Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-04-09
NEW RULE BARS
FAKE SALES; To
SAVE MILLIONS
Checks, Except on Curb, Stock
juggIers' FavOrite Scheme to
Fleece Investors.
By 8. c. FORBES.

mere are fNildtIS ltttt atl "A t'N'"
tHat appears. along with elaborate
charts. iu Hearsts Magazine COR
April Some Of my statements r"-
garding THE extraordinary riEEiug ~
speculative dealings in STANDARD OIL
shares may appear strong. but they
fall short OF what the facts Wa"
rant.
In the future you are to have
fsirer 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" sales-that
IS. transactions in which the same
party or pool both buys and sells a
stock at rising or falling prices 10
deceive the public into believing that
the dealings represent bona fide pur-
ehases 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 Oh
stocks, since these are not listed on
the Stock Exchange but are dealt ~
either 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 unscrupulous
schemes for sending up and sending
down prices Of securities 20 uniustified !
levsls 10 enable tine riggers to scoop
IN millions Of dollars,
In the good old days" which were
really very bad old days, Il was con
sdersd part Of the game Of spseula-
ton to tool the public at every turn, |
grossly TO deceive them as to values OF /
stocks. 10 entiee them into the market, (
and then to fleece" them, to use the /
common and expressive phrase.
u more money could be made o. /
throwing a road into bankruptcy than
by running il prohtably, the road
went into bankruptcy with seant eere-
mony
Dividend checks used to be the least
important source Of income for the
arch -manipulators Of stocks. A 10.
point profit in a speculative move
sIs,ssA..I- q
per cent eaeh-and the 10 points !
could be made perhaps in a week,
whereas il took two companies a
whole year to make the dividends.
This evil Of abusing the machinery /
Of the Stock Exchange, this high /
waymen's game Of sandbaggne tbs /.
public through interruptions manipu-
lations, has not been played by tho /
nations greatest stslwarts quite so
frequently or so Hagrsntly within re-
cent years, although the record even
for the last year or two does not in
spire pride.
The most manipulated stock on the |
New York Exchange, year in, year ou-. |
is Reading. It's mixers, men Of rul-
tiplied millions. fiji their pals %
the Drin every year. Just as sure
as New Year follows December 81. /
50 surely car Readings milkmea
count upon rsplenishing their diaries.
Reading can be made to yield a
broader and more dependable stream
Of gold than any other stock on the
list. Other issues may rival or even
excel Il at times, but Reading Goes on
forever. II is a faithful animaI.
The profits made by the Roekefel-
Ter interests and their associates IN
stocks covering the various branches
81 the oil industry have been scan
dslous-scsndslous because the m
siders have had a complete monopoly
Of information concerning the profits
OF the companies and could therefore
play with loaded dice. The principle
Of publicity has been dlssrsoefulIy
flouted.
Repeated efforts by stockholders TO
obtain facts and figures Of their CON
psntes were futile. the Rockefeile-
people nalvely and evasiveiy reply
ing that no information was available
for the helpless public. Plenty OF
Il. however, was open to the inner
circles. 70 the % Broadway crowd.
and there is no reason 70 believe they
have not acted upon II with results
that have swollen bank accounts 20
overlooking,
Practically all the thirty four var
eties OF Standard Oh issues have
played tricks on investors since the
fsrcieIal dissolution Of the parent
company.
Standard Oh OF Kentucky shot ur
about $500 4 share IN one CAV. The,
q fell back as much. On February
last 4 tuubIed $50 = share with en-
barrsssing suddenness. On both nc-
cssions there were reports-"frorn i-.-
side sources. Of course-of prospect
i've fnsne ng that do not material
re.