Evening Star Newspaper, November 20, 1929, Page 12

WALL STREET POOLS BY A POOL MANAGER, AS TOLD TO JAMES ABELLE. CHAPTER XL Nocabulary of the Speculative Com- ‘munity. (The language of “the Street” has very definite underlying causes of ex- dstence. It is unintelligible to many but it carries just as little or as much meaning as the operations it describes require. And like many unfamiliar ton- gues it often baffles the neophytes power of definition.) At 9:55 am. five minutes before the opening of the Stock Exchange, a pool Jmanager is on the telephone in conver- sation with his broker on the floor. “How's the book?” “Five thousand five hundred buy, 3,000 sell. Ten to twelve thousand scale down, most of it 5 to 10 points under; 4,000 o 5,000 stops within 5 points. Only & . few hundred scale up. No bear stops. The crowd is.pretty lively.” “General layout good?” “About the same all around.” “All right. Give them the 2,500—1 up. Bid up and sell if buying come \n; If not, drop and pull the stops 3 down." The language is “all Greek,” even to many active traders in the stock market. Let us transiate: “How’s the book?>” By the book is| meant the specialis book. The spe-| cialist is a broker who “specializes” in the stock in which the pool manager is | rection, and prices for the Thanksgiv- interested. Under the rules of the ex- change all specialists are required to be at the post where their stocks are traded not later than 9:30 am. The specialist keeps a record, called “the book,” which anv broker may ask to see. The book shows the orders filed overnight to buy and sell the stock “at the market price”; also the book shows the stop loss orders on file, and all other orders to buy and sell the stock in the event the price ad- vances or declines. Other brokers file these orders with the specialist, who is always at the post where the stock is traded and who exccutes these orders the instant the price touches the figure | at which any order becomes valid. Specialist Asks Bids at Opening. “Five thousand five hundred buy, three thousand sell.” Orders to buy 5,500 shares are on file this morning, and orders to sell 3,000 shares “at the market.” The market price at which these orders will be executed is de- termined after the opening, when the specialist immediately offers to buy 5,500 shares and to sell 3,000 shares. He receives bids and offers for various amounts of stock. at various prices. By negotiations among the brokers a price for the first sele will be reached, and trading has begun for the day. | “Ten to twelve thousand scale down. most of it 5 to 10 points under.” This means that on the morning we are re- porting the specialist has buying oi- ders on file for 10,000 to 12,000 shares of the stock, most of them at prices 5 to 10 points under the last sale of the previous day. These are callea *scale down buying orders.” “Four thousand to five thousand stops within 5 points.” Stop-loss oi- ders are filed to sell stocks if they decline to certain prices, in order to prevent further losses to the holders. This morning orders to sell 4,000 to 5,000 shares are on file at prices. within 5 points of the previous day's closing sale. “Only & few hundred scale up.” Orders to sell as prices rise to certain prices are called “scale up selling or- ders.” Only a few hundred shares have been ordered to be sold “scale up” on this morning. “No bear stops.” Orders by bears to buy in stocks if prices rise to certain res, thus preventing further losses. “The crowd is pretty lively.” By this is meant that the group -of brokers around the post are evidently interested in the book, and probably have orders to be executed after the opening. ‘Then comes the question from the E”l manager: ‘“General lay-out good?"” e wants to know about the situation in other stocks; does it look like good buying is coming into the market gen- erally? The broker replies: *“Abouc the same all around.” The situation, as shown by the specialists’ books and the interest of the brokers, is about the same for all active stocks on this particular morning. - Pool Orders Given on Floor. “All right. Give them the 2,500—1 up. Bid up and sell if buying comes in. If pot, drop and pull the stops 3 down.” ‘The pool manager is confident. He ‘believes that his buying power is suffi- cient to make the prices at which the stock will be traded. “Give them the 2,500—1 up.” The book shows orders to buy 5,500 shares and orders to sell 3,000 shares; the difference of 2,500 shares shows the net demand for the stock. ‘The broker is instructed to make bids and offers in a to fill the orders for this 2,500 shares at'a price 1 point above the last sale of the day before. “Bid up and sell if buying comes in.” After the opening transactions are re- corded the broker is to bid up the price of the stock, provided substantial buying appears in the market, the extent to ‘which he will raise the bid being left