Evening Star Newspaper, November 19, 1929, Page 12

WASHINGTON, D. C, TUESDAY. NOVEMBER 19, 1929. FINANCIAL. THE EVENING STAR, PAY ROLLS INCREASE |[gresse of 21 per cent in thelr com-|ported a red 'fempwudx $248.000,000 in | banks on Octaber 4, Was $254,000,000 . net dema or the quarter, - WALL STREET POOLS e e e 0| e E Bt 5 S s, B 85l o e IN RETAIL STORES commissioner’s statement is based on | of $60,000,000, other Reserve city banks 000,000 above the total re- 5 - written reports made by 449 Maryland | a deciine of $12,000,000 and country ported October 8. 7 Sstablishments in which there were banks an increase of $175,000,000. The total capital and surplus® re- employed last month 75,002 Dersons, | Capital and surplus of all memberported was $5,551,000,000. BY A POOL MANAGER, AS TOLD TO JAMES ABELLE. CHAPTER X. Publicity Methods of Pools. (Some of the best kind of publicity Jor the poolmakers is nmone at all. Another kind can be taken care of by the public itself. These and other factors which the pool manager has 2o deal with are discussed in this chapter accounting jor some of the strange and often disastrous “tips” on sure things that get into circuia- tion.) “The market action of nny stock its best advertisement.” “This old Wall Street platitude exprosses the opinion of most pool operators on the subject of publicity. Pools and large speculators actually “go in for” very.little propa- ganda of any kind. It is not necessary. Other interests take care of the job of focusing public attention upon the stock market. Every large corporation has a vital interest in maintaining and extending the market for its securities. New capi tal can only be secured on the most fa- yorable terms by corporations which en- é::l the favorable opinion of large num- Ts of investors. The ex>cutives of car- porations nowadays can be depsnded n to see to it that the attractions of the corporations’ securities are given widespread publicit Invistment ban! , as_is obvious, have a similar interest. in broadcasting the merits of securities. The continued sypansion of American business depends upon a continuous flow of capital into corhoration securities, and all important fingmcial interests fost:r the dissemina- tion of information concerning sound investment opportunities. In recent years the tremendously ex- | tended public participation in the stock market on the part of thousands of new Investors and—until recently—thousands of new margin speculators, has created & public demand for news of the mar- ket which has inspired the newspapers to maintain large staffs of financial writers, who day by day tell the story of Wall Strect happenings. With these factors at work. the pool operators are not troubled about lack of publicity. As a matter of fact many of the most successful pool managers never give out any information concern- ing their activities, not even to fellow 1 members. They do their work in e stock market, where the price move- ments of stocks supply the best possible advertisements of pool activity. Other pool managers, especially those interest- in the stocks of less well known com- es, sometimes arrange that in- lormation concerning these stocks be “handed out” at certain times. Pools Seldom Give “Dope.” ‘This information is seldom, if ever, given directly to the newspapers. It is iven to brokers or, more accurately, the rs gain the information as the orders of pools come in. Readers of brokers' bulletins and market letters know how information of _prospective pool, "mc:;u" in }s'mclu is passt n:;:mx to customers. Newspaper Iepo: n the information from the brokers, usfx‘n‘l- ly somewhat later, as newspapers as a rule do not make predictions of market movements, such “moves” are reported after they have occurred. In the case of “inside ls” working in co-operation with the controlling in- terests in a corporation, the corporation officials may effectively assist the tpool operations. By the proper timing of re- ports and public statements attention is drawn to the stock at the right mo- ments. This is not to say that it is a general practice of corporation officials to issue statements, or other data, in order to help the pool in the corpora- tion's stock, although, as is evident, this sometimes happens. But if a pool man- ager knows when reports are to appear he can, of course, stage his market demonstrations to take advantage of the publicitys On occasions the very largest market operators, men like Mr. Arthur Cutten, Mr. Durant and Mr. Raskob, have given out statements for publication. ese men have a large following all over the country and have been able to influence market sentiment by pronouncements at certain times. But most pool oper- ators and large speculators are un- is [ see them advance. erators encourage the spreading of “tips” about 1 moves in particular stocks, or other “short swing” predic- tions, The publicity which really bene- fits bull operators is publicity which ignores the existence of pools ana speaks of the merits of the stock from the investment viewpoint. In the eariy stages of & bull market it is only in- formation of this character which can influence people to buy stocks. And in the later stages