
On March 25. simultaneously with a further
advance in General Electric. to 3!'S: the follow:
| ing publication distributed in brokers
| Offices by the same agency:
| A commission composed OF lawyers and electricians
eral Eiectric aud wesinshoase. Ali patents owned
e Eva ts in .M2 w lie taGi m the
sion for valuation; i:acm somIany T hereafter haze
esch must pay royalties on patents assigned TO the
| other.
in General Electric stock, began 10 fall of and
| the price to rcceGe. probably because those who
had been engineering the upward movement
posed alliance between the two companies upon
the lines suggested was impracticahlc and had
been decided by the General Electric sub
| committee 1t would not however do for ths
stockholders TO, give up their campaign or re-
furnished With the following statement, tie
channel OF publicity being in every case the
The consummutIon OF the WESTINGHOUSE. Genera.
Elec,Ic Snnonnred o. H yi,,rrday , ntTTl
cal manufacturing business. the results OF which are
more important in many respects Than Is ,rrrcray
ssdGs Psns v.s an fTd e, r ,G ne M
great companies into close communion on the gu,s
S rsss i fcp IL hut MAS ven r ' 5 FSs ns M Gs
10 h" ana m prentice m to BE sseyf
companies In this endeavor 10 put the electrical Nus
ness on paying basis.
The matter was expanded at great length and
repeated from day TO day, but The dealings in
the stock continued to fall OFT. The price,
however was fairly, wei! maintained around
;}6. and on one day, March % it WAS advanced
TO 81. On April . the deal ings began TO in
crease again and the price broke to 33!i. In
commenting upon this movement THE SrN spoke
OF the misleading reports that had rcen ctrcu-
lated. This seemed to annoy those who were
manipulating the stock for they undertook 10
combat THE SCS's statements by saying:
TIM ST. docs not know the facts The facts are
that the boards OF both companies agreed some time
ago on the main principles al issue. aud appointed
committees settle thH details. Ihos" committee
have worked on the details and are still wprSin.
TAcy to-day In this city Thrr" II no hitch what
ever u the negotiations. We una, r-tauh, moreover
that some OF the leading interests In General Ercrri
who large amounts Of stock, of iths nIgf
as ~ and upward, have not soh. The decline wa
due and EXPECTED. 1t has been inadequate: stats
ticslly IL should 90 somewhat further. ON further
decline IL VIII be- pertinent To remrmlmr that III,
pstrnt agreement between the General Electric aLl
Westinghouse has resulted In the appointment or
commission 10 max" appraIsals. ana nnnounccin' n
somn OF the points may stimulate quite recovery
in prices
The reaction did 90 further or the same day
that the above publication was made: Couse
Guently it was followed later in the day by Il
. -