Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-09-04
Is Source of Million Dollar News for Wall STREE

points 1t fell 72 points the last day
from $572 to $500 a share.
X X " X
THE cry of leak" is one that comes
easily to the lips of those in Wall
Street who knew or have heard of the
profits that have been made in many
instances through the holding up of
news, and it is emitted on the slight
est provocation. Supreme Court deci-
sions, Interstate Commerce Commits
SIGN decisions, Government reports
and such periodic statements as the
figures on brokers' loans issued each
month by the New York Stock Elk
change and each week by the Federal
Reserve Board are all today closely
guarded, although this fact has not
entirely prevented the occasional re-
currence of leak" rumors. Most of
these rumors are quite without foun-
dation and come from traders who
have perhaps guessed the wrong way
on the market.
One newspaper charged only two
years ago that the cotton crop figures
were known on the Street at 1856,
or four minutes ahead of the official
time for their release and before they
were received at the Cotton Ex-
change" Investigation showed that
while the two ticker companies had
received the figures four minutes
ahead of the Cotton Exchange, they
had received them not at 1856 but at
II O'Clock, as they we're supposed to.
Wire trouble had caused a delay in
the transmission of the figures to the
exchange, which did not receive them
until 11:04.
That there have been "leaks" from
Government departments in the past
is a matter of record. But that the
possibility for such unfortunate occur
rences is continually being narrowed
by preventive measures is equally
true The brokers' loan figures, show
ing the amount of borrowing for stock
market purposes from week to week
and constituting an important market
influence, were formerly published by
the Federal Reserve Board on Mon
day each week, four days after they
were received. Realizing that such a
leaks" the board has recently !
changed it's policy and the figures are
now announced Immediately ON re-
ceipt.
Similar precautions are taken by the !
New York Stock Exchange to protect |
it's monthly loan figures, only two or
three trusted members and employees |
having access to them.
For many years it has been a. mat |
ter of pride to the United States Steel |
Corporation that it's monthly figures
of untitled orders, once considered a |
much more important factor in the |
market than they are today. never |
reached the Street, ahead of the time |
for their official release, except on one !
occasion. when copy was blown out |
of the window of II Broadway into |
Rector street.
X y y
DOR the person accustomed to inter
preting news in non-stock market |
terms it is difficult to visualize the |
attitude of Wall Street. where the re-
action is automatic and so violent |
Time, counted not in hours or in min
utes, but in seconds. is a big element
Perhaps nothing would better illus
trate this than a description of the
hairtrigger methods that are used for
reporting any change in the Federal |
rediscount rate.
The time, let us say, almost $3.50
o'clock in the afternoon. The place
is the luxurious, soft-carpeted corridor
which runs the length of the tenth
floor or the New York Federal Reserve
Bank.
Standing in small groups or taking
their ease on one of the visitors
lounges midway down this vaulted
hallway--the main entrance to the
executive chamber of the bank-are
gathered perhaps dozen young men.
They glance frequently at the clock
above the entrance to Gov. Strong's
sanctum nearby. The minute hand of
the clock is rounding the half.hour
mark.
Suddenly there is stir in the ranks
of the walters. Far down the eorri-
dor some one has spied swinging to.
ward them. Il tall and familiar figure
AT his approach the languid straggle
to their feet. the converse tional lapse
into silence. The tall man comes up
to the waiting group.
rs every one here?" he asks.
He Is assured that every one u.s."
Clipping his syllah,ss 50 that there /