The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-02-05
RAILROAD UNIT
COUN TRY'S
NEED
Jesse L. Livermore Sees High
Freight Rates OntiI All Are
in One System.
By w. 8. COUSINS.
copyright. 1928. by Cosmopolitan
Nawa CorviOa


NEW YORK, Feb. 5.-Until all
the railroads of the country are
consolidated into one standardized
system for efficiency, American
business will continue to pay higher
and higher transportation costs,
Jesse L. Livermore, one of the
most picturesque and influential
operators in Wall Street, told me
today. He also warned the man
of small means and limited knowl-
edge against playing the market
It was only a few years ago that
Livermore, now prominent buyer
of securities, startled the speculative
world by his sensational operation
as the 'boy plunger." In his
private board-room office in lower
Broadway, where three tickers
spurted out quotatio1s from a
ledge by his desk he also voiced
contempt for chart makers and
"dopesters" who peddle their tips
on the stock market, significantly
remarking that such statisticans
''are wasting their time in making
small money where they should be
piling up millions by the use of
their own DOPE"
Points Out Waste.
AS to the railway problem,
Livermore said:
81 do not believe that the railroad
problem will be effectively solved
until we succeed in bringing our
present scattered systems together
into standardized unit, so that
we may also standardize equipment
and reduce overhead. Think Of the
waste involved in the multiplicity
of styles of railway engines, cars
and other equipment. Think of the
duplication Of expense in the army
of employees who are engaged in the
same line of effort for a dozen diff
ferent systems. Think of the dupli-
cation of offices, officers and par
allel lines. I do not know whether
the Government is the proper
agency to bring about this reform,
but there is no doubt az to its ur-
gent necessity.
Dwelling upon the folly OF the
man with limited means flirting
with Wall Street, Livermore said:
wall Street Is no place for the
man of small resources and little
or no knowledge of the game he is
going to play. All he can, do is to
play on the judgment Of some one
else, and it is strange that the ma
jority Of Wall Street traders think
that other people know more than
they. do and act accordingly.
Speculation Necessary.
IT believe that speculation is not
only profitable but necessary for
development of industry. But this
speculation should be done by those
who know what they arg doing. and
have sufficient resources to back
their judgment. In many cases new
stocks when first brought into the
market sell aboveatneir reaff value,
but in going through the market
they receive their proper appraisal
Manipulation plays very little
figure in determining stock mar
ket values. OF course, it is pos
sible to place an artificial value on
stocks whose market movements
can be controlled, but it is the first
rule of successful trader to fol
low your market instead Of trying
to force it.
TN buying and selling securities
I look at the matter from the
standpoint of broad swings of
prices rather than the daily fluc-
tuations. In order to do SO, I try
to form correct estimates of future
developments in important lines of
domestic and international trade
and business. I have never placed
any dependence in charts and dope
sheets.
"As to the money situation, n
appears to me there is an unusu-
ally large amount Of funds tied up
in, undigested securities now. A
good part of this money might be
better used in productive indus
trial enterprises. The increasing
demands for new funds would seem
to me to operate against q decline
in money rates in the near flu
ture."