Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-27
Financial News Letter:
BY MR. W. G.. NICHOLAS. 3
ecial CorrespOndence of The Star.


NEW YORK. January % 1907.
The big plungers Of the stock market who
tried to boost prices into the skies in the
face of tight money and the large demands
of the railroads for necessary new capital
have been subdued for the time being The
process of subduing the nouveau richie gam
blers in Wall street Is sometimes rather
painful. not only to them, but to ordinary
SPECTATORS and investors interested in the
daily fluctuations in the prices of stocks.
Among these plungers are champagne
agents. racetrack bookmakers, gambling
house proprietors the idle representatives
of second generations and men from all
sections Of the country who have recently
made big "clean-ups" through the sale of
mines, railroads and manufacturing prod
ucts. Wealth has come easily to
these men, and in their desire to in
crease their fortunes they naturally turn
to Wall street, which offers greater oppor-
tunities for gambling with big stakes than
any other place in the world. The big
games at Monte Carlo are mere child's play
when compared with the game of gambling
N stocks. 1t Is no uncommon thing these
days for gambler In stocks. who is not
identified with any railroad or industrial
corporation in the country as an officer or
director. to be carrying for purely specula-
tive purposes a line Of stocks to the value
cI *o'OU.VU OF @lVUOUUU. TneSe piungerS
make or lose hundreds Of thousands of dol
lars week after week without arousing any
interest outside of Wall street. Similar
plays at Monte Carlo would be cabled to all
the newspapers Of the world.
81
In the recent break in the stock market
the heaviest selling was by the plungers
whose names are seldom heard outside Of
Wall street. Reading is one Of the favorite
stocks Of the plungers. They like 1t because
they get so much action in 1t. 1t swings
through q wide range of prices. Recently
it declined $50 a share. while less specula-
tive stocks were moving within a four point
range. One of the biggest traders In Read
ing Is q wine agent, who two or three years
ago got his name into the newspapers by
falling to pay a $4,000 gambling bet at
Saratoga Six years ago a panic in the
market nearly cleaned him out. Since then
he has been very lucky and Is probably
worth today four or five million dollars
He swings great, big lines of stocks makes
big winnings and takes big losses. He il
only one of a number of plungers In the
people In the financial district, who dislike
to have Wall street turned into a Monte
Carlo, have to join together occasionally
and check the operations of these plungers
In the recent break In the market In one
Office alone in two days 100000 shares of
stock Were dumped into the market with
utue regard Tor prices. 1t looks now as
though the oyerextended accounts of the
plungers had been scaled down and that
the market would get itself to rights again
II we are to have easier money, some oil the
seasoned railroad stocks look fairly chean
Banking people have been buying stocks at
this level Of prices. Some of this buyino
has been for the purpose of steadying the
market and great deal Of 1t has been the
repurchase of stocks sold at a higher level
to the enthusiastic plungers.
Comment was made In this correspond
ence after the November elections as to
the effect Of political agitation ON the
prices Of securities. This question ia
constantly receiving greater attention
in Wall street. The possible effect
Of anti-railroad legislation is the most seri
Gus problem that the railroads are facing
at this time. because 1t Is at the bottom
of that other serious problem, lack of capt.
tai Some railroad men take the matter
more seriously than others. but 1t il pretty
generally agreed that IL the railroads come
through this winter without serious injury
from the law-making bodies they will be
fortunate. At no previous time has anti
railroad feeling run higher in political cir
cles. So conservative an authority as the
Financial Chronicle. in discussing the pub
lie attitude toward the railroads and their
need for new capital, makes this swell
considered comment:
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