New-York tribune., 1906-07-15

! 7. : ]. i. !. !. J. ! :. 2
Gould IN the investigation of S( -
the Black FRIDAY panic and
- bought only enough to make /
the street think was still a
bull ="
That manipulating the market W
It can be summed up IN one word
deceit" Gould, wrote Henry =
Adams, was strongly marked bv
his disposition for silent intrigue He seemed
never TO be satisfied except when decei1,in0
everyone as to his intentions There was
suggestion OF the spider in his nature .
How much OF the stock-market reDresents
manipulation? l asked that question of an
eX-presIdent OF the stock-exchange whose ex-
PeTlence IN the street has covered a third of
century He replied:
Fully seventy per cent
Think OF It! seventy per cent. of rnanipr-
latIOn, TO thirty per cent OF the natural iaUy Il
OF supply and demand ~
asked the same question of two active rs
members OF the exchange who know every ~
point IN the great game OF speculation. They IS
agreed that while there manipulation 1t
really amounted to much less than the public gener-
ally supposed, and that it had comparativelv little
effect on the big swing of prices
Perhaps It IS possible to reconcile these conflicting
views. What some call manipulation is more
accurately leadership. There is as much difference
between stOck-market leadership and stock-rnar[et
manipulation as there IS between craftsmanship and
re-pulling One implies adrot or skjful n1arage-
ment, and the other fraudulent or deceptive manage
1nent, and the word manipulation carries both
these definitions
a great part of what is termed stock-mar1et
manipulation IS merely adrOit management of
forces Tor the purpose Of directing the market in
the line OF economic conditions. The leader sees
little farther ahead than others: he has deener
information. He takes advantage of his foresight
TO begin earlier to buy sell and he has follow
ing that comes alter him, accepting his direction
There nothing essentially criminal IN this. b,,+
there IS great deal of manipulation which is
criminal, as II involves not only deceit but often
downright dishonesty.
Requirements Of
STOCK-MARKETI leadership calls for such strategy
as skl1ul general displays in warfare Stock
market manipulation calls for such trickerv and
marking OF the cards the professional gamblers
may IN cards. StOck-1narket gossip often
refers 70 manipulation. 1t tells for instance. of
Standard Oil buying, Morgan buving' or
heene selling. and the ike. 1t is possible that
these people may IN fact, be doing as the reports
relate but Il IS also possible that they may not be
IN the market al all.
There are certain brokers who ordinarily act for
one or the other OF the great financial interests
50 that when they do anything IN the market
Their transactions are always attributed to these
interests, whereas they may represent other specu-
lators As a matter OF fact these brokers are
not lnirequenty employed on purpose to make
the public think that Morgan or the Standard
OIL people. the case may
~ be, are buying, when the truth
IS that some skilful manipulation
IS covering his tracks.
- At time Gould was in
<EG7 right place in the market, and
#sst=:55:- s4s $b5 5 a@5:$ Ss ssS3 +
- &sNA took fifty thousand shares of
MTSE<ESM Western Union of his hands
NlAt-5 SeszfgS When Woerrishoffer sold the
%tTfHE{N3kstsl1EnA stock, II called short sell
tntsi' ilkIgrS19h ing or a bear raid when in
ltttEstfX 4ErWB reality Il the marketing Of
II WtFsFs&ET~. W long stock Such operator