Charles Henry Dow ( ; 6 November 1851 - December 4, 1902) was an American journalist who founded Dow Jones & amp; Company with Edward Jones and Charles Bergstresser.
Dow also founded The Wall Street Journal, which has become one of the most respected financial publications in the world. He also found the Dow Jones Industrial Average as part of his research into market movements. He developed a set of principles for understanding and analyzing market behavior which came to be known as the Dow theory, the basis for technical analysis.
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Charles Henry Dow was born in Sterling, Connecticut, on November 6, 1851. When he was six years old his father, who was a farmer, died. The family lives in the hills of eastern Connecticut, not far from Rhode Island. Dow did not have much education or training, but he managed to find work at the age of 21 with Springfield Daily Republican, in Massachusetts. He worked there from 1872 to 1875 as a town reporter for Samuel Bowles, who taught his reporters to write sharp and detailed articles. Dow then moved to Rhode Island, joined the Providence Star, where he worked for two years as a night editor. He also reported for Providence Evening Press. In 1877, the Dow joined the leading staff of the Providence Journal. George W. Danielson, the editor there, did not want to hire the 26-year-old man, but the Dow would not accept an answer. After learning that Dow had worked for Bowles for three years, Danielson reconsidered and gave Dow a business writing story.
Dow specializes in articles on regional history, some of which are then published in pamphlets. Dow made history come alive in his writings by explaining the development of various industries and their future prospects. In 1877, he published the History of Steam Navigation between New York and Providence. Three years later, he published Newport: The City by the Sea . It is the story of Newport, the Rhode Island settlement, rise, regression, and rebirth as a summer vacation spot and a naval academy location, training station, and war college. Dow reported on Newport's real estate investment, recording the money gained and lost during the city's history. He also wrote the history of public education and prison systems in the state. Danielson was impressed with Dow's meticulous research that he commissioned him to accompany a group of bankers and reporters to Leadville, Colorado, to report on silver mining. The bankers want publicity to get investors in the mine.
In 1879, the Dow and various tycoons, geologists, lawmakers, and investors set out on a four-day train journey to Colorado. Dow learned a lot about the world of money on the way when people smoke cigars, play cards, and swap stories. He interviewed many very successful investors and heard what kind of information investors needed on Wall Street to make money. Businesspeople seem to like and trust the Dow, knowing that he will quote it accurately and maintain confidence. Dow wrote nine "Leadville Letters" based on his experience there. He described the Rocky Mountains, mining companies, and gambling, salons, and party rooms in boomtown. He also writes about raw capitalism and information that encourages investment, turning people into millionaires in an instant. He described the loss of each of the mine owners and the investors who overshadowed the stock in a large mining consortium. In his last letter, the Dow warned, "Mining securities are not a thing for widows and orphans or country priests, or uninhabited people of any kind to own, but for an entrepreneur, who must risk making money; there is nothing without careful and thorough investigation, and who will not take more risks than he can get rid of, no other investment in today's lucrative marketplace such as mining stocks. "
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Working on Wall Street
In 1880, the Dow left Providence for New York City, realizing that the ideal location for business and financial reporting was there. The 29-year-old was found working at Kiernan's Wall Street Financial News Bureau, delivered by hand messengers writing financial news to banks and brokers. When John J. Kiernan asked Dow to find another reporter for the Bureau, Dow invited Edward Davis Jones to work with him. Jones and Dow met when they worked together at the Providence Evening Press. Jones, broke Brown University, can skillfully and quickly analyze the financial statements. He, like Dow, is committed to reporting on Wall Street without bias. Other journalists can be bribed to report well in a company to raise stock prices. The Dow and Jones refused to manipulate the stock market.
The two young men believed that Wall Street needed another financial news agency. In November 1882, they started their own agency, Dow, Jones & amp; Company. The business headquarters is located in the basement of a candy store. Charles Bergstresser is a major financier of the new company, but chooses to be a silent partner. The strength of Bergstresser lies in the skill of interviewing him. Jones once said that he can make timber Indian talks and tell the truth.
In November 1883, the company began issuing a two-page overview of the day's financial news called the Customer's Evening Letter. It soon reached the circulation of more than 1,000 customers and is considered an important source of news for investors. This includes the average Dow Jones stock, an index covering nine railroad problems, one steamship lane, and Western Union.
The birth of Wall Street Journal
In 1889, the company had 50 employees. Partners realize that the time is right to turn their two-page summary into a real newspaper. The first edition of The Wall Street Journal appeared on July 8, 1889. It costs two cents per issue or five dollars for a one-year subscription. Dow is the editor and Jones manages the deskwork. This paper gives its readers a policy statement: "The goal is to provide daily news full and fair about fluctuations in stock prices, bonds, and some commodity classes.This will continue to be news paper and not opinion paper." The motto of the paper is " its proper use. " The editor promised to issue paper that the advertiser could not control. The newspaper has a private cable to Boston and telegraph connections to Washington, Philadelphia, and Chicago. He also has correspondents in several cities, including London.
Dow often warns his journalist about swapping the skewed story for stock tips or free stock. Destroying honesty in financial reporting, Dow will publish hesitant company names to provide information on profit and loss. Soon after, the newspaper gained the power and respect of the reader community. Vermont Royster, an editor of the Wall Street Journal, said that Dow has always believed that business information is not a "private broker and tycoon province".
In 1898, the Wall Street Journal issued its first morning edition. This paper now covers more than just financial news. It also includes war, which is reported without rhetoric, unlike many other documents. Dow also adds editorial columns called "Reviews and Outlook" and "Answers to Inquirers," in which readers post investment questions to answer. Edward Jones retired in 1899, but Dow and Bergstresser continued to work. Dow still writes editorial, now focusing on the place held by the government in American business. The Wall Street Journal set a precedent in reporting during the 1900 election by endorsing a political candidate, ruling president William McKinley.
Dow Jones Industrial Average
In the 1890s, the Dow noticed that the recession was over. In 1893, many mergers began to occur, resulting in the formation of large corporations. These companies are looking for a market for their stock. A highly speculative market means investors need information about stock activity. Dow took this opportunity to design the Dow Jones Industrial Average in 1896. By tracking the closing stock price of twelve companies, adding to their share price, and split the twelve, the Dow came up with an average. The first such average appeared in the Wall Street Journal on May 26, 1896. The industry index became a popular indicator of stock market activity. In 1897, the company created an average for rail shares.
Dow also developed the Dow theory, which states that there is a relationship between stock market trends and other business activities. The Dow feels that if the industry average and the average train goes in the same direction, it means a meaningful economic shift. He also concluded that if both indices reach new highs, it denotes a bullish market is in progress. Dow does not believe that his ideas should be used as the only forecaster of the ups and downs of the market. He thinks they should be just one tool of the many investors used to make business decisions.
Death
In 1902, Dow began to experience health problems and Bergstresser wanted to retire. Both sold their company shares to Clarence Barron, their Boston correspondent. Dow wrote his last editorial in April 1902. About eight months later, on December 4, 1902, he died at his home in 161 Lefferts Place, Brooklyn, New York, at the age of 51 years. He was buried in the North Funeral Ground in Providence. , Island of Rhode.
See also
- Dow Jones Index
References
External links
- Dow Jones History
- the Dow Jones Index home page
- Dow Jones Average history, research, and trivia
- National Biography of America
- The Motley Fool
Source of the article : Wikipedia
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