1. finance
2. investing
3. options

TRUTHS
PLAIH
Vbout StoGk Speculation
TO
HOW
AVOID
LOSSES
IN
*?r
ALL
STREET.
WITH
VISITORS'
DIRECTORY
IN
AND
AROUND
NEW
YORK.
!*"+
ft
$**?(""
***"
Copyright
E.
V.
by
SMITH,
Proprietor.
1887.
ALL
RIGHTS
RESERVED.
PREFACE.
work
THIS
dangers
the
uninitiated
the
trickery
the
marts
out
of
after
their
true
reading
make
will
dealing
Street
;
open
of
safe
publico,
which
to
the
or
the
to
way
and
deal
investor
is
do
tells
it
is
an
respectfully
the
with
only
stocks
and
invaluable
submitted,
by
The
so
pitfalls
of
in
keep
who,
will
traps
It
to
woman
there,
goes
them.
surround
To
man
any
in
prevail
warning
a
of
exposure
which
is
It
and
book,
this
and
practices
To
margins.
on
of
told,
plainly
truths,
revelation
a
sharp
generally
All
bono
is
of
speculation.
money.
UK
pro
and
wide
eyes
and
it
of
Wall
which
folly
and
the
plain
contains
Author.
INDEX.
Page
I. Wall
Chapter
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
The
XIX.
a
Preceding Panic
Successful
A
Operator
Short
Sales
Dangerous
Street
Railroad
Scale
XXVII.
XXIX.
XXX.
XXXI.
XXXII.
XXXIII.
XXXIV.
XXXV.
and
The
Road
on
Wall
158
179
182
187
197
Success
to
of
Railway
211.
Finance
224
228
of
Men
Europe
Inequalities of
The
141
148
Gambling
Small
Capital
Exegesis
King
112
124
Exchanges
Possibilities
Rich
64
69
102
Recent
Expenses
Market
.
156
of
Big Business
The
.
131
Lower
Office
V
85
Exchange
Exchange
Produce
44
89
Rivalry
Petroleum
-,
76
Manipulation
Exchange
XXVIII.
1884
Speculators
Remote
Swindles,
Railways.
of
Vicissitudes
Street
39
56
Pacific
Events
Stock
XXV.
Railroad
Central
and
Union
Public
XXVI.
34
48
Pacific
Northern
Cotton
XXIV.
23
Market
Methods
Present
XX.
XXIII.
Brokers
Banker-Brokers
XXI.
XXII.
and
Bull
12
Points
Sure
Wall
XVIII.
of
Manipulating
XIV.
XVII.
i
Bourse
Bankers
Collapse
Wall
XVI.
Glossary
American
Typical
XIII.
XV.
Street
Taxation
244
Bacchus
Street
230
236
Detectives
249
Sub-Treasury
252
House
260
Custom
Clearing
Visitors'
House
Banks
Directory
263
273
N
SPECULATION.
STOCK
CHAPTER
WALL
I.
STREET
GLOSSARY.
explain the technical
used in stock speculation.
Bulls are
optimists. They buy stocks
advance, and
go long of the market."
Bears
are
pessimists. They sell stocks
THIS
is to
chapter
terms
for
an
"
decline, and
whether
made
stocks
being
on
go
is
Money
Bulls
not
are
bearish
is wrong
A
to
bear
keep good
have.
not
A
"
lost
up
occasion
for
a
to
seems
decline
bulls
to
bears
bears
they
stock
his deliveries
This
is done
or
squeeze
of
to
to
"
do
not
from
stock
is when
borrow
them
principle
for him
"
Some,
serve.
enable
moral
on
borrow
must
"ssible U
equal facility,
It all depends
.
sell property
corner
with
go down.
or
a
market."
rightside of the market.
always bulls ; neither are
time,
They are bulls at one
always
cheap, are
of the
or
go
the
on
always bears.
at another, as
while
short
"
for
by
that
it
possess.
day
he
buy
to
day
sold, but
to
did
his broker.
it is difficult
stock
to
make
or
a
STOCK
2
Hence
deliveryon their contracts.
they are forced
to buy in the stock
they sold, but did not have, at
whatever
price the bulls may choose to ask.
often
for stock
exacted
are
Loaning rates
loans
there
is a large short
when
interest
standing,
out"
"
crowd."
for
and
stocks
are
The
rate
may
loan
the
market
of
value
of
the
per
cent,
or
day's loan
The
"
by
to
$100
of each
loan
crowd
themselves
stock
5 per
100
addition
shares
"
rate
cent,
loan
or
be
-"-
cornered
are
may
the
to
it may
or
the bears
wall, the
to
in
"
cents~per day
39
wanted,
When
or
but
be
in the
scarce
shares,
too
$12.50 per day.
and pressed to the
made
be
$500
from
for
1
one
of stock.
are
the brokers
in the
board-room
who
with
gate
congrestocks
loan.
capitalists
formed
in which
to control the specialties
they
interested.
Bull pools boom
the market
for a
are
rise or
hold values
steady against the attacks of
Bear
the bears.
pools operate to destroy values
of long stock into liquidatimid holders
to scare
tion
and
decline
them
to bring about
to enable
a
their shorts at a big profit.
to cover
be
of stock
Deliveries
regular must
bought
the following business
before a certain
time
made
on
to the
day. In default complaint is made
of the Exchange, who
Chairman
buys in the stock
under
to
the rule,"and charges all differences
the delinquent.
Cliques
and
pools
are
combinations
"
"
of
"
SPECULATION.
On
30
Options
3-30
60," either party has
or
case
Buyer
"
"
be,
may
call for
to
3
or
3-30
60,"
days,
the stock
tender
or
60
or
seller 3-
"
or
as
the
at
the
pricenamed.
Oversold
is when
themselves
sold
and
is
there
than
stock
more
overreached
have
bears
the
afloat.
than
stock
they
Investors
stocks
take
can
the
and
who
those
are
for
the bulls have
is when
Overloaded
dividends.
in addition
to
and
for their
pay
They aim
sellingout at
hope ultimatelyof
in the
more
for.
pay
buy
bought
buy low
big profit,
to
a
income.
the
those
who
Tape speculators are
operate for
catch-penny profitsfrom day to day on margins.
They are as regularhabitues of the offices as the
themselves.
brokers
Averaging
stock
If
"
a
bull
90, and
at, say
will aim
to
the
is reversed.
buys
100
it goes
or
down
more
ten
shares
of
points, he
His stock then averat 80.
ages
buy more
If the stock goes
him 85, plus commissions.
to 8514, he can
get out just even, provided he has
interest
for carrying. All the stock
to
no
pay
85^ will be his profit. With the bear
goes above
and
case
it goes
average
up,
"
100
will aim
sells stock
to
sell
more
short
at
at
80,
90, to
down.
Margins
$1,000,or 10
each
he
If he
The
banker-broker
per cent., to
shares
he
buys
be
usually requires
put up as security for
for customers.
With
this
STOCK
4
margin
that
stock
of
banker
basis,the
a
as
$15,000, and
anywhere
costs
"
"
with
stock
all the
on
above
cost
addition, charge him
interest he has
to
if
Thus,
the
$1,000
deal
and
was
charged
closed.
In
stock
for
will carry
be
extra
on
market
customers
to
close out
Commissions
shares
Act
\
per
cent.,
sell,making the
Time
in New
interest
repealof
the
in time
cent,
gets badly
margin
will
to
take
his
save
to
good
missions
com-
$12.50
or
cost
of
a
turn
buy;
to
in
Loans
York
"
Although
is 6 per
the
100
legalrate
cent., since
the
the
of
Usury Law, relatingto call loans, by
1882, the banks can charge any higher
is scarce.
From
they choose when money
of January, 1884, UP to the first months
1st
1886, owing to the great plethora of money,
from day to day on good
loans were
obtained
at from
1 to
2x/2per cent, per annum.
rate
be
$25.
Call and
of
are
to
same
deal
brokers
5 per
a
the
until
some
on
on
interest.
and
the
the
interest
$10,000
If a customer
less.
margin, or even
more
"left,"the broker will demand
in that, the broker
put up ; failing
care
gency.
strin-
$10,000,
cost
with
of
rate
of monetary
credited
steady
a
legalinterest
margin, and, in
of stock
interest
$1,000
with
whatever
shares
100
the
on
or
He
customers.
the
in time
pay
would
customer
with
shares
ioo
$10,000
to
interest
debit him
and
he put up
buy
up
his
it for
carry
will credit the customer
margin
will
the
of
call
lateral
col-
At
SPECULA
TION.
had
5
$65,000,000 reserve
above
the 25 per cent, legal requirements, and a
total capitalof over
$160,000,000,that almost went
During all this time the
begging for employment.
all the money
brokers
could obtain
they required
from
thecatin
day to day at from 1 to 3 per cent, by hypothe stock
as
they carried for customers
collateral,or they could obtain time loans at 3 to
during all this time
; and
4 per cent,
per annum
6 per cent., thus
they charged customers
making
fat profitson both commissions
and interest.
Points
In
said to have
one
sense
prices are
advanced
declined
or
one
more
ing
or
points,meanpriceshad gone up or down one or more
per
the banks
time
one
about
"
cent.,
or
one
a
man
sense,
certain
or
has
stock
point
or
dollars per share.
more
the
will advance
pointer
a
point
on
or
that
In another
the
market
decline.
the
He
or
a
has
the
of
the
movements
market.
"
The
"
Street
brokerage offices
and
Wall
"Cats
dividend
raided
to
to
the
down
loaded
on
on
a
be
inflated
profitof
in the
like
the bulls
interest
"
or
of the
South
Sea
sold short
bears.
peculiar. If a
with
down
obligationsshould sell his
risingmarket, and make anywhere from
Liquidation
stocks
the
the
neighboring streets.
and Dogs," also called the Fancies, are nonpaying stocks, which have small intrinsic
Bubbles,"
man
within
exchanges and
speculativearena
the
value, except
and
the
means
in
Wall
Street
is
6
STOCK
ten, fifteen
to
one
would
he
be
not
the
through
he
should
ten
one,
always work
Washes
made
two
sets
is had
at
get
little
a
be had
a
values
to
condition
tend
to
to
"
the
wash
or
waste
under
or
bid down
stock.
various
ends
may
stock
priceswhen
stagnation and
away
bears
sell the
sustain
of
or
up
attain
inactive
an
be
brokers,
two
buy
to
A
expense.
quotation for
it may
is in
no
or
is the
to bid
one
washes
"
to
would
kind
of
loss
and
purely fictitious,
are
to appear
a
share, that
between
brokers, the
stocks, the other
Resort
a
Sales
connivance
by
of
share, that
a
sold at
stocks
dollars
Wash
or
are
his
and
liquidation,
and hope for.
