VOObyM

Reminiscences of a Stock Operator
learned my lesson.
Just about that time I turned bear and I began to sell short several railroad stocks.
Among them was Chesapeake & Atlantic. I think I put out a short line in it; about eight
thousand shares.
One morning when I got downtown Dan Williamson called me into his private office
before the market opened and said to me: "Larry, don't do anything in Chesapeake &
Atlantic just now. That was a bad play of yours, selling eight thousand short. I covered it
for you this morning in London and went long."
I was sure Chesapeake & Atlantic was going down. The tape told it to me quite plainly;
and besides I was bearish on the whole market, not violently or insanely bearish, but
enough to feel comfortable with a moderate short line out. I said to Williamson, "What
did you do that for? I am bearish on the whole market and they are all going lower."
But he just shook his head and said, "I did it because I happen to know something about
Chesapeake & Atlantic that you couldn't know. My advice to you is not to sell that stock
short until I tell you it is safe to do so."
What could I do? That wasn't an asinine tip. It was advice that came from the brother-inlaw
of the chairman of the board of directors. Dan was not only Alvin Marquand's
closest friend but he had been kind and generous to me. He had shown his faith in me
and confidence in my word. I couldn't do less than to thank him. And so my feelings
again won over my judgment and I gave in. To subordinate my judgment to his desires
was the undoing of me. Gratitude is something a decent man can't help feeling, but it is
for a fellow to keep it from completely tying him up. The first thing I knew I not only
had lost all my profit but I owed the firm one hundred and fifty thousand dollars besides.
I felt pretty badly about it, but Dan told me not to worry.
"I'll get you out of this hole," he promised. "I know I will. But I can only do it if you let
me. You will have to stop doing business on your own hook. I can't be working for you
and then have you completely undo all my work in your behalf. Just you lay off the
market and give me a chance to make some money for you. Won't you, Larry?"
Again I ask you: What could I do? I thought of his kindliness and I could not do
anything that might be construed as lacking in appreciation. I had grown to like him. He
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