The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-08
A BEAR Raid ORGANIZED
Circulars Assailing Mergcnihaler
Stock Part of a General Plan.
Manipulators Resort TO New Methods
TO Dcpress Prices-FictitiousN Names
terforation The stock Exchange
to Take the Matter IN Hand.

The anonymous circular recently sent to
many holders of Mergenthaler Linotype
stock in this city, just before the recent
decline in Linotype, is believed by many
TO be tie work of the people that are
operating in the same fashion in New
York Others, with perhaps more reason,
consider the attack on Mergenthaler TO
be only a humble imitation of the New
York game, which is one of the most re-
markable in Wall Street history in some
respects.
The action of the Brooklyn Rapid Tran
sit Railway recently in offering reward
of $4,000 for Information regarding at
tacks on the standing of the company, for
the purpose of depressing Transit stock
In the market, has called the attention Of
New York financial people TO what seems
TO be a great bear propaganda in the
market. A clique of important bear pro-
fessional operators is believed by many
to be responsible for the many stories,
largely untrue, and for the rumors. mostly
rnfounded, that have been circulated dur
ing the first few months. There never Las
been such a flood of this kind of news in
Wall Street before, it is said
been full OF statements, over fictitious
names, purporting to give valuable infor-
nation, and a great number of anonymous
circulars similar to the MergeDthaler cir
cular have been sent TO the brokers and
financial houses generally.
These anonymous documents, generally
starting OFF with the statement that "a
prominent bankers says and continuing
with an analysis or alleged analysis of
the statement of some corporation, with de-
auctions, that receiverships were inevitable,
etc, attracted considerable attention at
first, from the novelty of the means en-
ployed, and then had some effect on stock
market values.
Later the frequency with which the
prominent banker rushed into print, and
his gar ulity deprived the anonymous cir
culars of influence, and they were tossed
unread into various wastebaskets. As the
prominent bankers" influence grew less
with greater and ever increasing frequency
there came TO the newspapers a class OF
advertisements seeking to accomplish the
same object, and bearing variety of names
calculated to give confidence or intimate
knowledge of facts.
1t is curious commentary in Wall Street
that such anonymous notices had pro-
nounced effect at times on securities. Alb
eral instances. rushed up to amazing fig
ures; some good ones also were affected
similarly, and then the advertisements
would suddenly change. and with some
announcement that the deal was OFF, the
stock would be left TO shift for itself or
openly attacked. AT other times a prop
erty was selected for depreciation, and re-
iterations were made daily, sometimes
IN one paper, sometimes IN another that
TX. 2. will sell at 49, naming some prop
erty that was selling at a much higher
price
1t has never been possible TO ascertain
from what source these notices cane for
they were received through regular chan
nels of business Many attempts have
been made 10 trace the source but with
out result There has been much con-
lecture as TO the individuals and names
mentioned. but nothing definite has been
ascertained. AT first Wall Street believed
that it was simply 'bucket-shop-' ruse
but as the matter developed and the
amount of money expended for advertising
increased, the theory that IT is the result
of an organized attempt 10 raid the market T..
has gained currency
Among the properties that have figured .
in one way or another in the prominent
banker interviews with himself and the
anonymous advertisements are Manhst-
tan, Western Union, Brooklyn Rapid
Transit Tennessee Coal and Iron Peoria.
Decatur and Evansville. Leather common,
and Pullman Palace Car Company.
II has been suggested that the Stock
Exchange should take the matter in hama
trace The evil to its source and punish the
offenders. II possesses ample powers. and
by systematic detective work could I'm
doubtediy unearth the offenders