Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-20
LNERM0RE POWER
in MARKET FEARED
Wall Street Seeks Way to
Counterfeit Operators
"SpelI" Over Stocks.
BY ROBERT #. SMALL.

NOTE: This is the first of two
articles by Mr.. Small dealing with
Jesse Livermore. The second one,
tomorrow, will tell of the boy
wonders" personality and exploits.
Special Dispatch to The Star.
NEW YORK, February 2o.-Wall
street is still struggling to come out
of its trance and trying to figure how
it can bulwark itself against another
hypnotic spell should Jesse Liver
more, "the fair haired boy of Palm
Beach," wave his magic wand in the
direction of the bulls and the bears.
The strange influence which young
Livermore has over the New York
stock market is beyond any sane or
plausible explanation, yet at a word
from him stock values tumble in a
day from 1 to IL points, involving a
loss estimated as high as $500, 900, 900
in investment values.
Feel Something's Wrong.
1t is frankly admitted in Wall
street that there must be something
radically wrong with system which
permits a boy operator" to cause
such extensive losses in stocks which
are founded on real values-standard
railroads and industrial enterprises
doing a thriving business.
Yet for more than two years now
the Livermorc spell has been over
Wall Street. Brokers run around in
circles wondering what Livermore
has to say about this or that. III
Livermore says he thinks stocks
he says he thinks stocks should go
down there is a frantic rush to sell.
No one seems to know just whom
or what Livermore represents. That
is the great mystery of it.
Some n,d say he 81 mnr Eha
hold large blocks of stock in various
concerns. Livermore says nothing as
to that. Others say he merely repre-
sents his own lunches" and that his
vogue as a prognostcator has re-
suited from several lucky guesses.
Changes His Position.
One Wall street authority declares
sition on the market five times in
twelve months, and probably will
change it some more, but none of the
brokers want another BLACK Friday"
Various attacks are being directed
against Livermore in Wall ,.>et or
gdnS, with the idea of diScour >:EG his
influence in the future.
But Livermore, wintering down at
Palm Beach, merely smiles and goes
fishing again lin his speed boat while
Wall street endeavorS to dig itself
out of the slump into which he is
credited with sending it. The picture
of the operator hanging at the end of
Il telegraph wire is not an accurate
ono. Livermore goes at times far up
some of the tangled Florida rivers
and comInunes with the alligators and
the moSS-coVered OAKS.
e..
Perhaps now and then he discusses
financial matters with a stoical Sem
mole Indian, who has never left the
Everglades. Livermore feels that
these Indians know about as much
concerning the market as some Of the
fish who attempt to swim with the
tigers of the sea" in the Wall street
pools"
I.ivermore takes life easy in the
south. but apparently he has fine
publicity organization, for when he
says something about turning from
is spread far and wide over tickers
and telegraph wires. Ii is reported
that in his office here in New York
there are twenty-siX leased telegraph
wires from various brokerage houses
distributed throughout the country
These wires are used by Livermore
as a "sounding board" He gathers
up Jews and gossip from many sources
and is supposed to digest it for its
psychological bearing upon the stock
market.
Down at Palm Beach Livermore re-
ceives many kilograms a day. but
they do not worry him in the least
When he is out fishing for sail fish
or barracuda he leaves word that he
is not to be disturbed.
Maintains Mystery Air.
1t is doubtful if he could be dis
turbed on these trips, for his speed
boat is about the fastest thing in
Florida waters and even bad news
could not overtake him. Livermore
believes in maintaining an air OF
mystery about himself. He believes
in long periods of silence and
apparent inactivity. Then he will
make n foray into the market in as
sensational manner as it is possible
to create.
Returning from a couple of days of
fishing, Iivermore recently gave the
market its worst upset. Now Wall
street is trying to figure out how il
can make itself bombproof from such
shocks in the future.
There is a question as to whether
what is known as a free market
shall be continued, a market which
can be swayed as Wall street has
been so frequently by false reports or
by a situation which had no physical
effect upon property values.
Wall street stocks are supposed to
represent definite commercial values
That they should continue to be trad
ed in in a "free market" open to short
selling, bear operations and the like
is still something of commercial