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.
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.
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