Wall street stories

which was most to be feared, for it meant that no time was to be wasted in words. All were losing money; but each hoped that the others were losing more, proporti

s mutter: "Over-production!" and shake their heads complacently, proud of having diagnosed the trouble. Here was the turpentine business, once great and luc

er-in-law's attention to the pitiable sight. Mr. Jacob Greenbaum's soul thrilled during Neustadt's

vellous-it was so small. It was also in his brother-in-law's name. Then the banking house of Greenbaum, Lazarus & Co. stepped in, interested accomplices, duped or coerced into selling enough other distillers to assure success, cajoled the more stubborn, wheedled the more credulous, gave way gracefully to the shrewder and gathered them all into the fold. The American Turpentine Company was formed, with a capital stock of $3

sometimes they "conducted financial op

course of time the public subscribed for the greater part of the $25,000,000 of bonds, and both bonds and stock were "listed" on the N

the syndicate's opera

stock

bonds

____

$55,

of property

____

a $4

per cent of the turpentine production (and 121 36

ond sales

12

18

____

$39,

mmission, stoc

s treasury, unis

counts on bonds,

____

$55,

for publication. They

market-proven, not seasoned; no one knew how much dependence to put on it; wherefore the banks would not take it as collateral security on loans and wherefore the "speculative community" (as the newspapers call the stock gamblers) would not touch it, since in a pinch it might prove utterly unvendibl

low $75 a share. Not knowing Mr. Greenbaum, they readily and solemnly promised to obey him. They even permitted themselves to think, after talking to him, that they would s

o sell 1,000 shares of "Turp" to another of his brokers and shortly afterwards the second broker sold the same 1,000 shares to a third, by pre-arrangement-this being the matching process-with the result that the tape recorded transactions 38of 2,000 shares. After the "matching" ha

nvincing. It did not make the general public nibble. The only buyers were the "room traders," that is, the professional stock gamblers who were members of the Exchange and speculated for themselves exclusively; and those customers of the commission houses who, because they were bound to speculate daily or die and because they studied the ticker-rib

y way to do this was by a nice "bull" or upward movement. When a stock rises and rises and rises the newspapers are full of pleasant stories about it and the lambs read but do not

spoken, to buy because the price was going higher, all they had for their 40trouble was more stock-–6,000 shares from Ira D. Keep, a distiller, who sold out at 38 because he needed the money; and they also were obliged to buy back from the "room traders" at 35 and 36 and higher, the same stock the "gang" had sold at 30 and 31 and 32 and 34. Then the manipulators had to "support" the stock at the higher level, that is, they had to keep it from

a stock which was so closely held. The philosophy of short selling is simple; it really amounts to betting 41that values will decline. A man who "sells short" sells what he does not possess, but hopes to buy, later on, at a lower price. But since he must deliver what he sells he borrows it from some one else, giving the lender ample secu

0 shares, the members of the "Turpentine Skindicate," as it was popularly called, sorrowfully acknowledged that, while they had skilfully organized the trust and had done fairly well with the bonds, they certainly were not howling successes as m

s buying them, and that prices therefore must inevitably go much higher. It requires boldness and consummate judgment, knowledge of technical stock-market conditions, infinite ingenuity and mental agility, absolute familiarity with human nature, a careful study of the curious psycholo

The little paper ribbon, therefore, must be made to tell such stories as the manipulator desires should 43be told to the public; he must produce certain effects which should preserve

ded to put "Turp" stock in the hands of Samuel Wimbleton Sharpe, the best manipulator Wall Stree

in pained astonishment. "I carry my weapons openly," Sharpe told them, "and you conceal your dirks. Don't hurt yourselves trying to look honest. I never turn my back on such as you." Of this encounter was born a hostility 44that never grew faint. Sharpe had nothing of his own to unload on anyone else, no property to overcapitalize and sell to an undiscriminating public by means of artistic lies and his enemies often did. So they called hi

is masterly bear campaigns he saw fit to "hammer" the market, values melted away as by magic-Satanic magic, the poor lambs thought. All stocks looked "sick," looked as though prices would go much lower; murmurs of worse things to come were in the air, vague, disquieting, ruin-breeding. The atmosphere of

tors or his confidential brokers, whose identity it was advisable should remain unknown to the Street. He was walking up and down the room, pausing from time to time to look at the tape. The ticker is the on

in-ward. In his eyes, too, there was something tigerish-unmelodramatically cold hearted and coldly curious as they looked upon Mr. Jacob Greenbaum. Uncons

, Gree

hope you are well?" He bent his head to one side, his eyes full of a caressing scrutiny, as though to ascerta

ow's your Turpentine? Oh!"-with a long whistle-"I see. You want me t

gly; then, with a tentative smi

tters of the greatest importance bespoke the national trait. Moreover, if Sharpe declined,

d Sharpe, u

e matter w

big?"