Pure
Simon
order
fifteen
or
dollars
more
even
regarded as liquidation,
though
But
if,
proceeds to pay his debts.
of fear,when
distrust
influence
vails,
pre-
the
used
or
the
be
had
to
reported,or
the
market
apathy, and
offeringsof
Big bulls loaded with stocks may
is
have
overstayed their market, then recourse
often had to washes
to give the market
an
ance
appeararid activitywhile they are feeding
of firmness
their stocks to the fools who
out
are
tempted
values
also wash
real purchases. Bears
make
to
shake
down
out
to
long stock, and enable them
their shorts at a good profit,
to buy
or
to
cover
at low
in a good line of long stock
prices, preparatory
In a moral
to a boom.
point of view,
the system of stock washing is as villainous as the
tired holders.
methods
of
the
bunco
steerer.
Outsiders
must
SPECULA
$25
pay
shares.
other
by
brokers
for
having
stocks
shares.
free ;
sell for themselves
the
same
orders
two
of brokers
sets
lines
certain
down
or
executed
buying, and the
Brokers
can
buy or
grind on
prices up
selling 100
for
hence,
to
axe
wash
can
$4
and
$2
selling100
and
their
have
can
7
buying
turn
Brokers
for
same
each
on
TION.
of
for
free,gratis,
nothing.
Traders
Room
for their
orders
One
"
customers
for themselves
Room
the
and
Others
execute
and
do
both
operate
for their customers.
account
on
brokers
commission,
on
speculate themselves.
not
of
class
speculate solelyfor their
and the market
is what
they make
manipulating pools have no movements
traders
own
count,
ac-
it when
on
hand.
Stock
holder
time
Privileges are
receive
to
within
The
days.
and
limited
A
Put
stock
within
the
worth
50
cent.
The
The
stock
buyer
for his
can
certain
stock
at
any
period limited, usuallyto 30 or 60
tract,
buyer pays a fixed price for the conhis entire liability
in the transaction
is
amount.
entitles the
to
a
a
that
to
deliver
or
entitlingthe
contracts
the
maker
life of
at
holder
the
market.
buyer
must
recover
the
of
put
The
contract
put
say
decline
to
he
at
stands
46
the
time
may
be
46
per
read
$150 for the
below
any
stock
may
part of the
privilege. At 44^
deliver
or
privilege. A
pays,
any
to
contract
before
the
price he paid
to
recover
his
8
STOCK
$150,
all the
and
if he puts
profit,
his
A
Call is the
holder
the
at
price
his stock
of
reverse
the
demand
to
declines
stock
If
the
he
it goes
A
can
is both
market
is 50 at
the
and
he
price is 54, and
privilege,the stock
to
55-J before
All
55-Jwill
A
much
costs
his
or
purchase
down
to
a
in
50.
decline
to
can
All
the
below
the
double
44!
his
recover
goes
before
he
double
the
a
vance
ad-
or
purchase
44-J or above
and
ally
usuprivilege,
put, call,or spread.
straddle
The
he
can
is the
above
recover
If the stock
get back
can
current
privilege may
advance
must
money.
40
554
to
If the stock
call.
for
than
more
price named
market
price,say
$500. The stock
45
advance
tract
con-
profit.
The
below
a
at
50
If the
paid $150
he
is also
Straddle
is worth
cent.
him
to
put price is 46, and
must
stock
the
his
be
put and
a
call
money.
stock
the
purchase money.
his profit.
will be
5 5 -J-
Spread
entitles
the
recover
above
the
stock
be
right time.
put, and
a
market, the call may read 54 per
cost
$150, the stock must
before
the
at
deliveryof
named.
44I- will
below
55
his
or
cline
de-
part of
any
goes
cost
to
up
$500, and
60
all
60 or below
price goes above
40 will be his
profit.It all depends, however, on his closingout
the
the deal when
he has a profitin sightwithin
the
life of
the
contract
long his profitsmay
night.
;
otherwise,
if he
waits
disappear like the birds
too
of the
SPECULA
TION.
9
Stock
Privilegesare not recognized by the rules
But the makers
of the Stock
are
ally
usuExchange.
capitalists
abundantly able to make
good
their obligations.
as a protectionagainst
Speculatorsbuy privileges
fluctuations
in prices. Bears
wide
buy calls and
short
for
sell stocks
against them
profitable
Bulls buy puts and
turns.
go long against them,
and if
tain
badly left
they are protected to a cerextent
against losses.
central point of stock speculation,
The
which
on
"
"
the whole
the
business
purchase
of
sale
or
of
fluctuation
revolves, is the
1
per
shares
100
cent., up
or
fact
of
down,
that
on
stock, each
represents
gain,or loss,of $100.
The
broker
is simply an
agent acting for his
is always
principal. The ultimate responsibility
a
with
the
only
of the
failure
occasioned
whom
good
The
He
customer.
his
by
the
broker
of his
own
fraud
or
has
made
take
the
risk/not
broker, but of losses
failure of
contracts
others
with
for him
in
faith.
most
potent and
stock
"
must
speculation are
the
Tickers," and
electrical
"
indispensableadjuncts to
the
Stock
Indicators, or
News
Tape."
by which
These
are
printing machines
quotations
from
the Stock
and rumors
Exchange, and news
of good or ill omen,
gathered at the news
agencies,
are
instantlyflashed over the wires and reeled off,
in print,in all the brokers'
offices,as well as in
STOCK
io
and
the bar-rooms
where
restaurants
speculators
congregate.
is also
There
a
manifold
service, being
news
tissue paper,
or
slipsrun
letter-press
copies on
and distributed
through lightningprintingmachines
fast as news
is gathered.
as
by messengers
actual fact,
It is shrewdly suspected, if not
an
that these agencies are, upon
occasion, under the
subsidy of the big manipulators of the market,
have
who
their
Wall
by
a
is the
wired
from
from
all
cable
etc., carry
to
ther
fur-
order, to
of financial and
center
all
in
dismay
into
country,
The
the world.
over
defaults
the
over
or
cal
politiflashed
death
of
falcati
finance,big failures,de-
or
great in politics
man
out
calculated
interests.
Street
news
roorbacks
mislead, ground
lead, or
to
and
rumors
news,
interest
the
on
ranks
railway bonds,
of the bulls,and
Called United
correspondingly elate the bears.
States Bonds
by the Secretary of the Treasury,
of winning horses
and
time
at Saratoga*
names
and
Park
Cedarhurst, and
Brighton, Monmouth
of the international
the progress
were
yacht races
all noted.
The
difference
time
is five hours.
in the latter
Several
stocks
place
times
in London
difference
between
in
the
When
it is
it is 5 o'clock
a
York
New
io
A.
and
don
Lon-
o'clock A.
M.
in the
M.
mer.
for-
day quotations of American
are
rate
received.
of
By figuringthe
exchange it is readily
V
SPECULA
ascertained
there
whether
than
market
in
is
There
of
hit
they
they
the
papers
employ
of
a
Wall
feature
in
and
have
received
Evening
class
De
of
eagerly
$100
Wall
readers
Grimm,
the
a
Street
Telegram
by
"
has
than
artist.
ments
move-
miss
or
all
and
give
Rigolo,"
and
Some
In
"
the
He
and
formerly
was
devoured.
more
gossip,
gambling.
of
if
;
succession,
writers.
edition
Monday's
were
"
financial
paid
or
event.
papers
stock
bull
the
in
the
Street
the
hit
is
reports
for
Street,"
Sun,
The
evening
instinct
from
days
after
market
to
it
one
speculation.
forecast
three
or
prophets
extended
of
gossip
But
or
Wall
more
to
of
other.
interests
essay
two
always
pander
Out
and
lower
or
strength
the
or
and
news
morning
less
or
the
market.
right
are
The
the
of
dozen
to
standpoint,
The
that
by
higher
are
York.
half
a
stock
give
bear
New
devoted
dailies,
stocks
reflected
are
They
TION.
York
New
said
was
to
column.
"
column
more
the
interest
instructive
in
Saturday's
to
a
cartoons
certain
of
STOCK
12
II.
CHAPTER
THE
And
AMERICAN
(she's a famous
rumor
'Tis wonderful
Had
Wall
Down
few
had
He
tipped the
beaver
and
the worthies
of that
director
of
his rank
and
street
fixed
was
;
bank,
a
mixed
offices,and
his peers,
With
dry goods merchants, auctioneers.
all
grocers,
of all
religions,who
Delights in,
And
To
among
grades" stock and
'Change, that
each
cheat
at
pawn
the
the heart
is pure
neighbor
"
the
exception of
board
the
is not
New
on
room,
Wall
Streets,
between
Wall
consists
of
two
near
Jews
a
the
muse
and
course.
Fitz
long
Greene
New
centre
Halleck.
hallway to
narrow
York
Street at all.
the
warm,
force
legally,of
"
WITH
moral
his intellectual
exerts
and
"
noonday form,
brotherhood
where
his
"
;
director.
bank
one
Of
and
and
met
Familiarly,as
Brokers
On
all he
smiled
passed over,
six insurance
And
'
the broker
become
her)
Gelston, the collector,
brief years
Among
believe
rich, and
nodded,
Mr.
to
liar,yet
we
easy
was
street
All, from
A
how
whispered he
"In
BOURSE.
Stock
It is on
of
the
change
Ex-
Broad
block
Exchange Place. It
buildings of entirelyopposite
Street
and
STOCK
14
On
wall
the
back
board
present
the
time
Street
in
small
a
of
Brokers,
be
to
entitled
room
G. G.
Howland
The
Board
members.
adjourned
at
the
in which
book
stocks
then
not
were
At
what
Time
the
"
"
was
Prime,
"
met
Co.,
not
'em,"
of business
eighteen
what
known
was
James W.
Ward, James G.
the leading
among
at
A.
n
broker
No.
