Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-29
Can the Stock Market Be Manipulated?
BY FREDERIC J. HAsKIN.

intent IL "a easy to prove almost any.
thing by study OF the behavior of stocS-
Wnen there are 30 many different ones
being traded IN.
The Roosevelt panic took place in
1907. 1t was q period Of great activity
In the stock market, and there were
many stories current Of manipulation.
Let US see what the situation was.
There were only STA listed stocks which
could be traded In and GOT bonds. Trad
ing In bCnds seldom makes market. 1t
y the buying and selling of stocks which
influences trends These stocks wwH
divided up among a relatively sniD;l
number Of industries. Rails were the
leaders, and the market could be given
It's tone by the level Of prices imposed
for leading railway securities. Now loc-
at the situation today, CuntrAsted with
the 374 stocks available TO be traded In
IN 1907 there are today LIT separate
issues. Where in 1907 there were some
BOT issues Of bonds, today there are
1884. Each year sees from so to 80 new
stocks listed for trading on the big
board Of the New York Stock Exchange
Infinite Variety Of Interests.
In view Of the fact that 50 many and
such varied interests are represented by
these securities and in view Of the fact
that they represent some see, 600 900 900
IN wealth, any group which attempts TO
influence the entire trend Of the mar
ket finds itself overshadowed by the
very size Of the operations.
A group may, indeed, affect the oil
stocks by concerted selling movement.
But the persons interested In shipping
shares are not concerned at all. Those
interested In bank shares may not even
hear Of the big coup in oil. The mar
ket has completely outgrown inside
manipulation by a few, and no group
of men in the United States seems to
be rich or powerful enough TO affect
For example, $40 Of the issues traded
in on the New York Stock Exchange
are the securities Of foreign corpora
tons or governments. The interests OF
the people back Of these securities may
be as far apart as the poles.
The variety in the way Of securities
offered by the stock market Of today is
amazing In comparison with the market
Of the old corner days, There are. for
instance, now listed on the New York
stock Exchange 20 separate issues
based on the amusement industry. Most
Of these are shares in movie production
or copper interest the people behind the
movies not at all. There are SO issues
Of securities Of chain stores on the ex-
change. There are 26 rnail-order house
and department store listings. Ninety
eight food product securities are avail
able for trading, and rubber tires ac-
count for 26 issues II may be noted
that such securities as these were en-
tireiy absent from the big board In
1907. .....-. d.. .....
TO give the market a definite trend,
holders Of securities with some comuu-
nifty Of interest must be got to work in
concert There is such INFINITE variety
In the interests now represented that
this, today seems next to impossible.
The Stock Exchange has about l,400
members. To show how decentralized
the control actually is, more than 100
Of these members do not even live in
New York. Stock Exchange brokers
have more than 1000 branch offices in
800 American cities. They have for
eign ofnces. They even have ofhces now
aboard transatlantic steamships, which
transmit orders by radio.
To organize anything like corner
today requires an onnipotence not Or
dtnarily- within human power. As
never before. q study of the situation
reveals. fundamental laws OF supply and
demand dictate movements In the
stock market.
shrewd traders may have all the viii
in. the world to manipulate, but the
task Is too big Tor them. They are like
the slow-paced ball player who was
caught In an attempt to steal q base
His mind was bent on larceny, but hia
feet were honeStl