to his discretion. Thereafter he is to stop huxytng and accept all bids above this price. “If not, dmr and pull the stops 3 down.” If buying does not appear after the opening, the broker is to lower the offering price and thus “pull” the sw%osu orders on file so sell at prices ‘wit] 3 points under the opening price. ‘The object of the maneuver will be to take up the stock of holders who are Teady to sell on small concessions, in or- | der to avoid the risk of larger losses. Buyers are waiting at lowest prices, as shown by the scale down buying orders, ‘This strengthens the “technical posi- tion” and prepares the way for a later advance, the reasoning being that if stockholders are afraid to carry the stock on a reaction they will be likely to ‘grab” g:ems on an advance, thus de- Jaying the pool in its efforts to “put the stock up.” (I should add that the book on the morning we report divulged situation disadvantageous for the trader: ‘who had filed stop loss orders. This 18 | of course not often true.) The pool manager’s orders, as given, cover only the first few minutes of trad- ing. By 10:15 the broker, or his phone boy, will again be in touch with the poo} operator to arrange for later action. Brevity Characterizes Vocabulary. ‘The first necessity of the Wall Street vocabulary is brevi There is no time to use unnecessary words, or even unnecessary syllables. For this reason, the picturesque and colorful language used by newspapers in reporting stock market affairs, and by brokers in their market advices to customers, is little heard among the “professionals,” not at any rate during the hours the market is open. In truth, the most outstanding feature of conversation among the speculative community is the fact that there is so little of it. It is noticeable that in Wall Street men are reluctant to give precise defi- nitions to the nouns employed. You | pack, 2.50. often hear the expression: “Is that pool still running?” But seldom the phrase: “A running pool.” To use such phrases in many cases would imply exact mean- ings, and Wall Street is suspicious of anything which can be defined too ex- actly. Things do not happen on the stock market in ways which can bejand larger, 3.35a3.5 predicted by academic formulas; it does not pay to have too precise ideas on any subject. Hence the language of the Street is “all verbs,” -as visiting profes- sors have often observed. One of the words which can mean whatever the speaker wants it to mean is “they.” If some one says, “They are supporting tie market,” he probably means that the big bankers are support- ing the market, But if he says, “They are buying Steel” in this case “they” refers to the pool in the stock of the United States Steel Corporation. But if there is no pool “they” is equally apropos: it then means “whatever is be- ing done is what a 1 would be doing if there were a pool and it were doing it.” “They” is also often used to indi- c-u’"he public: “How do they feel to- 1t would be interesting to know why the noun “they” is used instedd of the ! some medium size, 1.85a1.90. pessive voice of the verb. But you sel- dom hear the question: “What is be- | ing done?” 1t is always: “What are they doing?” Probably the reason is that it instinctively felt that little happens in Wall Street by chance. ‘When something occurs, it must be one “they” or another which brought it about. (Copyright, 1920, by, Current News Features. nc. TURKEY RECEIPTS INLARGE VOLUME Demand for Ducks and Geese Expected to Be Greater This Season. Turkeys continue to arrive in the local market, coming from every di- ing market already have started down- ward, Late reports from packers throughout the country tell of heavy receipts, and messages recetved by local dealers today indicate that big dealers in the West are anxious to unload. A message from Chicago this morn- ing contained an offer to ship dressed stock at prices several cents lower than prices quoted early in the week. Young toms were quoted at 34, hens at 33 and old toms at 31 cents. Express charges amount to approximately 2 cents a pound. The same shioper quoted ducks at 27 and geese at 23 cents. Poultry Demand. Ordinarily, it is stated, ducks and geese are not in great demand for the holiday season. This year, however, it is believed the demand for the smaller poultry will be greater, Turkey dis- plays this morning were especially at- tractive, most of the receipts being of best quality. There were very few thin turkeys in evidence. Young turkeys, alive, were quoted this morning at 32 and 33 cents, old toms selling around 30 cents. Dressed stock was quoted at 38 and 40 cents for the {g\mg turkeys and 37 and 38 for old ms. Dealers also reported a drop in the prices of chickens. Rabbits also were plentiful and cheap this morning, re- ceipts having come from nearby and distant States, Many of them were not in the best condition, however, and health