New-York tribune., 1907-06-05
MR.. LAWSON "CALLED."
alleged FIa1o in Panic Theory Found
No 5000 Check Yet.

Although Thomas w. Lawson has for months
advertised that he would pay 5000 to any one who
could find flaw in his scheme by which any
member of the New York Stock Exchange could
cause the worst panic the world has seen, at
| least one Wall Street man who is confident that
! he has found the flaw and has proved it to the
satisfaction of others has been unable not only to
collect the money nut to get Lawson to
answer mis- letters
! In his novel Friday the Thirteenth" Mr. Law
son said that any member Of the Stock Exchange,
! no matter how poor and resourceess he might he.
| could go on the floor and merely by selling 'as
much as his mouth utter could easily bring
on panic and destroy the whole capitalistic eys-
! tenn as now constituted. That poor broker can
! do this, Mr.. Lawson contends. is because all
transactions between brokers on the floor made
! on honor. and no money. even written con-
tract, passes between them until after hours.
The poor broker who does not a single
share Of stock could sell millions of shares Mr
Lawson says because he could make such huge
profit on the slump that would result from the
selling that he would have profits enough the next
day, when delivery of the actual stock was re-
qured, to buy all he needs to make the delivery
Immediately after the publication Of his book
Lawson offered s. co any one who could prove
flaw in the scheme, and check for the amount
was placed with his publishers Doubleday, Page
& Co
Mr.. Lawson made the offer in February. and
the first person who claimed the reward was Van
Cline Holmes who then cmploye in the
STOCK Exchange firm Of Post & FlaEE and who is
now associated with the Consolidated Stock Ex-
change firm OF ". W, Erwin & Co. Holmes was
sick when he first heard Of the offer hut as soon
he could get ont Of bed he went the publishers
office, presented his explanation OF the falacy Of
Mr.. Iawsons argument and demanded the $500
check The publishers Informed him by letter a
few days later they could not pay him the check.
as the matter would have 70 he taken up with AIr
Lawson, although they admitted that Holmes was
the first person to claim the money and confirmed
the statement I'm the advertisement that the check
was deposited with them.
Mr.. Holmes then tried to get into communication
with Mr.. Lawson by long distance telephone but
was unable 10 do so! and finally wrote his
retary Edward McSweeny. 1t many weeks
before McSweeuy replied and then he Informed
Holmes that Mr.. Lawson had gone Europe and
could not be disturbed Mr.. Lawson Is sti abroad.
and although Holmes has several times since
advertisements Of the offer ne has been unable 20
get any satisfaction
Mr.. Holmes bases his claim on Article 81 Of the
constitution Of the New York Stock Exchange
which reads. Mutual cash deposits not exceeding
~ per cent may ne required at amy time by either
pa iilE 1" r. contract w heneVer tho margin OF
tllhef party becomes reduced by reason OF changes
IN The ma rket value Of the securities further
posits may be called from time 30 time sufficient
TO restore tho impaired margin
The contention Of Mr. Holmes is that 81 any irrc-
spOnsble broker started 10 soil vast quantities Of
stock and his fellow members sIspected he vas
trying to carry out Mr.. Lawsons panic scheme he
fore buying from him they could require 10 per
cent cash derost The rule has seldom been
said Yesterday he only remembered once when II
enforced. and that was when a broker had
come on the moor one morning IN state Of eN-
tromc mtoXlcatl"n and had started to sell in a
furious manner Another member demanded 10
per cent sh deposit before buying. This checked
the intoxicated broker, and the next day his fall
urc was announced.