The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-10-04
WALL STREET FIRST PAMPERS
THEN CLOSES ON VICTIMS
Banks Loan Objectionable Persons Money and Then
Call for Payment When Time Is Most Inoppor-
tune-One Escaped Standard Oil.

One Of the methods employed TO get
rid Of Objectionable persons in Wall
Street who persist IN conducting theiI
operations without regard 70 the plans
or wishes OF the powers is TO Toad
them with money and then call for its
repayment at inconvenient periods.
This is usually accomplished by
subtly playing upon the vanity OF the
intended victim. He IS made an object
Of fattering attention by important
bankers and other people Of cOnse-
quence Of the Street. II is conveyed
70 him that his genius Is becoming
recognized. and that the really big
fellows OF the Street see IN him truly
that this bank and that bank and the
other bank Will be only too glad 70
extend him credit.
The borrowing OF money is made
he extends himself. He IS consulted
by representatives of the great COM
binations. and his Judgment is asked
on the market. Pleased beyond meas
ure that he should have found recognl-
ton in this manner, he generally feels
Il incumbent upon him 70 make
good and further strengthen his posi-
ton by buying huge blocks OF some
stock for which he may haze express
been skillfully steered He @.lII fn6s
II easy 10 borrow money from favored
banks-until his collaterals are ali in.
When Victim Is Caught.
Suddenly a change in conditions takes
place. The temperature falls Genial
warmth and cOrdiaIity make room for
GOODNESS and indifference. The market
begins 10 react. Cavalry charges against
the favorites ire made by conspicuous
market generals The banks wherein
the momentarily distinguished victim
has borrowed most Of his money call
upon aim for more margins He strug-
giles to produce collateral. and when he
can go no farther he is obliged 10 re-
duce his holdings IN the market. This
process is called compulsory hquida-
ton"
Through mysterious channels every
body in the Street is advised OF what is
going on, and the attention Of thousands
and tens of thousands of traders is
turned his way. On TIE Hnor Of the ex-
clange the professionals help the mar
more persistent and angrily demand that
he either supplement his margins or
close out his trades. They are adamant
and. on, so cold.
Victim Usually Wreck in End.
The longer the victim holds on tho
worse Il Is for him, unless he is very
strong and shrewd enough to realize
early in the experience what Is ahead OF
hinA Usually when tile curtain falls
on the last scene the victim Is a wreck.
II he survives the trial, nc knows he
has been put through a course Of dis
ciplire, and he knews why.
There may be murder in his heart. but
the chances are ne submits with the
best grace possible 10 the frightful pun
ishment inflicted upon him, and resolves
that he will never again pu; himself in
a position t. be crucihed- He may not
be hearted. but he has certainly
iced TO his store of wisdom. and al
though he nav be in the Street twenty
years longer. he rarely gets gay" in
terferes with the plans OF the big people.
or attempts 70 swim Coz -ater 20 the tidal
current. ieastwise not after warning has
been served upon him.
Man Escapes Standard Oil.
Within the memory of many or the
younger arrivals in Wall Street a group
of strong banks usually classed as
! standard or institutions loaned a