inspectors condemned many of them. Several hundred have been con- demned the past three days. It was :;;vl;:;lce:l thlttmn:’y of the l'lbkl:fln came and were overheated in tnAmlL o ¢ ccessories for the Thanksgiving turkey dinner also were muchklsn‘ EViE dence this morning. Commission merchants had attractive supplies of fruits and vegetables, some dealers also carrying nuts, figs and other edibles in demand during the holiday season. Vegetables also were in heavy sup- Plles on the farmers' line, where truck- loads of apples from the Shenandoah Valley also were offered the retail trade. Some of the fruit, not so large, was offered around $1.50 a bushel basket, and quantities of cider also were offered on the farmers’ line. A continued firm condition of the butter and egg market was reported, butter prices having advanced a frac- tion of a cent. Meat prices continued apparently unchanged. Today's Wholesale Prices—Jobbers’ Prices Slightly Higher. Butter — One-pound prints, 43a44; tub, 41a4215; store packed, 30. -Hennery, 58a60; selected, 55a56: current receipts, 50a52. Poultry, alive—Turkeys, young, 32a33; old toms, 30; Spring chickens, large, 27a28; medium, 25a26; brollers, 30; Leghorns, 23a2: lowls, 26a27; roosters, 18; ducks, 15a20; keats, young, 40a65; old, 30. Dressed—Turkeys, young, 38a 40; old, 37a38; Spring chickens, large, 33a34; medium, 32a33; broilers, 35a36; roosters, 24a25: ducks, 29a30;'keats, 70 a80; capons, 150. Meats—Beef, 20a22; veal, 24a28; lamb, 26a27; pork loins, 22a25; fresh hams, 20a22; fresh shoulders, 20a23; smoked hams, 25a26; smoked shoulders, 18a20; bacon, 28; lard, in bulk, 13; in packages, 14. Live stock—Calves, 14'2a15; 1272213, Fruit and Vegetable Review. The daily market report on fruits and vegetables (compiled by the Mar- ket News Service Bureau of Agricultural Economics) says: ‘Apples—Supplies moderate; demand light, market steady; boxes, Washing- ton, medium to large sizes, extra fancy Delicious, 3.75; fancy, 3 extra fancy lambs, up, Yorks, inches up, Staymans, good quality, 1.75; U. S. No. 1, 2% inches up, Staymans, mostly 2.00; few best 2.50. ‘Cabbage—Supplies moderate; demand light, market steady; New York, 100- pound sacks, Danish type, 1.50a1.60; South Carolina, barrel craf pproxi- mately 100 pounds net, Pointed type, 2.50a2.60. Celery—Supplies moderate; demand moderate, market about steady; New York, two-thirds crates, 3.00a3.50; Cali- fornia, crates, 6.0026.50. Lettuce—Supplies moderate; demand moderate, market slightly stronger; California, crates, Iceberg type, 4-5 doz- en, 3.75a4.00; few fine quality, 4.50. Onions—Supplies light; demand light, market steady: = Indiana, 100-pound sacks, Yellows, U. S. No. 1, mostly 2.00; Potatoes—Supplies moderate; demand light, market steady; Pennsylvania and New York, 150-pound sacks, round whites, U. S. No. 1, mostly 4.25; some fair quality, 4.00; Maine, 150-pound sacks Green Mountains, U, S. No. 1, 4.50; 120-pound sacks Green Mountains, U. 8. No. 1, 3.75. Sweet potatoes—Supplies light; de- mand light, market steady; East Shore vmznmn. cloth-top barrels, Yellows, No. String beans—Supplies moderate; de- mand light, market steady; South Car- olina, bushel hampers, flat type, best, 4.00;" Refugees, best, 5.00; rer flat and round type, wide range in prices, 1.00a3.50; Florida, no early sales re- Ported. Squash—Supplies light; demand moderate, market steady; Florida, pep- per crates, 4.00a4.25; some large size, 3.50; bushel hampers, 2.75; some slack moderate; de- Eggplant—Supplics Florida, mand light, market steady; pepper crates, fancy, 3.50a4.00; few ex- press receipts, 4.50; choice, L ‘Tomatoes—Supplies light; demand light, market steady; California, lug ! boxes, ripes and turning, wrapped, 6x6 mostly 3.50; fair quality, low as 3.00. Caulifiower—Supplies light; demand light, market firm; Long lsland, crates, ges: Tangerines—Supplies mod- | demand moderate, market firm; boxes, 3.7584.01 quality, 3.50. Grapefruit—Supplies light; demand moderate, market slightly ~stronger; Florida, boxes, No. 1, 4.25a4.50; No. 2, 3.7584.00. J. P. MORGAN RETURNS. NEW YORK, November 20 (#)~J. P. Morgan returned today from an ex- tended visit to Europe. He declined to discuss the financial situation, saying: “I cannot gauge a situation like this in a few minutes. I must have time t® give it thought” 0 ¢ THE EVENING STAR, WASHINGTON, WEDNESDAY, NOVEMBER 20, PUSH... not Crash ! It’s the follow-thru that counts HAT kind of ef- fort is the most ef- fective and the least dam- aging—push or crash? The sudden blow is force- ful for a moment, but its explosive im- pact is destructive and quite ineffective compared to a sweeping follow-thru PUsH! The motor of your car demands smooth, continuous power. At 40 miles per hour it fires 6000 times a minute—100 times each second! No wonder any piston shock, however slight, is so disastrous. 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