Rensselaer Union, Volume 7, Number 46, Rensselaer, Jasper County, 5 August 1875 — Doubtful Wall Street Operations [ARTICLE]

Doubtful Wall Street Operations

The President of the New York Btoek Exchange has for some time past been in the receipt of letters asking for information concerning certain advertisements relating to Wall street operations which appear in many of the newspapers throughout the United States. These advertisements are glowing accounts of the ease with which money may be made in stock speculations; ana the advertisers pretend to have peculiar facilities which enable them to “ control” large numbers of shares with an insignificant amount. Some of the advertisers also offer to send, free of charge, a pamphlet containing full particulars of the mode in which their transactions are effected, and when called upon actually do send a book containing what purports to be an explanation of their way of doing business. The socalled explanation consists of a plausiblyconstructed theory of speculation, well calculated to deceive. A very liberal use of the street terms is employed, and “margins,” “puts,” “calls,” “privileges,” “ spreads,” “bulls,” “bears,” etc., are referred to in such a way as to essentially confuse the mind of the reader. It is also claimed by advertisers that they have combinations by which the amounts confided to their care cannot fail to give large returns, and that they cannot be lost from the fact that the strength of the combinations is such they are able ft) resist almost,, any, pressure. Many of the respectable banking bouses down town are also constantly receiving letters from persons asking for information regarding these advertisements, of from persons who have been victimized, asking them' to Indicate by what means they can obtain the restoration of thbir money. Unfortunately, there seems tot be no redress under the law, as the persons Wgaged in the business are too wise to allow themselves toibe caught in any transaction that would involve them in a criminal prosecution. This point seepas to be well settled, as legal advice has been sought in several instances, and the opinion of the counsel consulted has always been that there is no legal remedy. The money sent to be invested is intrusted uhconditionally to the advertisers for investment as they may deem best, and if they report that it has been lost no one can prove that such was not the case, and even if it could be so proved, all that could he done by the loser to recover the money would be to bring a suit for breach of trust. Besides this, there would be great difficulty in fixing upon the person against wfiom the suit should be brought, for, although the advertisers put forth a firm name, it would be impossible to find the persons representing it, from the fact that they donetexist. The amount of credulite taanight to light by the cbrfbtuondwte retorted to is. wonderful. Letta-s have been received from all parts of the United States, not oply from persons who might not be expected to be better informed, but from business men and m6n in positions which would seem almost to exact a better knowledge of the woHd. Under date of June 10 a railroad man writes to the President of the Stock Exchange from Wisconsin, inclosing a circular, asking to be informed whether certain persons or firms are members of the New York Stock Exchange, and in good standing as bankers and brokers, as advertised. He also wants to know whether their mode of operating in stocks known as “puts,” “calls” and,“spreads” is used in speculating, on the Stock Exchange. He goes on to say that there are “ parties circulating this circular, and advertising quite largely in this Western country. ” He says that if they are good, reliable firms, and will do what is rigfyt, there are persons there who wish to speculate in stocks and securities on that system. Another man writes to the President from Indiana that he would be obliged if the President would give him the names of some of the most reliable and responsible brokers in Wall street, as he had seen certain advertisements and circulars and had felt considerable interest m the movements in stocks and gold. These men, although led away to a certain extent by the brilliant promises held out te them, had yet sufficient caution to inquire into the standing of the persons making them before confiding their money to their care. Not so, however, was it in the case of the unfortunate writer of the following letter, addressed to the President of the Stock Exchange:

Philadelphia, May 24,1876. Sib: It is with great anxiety and expectation that I write this letter to you. I will, state the case to you as it Is. lam a saleslady in street. Meeting with losses I was obliged to go into the world to make a living. Last September I read a work on. stock speculation which is the property of the firm. I wrote for the work ana it was sent to me. The firm in New York from whom I received the book advertised at that time in the Philadelphia papers. The work gave accounts how money was made so quickly add easily that I became convinced I also could do the same. By great saving and stridt economy, and depriving myself of the common comforts of life, I had accumulated by degrees the sum of $125, which I saved carefully, thinking of the assistance it would be to me should fbe deprived of a situation in a store. I read the book carefully, and finally concluded to write to the firm in New York, asking their advice. They replied? giving encouragement. I wrote again, and still received the same encouraging answers. I wrote to them of my being unaquainted .with stock operating, and would leave everything to their care. Their answers always gave me so much courage that I concluded I would send the money to them and let them attend to the business. I was happy, thinking how I could increase my little sum to a greater one. I sent $106.25. They wrote that they had bought a double privilege. Time passed on—finally they wrote to me that the stock was dull, and it was a loss. It made me sick at heart and unable to attend to business. I wrote frequently to them, stating my situation in life, and how I had saved the money with so much self-denial. They wrote me they would buy a “call,” and send the profit made to me. It has been some time and they have not kept their word to me. I concluded I would write and ask your advice in the matter. I hope you possess a kind heart and can give me nope of gaining my money. Please reply early. Yours truly, etc. It was with much regret that the .President had to reply to the letter by telling the writer that lie not only coold do nothing for her himself in the matter, but that he was afraid there were no means of redress, and that her money was irretrievably lost. The above are only sample cases

of a large number that are i constantly brought to the noticeof the Stock Exchange and clearly indicate that the number of the victims of foe advertisers must be simply immense, for it is supposed that not one in fifty ever thinks of applying to that source of redress.— N. Y. Times, July 10.