gain the Trust-maker

ll the capital

es," said Greenbaum, more u

be in it be

ow; the sam

rowd. You ought to have come to me before; it will take someth

m, laughingly. "We've got over 100,000 shares and we'd rat

he dist

their stock in my office. I'll see tha

harpe's eyebrows were two de

is afternoon. Good-by, Green

es

ks at any stag

such things, Mr. Sharpe?"

began to pace up and down the room. Greenbaum hesitated, still f

at the tape. "

he mechanical way of a menagerie animal, glancing everywhere but seeing nothing. When something unexpected happened in the market Sharpe stoo

Greenbaum, Lazarus & Co., I. & S. Wechsler, Morris Steinfelder's Sons, Reis & Stern,

hed room, the walls of which were covered with dashing oil paintings 49of ho

ppeared at t

ands with any of them, but Greenbaum came to him and held out his fat dexter resolutely

w of alert faces. His look rested a fraction of a minute on each man's eyes-a sharp, half-cont

o pool your Turpentine stock a

; one-Lindheim, aetat 27-sai

will each man's

intentionally omitted the "Mr." for effect upon h

pe rea

arus & Co

hsler 1

lder's Sons

rn 11,

l & Co 1

Lindheim

ffran & Co

s 8,6

______

114,40

ct, gentlemen?

ers, "That is correct." Young Lindheim said, "That's what." The founders of the firm-his uncle and his father-

advice and no questions. If there is any asking to be done, I'll do it. If my way does not suit you we'll call the deal off right here

a word, not

d couldn't sell it, and you might keep it a few weeks more, until I sell it for you. It must be subject to my call

hardened speculators. Then Greenbaum smiled, knowingly, as

stock for sale at any price, excepting his proportion in this pool, and that proportio

at 29. The remaining profits will be divided pro rata among you; the necessary expenses will b

the habit of-" began Greenbaum with perfunctory dignity. H

ply said, 'No shenanigan.' And, Greenbaum," he added, very distinctly, while his eyes took on that curious, cold, menacing look, "I me

have been nicer, more diplomatic; but as they had sought him, not he them, they bore with

riend's weaknesses. "He wants to make out he is a devil of a cynic, but he's all ri

o did Sharpe manipulate Turpentine stock. The tape told the most wonderful stories in the world, not the less wonderful because utterly untrue. Thus, one day the leading commission houses in the Street were the buyers, which inevitably led to talk of "important developments"; and the next day brokers identified with certain prominent financiers took calmly, deliberately, nonchalantly, all the offerings; which clearly in

to advance the price he had to buy much-and he was not averse to conveying such impressions as would lead to the creation of a short interest, large enough to make it profitable to "squeeze." He had too much company on the bull side. And sure enough the professional gamblers said: "Aha! They are through with it. The movement is over!" and sold "Turp" short confidently, for a worthless stock had no business to be selling at $46 a share. The price yielded and

would sell more than he bought. When the demand exceeds the vendible supply, obviously the price rises; when the supply for sale exceeds the demand, a fall resul

ish statements of the company's wonderful earnings, and the Street began to think that, in common with other "trusts," the American Turpentine Company must be a very prosperous co

o accuse them of having intentionally kept down the price of the stock for a year in order to "freeze out" the poor, unsophisticated stockholders, and to "tire out" some of the early buyers, because "Turp," being "a good thing," Greenbaum et al. wanted it all for themselves. And Greenbaum et al. smiled guiltily and said nothing, though Jake

om by brokers who confided to their hearers that they "got it on the dead q. t., straight from the inside." And two days later Sharpe's unsuspected brokers offered to pay 1? per cent for the dividend on 100,000 shares, said dividend to be declared within sixty days or the money forfeited. And the stock sold up to 66?, and the public wanted it. A bi

, and of the stock market. Supposing some crazy anarchist blew up the President of the United States, or the 58Emperor of Germany were to insult his grandmother, the market would "break" to pieces, and their $4,000,000 of paper profits would disappear. They implored, individually and collectively, Mr. Jacob Greenbaum to call on Sharpe; and Greenbaum, disre

er it fell to 60 or 59, for the Street was now full of tips that "Turp" would go to par. And such was the public's speculative temper and Mr. Sharpe's good work that disinterested observers were convinced the stock would surely sell above 90 a

leased with the meal and therefore with himself and therefore with everything. He scanne

ock from me. In order to be on the safe side I'm going to let him have a couple of tho

s,

Ed Lazarus." And he muttered to himself, with a sub-thrill o

e Schiff, to sell five-er-six-tell him to sell 7,000 shares of Turpentine and to borrow the sto

shares. Greenbaum's breach of faith had grown from the relatively small lot of 2,000 shares to five times that amount. It was to all appearances short stock, and it was duly "borrowed" by young Schiff. It was advisable that it should so appear. In the first place no member of the pool could supply the stock which he held, because Sharpe could trace the selling to the offi

at all, not 61even a conscience. A famous art collection would be sold at auction that week, and he felt sure his vulgar frien

is nephew, who was st

buy the best ten canvases of the collection. His name-and the amounts paid-would grace the columns of the

