The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-17
Special to The Journal.

special to The journal.
New York Dec. II, = The Lawson and
Greene episodes have given rise to an urgent
call for reform in stock market methods The
general feeling in financial circles is that such
disgraceful affairs should not be possible. AN
authority says that the New York stock eX
change ought to be a place for dealing in Sc
curities OH the basis of a fair judgment Of the
values which they represent, and should serve
as q means of determining market prices upon
which some reliance can be placed by investors.
Various elements enter into the present value
of corporate stocks which make it matter of
calculation and of some uncertainty, and specu-
lative dealings inevitable. They not
only inevitable, but when honorably conducted
they are desirable, for they arise from balancing
different judgments of value, present and pros
pective, and from a competition for profit in the
rise and fall Of the market, which serves to
establish and maintain prices near a normal
level, narrowing the range of fuctuation and
tending to stability and steadiness But when
crafty and underhand methods resorted to,
or braZen misrepresentation made for the
purpose OF raising hopes or exciting alarm and
rushing prices up down, regardless of real
value, the business is made disreputable. The
object of all such violent movements is the
securing Of illegitimate gain at the expense
no more respectable than any other form of
robbery.
If New York is to be financial center to
which investors of capital will resort for op-
portunities, and to which this country and other
countries look for the gauge of values in
American securities, the Stock Exchange must
become the scene Of legitimate dealings and
honorable methods and not gain the repute Of
serving the ends of plungers and manipulators
who rig the market and fleece the unwary by
false representations or crafty devices for work.
ing upon the hopes and fears of their victims.
Not only should these Ubiquitous perversions Of
the object of stock dealing thru organized
exchange be discountenanced and condemned,
but sober and respectable people desiring to in
vest their money should in self-defense keep out
Of the market when it is infested with these evil
II The Public Scared
The public, or at least a large part of it.,
took to its heels last week, and since then
various pools and operators that were overloaded
with stocks have unquestionably Hquidated,
come of them apparently with a good deal of
urgency. 1t remains to be seen whether
the present level of prices will continue to at
tract investors and bargain hunters as 1t has
done already, and also whether. Lawson can
make effective use Of the bomb he claims to
have up his sleeve. The chances are, taking
a common view of the situation. that he
full as he thinks he will. Moreover it must
be taken into consideration that whatever this
revelation may be, it will strike market
that has been reduced to much more sub
stantial basis than the one that existed q
week ago.
Who Sold Stocks.
| On Monday more than 2,O0O.OOO shares OF
stocks dealt tin. and prices broke with
the greatest violence, The question has beer
Of course, impossible to answer this question
accurately, altho the character and sources OF
the selling can be determined approximately
In the first place there are more than 400 mem
bers Of the Stock Exchange floor traders and
professional SPECTATORS, who are continually
operating in the market side or the other
When the market started to break every one OF
these spectators must have sold stocks. Some
sold stocks they were carrying, while
others went short of the market. Many
Of them sold from 5000 to 1O,OOt
shares each, and it is conservative
estimate to say that average they solo
900 shares apiece. This would make a tota
, of 100000 shares. Over 100000 shares were
sold for Boston account alone, about $4,000
shares for London account and about 15o,oot
shares for Chicago, Philadelphia and Pitts
burg account. This leaves about 100000 share
to be accounted for. About 500, 900 shares q
this amount is believed to have representa-,
: frightened liquidation and the closing out o
> accounts which being carried on veal
; margins. Over 100000 shares of stocks wer
thrown on the market by group of OPERATOR
who were temporarily in financial straits. TIL
remainder probably represented aggressive sell
ing by bear pool, whose members took advant
age of Lawson's. sensational advertisements t
hammer the market.