The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-25
GOSSIP or WALL STREET.

Of fluctuations In the stock market seldom
give due Importance TO the operations OF
the bucket shop. When the transactions
on the Stock Exchange are averaging half a
million shares a day q conservative estimate
might put the business done by the bucket
shops at million shares or more. The pub
lie which does It's trading In stocks In the
bucket shops on two point margins Ia always
long OF stocks. II buys stocks when they
are going UP. and 1t buys them when they
are going down. II keeps on trading until
" 10 out OF funds. and then goes about the
peaceful pursuits OF life to accumulate more
funds with which to gamble. market
which advances steadily with only slight
reactions takes money out Of the pockets
Of the hackers OF the bucket shops. But this
temporary transfer OF funds from the pockets
Of the bucket shop people to those of the gam
blers In stocks does not worry the losers.
They know that the money will come back
to them some day. II they can hold on long
enough. II their bank roll IL large enough
to stand the strain OF a prolonged bull market
they will get the public's money in the end.
The publlos habit Of overtradlng makes
Its account very vulnerable whenever there is
a sharp break In the market. The greater
part Of the money 1t makes on an advancing
market II puts back into the bucket shops.
constantly increasing the amount of stocks
II is carrying. After 20 point advance
In the market the greater part OF the money
made In bucket shops is still IN the hands
OF the bucket shop people as mar gin. sharp
break OF six or seven points in the market
will often enable bucket shop to clean its
books and open q new account with the
public. .t''
When the public Is heavily long Of stocks
In the bucket shops and the market looks as
though . moderate amount OF selling orders
t,,It IL .lxyl ;sxri taA hroa il
no uncommon expedlent of the hackers of
the big bucket shop wire systems to sell line
ofstocks short The selling is so skilfully done
that 1t sometimes has the appearance OF being
OF excellent character 1t Is done where
possible through houses accustomed to
handle the business of we'll informed people
and Is accompanied by. dlsauieting rumors.
Sometimes the heavy selling OF one stock,
coincident with the spreading OF plausible
unfavorabe news about it. Is enough to start
a selling movement all through the list. When
the bucket shop sheets are wi ped oil the short
sales are covered The bucket shop people
can afford to take some loss on moderate
line Of stocks sold on the exchange II they are
successful in raking In their customers
margins In the operation. Some Of the
selling Of stocks on Saturday had the appear
ance to some observers Of being OF this nature.
Houses which handle this business do not
necessarily know its origin. Even those
houses which do know where selling orders
Of this character come from probably feel
that It 10 just as legitimate business as any
other and Is not to be refused so long as their
customers are able to give adequate margins.
year ago this week Reading was one
or the most active stocks in rising market
and was selling about $50 a share cheaper
than now. Those who did not know exactly
what was going on in Reading were astounded
k,,x he hOy NJ tho stock and
very ready to believe that its activity was
due solely to manipulation. The higher the
stock was sold the moro persistent became
the cry OF manipulation. But after while
q dividend was declared on the stock, and
later on this dividend was increased. Now
that Reading has demonstrated that II is
entitled to sell in the neighborhood Of par
those who scofed at it at SO are crying manipu-
lation when other stocks advance. In the
past few years In this country one railway
stock after another has been manipulated"
out OF bankruptcy into the safe deposit boxes
Of investors. and this manipulation has
advanced prices all the way from 500 to
$500 share.
The curb market is likely to appeal to the
Society for the Prevention Of Cruelty to
Animals.
Large holders Of securities are not bother
Ing much over the wide fluctuations in the
wheat market. They have been satisfied
for some weeks that We would raise a fairly
good sized wheat crop this season. and that
any late loss of wheat in the Northwest would
be too small to affect seriously the output
Of the Western farms this year. The farm
value Of seven leading crops in this country
has been about 81. $50. 900. 600 season the last
four years. The corn crop contributes not
far from half this huge total, Last season
we lost about so 900 900 bushels OF spring
wheat from black rust. This was worth to
the farmer less than per cent Of the total
value OF the seven big crops, The farmers
loss was actually made good by the higher
price ne received for the wheat he saved.
No one expects that the rust in the wheat
| this season will cause the amount OF damage
| It did last year. but even II 1t should it would
| need but a little more corn to make good the
| loss. Conservative people who are looking
| for higher prices for railway securities this
| fall are paying more attention to the reports
from the corn belt than to those from the spring
| wheat country.
This wheat market also has hair trigger.
Predictions are made that the improve
ment In the steel business in this fiscal year
will make Steel preferred around par one OF
the most attractive securities in the market
| Tho earnings Of the company. even in these
days OF moderate business activity, are large
enough to make the holders of the preferred
stock feel very confident of their dividends.
1t Ia to be remembered that this is not a period
OF great activity In the trade. but the earnings
are we'll up to those Of the last boom, When
the next steel boom arrives the COMPANY
will be In position to pile up surplus very
rapidly, especially as II Is not paying dividends
on Its common stock. The recurrence OF
steel booms Is about a. certain as the eoo
and flow OF the tides.
"A great deal was said in 1909, says one
j., commentator, about the lambs who housh'
stocks at the extravagant prices Of the hi'l
market Of three years ago. know some o.
the. Q lambs and don't think they are 80 badly
or There was one who bought steel pre-
ferred at the extravagant price of rs ana
has II still When stocks smashed he eohI'n
more Steel preferred around so, more AROUND
10, some around 90 and still more around -
Now the stock is selling higher than tn'
highest price he paid for it. There was an
other lamb who bought Union Pacific pre'y
| papr tho ton when IL was nuctuatinG = or W