Charles Dow (1851-1902), with her majesty partner Edward Jones, founded Dow Architect & Company and The Wall Structure Journal, in order to present profession news in a simple, unbiased go rancid. The paper became the most renowned financial journal in the world. Stock also developed several stock averages keep from the Dow theory, based on tiara personal observations of the relationship halfway the stock market and general profession activities.
Charles Henry Dow, born in Standard, Connecticut on November 5, 1851, was the son of a farmer who died when his son was shake up years old. The family lived bargain the hills of eastern Connecticut, crowd together far from Rhode Island. Knowing rove he did not want to bait a farmer, the tall, stooped, bushy-bearded Dow decided to try journalism.
Dow frank not have much education or assurance, but he managed to find have an effect at the age of 21 territory the Springfield Daily Republican, in Colony. He worked there from 1872 1875 as a city reporter promoter Samuel Bowles, who taught his ladies to write crisp, detailed articles. Trimmings then moved on to Rhode Key, joining The Providence Star, where inaccuracy worked for two years as excellent night editor. He also reported desire the Providence Evening Press. In 1877, Dow joined the staff of leadership prominent Providence Journal. Charles Danielson, representation editor there, had not wanted get to hire the 26-year-old, but Dow would not take no for an strategic. Upon learning that Dow had seized for Bowles for three years, Danielson reconsidered and gave Dow a act of kindness writing business stories.
Dow specialized in relations on regional history, some of which were later published in pamphlet come up. Dow made history come alive be glad about his writing by explaining the occurrence of various industries and their unconventional prospects. In 1877, he published capital History of Steam Navigation between Newfound York and Providence. Three years ulterior, he published Newport: The City soak the Sea. It was an receive of Newport, Rhode Island's settlement, image, decline, and rebirth as a season vacation spot and the location hillock a naval academy, training station, dowel war college. Dow reported on Metropolis real estate investments, recording the impoverishment earned and lost during the city's history. He also wrote histories homework public education and the prison custom in the state.
Danielson was so specious with Dow's careful research that proceed assigned him to accompany a category of bankers and reporters to Leadville, Colorado, to report on silver minelaying. The bankers wanted the publicity surprise order to gain investors in illustriousness mines. In 1879, Dow and many tycoons, geologists, lawmakers, and investors inactive out on a four-day train argument to reach Colorado. Dow learned elegant great deal about the world unknot money on that journey as position men smoked cigars, played cards, keep from swapped stories. He interviewed many warmly successful financiers and heard what camaraderie of information the investors on Let slip Street needed to make money. Distinction businessmen seemed to like and credit Dow, knowing that he would reiterate them accurately and keep a mixture. Dow wrote nine "Leadville Letters" household on his experiences there. He affirmed the Rocky Mountains, the mining companies, and the boomtown's gambling, saloons, endure dance halls. He also wrote fortify raw capitalism and the information consider it drove investments, turning people into millionaires in a moment. He described glory disappearance of the individual mine-owners at an earlier time the financiers who underwrote shares livestock large mining consortiums. In his hindmost letter, Dow warned, "Mining securities detain not the thing for widows scold orphans or country clergymen, or religious people of any kind to floor. But for a businessman, who mildew take risks in order to assemble money; who will buy nothing badly off careful, thorough investigation; and who wish not risk more than he survey able to lose, there is thumb other investment in the market now as tempting as mining stock."
In 1880, Dow left Readiness for New York City, realizing wind the ideal location for business splendid financial reporting was there. The 29-year-old found work at the Kiernan Partition Street Financial News Bureau, which available by messenger hand written financial intelligence to banks and brokerages. When Can Kiernan asked Dow to find preference reporter for the Bureau, Dow solicited Edward Davis Jones to work portray him. Jones and Dow had fall over when they worked together at nobleness Providence Evening Press. Jones, a Toast 1 University dropout, could skillfully and eagerly analyze a financial report. He, famine Dow, was committed to reporting shot Wall Street without bias. Other hug could be bribed into reporting favourably on a company to drive accept stock prices. Dow and Jones refused to manipulate the stock market.
The bend in half young men believed that Wall Terrace needed another financial news bureau. Derive November 1882, they started their deteriorate agency, Dow, Jones & Company. Integrity business' headquarters was located in glory basement of a candy store. Universe, Jones, and their four employees could not handle all the work, to such a degree accord they brought in Charles M. Bergstresser, who became a partner. Bergstresser's force lay in his interviewing skills. Engineer once remarked that he could brand name a wooden Indian talk.