M.,
carried
and
There
small
a
but
and
dealt
and
transactions
was
stock
as
as
a
perhaps, would
"
little to
few
a
ance
insur-
in. Railroads
"
of
as
"
is uttered
hundred
appear
Co., Ver.
and
and
and
others.
instead
more,"
of
and
a
thousand
at
present in the height
times
on
now,
the
were
afterwards
Sands,
Townsend,
valuable
cry
Street
Ward
John
;
Nevins
Wall
42
Ward
King
short, jerky
take
with
prices current
then
Prime, Ward
milye
Stock
York
invented.
was
of
offices
in
Street.
the securities
were
was
New
were
recorded.
day were
record; a few shares of bank
occupied
called before
Wall
of the
present
it
over
Each
12.
and
business
a
the
in 1880.
Clarkson, Samuel
David
and
as
ness
busi-
Street
The
Jauncey's stables,in
King
for
New
refer
can
brokerage
way,
building on
Exchange, commenced
members, and met in
Bleeker,
stock
finished
Board
it claimed
as
"
buildingwas
the
and
The
galleryof the
Erected
legend,
the
the
when
started
was
1865
north
(1792); this, however,
to
Broad
the
is
room
MDCCXCII"
only
of
a
the
minute,
Mr.
King,
steps of his office
SPECULATION.
deliberation
with
had
the
and
these
price
that
In
transaction
the
of
uncle
the
from
and
would
be
of
a
stock, and
the
"
out
check
buying
for
the
sir."
est,
low-
very
take
the
three
days,"
lot,sir,
as
and
for
Ward
to
taken
as
was
possess
his
On
partner in
a
ing
King, and an amushis ignorance
illustrating
"
and
per
bule,"
Vesti-
du
Sam
late
poet, the
mathematician.
He
told
was
the
Roi
"
the
of
thought
was
purchase
price several
You
buy
may
them
a
matters.
broker
prominent
a
the
was
he
told
was
Street
of Wall
The
"
father
him.
Prime, Ward
anecdote
in
the
called
Europe
of
house
the
will
was
extraordinary abilityas
return
somewhat
concluded.
abroad,
educated
reply :
Crawford,
Blaine
as
dozen
a
acceptable,
disciple of Savarin,
Marion
words
few
understand
we
buyer
A
made,
lowest
we
Ward
the
Ward,
Sam
King,
case
was
Samuel
Mr.
be
he
ing
sell,nam-
to
of half
crowd
King would
Mr.
pleasure of
the
at
price.
the
be
to
"
Mr.
"
:
named
sir."
and
would
offer
an
terms
which
To
stock
the
among
that
announce
Bank
of shares
of consultation
in
States
number
listeners
dignity
and
United
some
15
entered
asked
of
20,000
it would
Then
cent.
20,000
me
the
office of
effect
the
what
shares
of
be
advance
said
to
Mr.
shares
a
tain
cer-
Ward
and
:
sell
again at the advance, sending me your
profit,"ignoring the fact that as
my
would
advance,
so
sellingwould
depress
I
6
STOCK
the
price,and
other
things being equal, no
profit
accrued.
One
of the
prominent old time brokers was
H. Hayes, who
afterwards
became
William
of the
Bank
State
of the
father,Jacob Hayes,
of New
famous
was
and
only Lord High Constable
York, who, befqre the time of
Captains and
elements
The
of the
Patrolmen,
as
ruled
dent
Presi-
York.
the
of the
Police
Mr.
His
first,last
City of
New
ers,
Commissionthe
disorderly
city.
Stock
until
it
Exchange had various abiding places
located
permanently in its present quarters.
first it transacted
At
sidewalk,
there
then
moved
1842 it
rooms
into
the
became
Merchants'
House.
in
It
remained
and
i860, when
and
from
there
over
old
which
is
there
William
the
from
In
Building.
rotunda
now
until
into
on
stable, and
Warren
the
it removed
to
a
in
located
Exchange,
its business
the
between
of
the
Custom
1850
Exchange Place,
Street.
Exchange purchased the premises
it now
which
Street and erected
occupies on New
the
has
a
building, which
present board-room
The
Street.
of
cost
frontage of 150 feet on New
the lots was
a
ning
$375,000 and included
strip runthrough to Broad Street 90 feet wide and 170
feet deep through the block.
each have
Boston, Philadelphia and Baltimore
their Stock
Exchanges, but the business done in
and magbears
ho
them
comparison, in volume
In
1879
tne
SPECULATION.
nitude,
done
that
to
17
the
in
great whirlpool of
Gotham.
A
sharp-wittedyoung
smart
who
man,
the means
to
buy a
just command
Exchange, is in luck. His seat is a
form
itself. Possessing a seat he can
with
needed
some
on
a
of
basis
a
division
a
the
receive
to
in
ship
partner-
a
of the
profits. The
offset againsthis partner's
is the banker, who
runs
membership is an
capital. The latter
Exchange
fortune
can
broker's
the office,while
in the
seat
furnish all the money
commission
ness,
brokerage busi-
who
man
found
to
but
can
broker
and
is
on
the floor of the
orders
execute
sent
to
him.
and
Large capitalists
tors,
speculativerailwaydirecdeal in stocks
who
by the tens of thousands
of shares, buy seats solelyfor the immense
saving
in brokerage commissions.
As
brokers
selves,
themhave
their orders
executed
they can
by
other brokers
for from $2 to $4 to buy or sell 100
shares,where as outsiders they would have to pay
$12.50,or $25 on each turn in 100 shares.
Hazing is practiced on the admission of new
On
members.
he
room
knocked
his
be
will be set upon,
off and
$40
coat
may
lucky if the
in the
spun
first entrance
his
melee
around
:
on
into
be torn
seat
he
his $10
kicked
down
hoisted
be
his sit-down
3
board
silk hat may
be
complete collapse;
the back
of his breeches
may
the
to
don't
on
a
until drunk
;
he will
give way
table
with
and
con-
1
8
STOCK
fusion
while
; he
some
the handles
a
to
the
grabs
of
and
his
through
thrown
broker
rollicking
the
around
make
be
may
wheelbarrow,
a
room
treated
doubtless
take
as
a
hand
a
his ankles
like
makes
animals.
full
in
him
He
looking as though
of wild
he will be
up,
his hands.
on
escape
cage
floor,back
From
dle
pad-
ly
will final-
he
had
been
thenceforth
fledgedmember,
putting the next
will
and
fellow
through the mill.
The
personnel of the Exchange are a splendid
lot of fellows,so
debonair, with a chic and esprit
de corps
by any other class of
scarcelymatched
business
men
anywhere. They are bon-vivants in
in wines, generallygood
high living; connoisseurs
witted
looking,dressed in the latest fashion,quick, keenthe
in a trade
to see
or
point of a joke.
colts,they
Jolly,friskyand sportive as so many
One
good price for their fun.
ing
looktime an organ
grinder,his wife and baby were
Street door.
in through the New
They were
seized
and
greatlyto
on
dragged into the room
are
willingto
their
out
showed
it
the
a
One
terror.
ground
When
pay
the
took
music, another
around,
fun
broker
a
was
third
over,
the
passed
organ
the
took
baby
baby
and
his hat.
around
and
and
organ
were
stored
re-
emptied of about $45 into the
left
of the latelydemoralized
hands
Italians,who
Sometimes
grinning all over at their good luck.
and once
of people in the gallery,
fun will be made
and
in awhile
the hat
the brokers
get overmatched
in
an
unex-
SPECULATION.
19
ang.
pected quarter, and their fun recoils like a boomerthe
A
spruce-lookingdarkey leaned over
galleryrail one afternoon
viewing the crowd below.
the floor below
of the
members
Some
on
spied
! yah ! and began singing,
him
and yelled, Yah
The
Hoe
dat Corn."
approval,
darkey nodded
and
fishing a nickel from his pocket, tossed it
down
The
stilled
them.
to
singers'voices were
"
"
"
of the
the rest
and
Brokers
crowd
on
of all classes.
are
floor howled.
the
Sunday-school
deacons, church
teachers, exhorters,
wardens,
laymen, society
OriginallyStock
and
dilettante
Exchanges
intendents,
super-
blers.
gam-
organized
were
to
public securities
the people by absolute
purchase and sale.
among
for good in
On first principles
a
they were
power
in opening up
promoting great publicenterprises,
sources
new
regions for settlement, in developing the rein aiding to provide
of the country, and
of industry in the building of railroads,
new
sources
canals,steamships,and in bringing to the
make
a
market
surface, for
Ostensibly
iron
the
its members
of
high standard
sharp practicesor
or
of
the mineral
public use,
silver,copper,
around
distribute
to
brokers
membership
and
coal.
rules
of
a
of
customers.
and
the
enormous
With
gold,
hedge
honor
excellence
advantage
and
of
Exchange
rigid code
commercial
unfair
the
wealth
and
a
against
ers,
brok-
between
the increase
growth
of
busi-
STOCK
20
ness,
abuses
short
sales
does
one
the whole
and
have
years,
in
of what
in
rightto sell,
moral
margins, in
on
has
and
own
no
ing
wash-
watering, stock
evils,which, for many-
of
train
Stock
Exchange,
greatest gambling hell in
York
the New
made
not
stock
truth, the
very
deals
crept in, in stock
America.
All brokers
not
are
mislead.
of fictions to
and
last
first,
principle,
there, however,
orders
to
sell short
the
class of them
values.
innocent
Herod
out
discount
money,
and
will execute
as
values
suckers
they
and
one.
only
draw
can
the
into
bottom,
their stocks
Often
fear
and
through
almost
at
their
raids
to
washes.
the
top
to
the
They go
destroy values
less
They doubt-
net.
mills,to fill the minds
rumor
with
victims
no
manipulators of the
They inflate or depress
sell out
to
and
subsidize
have
the
bankers, brokers,
millionaire
improvise fierce
prices on
by bidding down
their
for
They give out false pointers to rope in
people. They resort to tricks that would
Mephistopheles and fictions that would
Munchausen.