of a bull market nu publicity is needed to get people w buy stocks. . They buy them when they Responsible market operators, therefore, who do not deal in grossly overvalued stocks (not on the bull side) never require publicity to do their work. On the contrary, as we have seen, such publicity is a disaa- vantage. ‘There are men in Wall street whose business it is to forecast pool opera- tions. Some of these men develop an uncanny accuracy in “spotting” probable “moves” in stocks. Such men are fortunfitely rare; their foresight is decidedly embarrassing to pool man- agers. Many an advance has been halted or postponed because some one saw it coming and spread the news. Nevertheless, accurate “tips” that pools are buying stocks do get into circula- tion—sometimes. But the rarest thing in Wall street is advance information that a pool is closing. As a wit puts it: *“The wisest operators do not even tell themselves they are unloading.” The reticence of bull pools at these times is only exceeded by bear op- erators when they are “covering” and taking profits. No pessimism on this earth exceeds the bear's view of the market in the hour he is buying stocks to close his short commitments. (Copyright, 1929, by Current News Fea- tures, Inc.) FREIGHT CAR LOADINGS. By the Assoclated Press. Freight car loadings even in the face of the gradual decrease in traffic that| “develops in late Fall and Winter months, are holding up better than for | some years back,” the American Rail- way Association announced today in making its weekly summary of their totals. While declines under preceding weeks were noted, and smaller declines under the corresponding week last year, the latest total was said to be substan- tially above the figures for the corre- sponding week of 1927. Pigures for the latest week's loadings and those of comparable periods follow: Week ending November 9, 1,049,475 cars. Preceding week, 1,071,650 cars. Same week last year, 1,054,353 cars. Same week 1927, 997,309 cars. gzl F ol T Blind since her birth, Miss Eleanor Skidmore was recently awarded the prize for the vocal solo of Elizabethan music !;zcc the musical festival at Black- known to the larger financial public. ‘Theyavoid the “limelight.” And in the case of the very prominent men who are quoted on the market situation, it can usually be said that their interest 1s not that of the speculator pure and lilnbyle. ost publicity regarding particular stocks, while valuable from the “long pull” viewpoint, is actually a disad- vantage to & pool manager who is pre- ring a rapid advance. There are a ost of floor traders and other “short swing” speculators who endeavor to anticipate such moves. The pool man- ager's chief concern is us to pre- vent information from “leaking out,” for the reason that the traders for the “ghort pull” immediately sell out after the advance and their selling restricts the sale of the pool. When a “ manager wants publicity is after the advance, to induce buying in the hoj of another advance. And this publicity is provided without effort on the part of the pools. Whenever a stock is ad- vanced on the market both brokers and newspapers are called .upon for expla- natfons of the move. And both brokers and newspapers respond by digging up all available information concerning the stock. ' “Mystery” Most Effective Publicity. ‘The most effective publicity, from the viewpoint of pool operators, is mystery. ‘When there is no adequate basis to es- timate the value of a stock it is easy for the imaginations of stockbuyers to Tun riot. In the absence of definite facts and figures speculators are ready to believe the most exaggerated tales of possibilities, and market commentators never fail to provide lurid stories when any stock advances rapidly. When mergers are under consideration, or stocks are to be “split up,” or rights is- sued, when any developments are under way which are not subject to statistical analysis the only limit for the price of = stock is the limit of cash resources of the speculative public. For the same reason, speculators of experience attempt to liquidate holdings b:?;l’! the “good news is out.” When the actual development is announced, the merger effected or the stock divi- dend declared the value of stockholders can be more accurately analyzed. Then sometimes the price drops ahlrgl’y. Pool managers therefore who are handling stocks in the “mystery” class exert their efforts to prevemt detajls of proj developments being made public in ad- wvance of consummation. In periods of distribution, when the pools are selling stocks on each advance “tips” are allowed to leak out more fre- quently. One very amusing case of this kind was brought to my attention last Summer. A pool which had béén in existence for about a vear had much trouble with one of its members who could not refrain from informing his friends of each succeeding advance pre- pared by the pool. All through the eperation the pool manager had been compelled to deal with buying and sell- ing from sources which were advised of the pool plans. Pool Sells Out. In August the manager decided to liquidate, but he “neglected” to state his intention to the indiscreet member. ‘This man was only informed that an- other advance would be staged the next Monday. The pool member, as ususl, hastened to inform his friends. On Monday the ‘advance began, the pool raising its bid as expected. The “friends” had made money on previous occasions programs direct to your car &pecial Dispatch to The Star. BALTIMORE, November . 