sthurst"-his country place-"and call it," said old Wechsler to himself, in his peculiar, facetious way so renowned in Wall Street, "the Turpentine Horse Hotel, in honor

of faith, 1

." She read the newspapers, and she always followed the stock market diligently, for Bob, being young and loving, used to give her a share in his stock deals from time to time, and she learned to figure for herself her "paper" or theoretical profits, when there were any, so that Bob co

es, sweetheart. I don't know at what price that will be, for Sharpe says nothing. But I kno

ing. She was certainly beautiful, and wh

dear," he urge

n the deal," she said, with fine finality. And seeing hesitation in Bob's face, sh

it when he had capitulated, and she knew it, a

ght of it in his office more calmly, more deliberately, away from his wife and from the influence she exercised over him, it struck him forcibly that it was wrong to sell 1,000 shar

es. The market stood it well. Shar

The stock actually rose a half point on his sales. So he sold another 1,500, and,

,000 shares. The market w

, and "Joe" Shaffran of Rosenthal, Shaffran & Co., all thought they could break their pledges to

ated. Period of Hesi

. Minute

1,500

2,000

1,000

500

of faith, 3

to realize on the remainder of his manipulative purch

ogether; and he made certain inquiries and put four and four together-four names and four other names. He saw through the time-worn device of the fictitious short selling. He knew the only people who would dare sell such a large amount must be his colleagues

etary, "may play at that g

oor of the Stock Exchange was the scene of the wildest excitement. The market-why, the market was simply Turpentine. Everybody was buying it, and ever

y-fourth, at a thirty-second, at an eighth, and finally at a quarter premium over night. It meant that the shorts had either to cover or to pay $25 per diem for the use of each 100 shares of stock they borrowed. On the 31,400 shares that the syndicate was borrowing it m

er; Morris Steinfelder's Sons; Reis & Stern; Kohn, Fischel & Co.; Silberman & Li

ce all your Tu

uld have to buy back in the open market the stock they had sold a few days before. It would mean losses on the treasonable

ock rose grandly on their buying: 4,000 shares at 66; 2,200 at 66?; 700 at 67?; 1,200 at 68; 3,200 at 69?; 2,000 at 70; 5,700 at 70?; 1,200 at 72. Total, 31,400 shares bought in by the "Skindicate." Total, 31,400 shares sold by Samuel Wimbleton Sharpe to his own associates in the great Turpentine pool. In all he found buyers for 41,700 shares that day, but it had taken purchases

" It was hinted also that Mr. Sharpe had been on the wrong side of the market, and one paper gave a wealth of details and statistics in bold, bad type to prove that the wily bear leader had been caught short of 75,000 shares, and had covered at a

Turp" and began to 69sell it in order to make sure. There was enough commission-house buying and belated short-covering to keep it moderately steady. Then the room traders redoubled their efforts to depress it, by selling more than there were buying orders for; also by selling it cheaper than was warranted b

he impact was terrible; the execution appalling. The market reeled crazily. The stock, which after selling up to 72? had "closed" on the previous day at 71?, dropped twenty

shares more at the market. The stock sank t

of a crash that would become historic in a district

break gave him courage to do anything. A Wall Stre

asked angrily. "What are

to take 100,000 shares more, so I just sold as much as I could. I've marketed most of the pool's stock. If it had not been for the jag of stock I struck around 60 and 62, Turpentine

enbaum, hotly. "You must give me

caged-tiger pacing up and down his office. As by magic, Mr. Sharpe's burly private secretary appeared, and said: "This way, Mr. Greenbaum," and led

ars had it all their own way. The loquacious tape said, ever so plainly: "This is nothing but inside liquidation, all the more dangerous and ominous sin

n of the Anti-Trust law, and that a receiver had been appointed. Having sold out the last of the pool's stock, Mr. Shar

a shrinkage in the market value of the company's capital stock of $15,000,000. Th

n he would have checks and an accounting ready for them. He refused himself to Greenbaum, Wechsler, Zeman, Shaffran, and others who called to see what could be done to save their reputations

uantities of stock that day and the next in order to prevent a worse smash, which would hurt them in other directions. They found themselves with more than 5

. He had previously sent to each man an envelope containing a c

d I began to fear I had met an inexhaustible supply. It is always best on such occasions to act promptly, and so, after driving in the real shorts, I sold out our stock. The average selling price was 40. If it had not been for that mysterious selling it would have been 80. After commissions and other legitimate pool expenses, I find we have made nine points net, or $1,029,6

olished; they could see that he seemed pleased to the purr

be disturbed, but that he was authorized to discuss any item of the statement, and he had charge of all the vouchers, in the shape of brokers' reports, etc. So they expressed their opinions of the private secretary and of his master rather mildly, and went out, cr

h the price up irresistibly, at any rate up to 50. They declared a dividend of 2 per cent on the stock. But they could not market Turpent

n all the turpentine districts, and the trade outlook is gloomy. And the principal owners of the stock of the American Turpentine Company, holdi