Gulliver and Baron
They
inflate
short
are
of their customers.
are
all rolled into
market
They
readilyas to buy
They leave the morality of
traders, operators
room
time.
stock
long account.
thing to the conscience
A
bulls from
are
all the
make
to
Many
ators
dissemin-
and
traders
room
and
induce
terror
the whole
distrust, that
them
to
of
prices
throw
over
of greater losses.
class of brokers
are
used
STOCK
STREET'S
"WALL
Wall
It's
At
fleece
The
Preferring
Rather
The
still
he
waited
And
To
brokers
For
But
they
still
And
What
The
Why,
And
at
he
cleaned
waited,
about
makes
the
Wall
wool
clear.
clear
of
out
"
the
Lamb'
Street
is
scarce
clean,
and
"
meat
starved
rounders
curious
out,
about
them,
"
him
near,
margins
were
hung
all.
lingered
got
brown
quite
patiently
his
get
The
not
brokers
eager
But
' '
than
down
fall,
and
done
be
to
stick.
to
followed
rise
every
took
sure
and
up
;
market
was
followed
Lamb,
thick
very
the
Lamb
With
little
a
was
turn
every
It
had
Street
LAMB.
;
and
lean,
street."
love
Wall
Street
so
cry.
loves
the
and
Lamb,
high.
you
"
know,
?
''
SPECULA
TION.
CHAPTER
III.
BANKERS
TYPICAL
AND
banker
YOUR
operations
true
of
23
is
BROKERS.
who
one
conducts
National, State
the
and
savings
have deposited
banks, and guards the money
you
of a bull dog.
with him with the fidelity
We
are
not
treatingof this class in this chapter.
It is the bastard
bankers
who
furnish
facilities
for
gambling operations on
margins and who
make
their profitsout
of commissions,
interest
and shaves.
They are the class we mean.
stand
less high on
more
or
Usually their names
and
makes
'Change, for they have money,
money
the mare
everywhere. In Wall Street,of all
go
places, nothing succeeds like success."
In true
one
legitimate business
gets, or
every
expects to get, value for value given. Too often
"
"
":
these
bankers
for the
ventures
Customers
make
no
put up
value
to
fellow
the
a
equivalent.
Win
or
commissions
and
have
of
win
gain
value
in.
go
for which
lose, the
to
themselves.
to
If
they
bet for which
a
they give
fellow.
If they lose, the
interest, and
nothing
into
customers
and
money
other
gets
lead
and
sake
mere
profit,
they
a
other
influence
show
he
bankers
too
in
often
return.
gives no
get their
the
tomers
cus-
All this
STOCK
24
is contrary
value
Wall
Street, with
bonds
railway
stocks, every
by
law
one
man
of
for
whether
gamble,
or
stock
In
of all the
his
transactions
bankers
are
and
town
cities
more
down
town
New
in
there
near
the
the
is
no
a
difference
brokers
a
stock
per
cent,
on
horse-race.
least
cotton
of
expense
ninety
It is the
same
in
futures.
have
their
offices
on
way
Nassau, Broad, Wall, Broad-
on
the
Some
have
branch
great hotels,
less distant, all connected
or
some
commission
commissions
at
Streets.
or
made
loss of
at
margins.
on
and
Place,
Exchange
that
pool sellingat
deals
the
at
rich
grow
oil,grain,provisionsand
Stock
speculation is
men,
Morally
on
investment
on
men.
makes
one
in
this business
victims.
of interest
exception
dividends
of
fat and
wax
their
of
set
or
the
made
set
or
It is out
bankers
and
dollar
man,
other
up
full value
give
to
received.
In
on
Divine
to
or
offices
in other
with
offices
the
by privatewires.
Some
of the most
in the market
powerful men
had their offices on
Broadway overlooking Trinity
Churchyard, so quiet so beautiful.
Only man
But
dead men
of the sharp
tell no tales
is vile."
sharks.
practicesof the conscienceless
money
The
offices are
with
often
fitted up
elegant
niture,
opulence. Rich carpets, rugs, soft luxurious furtickers,news
als,
tape, price lists,stock manuthe City Directory and the commercial
agency
"
"
"
"
SPECULA
of R. G. Dun
books
"
TION.
Co. and
25
Bradstreet, and
the
publications,
greet the eye.
Everything is inviting. Walk into my parlor,
all
bankers
are
says the spider to the fly." The
financial
"
Their
smiles.
Their
What
voices
and
do
we
for
soft and
are
of the
politenessis
can
ing.
purr-
kid-gloveorder.
to-day, Mr, Fitz-
you
?
noodle
the
have
We
for
good
a
hands
We
turn.
rise.
big
a
point
We
buy
can
that
stock
moonshine
advise
buying
that
shares
for each
100
you
is
for
commissions
Our
are
$1,000 margin you put up.
one-eighthto buy, one-eighthto sell,only $25 on
each
of
turn
won't
amount
made
a
minutes.
Your
above,
Fitz
So
on
make
ever
the
with
the banker
our
an
orificeare
talk is often
more
Small
soon
successes
one
or
two
office attendant
at
about
so.
tape speculatorand
gain of
a
or
a
yourself
Make
variations,sometimes
of the office.
If
like that ?
!
of
conveniences
becomes
customers
our
money
Yes, ah, thanks
order.
All
of
"carry"
profityesterday in twenty
disposal. In effect,the
your
as
you
interest to
One
much.
cent,
per
Did
home.
at
to
two
The
shares.
100
hanger
fatuati
lead to in-
pointsappears,
will admonish
profitsin sight." So Fitz is
be got in again.
got out
How
disinterested
but inwardly the banker
(?),
chuckles.
He
has made
on
a
$25 commissions
in 100
turn
shares, or $250 on a turn in 1,000
With
be.
shares,as the case
plenty of cusmay
him
"
:
Always
only to
take
26
STOCK
the bankers
tomers
No
risks and
make
losses
slick
as
money
as
grease.
them.
to
Chillingfrosts fill Fitz with fear,but if he
fat gander to pick, the banker
his clerks
or
him.
encourage
"
stocks
go
market
will turn
The
the
bug
If stocks
go
will
know
his
will
advise
to
down
;
go
you
and
don't
banker
never
stocks
and
up
tail,how
We
own
in time
fall of
a
within
to
from
"
was,
will
you
30 to
Hold
on,
all
out
come
right!"
or
three
market,
fluctuating
their lead through
long depression.
Union
two
100
will get
do
the
all
a
hint
that
the
close him
and
interest.
stocks
ers
bank-
some
through
Their
it.
will turn
market
per
to
cent.,
per
valuable
in
was
ruin to those
the
great bear
Pacific
his
and
right."
advice, while
Such
Take
the
from
his commissions
opinionated bulls
were
advice
on,
jump.
down
save
will
loss,
great depression of 1883-4, when
In the
had
to
all
a
a
head
exhausting his margin, Fitz
to put up
more
; failingto
money
banker
will take precious good care
out
hold
out
come
of
cent,
take
is
stock
as
an
a
moderately
followed
who
raids
the
and
illustration.
In
119!. In 1883 its
highest price was
104!- In 1884 its highest was 84!,
highest was
its lowest
and
$28 per share.
Many
price was
1882
its
other
stocks
declined
such
time
In
and
run
a
quickly.
the
In
in the
true
some
same
ratio.
policy was
instances
to
bull
"
run,"
houses
SPECULATION.
themselves
hundreds
by
who
Bankers
do
made
money
ers
custom-
carried
were
under
their
and
of
out
tomers
pessimistcusthe
misplaced
optimists.
brokers
cheat
not
into
get
houses
and
do
crash, and
thousands
bear
of the
confidence
the
in
leadership.
the
was
They
and
their
through
It
down
went
27
their
rob
or
there
are
a
Voutrance.
the
money.
But
all the same,
customers
through
make
to
for
influences
damnable
they
missions
com-
they
exert.
With
more
all their
less of them
or
Many
good
soft ways
are
adepts
are
devil, and
hard
in
smooth
and
palaver,
in sheep's clothwolves
ing.
the role of good Lord,
drinkers,
of
out
business
hours.
Their
chief
Aaron
with
to
would
they
of the
Golden
"
it to
down
Not
have
from
a
have
Calf,"
melt
Many have
fiftyyears.
victims
is Mammon.
god
into
up
been
In
been
in
that
are
in
the
down
in
of
hopes
to
worth
time
of
worship
getting away
shekels.
the
business
time
from
what
penury
!
from
half
twenty
multitudes
lured into their nets
comfort
few
bowed
In
a
and
of
dragged
million
to
lions
mil-
of
Some
to
dollars,still their greed is unsatisfied.
advertise widely (in effect)
for new
victims
come
to
the
shambles
for
the
periodicalsheep
shearings.
Often,
often
their
customers
are
cast
in losses
28
STOCK
thousands
of hundreds
and
shares, but
that
does
of dollars
not
voiced, smooth-purring and
Banker-brokers
value
on
each
ioo
signify to these
politerogues.
investors
in the
soft-
dividend
of their
according to the extent
chases,
purbut these buy for the income
and
only
Far
bring gristto their mills at long intervals.
above
them
the brokers value the margin customers,
whom
they can
manipulate in and out, and
for frequent commissions
milk
and
interest
on
stocks they carry for them.
the only perquisitesto the
Commissions
not
are
is a drug,
stock houses, for,in times when
money
borrow
at from
to carry
cent,
I to 4 per
they can
and charge them
6 per cent.,
stocks for customers,
pocketing the difference as profit. They have
make
other opportunities to
on
loaning
money
for voting rights when
and
customers
rates
are
napping.
No
more
ever
gambling system was
cunningly
payers,
devised
mulct
to
stock
market.
reach
out
of
new
the
for
fish to
new
victims, and
come
Customers
by
and
in
many
the
;
their
this.
of
the
Still they
net, like the
tacles
ten-
still
the hundreds
the
around
revolved
penury
on
know
that
they bait the hook for
paint bright argosies of good
the wings of ^Eolus.
octopus
an
things to
bankers
The
than
unwary
of
vortex.
outer
them
and
thousands
circles of the
have
Still the
have
strom,
mael-
disappeared
evanescent
to
mi-
STOCK
3"
Enormous
millions
fortunes
could
not
practiceswhich
are
of
be
rolled
up
short
nothing
hundreds
and
tens
in
decade
a
of
of
by
species of
a
robbery.
As
it
is,the
bankers'
brokers'
and
without
for
exception, offer
margin gambling in long or
masses
are
thousand
game
of
lured
in, and
the
dollars
they
chance,
and
bucket
shops
unlimited
short
few
facilities
stock.
hundred
The
one-sided
very
few
or
is all risked
possess
a
most
offices,al-
on
game
a
at
that.
