Golden Interview

A ship news reporter for the Wall Street Journal boarded the Olympic shortly before midnight on Saturday (a fortnight ago). Soon he found his quarry--Thomas Cochran, a partner of J. P. Morgan & Co., who was about to sail for Scotland to shoot grouse with, Mr. Morgan. Mr. Cochran is usually reticent (as are all partners of J. P. Morgan & Co.), but the night air of New York Harbor seemed to make him loquacious. Reporter Morton Nicholls departed from the liner with a thrill in his heart and a magnificent interview in his pocket. Mr. Cochran, whose especial proficiency is a knowledge of General Motors Corp., had told him that the stock "should and will sell at least 100 cents higher." Potential millions lay in the darkness of Reporter Nicholl's pocket. Unabashed, he went to his New Jersey home. If he was excited, only his wife and small baby knew it. Sunday being a day of rest, he rested. Monday morning he helped his brother obtain a position in uptown Manhattan. Not until then did he remember that he ought to report his interview with Mr. Cochran to his city editor. He telephoned the story. At 11:55 a. m. innocent looking financial news tickers emitted the words of Thomas Cochran. Post No. 5 on the floor of the Stock Exchange became a sudden, riotous rendezvous of yelling, seething, sweating, frenzied brokers. Friends of Mr. Cochran were skeptical about the truth of the interview, but nothing could stop General Motors stock from leaping upward, twelve points the first day, twelve more the second, finally reaching a record high of $213.75. Reporter Nicholl's pocket memo had added $70,000,000 to the stock market valuation of General Motors shares. Wise men of Wall Street assumed that Reporter Nicholls was no fool, that he had at least converted the information of his interview into a substantial nest egg, that his progeny would have silver spoons in their mouths. Otherwise, why had he not turned in his story before 10 a. m. when the Stock Exchange opened, instead of waiting until almost noon? Thereupon, Kenneth C. Hogate, managing editor of the Wall Street Journal, announced that he had investigated Reporter Nicholl's story, that he was convinced of its accuracy, that his paper had plenty of market "tips" but did not consider it good ethics to use them for personal financial gains, that Reporter Nicholls would probably get a raise in salary. Later, a wireless message from Thomas Cochran to J. P. Morgan & Co. said: "I spoke with enthusiasm of the earnings, management and prospects of the General Motors Corporation. I authorized no statement of any kind as to the future price of the stock which obviously no one can foretell."