Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-07-15

!. : .
y SOLD that day" testified Law 1xks;
Gould in the investigation of 43 -
the Black Friday panic, and
Il bought only enough to make
the street think was still a 4 WN
bull AkaIX
That's manipulating the market
1t can be summed up in word,
deceit" Gould" wrote Henry
Adams was strongly marked by
his disposition for silent intrigue He seemed
never to be satisfied except when deceving
everyone as to his intentions. There
suggestion of the spider in his nature"
How much of the stOCk-market represents
manipulation? | asked that question of an ~
ex-President of the stock-exchange whose ex- ~
perienCe in the street has covered a third of @
century He replied:
Fully seventy per cent"
Think of it! seventy per cent. of manipu- 4
latiOn, to thirty per cent of the natural law =
of supply and de1nand ~
l asked the question of two active rs
members OF the exchange who know every W
point in the great game of speculation They -
agreed that while there manipulation, it
really amounted to much less than the public gener-
ally supposed, and that it had comparatively 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 much difference
between stock market leadership and stock-1narket
manipulation as there is between craftsmanship and
wire pulling One implies adrot or skiful manage
ment, and the other fraudulent or deceptive manage
ment, and the word manipulation" carries both
these definitions.
A great part of what is termed stock-market
manipulation is merely adroit management of
forces for the purpose OF directing the market in
the line of economic conditions The leader sees
little farther ahead than others; he has deeper
information He takes advantage of his foresight
to begin earlier to buy SELL and he has follow
ing that comes after him, accepting his direction.
There is nothing essentially criminal in this; but
there is great deal of manipulation which is
criminal it involves not only deceit but often
downright dishonesty.
Requirements of Leadership
STOCK-MARKET1 leadership calls for such strategy
~ as a skilful general displays in warfare Stock
market manipulation calls for such trickery and
marking of the cards the professional gamblers
may use IN cards Stock-market gossip often
refers to manipulation. 1t tells, for instance of
Standard Oil buying" or Morgan buying" or
keene selling" and the like. 1t is possible that
these people may, in fact, be doing as the reports
relate; but 1t is also possible that they may not be
in the market at all.
There are certain brokers who ordinarily act for
one or the other of the great financial interests
so that when they do anything in the market
their transactions are always attributed to these
interests, whereas they NAV represent other spec
lators. As matter of fact, these brokers are
not infrequently employed on purpose to make
the public think that Morgan or the Standard
Oil people the case may
Zsa\ be, are buying when the truth
- 3AasA is that skilful manipulation
"a is covering his tracks.
= A- At one time Gould was in a
<-EzS tight place in the market and
= - in order to save himself went to
~ his enemy. the noted bear
A Woerrishoffer who generously
ESS/NSN took fifty thousand shares of
MNfWSEAM Western Union off his hands
iAf~1 aSEf&p8S When Woerrishoffer sold the
%1fsMEAKNl5GA\ stock, it was called short SELL
IHkMiIkktTSa7Al ing" or "a bear raid =" when in
YhkGtEylEfWU reality 1t was the marketing of