Evening Republican, Volume 21, Number 29, Rensselaer, Jasper County, 12 February 1918 — How Financial “Sharks” Work [ARTICLE]

How Financial “Sharks” Work

Experience of John Jones In Speculation t Sound Advice tor Investors

By S. W. STRAUS

(Pnatoent New Yerkind Chicago Beaker)

John Jones, a prosperous business man in a middle West city, slit open an important-looking envelope just handed to him and unfolded the crackly letterhead. Across the top of the sheet was engraved: SMITH & BROWN Bankers -& Brokers Private Wire Service Between Principal Cities Market Letters Furnished Highest Bank and Commercial Reference* No Broadway. New York Below was a closely typewritten letter starting with a friendly “Dear Mr. Jones.” Jones leaned back in his chair and started to read. An unusual opportunity, it seemed, was being offered to him. A New York brokerage firm was organizing a syndicate whose purpose was to manipulate the grain market and clean up a fortune on wheat. To do this in a big way, Smith & Brown were mobilizing the capital of hundreds of investors. The funds secured in this manner, added to their already immense resources, would enable them to run away with the market. “In union there is strength,” read the letter. “Thousands of investors with moderate means wish to share in the stupendous profits of Wall street. But what chance have they against the millions of Rockefeller, Morgan and Gould? It requires money to make money and our plan is to take the SSO or SIOO of an individual investor and make it felt, instead of being a mere drop in the bucket.” The letter was quite reassuring. “No client of ours has ever lost any money,” it was stated. Had Mr. Jones looked for it, he would have discovered no information as to when the business was established. But he was too absorbed in the glowing account of the system of Jim Smith —that wizard of finance—to beat the market. It developed after years of study and experience, and had netted him millions. He had astounded veteran speculators and Napoleons of finance with his marvelous success. Now he was going to do the biggest thing of his life. He was to give the small investor an opportunity to enter into a deal with him. And when the people got together, anything could be accomplished! 500 per cent profits were assured! Mr. Jones thoughtfully restored the