The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-11-15

fore known and probably never again viii be. Every
body had money in abundance and the desire for
speculation in superabundance. Sany formed a
nrm immediately-H Hayward & Co.-with his cashier
Ali mundane things nave an end even bun mar
kets and bear markets. The bull markets saw Hay
ward & Co. doing d good business as did everybody
else in Wall street II ended, and the firms custom
after few bad ''sIuInps' in prices were admon-
to turn bears to re- CUP their losses Bears be-
optmists, believe the opposite. The public can't sell
stocks short any than the average man is left
handed. These customers were no exception so they
did nothing.
Hayward had "overstayed" the bull market though
not disasrously that is he in regarding the
extent and duration of the upward movement of
prices. He proceeded to fan into a similar error on
the bear or downward side The market had been ex
ceedingly dull following what the financial writer's
called severe decline" but which meant the loss
of millions dollars by SPECTATORS Hayward's Gus
TONER'S like everybody else's custome.s. not
specializing. So he used their money TO protect his
own speculations Office expenses were numerous
and heavy and commissions few and light.
Hayward was very beartsh. He had sold stocks
sharing the belief Of the majority OF his fellows that
the lowest prices had not been reached AS result
he was heavily short and he could not cover
a profit because prices had advanced very slowly.
but very steadily.
one day big gambler in Chicago holder or keen
er than his eastern brethren thought that the time
was ripe for bull or upward movement in general.
and particularly i'm Consolidated Steel Rod cOmpanys
stock He the chairman of the board of direc-
tors. Mr.. William c. Dorr decided upon a plan
whereby the stock would be made attractive that
class of speculative investors to speak who liked
TO buy stocks making generous disbursements of
profits to their holders Mr.. DORIS pan was kept
secret The first step consisted of sending in large
buying orders. handled by prominent brokers and
spontaneously the publication I'm the daily press of
various items. all reCting the wonderful prosperity
OF the Consolidated Steel Rod company its phe-
nomenal earnings; also the unutterabie cheapness
of the stock the prevailing price. Mr. Dorr and
associates of course had previously taken advantage
Of the big slump fall in values buy back AT IS
the same stock they had sold the public some
weeks before at 90 Having acquired this cheap
stock they manipulated means OF further pur-
chase-the price so that they could sell at a profit.
1t so happened however. that once before dividend
rumors about 'Con. steel Rod had been dissemin-
ated with the connivance OF Dorr. and they had
true the great detrmcnt Of credulous buyers
and greater profit insiders who We're short
of the stock "uD to their necks'-s tvnfcal bit of
stock jobbng whereat other and artistic stock
iobbers had expressed the greatest Indignation In
stead of putting the stock on dividend paving basis
the directors had decided atrthe hour-that
would not be conservative 10 do so whereupon the
lost hundreds of thousands of dollars; the insiders
gained much 1T was mice turn
Hayward remembered this and when the stock
after several days of conspicuous activity steady
advances rose to 81 he promptly sold short 600
shares-be Iieving that the bareface5 roaninulation
would not raise the stock much above that figure
vouslv il had6soId at IS and nobodv wanted anI Of
it.. He all the more decided ia his opinion that
tho ton had been reached b, prices becausa Mr.
Dorr i'm Chicago paper had stated that the stock
holders would probably receive entire years dvi-
dends at one fell syvoop tv reason of III 7exsrie5
prosperity in the steel rod trade. an action was
times i'm connection with other stocks hut if bs5
never come true, Why should it come true in this
Hayward familiar with DORIS record pron,ptlv
"cOppered' his tip to buy banking DORIS consist
ent mendaCty. But Mr.. William G.. Dorr. shreWdest
and bodest Of an western stock gar,IIers cooled
everybody-he actually told the truth. That the
directors did exactly ne had predicted When
Spectator Of his caliber lies he fools only one-half-
the foolish half-Of the street. When he tells the
truth. he deceives everybody Before Wall street
could recover from the shock the price of the
up points which meant that Hayward was out
$4,000 on that deal alone But in addition, gen
eral list carried upward sympa thetically Money
rates and bear hopes fell; stock and bull cour
age rose! Hayward began covering" Steel Rod He
bought in 5000 shares and after he had finished he