The Mankato free press., 1923-12-28
LADY LUCK PLAYED
THYOUNGWOOD
Son of General Cleans Up In
Wall Street "Spec"
WINNER OF THE STOCK
Reported That He VIII Return Soon
To United States; Quit
Post i;
ASSOCIATED Press Dispatch1 7

lASSoclateQ PreSS DtSpatcnI
New York, December 26.-Finan-
cial operations OF Lieutenant Os-
borne c.. Wood, son OF Governor
General Leonard Wood Of the Philip
pines, who Is reported to have ac-
cumulated between 100000 and
100000 in Wall street, were made
the subject Of war department IN
vestigation, the New York Times
said today.
best Of authority" the Times said,
whatever in the transactions Of the
young officer to call for censure, but
that the department die strongly ad-
wise him to stop speulating at once. -
The Dispatch
The dispatch by Richard v. Oul-
ahan, In part follows:
Copyright 1923, by the New York
Times company. By permission of
the New York Tmes)
Hardened Wall Street spectators
are inclined to the belief, The Times
says, that Lieutenant Wood must
have followed the speculative meth
cd known as rpyramiding" or the
purchasing of additional stock with
the profits accumulated on paper
from a former purchase. This
method is in daily and often dis
astrous practice and frowned on by
most conservative members Of the
New York stock exchange. where
the stock of the Standard Oil COM
pany of New Jersey in which most
lieved to have been made, is traded
in.
Result Of Such Trading.
The ultimate result of such trad
ing is the building up of a thinly
but tressed pyramid which be-
comes more precarious as prices ad-
vance because each profit, instead of
going on to bottom to aid the foun-
dation, increased the load on top.
In this manner, with a small for
tune and good luck, one can build
up fortune, provided that the stock
| continues to advance.
Lieutenant Wood, The Times says,
Is believed to have caught" the
beginning of the so-called dividend
market in the fall Of 1922 and hap
pened to pick out the one stock
whose advance was most violent
and consistent. This was Standard
Oil of New Jersey, whose directors
in the early fall of 1922 were laying
plans for a stock dividend of 400
per cent which they declared on Oc-
tober IL of that year.
In the late summer OF that year
the stock touched its low, price of
| $169 a share. On September 1t sold
at 1873, moving up to 1873 two weeks
later. In the week Of September 80,
It crossed the $500 mark and be-
tween September 80 and October
IL it rose exactly so points to
$250.50. Then it broke to 5000. The
new four for one stock now sells
around S37 a share.
Manila, December 24.-Lieutenant
Osborne Cutler Wood, son and aide
of Governor General Leonard Wood
will return to the United States,
soon, probably by the end Of Janu-
ary with the intention Of resigning
his commission and entering the dip
lomatic service.
This step is not only in accord
with his inclinations, but he is better
able to take 1t for the reason that he
has accumulated enough money
through fortunate investments to
enable him to follow a diplomatic
career independent OF salary consid-
erations.
Lieutenant Woods streak of good
fortune began in September or Octo-
Der Of last year when he bought
stock OF the Standard Oil company
Of New Jersey Just prior to It's sen
sational rise. Although his capital
was extremely small then, SO he
told me today, the fact that this
stock rose approximately sixty
points gave him profits which placed
him in q position to make further
investments on large scale. Prac-
tically all of them we're profitable.
While Lieutenant Wood said to-
day that he did not know offhand
the exact amount of his profits he
estimated them at between S700,010
and 100000.
No Orders Issued
Washington, D. G. December 90
In the absence Of Secretary Weeks
who is away over the Christmas
holidays the war department today
withheld formal comment on the
financial operations Of Lieutenant
Osborne, c. Wood, son and aide of
Governor General Leonard Wood of
the Philippine Islands, but it was
indicated that the question had
never been formally before the de-
partment and that nothing in the
way. Of instructions or orders had
been issued dealing with it.