That was what the Cosmopolitan did to get me and Henry Williams and the
other Sugar shorts. Their brokers in New York ran up the price to 108.
Of course it fell right back, but Henry and a lot of others were wiped
out. Whenever there was an unexplained sharp drop which was followed
by instant recovery, the newspapers in those days used to call it a
bucket-shop drive.
And the funniest thing was that not later than ten days after the
Cosmopolitan people tried to double-cross me a New York operator did
them out of over seventy thousand dollars. This man, who was quite a
market factor in his day and a member of the New York Stock Exchange,
made a great name for himself as a bear during the Bryan panic of
’96. He was forever running up against Stock Exchange rules that
kept him from carrying out some of his plans at the expense of his
fellow members. One day he figured that there would be no complaints
from either the Exchange or the police authorities if he took from
the bucket shops of the land some of their ill-gotten gains. In the
instance I speak of he sent thirty-five men to act as customers. They
went to the main office and to the bigger branches. On a certain day
at a fixed hour the agents all bought as much of a certain stock as
the managers would let them. They had instructions to sneak out at a
certain profit. Of course what he did was to distribute bull tips on
that stock among his cronies and then he went in to the floor of the
Stock Exchange and bid up the price, helped by the room traders, who
thought he was a good sport. Being careful to pick out the right stock
for that work, there was no trouble in putting up the price three or
four points. His agents at the bucket shops cashed in as prearranged.
A fellow told me the originator cleaned up seventy thousand dollars
net, and his agents made their expenses and their pay besides. He
played that game several times all over the country, punishing the
bigger bucket shops of New York, Boston, Philadelphia, Chicago,
Cincinnati and St. Louis. One of his favorite stocks was Western Union,
because it was so easy to move a semiactive stock like that a few
points up or down. His agents bought it at a certain figure, sold at
two points profit, went short and took three points more. By the way, I
read the other day that that man died, poor and obscure. If he had died
in 1896 he would have got at least a column on the first page of every
New York paper. As it was he got two lines on the fifth.
_II_
Public-domain text, read in full here on John Shaqi.
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