New-York tribune., 1902-01-29

and making market for speculative journalists
was nice one but Mr.. Wright, being jealous
of his reputation for doing everything in cor
rect way, persisted In emphasizing 1t. The
financial writers had not been bribed, but had
merely been enabled to speculate in return for
giving the news about transactions in the issues
Of the London and Globe group! The shares
were allotted by brokers to various benehciaries
after a long list had been submitted by the ad
vertising agents Of the companies. About
dozen financial and other journals were men
press calls; but as denials and explanations
have promptly followed the testimony and the
whole matter is to be thrashed out in cross-ex-
animation. it is hardly just to discuss the mat
ter in detail
The refinement of this process of influencing
financial writer's disclosed Mr.. Wrights delicacy
of feeling. In 1898 when there was considerable
discussion about the corruption of Journalsni'
he decided that he would never again sign a
press CALI and gave orders that press men
should buy their shares through broker. and
sell them whenever they might see ht taxing
what profit they could get. The London anu
Globe set aside a block of shares Of every issue
with It's official brokers for the purpose OF max
ing a market There quotation Wheh
these shares were set aside, but by Two coh-
tracts, for the sale and the other TOT the re-
purchase of the stock allotted, the journalistic
clients were enabled to take advantage Of the
rise of the shares in the market 1t was d
cheap method of calling attention to the issues
and of putting them on the official ists' ana IL
there were profit of fS,975 involved in the two
contracts 1t was not made out Of the company
but directly from the market. The distinction
was a delicate one, when the company received
5b by the selling contract and agreed to take
back the stock at 5ss; but Mr.. Wright could not
be induced to admit that there was anything
improper irregular in the transaction. AL
any rate, II established custom, anu
absolutely necessary to benefit the city financial
press! The managing director himself had no
dealings with the press. but left the brokers at
liberty to arrange matters with their clients
under the general head of advertising and max
ing market 1t might be a method OF getting
around corrupt practices which had been con-
demned in 1898 but payment was received for
the shares and the journalists were left at
liberty to sell at their own discretion. The same
course was adopted with reference to all issues
Of the companies, but there was no general
understanding that financial writers were to re-
ceive from $4,000 to $1,000 on every fresh issue
Nothing appearing in a financial newspaper
would a rise in price Of a new ISSUE but
it was necessary to adopt the customs of the
city in order to have the shares properly regis
Seven years ago the Kaffr circus was the
centre of attraction in financial England, and
investors were taking frenzied leaps in the dark.
Companies with small capital were easily man
aged whenever pool was proposed or any ex-
pedient for rigging the mining market was sug-
gested. Nothing was more remarkable during
that revel of speculation than the facility with
which syndicates combined claims. arranged
amalgamations and controlled groups of securi-
talized nor the stocks heavily watered The
bubble burst but in three years there was an
other one Mr.. Hooley bought and sold indus
trial companies, overca pitaliZed them and lert
investors to take their chances after he and his
associates had prohted by the deals. He was
stock promoter dependent upon social patron
age and investors followed him because they
were credulous and because industrials mantpu-
lated by him were the fashion. A reaction came
and Hooleyism was condemned a vagary
like the South Sea bubble. 1t not long be-
fore there was the Whitaker school OF finance,
with veteran diplomatst and Viceroy as its
1gurehead and with systematic avoidance or
the vulgar devices which had caused social
scandal in Mr. Hooley's time. The London and
Globe group of investments have now had their
run and been discredited. How long will 1t be
before there is another prince of spectators.
setting a fresh style for reckless stock promot-
ing or stock gambling, and appealing with equal
potency to the lust for money which is one or
the ruling passions of Vanity Fair? l. n. +.
CdHdnT1N HENSTTS FTGTRES