The Dawson news. (Dawson, Ga.) 1889-current, 1923-06-05

Rumors Play Leading Part in Up
setting Market
NEW YORK, N. Y.-The wolves
are barking at Wall street. They got
nibble the other day when checks
came from different cities in the east,
accompanied by orders for the pur-
chase of $3,000,000 worth of stock.
The checks were forgeries, but before
that fact was discovered stocks went
up and somebody made cleaning,
Then they went down, and somebody
made second cleaning.
Who is playing the game Wall
street does not know. But the game
is simple. One of the spurious checks
came. from a small town in Pennsyl
vania. 1t was for $4,000, and the or
der was to buy $4,000 worth OF New
York Central stock.
Checks Looked Good
The broker, who received the check
and order, Immediately followed di-
rections, thinking the check good. An
other broker received a similar order
and a check, which was also forged.
Heavy buying of one railroad stock
sent its price up two and one-half
points.
Somebody in the ofing, holding
this stock, sold at a profit. The same
method was used in the buying of
other prominent stocks. 1t is calculat
ed by brokers that some person or
persons made a cleaning of $250,O00.
The checks were forged with the
names of we'll known customers of
the various brokers: They were sent
through banks or trust companies and
had every mark of being genuine.
Not so long ago a letter came to a
broker OH Wall street purport1ng to
be from Samuel Vauclain, president
of the Baldwin locomotive works, OF
Philadelphia. The letter said that the
condition of the company was not
promising.
Baldwin stock tumbled Somebody
bought. When it was discovered that
the letter was a forgery and that the
stock was A No. /, the price imme-
diate1y went up several points.
Letter Was Forged.
The sender of that forged letter
which caused the stock to drop had
bought heavily when it was down
When the stock regained the three
points it had declined he sold at a
handsome profit.
Occasionally the game is worked to
, clean out certain investors. The Ia
nous "Mex-Pete Phone Call Case" is
one with this end in view. A tele-
phone call came to the New York
News bureau, Wall street agency
saying that the directors OF the Mex
lean Petroleum Company had decld-
ed to pass up the semi-annual divl-
dend. The call was supposed to have
originated at a certain banking house
Wall street looks with suspicion on
company that does not pay its divl-
dends. The bottom fell out OF Mex1-
can petroleum A number of investors
were all but ruined.
A gigantic cleanup was also made
when a clique of men succeeded in
depressing the stock of the Atlantic
Gulf Corporation of Mexico. A wire
was received by a prominent stock
exchange house to this effect: IRE
ceiver asked for Atlantic Gulf.
Atlantic Gulf stock toppled from
146 to 43. That clique OF men bought
at 43. When it was discovered the
telegram was a fake Atlantic Gull
scared. The clique then sold
His Scheme Did Not Work.
Nobody on Wall street knows ia
cob Scheuer" personally. They are
familiar with the name, however.
/ Scheuer sent forged checks to IS bro
kers, asking them to buy $4,000
shares of Mercantile Marine. The
brokers bought. But somehow or 9TH
! er the stock did not climb, as Scheuer
had anticipated it would. Accordingly,
he remained hidden, and the brokers
found themselves with thousands OF
shares on their hands and number
OF forged checks They succeeded in
selling the stock at a small margin.
The schemer was ten days too ear
ly. Mercantile Marine rose suddenly,
going to $500 share. Had the rise,
taken place after the brokers had
bought, ten days before, Scheuer
could have given order to sell at a
+be aSG1tV