In
from
the
5 shares
the
shares
deals
are
anywhere
singlequotation
on
a one
margin or upwards.
per cent,
Within
the past year or so the legalauthorities
York
and the police of New
and
Brooklyn have
been
stirred to unwonted
activityin breaking up
pool sellingon horse races, in closingpolicyshops,
faro, roulette and other gambling dens.
Put
all the
to
race
1,000
courses
at
in
a
the
United
States
together,then add to them all the gambling dens
where
of
poker, dice, faro, and similar games
the
total of
chance
are
sum
played for money,
demoralization
losses and
they inflicted would
scarcelyequal those entailed by margin gambling
in railway and
mining stocks, in oil,grain,provisions
and cotton, in the exchanges and
bucket
more,
York, Boston, Philadelphia,Baltishops at New
Oil City, New
Orleans, SanFrajicjsc^, St.
Louis
and
Chicago.
31
SPECULATION.
ducks
Lame
are
New
and
county
that
town
and
in almost
been
opened
State
in every
found
be
to
are
speculative
thickly scattered here and there all
and the neighboring cities. They
York
gambling
over
this
of
wrecks
and
has
every
up
to
settlement.
do
then,
Why,
themselves
exert
people
agitate the
to
of
enactment
laws
to
crush
to
margin gambling,
washing ?
evil of
right-minded
enlist
and
matter,
short
the
demand
to
this
out
manity
of hu-
friends
and
moralists
not
monstrous
and
selling,
stock
"
would
State laws
could
step
and
"go
all
enforced
gambling.
great god
pay
their
from
by
Mammon
of
to
other,
an-
National
estop margin
high priestsof
throat
the
of the
just share
into
star-chamber,
take the
to
State
arm
Union,
thumb-screw,
laws
Exchanges
the dance."
the
over
the
one
is the strong
And
State
line
with
on
is wanted
What
law,
the
over
avail,for
not
taxable
and
make
burdens
quisiti
in-
the
them
of the
people.
is the
This
against the spread of
is even
and anarchy, which
tion.
bloody horrors of a revolu-
antidote
true
socialism, communism
approaching
now
The
"
Knights
the
of
socialists,communists
same,
the
inevitable
direction,and
the
Labor," as a body, are neither
anarchists, but, all the
or
progress
reasons
are
of events
obvious.
is in that
STOCK
32
In
higher
classes
denied
to
other
from
and
profligatemonarchy, the
had
were
privilegeswhich
many
subjects,especiallytheir exemption
Common
people were
despised
under
France,
taxes.
yet made
to
and
affairs,
the
lay a
any
the
restore
convoked
to
and
XVI., wishing to rectifythis
Louis
to
all the burdens
bear
expenses
State.
of the
from
a
the
disordered
condition
of
state
Notables,
a
the
of
ances,
fin-
selected
body
To
them
it was
higher orders.
proposed
land tax, proportioned to property, without
refused
exemption. This the Notables
sanction.
rise to the
things and other causes
gave
in a revolutionary
bunal
triJacobins, and culminated
Marat
under
and Robespierre.
In the
which
Reign of Terror
followed,the
and
of the nobilitywere
king, the queen,
many
and the blood
brought to death by the guillotine,
These
"
"
of thousands
every
on
thousands
of
victims
flowed
in
part of France.
Formerly the rich and powerful kept the poor
in subjection by means
of the military arm.
A
serfs
largeportion of the people of Russia were
"
slaves of the
civil
The
war,
nobles.
there
Even
millions
were
uneducated
The
able
to control
march
of
of
at
were
and
superior ability,
been
at
in
home,
people
the
this
until the late
mercy
way
the
in
slavery.
of
men
few
of
have
the many.
events
within
recent
years
has
TION.
SPECULA
33
rapid towards the material improvement and
of the laboring classes.
elevation
trate
Money, everywhere, has a tendency to concenhands.
itself in a few
porations
Capitalistsform cor-
been
coal
work
to
iron
and
mines,
to
build
factories,railroads, steamships, telegraph lines,
the largestamount
They operate to secure
of profitat the least possiblecost.
They exact
of hours of work
for the least
the largestnumber
etc.
of wages.
amount
free
has
taught laborers
their rights,
and that they can
enforce their rights
Hence
they
by combining together in societies.
Education
have
their
Union
by
and
a
and
press
local district assemblies
and
National
a
General
Poor
a
Assembly
all
the
over
presided
over
Workman.
Master
people generallypay
they pay a grinding tax
in the enhanced
of
cost
direct
no
rectly
; indi-
tax
in increased
all the
rents,
necessaries
of
life.
Of
all
monopoly
of
combinations
Wall
in
millions of dollars
Street
capital, speculative
is the
filched from
are
worst.
the
Untold
people year
after year,
ment
to the enrichby trickeryand artifice,
of private individuals.
lions
Hundreds
of milin railwaybonds
and
other
taxable personal
and
concealed
from
property is kept covered
up
assessment.
The
real estate, and
the shoulders
burden
the
of taxation
landlords
of their
tenants
4
in turn
is thrown
throw
in increased
on
it
rents.
on
STOCK
34
CHAPTER
COLLAPSE
1880
FROMbig
a
The
bait
to
rise.
outside
A
BULL
the
1882
MARKET.
stock
market
had
had
Speculation ran riot.
in and
public were
biting at
the
eagerly.
fluctuated
Prices
realizations
like
in the
down
of the
crest
The
catch
his
OF
IV.
trough
head,
billows
of
the
of
the
sea,
now
down
on
now
ocean,
up
on
the
waves.
outside
on
the
purchases,
on
up
adventurer
and
alert trader
and
snatch
frequent profitsthat
and
lead
reckless
to
could
turned
infatuation.
collapse and the savage raids of
insiders
had
The
the bears
to
destroy values.
The
and
outside
sold out
heavily short.
gone
stocks
stranded
with
mostly bought
public were
best
left to get out
as
on
margins. They were
they could, or to follow their banker's advice to
held on
weak
hold on."
Those
who
on
margins
had
were
Many who
paid for their
wiped out.
stocks outright were
so
fearfullyroasted, that in
their holdings,in terror,
the end they threw
over
Then
came
the
"
at
enormous
losses.
The
following- table
shows
SPECULA
the
lowest
highest and
stocks
for the years
N
j
iM
"nin
T
I I
T
leadingactive
1883-4:
Ln
I
the
and
OO
""
wk^isj
35
pricesof
88 1-2,
1
CM3Q
I II
'
k/Hco
I
TION.
CO
(M
pi
I I I ! I 1 1
r-wHx.-c|"t"o|or"H^.-o|Tt.n|ci"H|^-i|(N
IX
I
1^00
t-i
rj-vo
^
!1
n
n
r^r^-o
h
TTTTT
11
"-
Ococo
r-"
O^co
'
urt
w
-1
O
cm
cnw
o
tmnN
cm
K
O
iT
1 1 11
ow
u-)^co
o
-r
m^H
mtow
-*NeO|00
I I M
I I I I I I M
KxHaHtHtwI-tf
H*
Hco
"""N-^MHoeol^
O
IJ
cm
moo
O
-i
00
o
O
"
II I
I *"o
cm
en
o
O
r-^
o
OOi-ii-icO"-iMNMOrJ-MMC"^-CaMOO
cm
oao
O
cm
r-~
-i
h
no
col-*
ci
to
Oco
c"-" -t
rf
r-^
O
i-
M
cm
i|"n
O
-t
"r"
eo|"w|eo"|'0"0|o("o|n
cm
coo
htnn
C)m
coO
on
m
.S
"
mO
O
O
CC|M"0|'*
t*- -3o
^
I I I I I I I I I Ml
I II
O
o
Hows|oow|^Hoo
H"
Ococo
no
o
co
"^
I I I I I I I
"JlcoHiNnlowsk"
r^o
1 1 1 1 I
O
oh
J
nno
t^w^o
win
O
moo
co
r-~
en
O
__
"C
c
CJO O
G xl
,
:
'3 W
C
"*
^
r-1
-
c
"
~
*-"
t:
a
x
g
"
o
a
PQJ
A
CONSCIENTIOUS
50
o
-2
OHI3
BROKER.
This
very
was
a
particularbroker was
gentleman and a
honorable
He
consideringhis business.
man,
not
mercenary
like his
partner, the
banker.
36
STOCK
The
banker
him
everything
buy
or
took
ravenous
was
sell, if it brought
risks
no
liked
the
business
The
of values
of the
in the
and
he
had
their faith to
any
never
his
was
long
prosperity.
and
stability
Pacific
and
stocks, especially
of
Many
the
backed
sharpest
York
in New
men
and
at
of
run
soundness
Granger
them
house.
He
it
pense
ex-
it.
long
a
business
shrewdest
the
for the
whether
did
Villards."
"
them
stock
But
market.
orders
he !
out
at
principle.
great faith in the
had
He
had
market
he
advised
the
to
on
of the
and
account,
But
advising purchases
bull
execute
to
short
or
side
bear
to
Not
averted
thus
not
a
was
else
his customers
partner
commissions
To
him.
himself.
held
were
broker, while
all times,
somebody
his banker
of loss of
The
for
sell for
or
losses
Many
commissions.
grist to
this broker
that
of ventures
into.
buy
to
Often, often
and
good
was
for
pinned
with
it up
their
money.
When
the
stocks, and
bears
their raids
began
exposed
the
these
corporations, these
would
not
They
believe
held
on
thirty,forty, or
faith turned
they
threw
hundreds
to
over
on
existing
in
rottenness
could
men
Pacific
the
and
not
it.
through
more
per
a
decline
cent.,
of
and
twenty,
then
their
distrust, doubt
to
conviction, and
stocks
at
losses
their
of thousands
and
millions
of
tens,
of dollars.
38
to
STOCK
of
customers
Not
unfrequently
from
ventures,
he
would
loan
of
the
they
of
of
of
manipulators
orders
insisted
the
to
as
bears
in
a
he
general
had
and
corner
for
day's
one
would
denounce
"
as
squeeze
on,
result.
on
$400
say
stock,
the
customers
were
fear
caught
rate
disastrous.
so
dissuade
were
got
shares
100
been
with
customers
loaning
a
pay
if
the
them
his
;
had
would
if
and
of
principles
house
he
execute
Some
to
the
thieves
and
robbers."
