New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-24


Delaware, Lackawanna & Western, for
instance At one time it was a specu-
lative stock, but it has passed out Of
the hands of the Spectator to the in
weston. and is now considered an in
vestment."
Define Spectator
"What is Spectator? Who are
they?'
al am not an authority on this sub
iect, but ! should imagine a Spectator
was a man who bought something to
sell at a higher price. while an in
weston buys for the purpose of obtain
ing,jnterest or dividends. The great
est activity is in the speculative field
"And that affords the greatest OPP
portunity for manipulative move
ments -
"a don't know Just what you mean by
maniDulative movement"
Don't you think II is possible &c
manipulate a movement by working
collectively"
81 should like to know just what you
mean--what particular kind of activity
do you mean ?"
Il mean by that-sending prices up
and down"
what do you mean by sending them
up and sending them DOWN."
"Well, you spoke of speculative
stock-the greatest activity on the Ex-
change takes place in those stocks, and
isn't it a fact that the Spectator or
operator makes his money out OF those
stocks? ?"
at is in those stocks that an opera
tor makes money, but / am not clear
what you mean by up and down"
"Now take d. L. & W, which you
say has passed from the speculative to
the investment field. Why can't the
money be made on the market IN d.
L. & W. now, as it was when it was a
i speculative security"
Speculative securities are more
+ liable TO Auctuation. When there is
no doubt as to the earning OF Sc
curity-like a government bond-there
Z is no reason for it TO fuctuate. IL de-
ponds on what news comes out about a
! property"
News Effect on Stocks
ooh. so that news which comes out
never affects investments
"Well, there might be very slight
change in value"
$50 that events which occur affect
comparatively few stocks-and those
stocks are speculative stocks ?"
The Stock Exchange president
nodded assent, and then Mr.. Whipplo
wanted TO know which are the CHIEF
speculative stocks.
Omitted States Steel, Anaconda Cop
per there is quite a long list-prln-
/ cipally the industrial stocks-prin-
Il l. II n
/ the war business. Railroad stocks
/ have not taken much part in the war
/ businessmen there are marine stocks
/ General Motors. WHY'S Overland anc
Reading and Union Pacific are both
/ active in the railroad stock"
"You have said people don't know
much about investment stock-wha'
/ is there people don't know about
United States Steel?'
at is not long ago United States
/ Steel was not paying a dividend"
"MoSt everybody knows that now"
well, because people have not yet
obtained an idea Of the character OF
/ the stock"
What is the uncertainty"
"What the earnings are likely 10 be
/ IN the next three months"
The QuestiOner turned 10 fees paid
/ by customers TO brokers. A brokerag,
fee of $3.50 on each hundred Shares
Of S1O0 par value is the fee charged
Below $40 par value the fee is one,
sixteenth instead Of one-eighth, he said
well. there is what is known as 4
81 broker"
ayes. he is the broker who buys for
another broker and receives 81" re-
+ Piled MIR. Noble.
what are short sales"
Mr.. Noble explained that a short sale
was term applied in cases where q
broker sold stock for a customer
probably an out-of-town customer, who
communicated by wire-and the broker
/ did not have the actual stock TO await
I the arrival Of the shares which were
sold
Something you contract 10 sell
which you have not got?"
"Well, yes"
well. when a man makes a short
sale he is particularly interested ~
having something which makes II 20
down ,"
THAT Is. opposite to the man who
has a desire 10 see II 20 up?
Has any one the power TO make the
market 90 down."
"No one ever had
Asked to define the Stock Exchange
Mr.. Noble said IT was "a world market
where thousands Of individuals are
brought together to buy and sell Sc
curties."
Though il took time and pressure 10
effect an arrangement for the produc
tion Of customers names. the commit
tee Obtained permission TO use the