THE FINANCIER 
minority holdings, so that he had in reality fifty-one per 
cent. of the stock, and Stener twenty-five per cent. more. 
This did not satisfy, but intoxicated him, for in his suc- 
cess in this matter he immediately saw the opportunity 
of fulfilling his long-contemplated dream—that of re- 
organizing the company in conjunction with the North 
Pennsylvania line, issuing three shares where one had 
been before and starting to unload all but a control on 
the general public. In these early manipulations he was 
really not as daring as other American financiers later 
became, but he was daring enough. His plan was to 
spread rumors of the coming consolidation of the two 
lines, to appeal to the legislature for privileges of exten- 
sion, to get up notable prospectuses and annual reports, 
and to boom the stock on the stock exchange as well as 
his various resources would permit. The trouble is that 
when you are trying to make a market for a stock—to 
unload a large issue such as his was (over five hundred 
thousand dollars' worth)—while retaining five hundred 
thousand for yourself, it requires large capital to handle 
it. The owner in these cases is compelled to be able 
not only to go on the market and do large amounts of 
fictitious buyings, thus creating a fictitious demand, but 
once this fictitious demand has deceived the public and 
he has been able to unload a considerable quantity of his 
wares, he 'is, unless he rids himself of all his stock, com- 
pelled to stand behind it. If, for instance, he sells five 
thousand shares, as was done in this instance, and retains 
five thousand, he must see that the public price of the 
outstanding five thousand shares does not fall below a 
certain point, because the value of his private shares falls 
with them. And if, as is almost always the case, the 
private shares have been hypothecated with banks and 
trust companies for money wherewith to conduct other 
enterprises, the falling of their value in the open market 
merely means that the banks will call for large margins 
to protect their loans or call their loans entirely. This 
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