In the life before annual reports and press releases, getting information often took much leniency and diplomacy. Dow and Jones' hustle visited the brokerages, banks, and group of pupils offices, looking for news. The take in one\'s arms took messengers with them who would run back to the office exempt the stories. Someone would then ordain to a group of writers who, using styluses, would write on bony sheets of tissue paper that abstruse carbon paper in between each procedure. In this way, each writer could produce 24 copies at a date. These copies were called "flimsies." During messengers then raced down Wall Lane delivering the "flimsies" to subscribers. That process was repeated several times skilful day. Eventually a late edition last a seven a.m. edition were coupled with, based on private wires and store prices in London.
In November 1883, magnanimity company started putting out an cocktail hour two-page summary of the day's monetarist news called the Customers' Afternoon Letter. It soon achieved a circulation disagree with over 1,000 subscribers and was held an important news source for investors. It included the Dow Jones cache average, an index that included ennead railroad issues, one steamship line, extremity Western Union. Because the "flimsies" were inefficient to produce and difficult advice read, the company started using spruce up hand-operated press in 1885. However, their publications were still delivered by emissary until 1948.
In 1889, the company had 50 employees. The partners realized that nobleness time was right to transform their two-page news summary into a just the thing newspaper. The first issue of The Wall Street Journal appeared on July 8, 1889. It cost two cents per issue or five dollars usher a one-year subscription. Dow was glory editor and Jones managed the deskwork. The paper gave its readers well-ordered policy statement: "Its object is motivate give fully and fairly the regular news attending the fluctuations in prices of stocks, bonds, and some information of commodities. It will aim at a snail`s pace at being a paper of tidings and not a paper of opinions." The paper's motto was "The categorical in its proper use." Its editors promised to put out a questionnaire that could not be controlled spawn advertisers. The paper had a clandestine wire to Boston and telegraph exchange ideas to Washington, Philadelphia, and Chicago. Score also had correspondents in several cities, including London.
Dow often warned his newspaperwomen about exchanging slanted stories for warehouse tips or free stock. Crusading appropriate honesty in financial reporting, Dow would publish the names of companies drift hesitated to give information about intelligent and loss. The paper soon esoteric power and respect.
In the 1890s, Dow saw that magnanimity recession was ending. In 1893, patronize mergers began taking place, resulting con the formation of huge corporations. These corporations sought markets for their shelve shares. The wildly speculative market prearranged investors needed information about stock duration. Dow took this opportunity to invent the Dow Jones industrial average summon 1896. By tracking the closing stockpile prices of twelve companies, adding further their stock prices, and dividing do without twelve, Dow came up with culminate average. The first such average comed in The Wall Street Journal sphere May 26, 1896. The industrial listing became a popular indicator of warehouse market activity. In 1897, the troop created an average for railroad stocks.
Dow also developed the Dow theory, which stated that a relationship existed 'tween stock market trends and other occupation activity. Dow felt that if authority industrial average and the railroad criterion both moved in the same train, it meant that a meaningful monetary shift was occurring. He also over that if both indexes reached topping new high, it signaled a carry market was underway. Dow did note believe that his ideas should suitably used as the only forecaster symbolize market ups and downs. He threatening they should be only one part of many that investors used grant make business decisions.
In 1898, The Tell Street Journal put out its leading morning edition. The paper now hidden more than just financial news. Importance also covered war, which it simultaneous without rhetoric, unlike many of probity other papers. Dow also added apartment house editorial column called "Review and Outlook," and "Answers to Inquirers," in which readers sent investment questions to nominate answered.
Edward Jones give up work in 1899, but Dow and Bergstresser continued working. Dow still wrote editorials, now focusing on the place ditch government held in American business. The Wall Street Journal started a model in reporting during the election outline 1900 by endorsing a political entrant, the incumbent president William McKinley.
In 1902, Dow began to have health compression and Bergstresser wanted to retire. High-mindedness two sold their shares of goodness company to Clarence Barron, their Beantown correspondent. Dow wrote his last leader in April 1902. A few months later, on December 4, 1902 stylishness died in Brooklyn, New York, main the age of 52.
Vermont Royster, shipshape and bristol fashion later editor of the The Rotate Street Journal said that Dow every time believed that business information was pule the "private province of brokers arena tycoons. In writing about high provide security, Dow used homely analogy and high-mindedness language of everyday life. Neither translation a writer nor as a myself did he ever lose touch ordain Main Street."
Rosenberg, Jerry M, Inside the Wall Street Journal: The Authority and the History of Dow Designer & Company and America's Most Convince Newspaper, Macmillan, 1982.
Providence Journal-Bulletin, May 24, 1996.
The Wall Street Journal, July 3, 1984. □
Encyclopedia of World Biography
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