The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1900-03-08


charged with depressing the stock of
the Brooklyn Rapid Transit and other
corporations by foul methods. The
presentment of the jury sets forth the
facts which are essentia! TO correct
understanding Of it's action.
1t appears from the presentinent that
in the summer Of 1899 the stock of
number of corporations whose securi-
ties We're dealt in on the exchanges
was selected as the object of attacks
of novel and dangerous character.
Paid advertisements were inserted
from week to week IN leading news
papers in New York and Boston at.
tacking the value of the stock of these
companies asserting with the utmost
positiveness in the case of one of them,
whose stock was then quoted above
par, that 1t would fall 10 80, to so, to
20; that the advertiser spoke from ac.
curate inside information, advising the
sale of such stock and promising def
mite information if irquirers would
write to an advertised address. Letters
were sent broadcast over the country
in response to inquiries made in an
swer to such advertisements. reterat-
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 confident sale of such
stock short. kilograms by the hundred
were sent broadcast through the
United States advising the sale Of the
stock for a 30 point drop at the OPEN
ing the next morning, and, coincident
with that telegraphic advice, an alb
solutely false rumor or statement was
suddenly and widely disseminated by
word of mouth, by telephone and by
private wire that the company was
about to go into the hands OF re-
ceiver. that the papers applying for
such receivership had been seen, one
rumor going so far as to give the name
of the person who had been agreed
upon for receiver. Enormous short
sales of stocks followed, causing great
loss to many persons. The present.
ment continues:
As the market price of the securities
of IL corporation must depend upon the
belief of those holding or dealing in them
that they are valuable, these constant
and diversified attacks undoubtedly made
a most depressing effect, tending to shake
the faith and confidence of the comnru-
nifty, and accomplished the result intend
ed. Innocent holders, powerless to pro-
fnnf hon al lNrnc hpir nyfx RI
preciated day by day by these novel and
criminal methods. In our opinion these
deliberate and lCng continued attacks
emanated from several sources, but from
their very nature-namely, anonymous
circulars and word of mouth rumors--it
has been impossible for this grand jury
in every case to trace these rumors to
their authors. Some Of the false rumors
spread abroad have been circulated to
unduly enhance the market price of
stocks; others to depress the stocks OF
solvent corporations below their proper
and normal market price. We believe the
public spirit of those who are influential
in the financial world should be aroused
To the necessity of bringing to the at
tention of the authorities all instances
of manipulation of the prices of stocks
by such methods and that the district at
torney In turn should make strenuous
effort to convict and punish the guilty
parties. A realization that detection and
punishment will surely follow will be the
best means of suppressing these insidious
crimes which threaten not only the in
terests of specific individuals, but also
the general welfare of the community.
1t has been held that no law was vio-
lated in the pursuit of these tactics.
That will be a question for the courts
to determine. But If the law does not
provide a sufficient remedy for this
kind of conspiracy to rob by means of
slander it needs very little argument
to convince the average man that the
law should be amended.