19.—There was a decrease of 1.2 per cent in em- ployment in selected manufacturing in- dustries in Maryland last month and a decrease of 17 per cent in the amount of combined pay rolls for that period, according to a statement just issued y Dr. J. Knox Insley, commissioner of labor and statistics. Of the 280 establishments for which operating time was reported, 200 were running on a normal full-time basis, 41 were working overtime and 39 were working on a part-time schedule. 'In other words, 83 per cent of the total number of persons were employed in establishments working full time or more. In the establishments operating on a part-time basis 17 per cent of the total number of persons were employed. In the 280 establishments there were em- ployed last month 49,027 persons who were working on an average of 98.4 per cent of normal full time. Employment in a group of retail de- partment stores showed an increase of 11 per cent and the amount of com- bined pay rolls a gain of 9.7 per cent. Reports from a small group of whole- sale establishments indicated a gain of 7 per cent in employment and an in- F. B. KEECH Members of New York Stock Exchange Washington Stock Exchange New.York Curb Market Liverpool Cotton Exchange, Ltd., (Assoc. Members) New York Cotton Exchange Bremen Cotton Exchange (Assoo. Members) N. Y. Coffee & Sugar Exchange, Inc. ' DIRECT PRIVATE WIRES H CORNER 17TH ST., N. W., WASHINGTON NEW YORK whose combined weekly earnings were | $1,734,844.33. —_——— RESERVE BANKS GAIN IN CAPITAL SHOWN By the Assoclated Press. s and investments of Federal | F&l::\"‘e member banks were $35014,- | 000,000 on October 4, the date of the | last bank call. Made public by the Federal Reserve Board today, this was an increase of $203,000,000 for the three months since last June and of $985,000,000 during the year. - Toy'.ll Joans increased - $506,000,000 during the quarter and $1,840,000,000 during the year. Reaching a total of $26,165,000,000, investments in United States Government and other securities declined $304,000,000 during the quar- ter and $855,000,000 during the year. Net demand deposits of all member banks on October 4, were $18,952,000,- 000, & decline of $26,000,000 since June 29, and of $43,000,000 for the year. Member banks in New York City r & COMPANY Chicago Stock Exchange Chicago Board of Trade New Orleans Cotton Exchange Winnipeg Grain Exchange Rubber Exchange of N. Y., Inc. Safe Deposit Boxes S SR SRR . A Total Stranger in Your Affairs obliged to appoint and possibly a total stranger 1 8hould E WE have prepared a list of Common Stocks with estimated earnings per share which we are recommending for investment purchase at this time. The list is avail- able on request. WESTHEIMER & CO. Members New York Stock Exchange Members Baltimore Stock Exchange Members Cincinmati Stock Exchange Members Chicago Board of Trade Ground Floor—Woodward Bldg. ' Telephone National 5500 you die, an administrator for your esta testate, the law will b will be brought into your affai Have 1 our will drawn, without delay, P! EXECUTOR or TRUSTEE, such as thi stitution, and you'll nd ap| do your best for those you prede National Savings & Trust Co. The Oldest Savings Institution in the District of Columbia 63rd Cor. 15th and New York Ave. You no |ongervhave to leave the joys of Radio at home when you are out in your car. Transitone six-tube receiving sets are now built into the dependable Dodge Brothers Senior. 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TRADE IN NOW N A BRAND NEW Hudson or Essex Stocks are limited, so act now to get the Supér-Six of your choice. LAMBER;I'-HUDSON MOTORS CO. DISTRIBUTORS—PHONE Corner 14th and R sfi'ece?fufi.éw Service Station, 24th and M Streets N.W. Neumeser ETIQToLmAN Do s 1344 Ave, oward Mator Co. MeDevits b o \ eDe cor. BT, \Aves. NW. 2017 .'m'n'fi'i."fi. elr Motor Maintenance Department 1317-19 W Street N. when similar_advances were engineered Sales Department and they again jumped into the market and bought the stock. The pool n- ager quickly withdrew his bid: sold out the entire pool holdings to the beneficiaries of the “tip.” When telling me the story the operator concluded with the remark: “And for all I know those smart gentlemen are holding the stock yet.” Which again proves that the pitcher can be carried to the well once too. often. 1509-11 Fourteenth St. N.W. Salesrooms Open Daily Until 9 P.M. Sundays Until 5 P.M. 1. C. Barber Motor Co. Kaplan & Crawford, Inc. 1805 14th St. N.W. . 2329 Champlain St. N.W. Mitchell Motor Co. Leonardtown Motor & Hardware Co. Schooley Motor Co. La Plats, Md. Leonardtown, Md. Alexandria, Va, The largest operators sometimes mak~ Frye Motor H. C. Fleming Motor Co. Lusby Motor Co. statements about the market as Leesburg, Vi Md. Prince Frederick, Md. whole, but no experienced mlrkeg op- 4 [ “Tel. North 0458 ot Sehutse - el Lincoin $365