Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-12
THE INSIDE OF
WALL STREET
BY EDWIN LEFEyRE.

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The elections really had no effect on stock
speculation, though by reason of the mar
ket's continued lack of definite tendencies
selling movements in certain stocks were
promptly and perhaps not illogicalIy as
cribed to shaken confidence in certain polit-
ical cliques The only interesting thing
about such selling of course that 1t
showed the streets theory of the manner In
which political bosses are paid nowadays
by tips the stock market instead of by
vulgar cash For years it has been an
open secret certain debts to certain
Statesmen have been so liqudated. Mr..
Cookers personal friendship for the lead
ing spirits of the Metropolitan Street Rail-
way Syndicate was starch, and there is
little reason to doubt, profitable. The adj
vantage of such a system are many and
obvious.
For one thing, there is nothing criminal
about il. \ boss or a prominent polit-
clan takes his own hard-earned money to
his own broker and buys a few thousand
shares of a certain stock. If the broker
does not demand from him as big mar
gin as he might from other customers, that
is the brokers' lookout. The stock duly
goes up, the politician closes his deal at a
quick and handsome profit He may may
not show his gratitude toward the head of
the street railway or the president OF the
gas company who, actuated purely by per-
sonal friendship gave him the tip.
Regular and Legal.
Every step of the affair is legal and all
the documentary evidence in existence
about that particular transaction could not
convict the politician of anything more
heinous than good luck, unless it is his ex-
traordinary sagacity in the matter of in
VeStmentS Time and in hat ha haay
done, but from the very nature of the thing
no discriminating details can be given Now
and then deals like that of Mr.. Van WICK
in American Ice stock through tips received
from the president of the company are
partly exposed. Neither the givers nor the
receivers of political stock market tips are
likely to talk. The high politicians indeed
often pass the tip on to favored henchu en-
and as the news spreads the street hears
gossip and rumors. Usually it is in stocks
like the Consolidated Gas or the traction
companies that the bosses and their cab
nets like to trade.
1t is not so difficult a matter to engineer
rise in such stocks if market conditions
are reasonably favorable. There have been
losses at times and it would be interesting
to know who, pays for them. The poll
t1cians can't, in common sense. be expected
to pocket a minus quantity. 1t Is against
the code. The controlling ciques in the
various corporations are equally averse to
ton somehow possibly under the legal
expenses which, as the name implies, is
apt to cover multitude of misdeeds
1t is naturally enough assumed that such
payments are for favors, not to individuals
but to the corporations themselves 1t ts
after all, rather inexpensive form of lob
bying. in that as often as not the stock
gambling public takes off the hands of the
politicians at high prices the same stocks
they bought at low. Circumstantial evil
dence is very strong in many such reported
u, but to 70 10 l.
a hundred of the newspaper accounts pur-
porting to give details and inside facts"
is more than one-tenth correct.
How the Thing Is Done.
Once in long while the details leak out.
because owing to special circumstances It
SO happens that more than two men have
been in the secret, as for example the IA
nous but never-printed story of a great
stock Spectator who feared the result of
legal proceedings about to be brought by
rival financier. The rival stood high in the
favor of Tammany. Friends brought to-
gether the leaders of the organization and
the great stock operator. They exchanged
friendly greetings and a few words on the
subject of the stock market TIE leader
took the tip and made, 1t has been stated
by professionals who ought to know a
trifie over 100000; and no suit was brought
The operator thinking he might work for
himself even while he was working for his
new political friend, made a million dollars
in that little campaign. The authority for
the amount of his profits is himself He
told me so at the time.
Politicians can be as poor stock gamblers
any inveterate sucker when they per-
NIT themselves the extravagant luxury Of
buying or selling stocks on their own initia-
tive. 1t was the politicians at Albany who
enabled Commodore Vanderbilt to buy the
Harlem road cheaply. They went short of
the stock and threatened hostIe legislation
n a = fapI
What they paid to settle mace the COM
modore's holdings stand him pretty cheap.
1t also stopped strike bills for while.