Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-04-09
NEW RULE BARS
|. FAKE SALES; To
SAVE MILLIONS
Checks, Except on Curb, Stock
Juggiers' Fayorite Scheme to
Fleece Investors.
g. g c. FORBES.

rhHt appears. along with elaborate
charts. in Hearsts Magazine Cor
April some q my statements r.-
eardiug the extraordinary rigging of
Speculative dealings in STANDARD OH
shares may appear strong but they
fall short Of what the facts wa
1sut
In the future you are to have
fsirsr deal when you invest your
money in stocks or bonds Of the coun-
try's great business organizations.
The New York Stock Exchanges
new rule forbids fake salss-that
Is. transactions in which the same
party or pool both buys and sells
stock at rising or falling prices 10
deceive the public into believing that
the dealings represent bona-fide pur-
chases and sales. These wash sales"
involve no change in the ownership
Of the shares handled backward and
forward. In the future. no broker can
touch such business on pain Of sus
pension.
But such a rule can not, Of course,
reach trading in securities not listed
on the Stock Exchange. II does not
apply, for example, TO the wild trad
ing going on in the Standard OIL
stocks, since these are not listed on
the Stock Exchange but are dealt Ia
sither on the Curb market or over
the counter.
Many OF Americas great fortunes
have been made in large part from
manipulating the stock market-that
IS. from clever and often unserupulous
schemes for sending up and sending
down prices Of securities TO unIustitisd /
levels TO enable the riggsrs to scoop |
in millions Of dollars.
IN the good old days" which were
really very bad old days, It was con-
sidersd part Of the game Of speeula- |
zion to fool the public at every turn, |
grossly to deceive them Al to values Of |
stocks. 20 entles them into the market,
and then to fleece" them, to use the |
common and expressive phrase.
" more money could be made BY I
throwing a road into bankruptcy than /.
BY running Il proftaby. the road /
went into bankruptcy with seant eere-
mony.
Dividend checks used TO be the least I
important source Of income for the I
arch. nnanipulators Of stocks. a TO- /
point profit IN a speculative move I
r.
per cent eaeh-and the 10 points .
could be made perhaps IN a week .
whereas Il took two companies a 4
~hols year to make the dividends.
This evil Of abusing the machinery .
Of the Stock Exchange. this high. 1
~aymen's game Of sandbaggIng the
publie through unserupulous manipu
lations, has not been played by the .
aation's greatest stalwarts quite so
reauently or so faarsntly within re- .
cent years, although the record even .
for the last year o. two does not in- .
spire pride.
The most manipulated stock on re .
New York Exchange, year in, year OUT.
iS Reading. It's mixers, men Of null 7
riplied millions. fill their pals 20
the brin1 every year. Just as sure
as New Year follows December 81. /
80 surely can Readings milkne1 !
count upon replenishins their dairies. /
Reading can be made TO yield "a 4
broader and more dependable stream I
q gold than any other stock on the 4
list. Other issues may rival or even 4
excel IL az times, but Reading goes on /
forever. Il is a faithful animal
The profits made by the RockefeI- I
Ter Interests and their associates IN 4
stocks covering the various branches .
Of the oil industry have been scan .
dalous-scandaious because the IN 4
siders have had a complete monopoly I
Of information concerning the profits .
Of the companies and could therefore
play with loaded dice. The principle I
Of publicity has been dlsgracefuIIy .
fouted. /
Repeated efforts by stock ldsrs to /
obtain facts and figures Of their con
panies were futile. the RockefeTTe-
people naIvsIy and evasveIy reply F.
ing that no information was available 4
for the helpless public. Plenty ri
it, however. was open 70 the inner
circles. 20 the 20 Broadway crowd. .
and there is no reason 70 believe they .
have not acted upon q with results
that have swollen bank accounts 70
oNurflowfng.
Practically al. the thirty four var
cites % Standard Oil issues have
played tricks on investors since che
f7rcicisl ID solution Of the narer.
company
STANDARD Oh Of Kentucky shot ur
about $500 q share in one day. The.
Il fell back as much. IN Febluar.
iaT Il tuubied $50 q share with en-
bErrassing suodenness. On both &C
C. sions there were reports-''frou7 Co.
side sources" OF course--of prospect
I've financing that Did not material
ize