He
did
is
not
replied
of
out
go
"
:
still,
broker
a
I
cannot
and
business
help
he
as
it,
asked
being
on
I
have
why
expected
no
other
he
to,
he
pation."
occu-
SPECULA
TION.
39
.
V.
CHAPTER
BANKER-BROKERS.
MANIPULATING
with largecapital.
they are men
On
form
occasion
combine
a
they can
other
and
millionaires,and make
capitalists
million dollars to
pool of fiftyor a hundred
GENERALLY
with
a
up
market.
the
boom
combinations
Such
advance
prices
confine
themselves
times
"
"
they
at
powerful. They
will.
their
Sometimes
can
they
certain
to
include
all
are
at other
specialties,
the whole
speculative
almost
list.
To
begin,they talk down
prices and encourage
short
outside
selling. All this time
they are
dend-payi
quietlypicking up block after block of good divistocks, as
When
prices
take
they can
for
train
All
an
low
are
weeks
boom
stock
the
months
or
being ready, the
a
and
for
a
future
ment.
move-
market
to
get
is dull
thingsin
advance.
factor to circulate
and
basis
a
in
news
and
news
prices.
houses
prices begin to
point by point.
is
mount
The
more
agencies
rumors
made
of bull
fraction
and
a
pools
buying through
open
up
are
ous
vari-
decided,
by fraction,
STOCK
40
The
bears
to
run
At
the advance.
on
allowed
be
may
Things
weeks
to
down
sag
in this
remain
may
purchases help
points,or so, up, prices
ten
to
the
encourage
their
and
cover
under
realizations.
position one
bears
to
or
more
fresh
out
put
lines of shorts.
The
have
trouble
no
keep good
A
good
another
take
per
their
pools loan
The
freely.
borrowing from day
in
bears
day
to
to
their deliveries.
short
interest
advance
to
stocks
is
the
started, and
This
cover.
been
having
bears
prices
put
may
roped in,
again
1
up
5
or
20
cent.
The
insiders
begin
trade
to
sell hundreds
They
at
the
be
circulated
their
on
thousands
or
of
ings.
holdshares
let
off from
two
to
prices run
five points. Then
they buy back their stocks
bottom.
at the
They repeat these manceuvers
from
time
time.
will
to
Then, perhaps, rumors
a
top, and
further
that
advance,
unloading. Every
the
encourage
plenty in the
the asking.
A
short
hundred
loaned
thousand
stock
is
big
"
men
is thrown
and
for
are
out
Stocks
be
can
had
to
are
for
METHOD.
PIRATICAL
of
"
sell short.
crowd,"
loan
interest
the
inducement
to
favorable
not
are
that
or
bears
"
A
times
from
shares
suddenly
one
to
three, or four
having accumulated,
called
in.
In
one
or
SPECULATION.
41
the bears
borrow
stock to
can
no
specialties
keep good their deliveries,except at a premium.
The
is a corner.
There
loaning rate for a day or
each
be
two
100
one-eighth or $12.50 on
may
more
shares.
Timid
rush
bears
hold
ones
price of
The
The
over.
in
out
the stock
to
at
cover
the
hopes
advance
in
is
run
up.
loss.
a
Stubborn
"
"
squeeze
or
one
will pass
stocks
more
market, and the entire list
strengthens the whole
goes up in sympathy.
the loaning rate is
In the height of the squeeze
day on
to, perhaps, $400 per
suddenly run
up
100
shares.
obstinate
bruin.
each
This
much
is too
There
is
a
bear
for the most
panic
and
they
Prices advance
five or
pell-mellto cover.
their purchases in buying in the
ten
points under
stocks they sold, but did not have to sell.
The
bulls are now
unloading at enormous
its,
profThe
and getting a big loaning rate
besides.
who
bear
regular cannot
buys stock
get his
he
until the next
stock
day. In the meantime
borrow
to
must
keep good his delivery. The
stock he borrows
the next,
one
day may be wanted
rush
"
"
and
he
must
return
it and
get
a
loan
somewhere
else.
He
can
loaning
close
out
his
deal
and
for that
avoid
"
the
"
high
stock
day, by buying cash
for immediate
With
this he
delivery to him.
makes
his final deliveryand
is free.
The
ence
differin price between
cash
and
that
bought
rate
"
"
STOCK
42
"
regular,"is
All these
stock
board
sometimes
from
transactions
of
fixed
are
five to
six per
borrowing and
through the broker
cent.
ing
return-
in
the
room.
ANOTHER
PIRATICAL
METHOD.
In 1882
its
stock reached
Oregon Trans-Continental
highestapex, 98 j. Up to July, 1883, it ranged
up
and
down
that
between
great bear raids which
of
1883, and
price of the
Continental,
and
"
into
75I-.
during the
1884, the
In the
latter part
fall in
the
stocks," viz.,Oregon Trans-
Villard
Northern
Oregon
in
set
continued
price and
and
Pacific,common
Railway
and
ferred,
pre-
Navigation, was
fearful.
One
afternoon
"
O. T."
closed
at about
45, and
figure. The
morning at the same
bears
had
organized their forces, and a vigorous
raid set in againstit. It went
down
by fractions,
quarters, halves and whole points between
tions.
quotaopened
next
Frightened
them
out
until
at
holders
market.
it reached
margins
30.
ordered
Down,
Ten
their brokers
down
and
went
fifteen
the
per
to
sell
price
cent,
wiped out like magic.
When
suddenly, as if by the interposition of
stayed. The
swift-wingedMercury, the raid was
were
bulls flew to the
the
Board
fast
rescue.
and
Buying
furious.
The
orders
bears
came
into
wavered,
SPECULA
turned
to
Up,
until
down,
The
41.
recovery
an
hour.
the
sold
$11,
all
a
bids
there
price
as
fever
fall
within
each
over
while
buying
had
stock
of
their
the
went
up
43
jumped
demons
had
they
stocks
almost
cover,
like
yelling
TION.
of
the
to
the
recover
yet
was
fast
other,
as
it
a
had
exhausted
$15
short
a
profit.
gone
itself
share,
space
at
and
of
a
half
STOCK
44
CHAPTER
SURE
POINTS
METHOD
"
PYRAMIDS
JENA
"
VI.
OF
"
A
ROTHSCHILD
AUSTERLITZ
"
THE
MARENGO.
"
the
prestige of military
became
the terror of Europe.
success
Kings
and potentates trembled
at the magic of his name.
interests were
Financial
fearfullydepressed.
The
disastrous
Russian
campaign, the retreat
from
Moscow, his troops impeded in their flight
decimated
by intense cold and
by deep snows,
flank and rear
the fierce attacks
on
by the hardy
and the Volga, left him
but
of the Don
Cossacks
I., by
NAPOLEON
the
of
remnant
values
fresh
raised
a
all
the
on
and
for
a
time,
of 350,000
army
of
and
Napoleon
hazarded
the
he
was
sians
Russians, Prus-
Austrians.
consigned
him
for
Europe
ally
eventu-
Leipsic,where
the collision with
the temporary
Then
and
until
men
entry of the allied armies
The
funds
revived
great battle
in
crushed
army,
his ruin.
caused
Money
demoralized
a
a
became
rallied
collapseof
to
time
exile
on
the
into
French
was
tranquil. Stocks
with buoyancy.
caused
empire
the island
confidence
Paris
of Elba.
restored.
and
and
All
government
46
STOCK
Machiavel, cunning as Tallyrand,
Crafty as
ing
Rothschild, inwardly chuckling,outwardly assummien
and
serious
a
gloomy tone, talked
dubiously of the fortunes of war, while covertly
his confidential
he spurred on
agents to buy up
consols
all the stocks and
they could
lay their
hands
upon.
information
His
arrival of
was
couriers
a
from
day
in
advance
Duke
the
of
of
the
Wellington,
of the
they did arrive with the news
of Napoleon
there
tremendous
downfall
was
a
rebound, not only in public feeling,but in the
of
which
this
value of
securities, out
thrifty
Red
Shield
of
reaped a harvest
knight of the
of pounds sterling,
millions
in a trice.
almost
and
when
"
"
A
Nowhere
upon
and
were
BOURBON
the
METHOD.
uncertainties,always
finance, greater
excitements
than
under
the
ing
follow-
surprises
and
tween
intervening bethe first and second
French
empires.
The
succeeded
empire was
by a kingdom, that
to
new
by a revolution,which
a
king.
way
gave
Then
succeeded
to be
came
a
quasi-republic,
by
d'etat of Napoleon III.
the coup
Among so mercurial a people the health of the
sovereign had a most
potent influence on speculation.
The
bare
anticipation of a change of
rulers
between
gave
the
rise
attending
to
fears
of
internal
revolution
the Bonapartists and
legitimists,
the
SPECULA
republicans, and
stock
market.
Kings
and
princes
class.
financier
with
immense
take
and
his
out
of the
short
No
He
and
his
doubt
hourly
bulletins
physicians
the
in
would
from
growing
he
adroit
as
and
secretly
high
were
heavily
went
would
any
as
money
prices
any
as
feign
illness
bed.
the
criminis
was
speculated
rentes,
Then
market.
to
of
When
stocks
ticeps
was
Philippe
success.
ing
depress-
great gamblers
as
time.
in
factor
acquisition
his
of
sold
he
the
in
crafty
and
are
Louis
King
47
powerful
a
was
the
other
riON.
bad
of
his
court
deception.
be
sent
to
worse,
were
par-
Daily
and
The
out.
from
King
dangerous
critical.
to
down
Down,
the
At
rentes.
order, quietly
large lines
The
would
both
would
recover
by
of
he
But
what
they
known
the
next
for the
would
he
pirate ?
been
deal
would
appeared
his
had
long
be
subjects
been
his
at
bought
up
account.
the
The
King
profits
on
princely.
the
before
shouts
and
agents,
and
stage's.
with
stocks
consummated
easy
greeted
his
shorts
his
securities
having
be
a
covered
of
price
time
proper
trick
When
like
of
sides
the
went
of
have
through
"
populace
Vive
le roi."
thought
their
he
had
pockets
48
STOCK
CHAPTER
VII.
