technical sense), remunerative coups in stock might occasionally be possible.

Let us imagine ourselves for a moment going into council in Wall Street or its neighbourhood, and considering, in a comfortable bank parlour over excellent cigars, how "Control" might be utilized for the purpose of retrieving serious losses or risks on the part of the Wall Street allies of the railroad. Let us suppose, for argument's sake, that an imaginary railroad, the prospects of which are under discussion, has an unduly large capital, and that a great majority of its securities are held in Europe; that it has, so far, not finally or badly defaulted on its funded indebt. edness; that there is an active market with an upward tendency; that the latest official report of the road has inspired some confidence; and that its stock is worthfor speculative purposes-(say) forty cents on the dollar. Its floating debt is in fact very large, because it has a great deal of outstanding paper, which, though approach. ing maturity, has not actually matured, and has therefore not been published as part of its floating debt. The state of the market is very tempting. We call upon Mr. Jeffer son J. Wiggins, whose intelligence is well known, and who has a great deal of money in the road, to advise us what we shall do. To save time and avoid unnecessary details the effect of his advice may be crudely summarized as follows:

Ist. The stock is at forty, market active. Some months must elapse before crops can be moved. Plenty of room for sucessful operation. Roughly as follows:

2d. Let our pool sell "short" at present prices, but gradually, not hurrying the market. Before the stock goes down to twenty-seven, we shall have sold enough to initiate a coup.

3d. We want to cover our shorts" at about twenty.

Proceed as follows:

(a) Let our financial organ state that the prospects of the harvest to which we have looked forward are very poor. Express doubts whether the Directors ought not to fund next coupon.

(6) Let prominent stockholder announce that he has trustworthy information to the effect that the last dividend on preference stock was not earned. He therefore asks immediate Receivership.

(c) In view of this important development, let Directors announce that they feel it incumbent on them to pass the next coupon.

(d) Let organ state that negotiations concerning terminal facilities in a leading city have broken down.

(e) Let a prominent bondholder connected with the only leased line that pays propose to take immediate proceedings to invalidate the lease.

(ƒ) Let organ announce that there is an immediate prospect of a war of rates. Under the circumstances, in spite of the vast business which the road carries on, it will probably have to do a great part of it during the next year at less than cost.

(g) Let a prominent reformer suggest a legislative investigation with a view to the forfeiture of the charter.

The above programme will probably put the stock down below twenty. All that you can buy at that figure will give you a profit when we are hereafter ready to put up the stock.

Imagine yourself a foreign stockholder under these depressing circumstances. You naturally tear your hair and sell out without a moment's delay. Perhaps it does not occur to you that the party who put down the price will, in fact, become the purchasers of your stock.

Let us now avail ourselves for a moment of the privilege extended to the dramatist and novelist, and say that here an interval of some months has elapsed, and then let us suppose ourselves meeting again amid personal surroundings similar to those above outlined. Our little friendly pool has sold "short" largely, beginning at forty, and have "covered their shorts" (i. e., bought back cheaply stock which they sold dearly for future delivery) in the twenties. Some members of the pool who could raise the ready money have bought heavily in the neighbourhood of twenty. Since the meeting above described the market has undergone many fluctuations, but it is today active and buoyant. Again we defer to Mr. Jefferson J. Wiggins' great experience, and ask him what we shall do. Again we summarize the effect of his masterly advice in a few crude paragraphs:

Ist. The market, says he, is favourable. Stock will go up rapidly, if we have any thing to go up on. Why not try something as follows?

(a) Let organ state, at convenient intervals of time, that, much needless alarm having been felt about the floating debt of the Company, we are authorized to say that our indefatigable President is negotiating with an eminent firm of bankers for the complete discharge of this indebtedness by the issue of (say) income bonds. This will enable the Company to handle the unexpected access of its business with unexampled promptness and efficiency.

(b) Organ: We are delighted to announce that the wretched croakers who prophesied a bad harvest are wholly mistaken in their forecast. In respect of one Road (our Road) at least, it is confidently anticipated that the volume of business will surpass the record of any previous year,

(c) Organ again: We are glad to be able to announce that the prominent stockholder, whose deep sense of integrity compelled him to institute a suit against the Company, in spite of his reluctance to prejudice his own pecuniary interests, has withdrawn his suit, and acknowledges in his well-known frank and manly way that he was entirely mistaken in supposing that a dividend on preference stock had been improperly paid. We understand that he has fortified his opinion by a large increase in his already heavy investments in the securities of the Company.

(d) Organ again: We understand that our indefatigable President has succeeded in securing, on very favourable terms, an alliance with the K. C. B. system. By this wellconceived and far-sighted policy it is plain that the immense traffic accruing from a direct connection at Jericho Junction with the Jerusalem extension of the K. C. B. system will hereafter pass over the track of the A. B. (our) Road, and indefinitely increase the volume of its already enormous traffic.

(e) Organ again: In view of this astounding development, the indefatigable President of the A. B. Railroad has entered into negotiations with a prominent syndicate of European bankers with a view to laying the whole line of the A. B. Railroad with steel rails. It is thought that, on the L. M. section of this great road, it may be necessary to quadruple the existing track, in anticipation of the immense access of business expected during the approaching Fall.

(ƒ) Organ again: Negociations for extended terminal facilities in the City of Q., which were recently intercepted, have been resumed under conditions favourable to the A. B. Railroad. This coup must be regarded as a most important (though scarcely to be expected) addition to

the resources of this great system, which bids fair to swallow up its rivals, as the rod of Aaron swallowed the futile devices of the Egyptian magicians.

(g) Organ again: We are authorized to contradict the impression that any legislative investigation is intended, as it has been conclusively demonstrated that no grounds exist for such a proceeding. A prominent Legislator has stated in a recent interview that the future of the A. B. Railroad appears to him exactly like that of the great American Republic, occasionally decried by the ignorant and irresponsible, but ultimately destined to proceed without interruption on its majestic march, wholly regardless of the petty obstacles interposed in its path by envious and disappointed rivals.

It is scarcely necessary to say that Mr. Wiggins' insight into the situation is promptly accepted, and week by week the stock recovers itself by "leaps and bounds.” Once more the wretched foreign stockholder tears his hair, and instructs his brokers without a moment's delay to buy back the stock which, in an access of unreasoning panic, he recently sold. "How, in the name of all the gods," he says to himself, "can anybody be so foolish as to part with a stock of this description for the nominal value of fifty cents on the dollar? Well," he resumes thoughtfully, "I was once foolish enough to sell out my stock in obedience to a misguided impulse, and I suppose that others are the unhappy victims of the same delusion. Why should I not recoup myself at their expense?" Poor man! He does not know that the same party which bought his stock at twenty will before long quietly "unload" upon him in the neighbourhood of fifty, and that ere two years have elapsed the same process with all its harrowing details will be repeated,