The sun., 1903-04-04
The Buccaneers Of the stock Market.

The Buccaneers OF the stock Market.
Recent efforts to discredit local in
vestment property by the circulation OF
misleading reports. and to secure the
declaration of dividends which had not
been earned by an important railway, in
order to enable speculative investors to
get out at profit, have serious interest
for the general public as we'll as for the
parties directly concerned. Such events
tend to inflict an injury on the New York
stock market which is felt by honest
brokers and investors almost as keenly
as by those who are dishonest and un-
scrupulous, because in the public mind
the condemnation justly visited upon
the latter is extended in some degree
over all. The small investor has reasons
for being on his guard when he finds that
the quotations of securities in Wall Street
are unduly depressed by the circulation
Of malicious falsehoods or may be un-
duly advanced by the payment Of divi-
dends which are not earned or by manip-
ulation by INSCRIPTIONS pools. Suspicion
is thus engendered against sound Sc
curities as we'll as unsound ones, and the
prudent man OF capital is at a loss to
look for investments which are at once
safe In themselves and free from thedan
ger Of malicious assault
The morality Of the stock market has
been q subject Of frequent disquisition
bv persons who know little about the
essential part which II plays in the
mechanism Of modern industry. In
yestments in stocks. whether for short or
long terms, whether on margin or by tho
payment OF the entire principal. are an
important means Of insuring stability
OF prices in the merchandise markets and
in affording evidence Of the proper di-
rection for the investment Of capital.
When these legitimate indications are
falsified, however, by falsehoods and
manipulation, an evil is done to the COM
munity which is coextensive with the
MAGNITUDE Of the market. The bear
operator has his legitimate function,
when he acts honestly, in expressing his
judgment that values have been inflated
and that capital should be applied more
cautiously in certain directions. When
the wish becomes father to the thought,
however, that values shall decline, the
bear" Is sometimes tempted to take
measures to depress values that will
not bear scrutiny. When these measures
involve unwarranted attacks upon an
investment security held largely by
widows and trust estates, as in the case
of the State Trust Company three years
ago, and now in that OF Metropolitan
Street Railway stock, innocent persons
suffer anxiety and loss as keen as when
they are directly robbed by burglars
or second-story men-perhaps even
more keen, because Of the continued sus-
pense to which they are exposed. The
bull operator ia equally blameworthy
who seeks to give fictitious value to
properties by such proposals as are
charged in regard to the Southern Pa
cific stock, that dividends should be
paid which have not been earned or that
the stock should be taken Off the hands
of the pool at price above its value.
Manipulations OF the character which
have been exposed in the courts during
the past few weeks come home to the
legitimate investor in all securities, be-
cause Of the sympathetic influence which
q raid upon one stock has upon others,
and the suspicion which Is engendered
that IL groundless attack upon strong
security can depress its value. then other
securities equally sound may be ex-
posed to like attacks. The evil affects
not only investors at home, but our credit
abroad. European investors have not
gotten used to the sensational moves
made in our stock market, even where
such moves have not been tainted with
the naked falsehood and unscrupulous
proposals which have marked recent
cases. Still more are they likely to be
suspicious Of the American market
under recent neutrality-suspicious. not
only OF the general soundness Of our
industrial enterprises, but suspicious
Of the probity and trustworthiness Of all
men who will permit freebooters to con-
tinue as members Of the Stock Exchange
and the New York bar.
The recent raids upon strong securi-
ties and the attempt to blackmail the
Union Pacific management may have a
still worse effect at time when New
York needs money badly to tide over
the scarcity Of capital and the defects Of
our currency system. All these events
tend to defeat the efforts put forth
by q different type Of men who have
been steadily devoted to the upbuild-
ing OF American industries and the
enhancement Of the value Of American
Investments. All that Mr.. MORGAN has
done during the past few years to add
to the efficiency Of American industry
and the value Of American enterprise Is
likely to be ujinimized, il NOT overcome.
in its infiuencs upon foreign markets. By
the reckless and dishonest manipulations