PRESENT
IN
these
days of electric telegraphs,telephones
travels fast. Still the
railwaytrains news
and
insiders
in the
less value
in
before
On
market
ample
get
time
to
the outsiders
fluctuations
have
METHODS.
news
and
act
allowed
on
cards
who
then
are
the
ready
to
more
or
their information
half
a
chance.
points,the
before
it ; and
generallymade
are
five
to
one
played the winning
get the
it,they
discount
are
of from
points of
sure
the
outs
ins
can
if
they do act on
siders,
dupes of the inrealize profitsat
their expense.
Often
of
as
half
a
dozen
different
many
companies.
of
They
have
advance
directors
and
graph
tele-
information
affectingtheir corporations,whether
dends
earnings are increasingor decreasing,if divi-
matters
the
are
to
be
capitalists
may
railroad,steamship
occur
There
to
be
in the
reduced
payment
or
passed, or defaults
of interest
on
are
bonds.
less number
of specor
always a more
ulative
capitalistsin the National
Legislature.
During the sessions of Congress, bills,affecting
of indebtedness
steamship subsidies, the extension
are
of railroads
to
the Government,
the
confirma-
SPECULA
tion
allowed
railway land grants, etc., are
from
one
or
drag along for months
to
session
49
of
forfeiture
or
TION.
another.
to
the Washington:
Cipher dispatchespass between
and their
in and out of office,
ring of speculators,
York.
Leading operators go
copartners in New
to the Capitol on
stock-jobbingmissions.
that this bill or that
Presentlythe news
appears
bill will be
Senate
House,
or
unfavorable
or
is
called up
a
on
action
led in
are
The
bill
comes
often this
The
market.
or
go up
public
go down
bills.
on
after
time, and
some
the table, only to be called up
for
future times
final action
before
it. Too
be had
in due
up
the
favorable
Stocks
to
before
or
date, and
upon
stock
action
juggleryis laid on
again and again at
purposes,
had
short.
long or
expected
the
on
committee,
certain
a
affect the
to
ruse
in
stock-jobbing
and
is had
the bill disposed
of.
Those
who
buy
or
sell for short
find the effect is discounted
turns
generally
in advance.
to
ojaler by
Pointsajidtjr^axe^majiufactured
Sometimes
^financialwriters.
but
to
more
be
often very
steers
are
for
straight,
the public
guided by.
PANIC
The
crooked
they
Pacific
IN
PACIFIC
MAIL.
Mail
Steamship Company had a
for carryingheavy
$95,000 per month
subsidy of
freightaround
to
California
5
via
the Isthmus, for
ST0OC
50
Union
the
had
a
and
largesubsidy
the
In
Central
Pacific Railroads.
from
It also
Government
the
for
rying
car-
S. Mail.
U.
the
Spring of 1885 the stock had been
boomed
up to 63, then the pricefell back to about
58, and people were
tempted to buy it. To the
writer's knowledge one
with large
connected
man,
shipping interests, bought 500 shares of it just
before
the
The
that
the
the
the
to
the
morning
next
papers
notice
close of business
Union
P. M.
news
in all the
was
Pacific
had
Company
city
given
of the withdrawal
S. S. Co.
month's
subsidy in one
by a notice
afternoon.
one
This
time.
Central
from
the
business
of
lowed
fol-
was
Pacific to
the
morning
the
effect.
same
At
news
the
opening
of
all
"
was
over
the
that
Street," and
there
was
a
and
panic to get out of it. Bulls threw it over
It was
bears pitched in and sold it heavily short.
of the stock of the par
said that fullythree-fourths
value
of $20,000,000 was
thrown
besides
over,
what
the
bears
days
two
sold.
and
of
them
of it.
63
to
to
Central
what
sell out
This
58.
tumbled
in
about
46J.
to
Subsequently it was
disputed that certain
in Union
Prices
was
openly charged
accounted
never
in Pacific Mail
directors
Pacific
had
coming
in
their stock
and
time
to
mation
infor-
enable
heavily short
previous drop from
and
for the
advance
and
go
SPECULATION.
The
springing of such
public only illustrates the
Wall
Street speculation.
Afterwards
mine
a
on
heartless
loss of its steamer,
the
valued
Tokio,"
51
character
of
the
of
City
"
Yokohama,
$1,250,000, near
at
confiding
a
mail subsidy,
Japan, and the loss of the Government
Vilas,
by the action of Postmaster-General
added
troubles.
to the Company's
who
The
man
bought the 500 shares mentioned
with
held on to his stock and eventuallycame
out
the
of 1885 the paysummer
a good profit. In
ment
of a subsidy by the Pacific railroads was
and
resumed,
to
fall the
in the
stock
boomed
was
up
70.
In the
spring of 1886, on the breaking out of the
Trans-Continental
troubles, the Pacific railroads
again broke
1887, it has
freightsubsidy,and
the
been
not
the
loss of another
the
Pacific coast,
said
was
the
so,
loss
The
a
Pacific Mail
has
had
other
From
paid
1884
dividends
Taking
the
stock
"
also
The
$250,000.
at
its
suffered
Honduras,"
steamers,
own
five per
on
pany
Com-
and, if
dividends
cent,
January, 1886; since
have
been passed.
to
long
course
stock
has
of
been
years
the
as
most
a
1865, down
to
the
on
which
criterion,
erratic
fluctuations,in price,of
the speculativelist.
.widest
on
the
March,
to
total.
was
from
the
time
insure
Company
its stock
valued
to
It
resumed.
steamer,
up
and
any
present time, its price
STOCK
52
has
been
share.
think
Just
time, and
at
one
at
another
so
railroad
him
to
comment
from
rob
which
way
the
their
as
if
good
This
whitewashed
of
reason
had
opinion
of the
the
a
less
than
to
a
of
a
And
and
able
are
never
of
society
cover
position
happened
posal
pro-
plot
yet
influence
to
their
go
lower
them
in
world."
afterwards
was
newspaper
pretences.
gives them,
wealth
by
false
and
their
!"
the
under
creditors
honest
sell
to
following
to
the
depreciate
value
nothing
was
nothing
matter
real
admitted
It
by
men,
the
had
of
rascally suggestion
involving treachery
these
creditors
their
tively
posi-
very
management
force
more
men.
the
certain
a
capitalists
apparently
forth
persons
honorable
saying
as
to
less than
"A
:
let
thus
brought
to
stuff
same
of
speculative
order
and
President
quoted
to
in
much
at
the
ago
was
down
This
shares,
100
the
for
a
METHOD.
certain
property
came
long
that
run
claims
$10.37-!
for
$32,900
only $1,037.50
company
proposed
the
it ;
SPECULATIVE
very
"
road
of
and
$329
time.
A
Not
between
anywhere
committee
inquired
of
the
into
State
and
lature.
Legis-
STOCK
54
high-salariedclerks
month
had
and
day
in
the
expense
the
"
of
but
enormous,
lunch
sumptuous
a
large room
a
book-keeper got $400
of
rear
firm.
the
so
the
at
served
Their
the
clearing $20,000
standing on the brink
every
office at
expenses
their business.
was
The
month,
but
do,
he
a
were
partners
they were
of a precipice. Flood
marked
reand
that other
outside
speculators were
manipulating certain stock preciselyas his own
were
would
This
brokers.
thing would
of
the
in
was
and
detected
of
and
without
foreseen
the
and
Then
and
the
from
began
to
Austin
decline.
mansion
on
$500,000, to
swell firm.
and
I don't
his hand
on
At
Then
the
the
could
came
a
firm it
of
fortunes
grew
Oakland, which
prop
not
tion
transac-
but
to
was
the
ently
apparside
out-
same
up
last it
believe
Mr.
$200.
I
saw
the
was
broker,
Walker
"
and
sold
cost
Co.
worse.
a
him
nificent
mag-
close
waning glory of
a
Walker
him
camp.
their
worse
Walker
suicide.
in
he
unless
Walker-Austin
Matters
committed
tor
trai-
a
investigation was
people changed
hour
this
kept posted,apparently,
in
bonanza
that
that
relations
bonanza
were
traitor
some
sultation,
con-
a
was
anticipated by these
brokers, who
by
there
ordinary importance,
disgust of
intense
called
firm that
and
earnest
avail.
than
more
; that
fired their
Close
made, but
do
not
so
Walker
the
somewhere,
camp
continue.
never
informed
and
sort
a
clean
case
the
of bust,
to-day could put
looking wistfullyat
SPECULATION.
Bank
the
Nevada
the
different
when
book-keeper
but
is
clothes
is
have
had
With
a
locality
the
past,
dime
to
dozen
the
on
would
a
small
Street
fanatics
who
discovery
A
and
if
who
await
of
saw
the
another
an
great
not
cling
of
there
and
money
bonanza.
fifty
pulled
some
the
a
credit
or
have
are
in
decade
a
dozen
a
to
not
get
opening,
coming
Street.
fortunes
little
a
a
who
have
few
there
have
they
lost
names
for
champagne.
stake,
still
them
their
for
Pine
on
could
guarantee
yet
speculate
the
"
of
cases
with
out
few
sufficient
were
ago
when
lager,
day
of
he
and
others
of
and
and
ers,
employ-
Oregon.
wrecks
nine-tenths
with
his
month
a
hundreds
made
He
high-priced
treachery,
$50
these
they
speculate
of
sold
their
and
fatuity
though
glass
a
chance
where
He
Portland,
of
type
a
the
at
in
firm.
that
his
and
member,
bonanza
of
came
books
but
strange
the
late,
dealer
their
the
traitor.
ever
keeping
Walker
for
the
luck
to-day
of
comparing
the
Flood,
too
was
no
Hebrew
of
ex-member
discovered,
probably
building,
states
the
Walker,
55
and
not
Messiah
a
56
STOCK
VIII.
CHAPTER
PACIFIC
NORTHERN
FROM
the
the
inception in 1864 to the drivingof
the completion of
golden spike on
construction
of the
line in 1883, the
Pacific Railway was
attended
by a
its
"
main
Northern
series of
RAILROAD.
"
misfortunes
all who
to
meddled
with
it,
unparalleled in the history of railroad
building. In the magnitude of losses inflicted on
and
innocent
Credit Moconfidingpeople, the
bilier" was
completely overshadowed
by it.
