Saturday
December 4, 1926
The Washington daily news (Washington, D.C.) — Washington D.C., District Of Columbia
“1926: How a Quiet Chicago Farmer Just Fleeced Wall Street for $10 Million”
Art Deco mural for December 4, 1926
Original newspaper scan from December 4, 1926
Original front page — The Washington daily news (Washington, D.C.) — Click to enlarge
Full-size newspaper scan
What's on the Front Page

A quiet Chicago businessman named Arthur W. Cutten just pulled off one of Wall Street's biggest heists of the decade, taking famous financiers "for a ride" to the tune of $10 million in a spectacular stock manipulation of Baldwin Locomotive. In less than a month, Cutten's "one-man pool" drove Baldwin stock from 114 to an all-time high of 165⅜ by quietly buying up shares and then squeezing short sellers who bet against the company. The scheme worked because bears had shorted half of Baldwin's entire capital stock of just 200,000 shares—creating what Wall Street called "a perfect situation." One desperate broker, caught short 5,100 shares at an average price of $115, was frantically seeking a settlement as his losses mounted. Meanwhile, Washington got a new District Commissioner as Sidney F. Taliaferro (pronounced "Toliver") was sworn in immediately to replace Cuno H. Rudolph, who served nine years and 75 days. And in New Jersey, the sensational Hall-Mills murder case finally closed with all charges dismissed—leaving the four-year-old double murder of a reverend and a choir singer as much a mystery as ever, despite one of the most widely publicized trials of the era.

Why It Matters

This front page captures the wild financial speculation that defined the Roaring Twenties, when individual operators like Cutten could manipulate major stocks and extract millions from Wall Street's elite. Such massive, barely regulated market manipulation would help fuel the bubble that would burst in 1929. The casual dismissal of the Hall-Mills murder charges also reflects the era's fascination with sensational crimes and the limits of 1920s investigative techniques. These stories unfold against the backdrop of Calvin Coolidge's business-friendly administration, when "the business of America is business" and financial markets operated with minimal oversight, setting the stage for both tremendous wealth creation and spectacular crashes.

Hidden Gems
  • The paper helpfully notes that visitors to the District Building will need to watch their pronunciation: new Commissioner Sidney F. Taliaferro's name is pronounced 'Toliver,' not how it's spelled
  • A 2-year-old boy named Louis Varron died after climbing on a bench to peer into a brewing teapot and accidentally upsetting the scalding pot all over himself at his home on 19 K Street SE
  • Mrs. Bena V. Hawley of 609 Massachusetts Avenue NW was robbed of a $150 gold watch while riding in a taxi with 'several other people' she had met at a restaurant—about $2,400 in today's money
  • A 70-year-old man named Charles Anderson, whose sight was failing, accidentally stepped off his houseboat tied up at the Municipal Fish Market and drowned in the Potomac
  • Defense attorney Timothy Pfeiffer announced the Stevens family is contemplating a libel suit against a New York newspaper that was 'active in the investigation' that led to the murder indictments
Fun Facts
  • Arthur Cutten, the mastermind behind this $10 million stock coup, was already famous for making 'several millions on the long advance in wheat last winter'—he was one of the era's legendary commodity speculators who would later be investigated for market manipulation
  • Baldwin Locomotive, the stock being manipulated, was one of America's premier industrial companies, building the steam engines that powered the nation's railroads—but it would struggle to adapt to diesel technology in coming decades
  • Rear Admiral J.K. Robison's testimony about unnamed war plans likely referred to fears about Japan in the Pacific, reflecting growing tensions that wouldn't fully explode until Pearl Harbor twenty years later
  • The Hall-Mills murder case that just ended involved a minister and choir singer found shot dead under a crabapple tree in 1922—it inspired the board game Clue and countless mystery novels
  • L.L. Doheny, mentioned as needing arm surgery during his oil corruption trial, was one of the inspirations for the ruthless oilman Daniel Plainview in the movie 'There Will Be Blood'
Sensational Roaring Twenties Prohibition Economy Markets Crime Corruption Politics Local Crime Trial
December 3, 1926 December 5, 1926

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