The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-04-01
FINANCIAL SECRETS.
Manner in Which Wall Street Learns
Names of BUYERS and Sellers.

Names Of Buyers and Sellers.
Nothing puzzles the average outsider
more constantly than the publication OF
names of important buyers or sellers
on the stock exchange, when il is
known that the transactions are made
through brokers, and that there is ev-
cry iuducement for concealing the iden-
tity of the principals Yet this use Of
names is very much more than guess
work Ii often represents close cOnjec-
ture. and sometimes positive knOwi-
edge. Even the intimation of STANDARD
OIL selling" Morgan buying" and so
on, is frequently borne out by later de-
Veiopments, says the New York Even
ing Post.
This is the explanation: AS a rule,
large fnanciers and large spectators
employ certain brokers 20 execute their
orders; hence there are men on the
stock exchange who generally come to
be referred TO as Vanderbilt brokers.
Morgan brokers, and so on. Such choice
is inevitable, because highly cOnfden-
tial relations and large responsibility
are involved, and 1t is impossible for
any interest TO be perpetually changing
] its agent The broker himself viii en-
gage other brokers to do the work, and
endeavOr. by thus distributing bush
ness. to disguise its source. But these
secondary agents. Of course, know who
engaged them, and why They draw
/ their differences and impart them, and
before very long the whole stock ex-
change has the story. Even without
this form Of leakage" confidential
brokers have their intimate friends,
and intimate friends receipts tips
often in exchange for tips" Of their
own, when the position is reversed. The
Tip" from the broker Of an eminent
financier to buy Erie" will be trans
lated into a very plain hint that the
interest in question is buying. The
tip" thus given is passed alOng and
with 1t the significant information as
TO where II came from.
During the great activity in the an
thracite shares. toward the end of 1900,
Wall street learned to it's own satisfac-
ton that the brokers Of a certain bank
party We're giving out the orders. The
/ relations between that bank and an
eminent flnancier were we'll known; il
was assumed and publicly asserted that
/ his firm was buying. A few weeks
/ later that firm announced the Reading
/ Jersey Central combination, under its
auspices. It sometimes happens that
/ operators who want to attract the pub
I lie and distribute stock at high prices
! find il possible to utilize the above con-
/ ditions. They employ brokers usually
Identified with leading bankers. Then
/ tips are judiciously circulated that
/ the more eminent customers of these
J brokers are buying. The same thing is
done with International houses, TO Gre
/ ate the semblance Of European buying.
! Sometimes. as In the famous rise OF
4 Leather from 10 to 40 some years ago,
] a young member Of an eminent fnan-
cier's family is induced to employ the
4 family brokers. and Wall street is sup
piled with the brOadest differences. This
particular move was very cleverly man
aged; but the stock exchange is usual
\ ly as quick to find out an imposture as
/ to detect the truth.
IAy- Gould had the highest reputation
| OF his time for throwing dust in the
/ eyes Of people who watched the actions
Of his brokers. A well-known confden-
! tial broker of Mr.. Gould once said of
his distinguished principal: It made
/ $500 900 in one year in commissions on
! his orders. and lost $500 900 in trying 10
! follow his lead on my own account