The Camden chronicle. (Camden, Tenn.) 1890-current, 1902-06-27
MACHINERY OF A POOL
PROCESS or WORKING THE STOCK
MARKET DtscRlBED.

The Pool nnd the Outsido Public - THE
work Of the "Publioiy Department"
The violent gyrations Of speculative
stocks. without the slightest refer
cnce to news developments OF bona
hde changes in values. have attracted
more than the usual attention 10 the
work OF professional Stock Exchange
pools" says an authority In the New
York Evening Post In a general
way. the methods of these speculative
cliques arc pretty we'll known. There
are many details. however. with
which the public at large is wholly UNI
familiar. The following interview
with an operator who has handled
many large deals" OF the kind for
Stock Exchange pools will throw some
interesting light on the work in ques-
ton. For obvious reasons. the name
Of the gentleman interviewed cannot
be made public. but the Information is
based on abundant experience:
1T Is only fair to say that the public
rarely sees value until II is most mark
eddy demonstrated to them, and the
demonstration comes generally at a
pretty high price It is easier for them,
as experience shows, to believe a stock
is cheap when it is relatively dear,
than to believe it is cheap when it is
more than cheap. A Stock Exchange
operator or group of operators decides,
we will say. that certain stock is sell
ing cheap-that is, below value. Value
means, in Stock Exchange speculation,
intrinsic value, plus future value, plus
the additional Stock Exchange value.
A large holder of the stock begins by
going around to other large holders.
Ownership is counted, and the out
standing stock in public hands fairly
estimated.
"The first necessary detail is to
tie up in pool. these known hold
ings, in order to prevent realizing
sales by larger interests. If such large
holdings cannot be kept off the mar
ket, hands are joined in certain direc-
tions, and a long and patiently worded.
out plan of accommodating the stock at
low prices. before tying it up is de-
vised This takes the form of manipu-
lation within certain range of prices
1t may beassisted bynatural stock mar
ket conditions. which encourage sales
by outsiders at a sacrifice. Frequently
persistent attacks on the stock by the
people who wish to buy it are under
taken, which bring out miscellaneous
public holdings, and which, if carried
sufficiently far, dislodge even impor-
tant inside holdings. 70 accomplish
the decline matched orders are fire.
quently used, whereby the pool really
sells to itself. Large offerings Of the
| stock are continually placed on the
floor with no takers, resulting in the
gradual lowering of commission-house
selling limits and the securing of
cheap stock thereby.
THE question of borrowing money
is important A pool can rarely do the
whole thing with its own capital 1t is
assumed that the money market out
look favors a stable condition, for it is
idle to suppose such operations would
be conceived were conditions pointing
otherwise. Money brokers have Of
course, been employed by the house
handling the pool, to borrow from the
banks large amounts of time and short
time call money, termed special loans,
on which the collateral is largely to be
the securely in question, and on which
! n NJ IN fu no II
margins given.
THE publicity department must al
so have been covered. Practically all
important pool operators keep on hand
this appendage to their work The
gossip affecting the stock, must be
printed, and this department is system
atized to a degree few suspect. 1t is
generally in charge of man intimate.
ly connected with newspaper channels
covering every important city, if neeC
be, and this person receives large
compensation for the duty performed
Of distributing for circulation, wheI
the managers of the pool see fit, items
of news and gossip affecting the stock
The insiders being in the pool, ever!
item of news is carefully bottled up
and distributed only at what is though
to be the right time. The need for thi
will be apparent when it is observe,
that explanation must be made for ad
vances and excuse for declines in al
manipulated stocks. The fact that in
siders and the pool own the news, s
to speak, and can thus discount its e
feet ahead of those who get it throug
publicity channels, involves mora
point of view which has often been tn
subject Of Wall street discussion.
1.-THE machinery of Stock Exchang
2 work varies little. Orders are given