The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-02-07


There"
Lend me the money now, and I'll pay
it back to YOU when you give me what /
make on the deal" said she, with fine
fnality. And seeing hesitation in Bob's
face. she added solemnly Honest.
will. Bob, I'll pay you back every cent
this time :,
.Tu think about it, said Bob TTe al
ways said that when he had capltulated
ard she knew it. and so she said. mag
unanimously: very well, dear
Lindheim thought LOCO shares would do
it. so he decided to sell thousand the
next day. for you can never tell What
may happen, and accidents seldom help
the bulls. But<as Re thought OF it IN
his Office more calmly, more deliberately,
away from his wife and from the influ-
ence She exercised over him, it struck
him forcibly that it was wrong to sell
1000 shares of Turpentlne stock. He
might as we'll make it $500; and he did.
He was really a modest fellow, and very
young. His wife's cousin sold the stock
for him, apparently short.
Total breach of faith, $500 shares. The
market stood it well. Sharpe was GER
tainly wonderful chap.
Unfortunately, Morris Steinfelder de-
cided to sell 1900 "Turp and did so.
The stock actually rose a half point on
sales. So he sold another $500 and as a
sort of parting shot. 500 shares more. All
this through unsupported broker.
Total breach of faith, 21,C00 shares. The
market was but slightly affected.
Then Louis Refs of Refs & Stern.
Andy Fischel, of Kohn, Fishcl & Co.;
Hugo Zeman. of Zeman Bros, and Joe
Shaffran. of Rosenthal Shaffran & Co,
all thought they could break their pledge
to Sharpe with impunity, and each sold
to be on the safe side TIL last lump
figured TIP 10,doO shares.
Total breach of faith, 81 400 shares.
The market did not take it well.
SHARPE, endeavoring TO realize on the re-
mainder of his manipulative purchases.
found that 'some ore had been there be-
fore him"
An accurate list of the buyers and sell
ers was sent in every day by his lieuten,
ants, for al but the most skillful opera
tors invariably betray themselves when
they attempt to sell a big block. He
scanned it very carefully row. aud put
tain inquiries and put four and four to
gether-four rames and four other names
He saw through the timeWorn dcvice
of the fictitious short selling. He knew
the only people who would dare sell such
large amount must be his colleagues
He also was convinced that their breach
of faith was not Il concerted effort. be-
cause if they had discussed the matter
they would have sold smaller quantity.
He krew where nearly every share of
the stock was 1t was his business to
know everything about it.
Two" he said to his secretary, may
play at that game And he began TO
play.
BY seemingly reckless plunglng pur-
chases he started the stock rushing up
ward with vengcance-63, GA, 66, four
points in as many minutes. The floor OF
the Stock Exchange was the scene of the
widest excitement The market-why,
the market was simply Turpentine.
Everybody was buying it, and everybody
was wondering how high it would go,
Green baum and the other seven included
1t looked as If the stock had resumed its
triumphant march to par.
Then Sharpe called in all the stock his
brokers were loaning to the shorts and
he himself began to borrow it. This,
together with the legitimate requirements
of the big short interest, created de-
mand so greatly in excess of the supply
that Turpentine loaned at sixty-fourth.
at thirty-second, at an eighth and final
ly at quarter premium over night. 1t
meant that the shorts had either to cover
or to pay S25 per diem for the use #
each leo shares of stock they borrowed.
On the 81 800 shares that the syndicate
was borrowing it meant an expense OF
nearly $4,000 day, and in addition the
stock was rising in price. The shorts
were losing at the rate of many thousands
a minute. There was no telling where
the end would be, but it certainly looked
stormy for the real and fictitious shorts.
Mr. Sharpe sent peremptory message
to Greenbaum, Lazarus & Co., /. &
NJ. Wechsler, Morris Steinfelders Sons,
Refs & Stern, Kohn, Fischel & Co;
SHERMAN & Lindhem, Rosenthal, Shaft
ran &, Co. end Zeaman Bros 1t was the
same message to all:
Send me at once all your Turpentine
stoek!''
There was CONSERVATION and dismay,
also admiration and self-congratuation,
among the recipients of the message.
They would have to buy back in the open
market the stock they sold Il few days
before 1t would mean losses on the
transactions of fully a quar-
ter of million, but the pool stood to
win" simply fabulous sums, if Sharpe did
his duty.
There were some large blocks of stock
for sale at Sc but Sharpe's broker
cleared the figures with a fierce, irressti-
BILE rush, -whooping exultantly. The
genuine short interest was simply panic
and atop it all there came or
ders to buy an aggregate Of 81 400 shares
orders from Messrs. Greenbaum, Wech-
sler. Lindheim. steinfelder, Refs, Fischel,
Shaffran and Zeman. The stock rose
on their buying; 400O shares at
66. 1920 at 6s5s, 700 at 679s, 1,2OO at IS,
.. 200 at 691s, 1000 at 20, $500 at 7OA,
] 200 at 70. Total 81 400 shares bought
by the "Skindicate." Total, 81 400 shares
sold by Samuel Wimbledon Sharne to
his own associates in the great TurDen-
tine pool In all he found buyers for A.
700 shares that day, but it had taken
purchases of exactly q 100 to stampede
the shorts" earlier in the day, and in