The sun., 1900-03-07
Grand Jury Quickly Reports in
Brooklyn Rapid Tran
sit Case.
ARRESTS PROMPTLY FOLLOW
Declares That Certain
Individuals Should be Arraigned
and Tried For Attacking the
Company in Such an
Illegal Manner.

been indicted by the special grand, jury
which for a month has been investigating
the manner in which the stock of the
Brooklyn Rapid Transit company and
some other corporations was last sum
mer Systematically depressed. The in
dictments were presented in the criminal
branch of the supreme court before JUS
tice Fursman, who, after thanking the
members of the jury for their efforts,
discharged them from further duty.
One of the men indicted was Alfred
r. Goslin, who was arrested in phila-
delphia, where he is held awaiting extra
dition papers. Another person indicted
was Henry J. Alexander, an advertising
agent of IL Broadway, against whom
three counts were found. Alexander was
in court at the time the special grand
jury was making its report, but he was
not arraigncd until 30 minutes after the
jury was discharged. Alexander was
arrested on the street while he was re-
turning with his wife from thcatcr tc
the Herald Square hotel, where he lived.
The presentment in part is as follows:
"As directed by the charge of the pre-
siding justice, this grand jury has dill
gently inquired into the facts tending tc
show the existence of violations of the
provisions of sections 16S, 435 and chap
ter 5 of title of the penal code.
1--WE have found true bills of indict-
mcnt against certain individuals for spe-
cific offenses Hereunder upon satsfacto-
ry legal evidence. Our duty requires.
! however, that we should make additional
presentment in the premises, said pre-
sentiment being based upon evidence, but
not specific enough to warrant indictment
of individuals other than those found and
returned herewith.
| sit appears that in the summer of 1899
| the stock of number of corporations
whose securities We're dealt in on the ex-
| changes was selected as the object of at
tacks of novel and dangerous character,
| Paid advertisements were inserted from
week to week i'll leading newspapers in
this city and Boston attacking the value
of the stock of these companies, assert
| ing with the utmost positiveness in the
case of one of them, whose stock was
then quoted above par. that it would fall
to 60, to so, to 20; that the advertiser
| spoke from accurate inside information,
| advising the sale of such stock and prom
ising definite information if inquirers
would write to an advertised address.
Letters were sent broadcast over the
country in response to inquiries made in
answer to such advertisements, reiterat-
ing the statements as TO the value of the
stock and stating that it would fall much
lower; that followers of the advice given
by the advertiser had made thousands
Of dollars. and urging the quick and con-
fdent sale of such stock short.
Receivcrship Predicted.
"Telcgrams by the hundred were sent
broadcast through the United States adj
vising the sale of the stock for 30 point
drop at the opening the next morning.
and, coincidcnt with that tclcgraphic ad-
vice, an absolutely false rumor or state
ment was suddenly and widely dissent
mated by word of mouth. by telephone
and by private wire that the company
was about to go into the hands of a rc-
ccivcr, that the papers applying for such
recciyership had been seen, one rumol
going so far MS to give the name Of the
person who had been agreed upon for
receiver. Enormous short sales of stocks
did follow Immediately upon the publicil.
ton Of these attacks and dissemination
OF these rumorS.
AS the market price OF the securities
OF a corporation must depend upon the
belief of those holding or dealing in them
| thhl hlNN iilt NululDlP, lnpSG constant
and diversified attacks undoubtedly made
a most depressing effect, tending to shake
the faith and confidence Of the commll.
nifty, and accomplished the result intend.
ed. Innocent holders, powcrlcss to pro.
tcct themselves, saw their property de.
prceiatcd day by day by these novel and
, criminal methods.
In our opinion these deliberate and
long continued attacks emanuted from sew
eral sources, but from their very nature
, namely. anonymous circulars and word
, Of mouth ltm0rs-it has been impossible
for this grand inry in every ease to trace
these rnmors to their authors. Some OF
the false rumors spread abroad have beer
circulated TO unduly enhance the market
price Of stocks others to dcpress tho
stocks Of solvent corporations below thcil
proper and nsmnl market price.
We believe the pGihic spirit 0f those
j Who are influential in The financial world
should be aroused 10 tltc necessity Of
bringing ID the attention of The uuthori
: 'ca all Instances - manipulation Of tlit
eficrs % st7rE# ly siieh raethods ana thai
ne district attorney ia tarn should maEt
strrlGots eilnE - convict alld punish tht
quilts ptties.
~ relliaMian slGlt detection ind pfnr
ishment W.A sl'rpE follow VIII ID tht
: hest maa0a ot siRpfossiag tfpyc insidieu.
elinas Nil@a tlEoaiau a9 aulg tha iu{ar
ests or 3lmeiia iul,iiaals, bdt also Iii.
general welfare "a tHa community"
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