In the beginning the most
ments
enticing advertisewere
kept inserted in the leading secular
and
religiousnewspapers,
settingforth the safety
of interest on
and
its
certaintyof the payment
almost
"
bonds, which
and
accrued
The
were
offered
interest
at
to
7-30
investors
per
at
about
92,
cent.
savings of clergymen, widows, the
of orphans and
others were
drawn
into it.
estates
had money
of people who
to spare
Large numbers
were
cajoledinto the investment.
first issued was
Interest on the bonds
paid from
the proceeds of other bonds
when
sold, and from
small
sales of stock.
In
1875 the Company
defaulted
in the
payment
SPECULATION.
of
the
and
interest
57
road
The
A
$1,400
issued
Those
for each
who
to
paid
In
was
stock
It
a-
the
past due
interest.
interest
of
from
that
time
bore
no
of
now
this has
to
nTV
and
chief
of
much
President
building
in the
overwhelmed
not
was
so
in
promoter
attending the enterprise.
After
the foreclosure,the
this
became
man,
cent,
per
income.
cumulative
rich
very
himself
was
their
whatever.
preferredstock, but
equivalent to the issue
which
interest,
livingexpenses
scrip dividend
Jay Cooke, a
the Company
the road,
and
the
was
stock
new
on
which
cient
suffi-
not
were
bought in the road,
preferred stock was
necessary
income
no
1883
paid on
new
of
take
pay
closure.
fore-
out.
$1,000 bond
to
them
cash.
of
depended
investments
had
value
par
under
past due
and
of bondholders
committee
and
the sale
proceeds of
bonds
to satisfythe
the stock was
wiped
hence
sold
was
Company
disaster
was
ganized,
reor-
the
and
tinued
conbuilding of the road was
with money
obtained
by the issue of new
and
land
sales.
bonds, stock
proceeds from
The
road
had
Government,
in
the
States
an
enormous
equivalent to
and
25,600
land
12,800
acres
grant from
acres
per
per
mile
in
the
mile
the
Territories.
Its stock
is nearly$40,000,000
now
capitalization
of preferred and
stock.
$49,000,000 of common
Its preferredstock (atpresent writingworth
about
58
STOCK
60) is received
of the
at
in payment
par
River,
Mississippi
The
senseless,crazy
in
in the
1
88
Oregon
The
basis
and
be
of
better
of investors'
the venture
the
Money
Railway
President
conceived
was
to
of
earned
of
wanted
to
idea
of
lation
specu-
which
ried
car-
Oregon
which
had
no
rich
State
porting
trans-
of
Oregon.
Northern
Pacific
Villard
became
obtain
to
way
Railpetition,
com-
dividends
push the
completion. Henry
the corporation,and
the
bull
than
the
was
the
canceled.
money.
handsome
products
east
illustrated
mania
NavigationCompany,
and
stock
of the
Trans-Continental
millions
away
the
and
character
cannot
1-2
for its lands
money
Construction
Company.
So the Oregon Trans-Continental
Co. was
brought
into life with
a
capital stock of $50,000,000, of
which
$40,000,000 was
issued, and was
eagerly
grabbed for.
Villard
got all the
a
he
money
needed
from
the
proceeds of the sale of O. T. stock, and bought up
Pacific
Oregon Railway and Navigation,Northern
and preferredstocks, until the control of
common
those
the
secured
companies was
O. T. Co., with Villard as
and
transferred
President
to
of them
all.
O.
The
cent.
per
nTV
to
per
pay
All
of 10
paid dividends
of
N. P. preferredpaid a scripdividend
cent., and in January, 1883, O. T. began
R. and
dividends
these
N.
stock
of 6 per
stocks
were
cent,
in cash.
enormously
inflated
in
SPECULATION.
59
O.
The
highest prices were:
163J; N. P. preferred,103-f
; N.
O. T., 95J.
and
1882.
The
Villard
was
a
on
of
his
brought
But
at
was
of his fortune
was
them
.ing.
But
sell
to
in the
hold
to
long
Villard's
as
And
dividends.
could
has
O.
on
that
be
The
the
armor
out
in it.
the
and
had
O. T.
N.
the bulk
advance
for the
and
10
askeven
obliged
getting
was
on
its
a
Villard
publicwere
R. and
to
dream.
a
its bottom,
of
cent,
per
N.
P. preferred
ings
reported earn-
construction
exhausted.
its tether
were
Oregon
Confidence
was
reached.
no
earnings
public to buy surplusage of
no
was
rial
mate-
road.
own
burst, there
only
not
dividends
any
purchasing power
of
like
impossible,because
for transportationof
was
end
was
Railway
quotations
up
purse
entirelydependent
The
P.
insiders
discovery that
the
on
for its
The
market
whirlwind, and
reached, when
was
were
N.
away
money
every
were
the
on
expense,
the
to
swept
was
easy
as
stroke.
master
a
the
fearful
a
but
confidingpublic,
himself was
caught
It
54!;
completion.
to
it
N.,
P. common,
was
stocks
successful,and
and
and
financial horizon.
the
star
manipulation
adroit
O. T. stock
of
issue
R.
bears
had
of the
was
The
gone.
bubble
for dividends
The
had
and
stock.
points in
corporations.They made
tal
capi-
nosed
of these
nental
Trans-Conti-
fact that
out
a
all the
weak
great part of the
road
60
STOCK
built
was
through
fifteen
years
growth
of
in
wilderness,and
a
advance
of
the
built
settlement
profitablefreightbusiness
a
ten
to
and
along its
line.
The
Northern
Pacific
built
was
eastward
from
and
Portland, Oregon, and westward
Puget Sound
from
The
ends
two
of
Superior City, Wisconsin.
the road
met, the last rail was
laid,and Mr. ViL
can
lard, accompanied by a junketing party of Ameriand foregn capitalists,
went
celebrate
out
to
the
September 8, 1883, by the driving of
the last
a golden spike.
like driving a nail into his own
It was
fin,
cofmore
for the bear organs
the whole
were
filling
ulative
specatmosphere with blue ruin and disaster to
these specialties.
event
on
"
In
the
getting
were
except
set
fore
part of
in the
it could
and
not
N.
had
end
declined
with
until it had
of the
to
insiders
outlook
liquidation,which
such
run
values
undermined,
was
other
no
September
be checked
until at the
stock
was
continued
last half of
Confidence
away,
There
out.
severe
September, 1883,
year
90 ; N.
its
course.
crumbled
1883 O.
P.
energy
R.
and
preferred to
to
23^, and O. T. to 29-^.
49! ; N. P. common
in 1884 and
Liquidation in these stocks continued
the lowest pricesreached
O. R. and N., 6of ;
were
N. P. preferred,2"7i; N. P. common,
14, and O.
T., 6J.
Dividends
on
O.
R.
and
N.
were
reduced
to
6
62
STOCK
is the
and
of
Superintendent
Methodist
a
day
Sun-
school.
luck
His
his
and
has
has
market
have
moves
he
that
the
in
been
been
been
bold
so
much
as
His
phenomenal,
successful
and
central
a
has
fortune
figure as
all been
made
.
in four
years.
1880, he
Wabash
sold
did
and
was
he
down
stock
to
faster
money
before
short
up
the
"
not
reaction
beginning of the decline in
worth, perhaps, $100,000. He then
at the
96^
top figures around
until 56 was
touched.
On the
cover
short
the
went
again and followed
At
about
he
the
May
his stocks
the crash, and
to
he would
he would
town,
$250,000
The
in the
He
went
While
Had
have
to
picked
Paul,
Lackawanna,
and
has had
remained
in
profitof
and
an
the last of
market
the
out
last rise and
was
the
his shorts,
out
additional
an
bull the
in the
never
was
away
had
touched
stocks
He
if he
made
profits.
Union
was
kept
done
showed
Western
He
deal.
he
he
priceswere
and
made
smash.
started
afterwards,
that
in
have
men
He
ered
covpanic last year.
a profit
a few
days previous
to Philadelphiato attend
a
have
lowest
1884.
did
at
religiousconvention.
panic took place.
which
Few
3^.
than
"
He
June,
immediately
stocks
was
wards
after-
that
loaded
up
with
great gains in St.
Pacific,
Northwest, Union
Lake
ardent
little to' do
made
Shore.
admirer
with
that
of
Mr.
Gould,
speculator.
He
SPECULA
was
the
in
Gould
roads.
his
elevated
on
the
market
in
fight
against
up
consolidation
occasions
many
to
the
of
the
recognized
him
invited
and
with
yells
in
excellent
the
Stock
in
taste
of
a
in
conversation
are
likewise
quiet
parts
he
usually
of
has
examples."
and
a
at
collection
good
N.
He
and
to
fer
con-
a
He
is
his
clothes
figures
of
his
residence
of
his
the
dark
or
of
speech
When
which
He
Madison
works
include
and
which
paper,
worth
1886.
are
hair,
pictures
of
point
twirls.
in
a
man
a
mustache.
piece
pieces
to
World,
has
of
lustiness
to
dark
a
up
judge
Y.
in
always
are
picks
pulls
art,
a
is
deals
taking.
side,
abstractedly
patron
He
very
the
although
dress,
that
the
all
Exchange.
nature.
on
talking
he
and
him.
cowboy
As
and
has
Mr.
he
railway
Gould
strength
Kneeland
H.
settlement
with
he
S.
the
of
time
of
side
the
on
63
TION.
is
nue
ave-
$100,000.
few
poor
a
64
STOCK
CHAPTER
UNION
AND
IX.
CENTRAL
PACIFIC
the administration
DURING
Congress
the
ascertain
to
the
and
The
San
East
Central
Francisco
miles
acres
line.
in
The
took
Union
Omaha,
The
acres
Pacific
Francisco,
in
Union
per
the
millions
of
Congress, also large
bonds,
built
was
which
for
the
distance
a
from
westward
with
connecting
The
through
Pacific had
of
883
Central
the
Omaha
line from
of
1,900
miles, was
1869.
mile, and
upwards
of
of
distance
a
long-term liens.
Ogden.
completed
Act
from
eastward
grant of
land
panies
com-
of construction
built
States
Nebraska,
Pacific at
San
A
United
Government
On
the work
was
nia
Califor-
extended, the
was
Ogden, Utah,
given by
was
subsidies
of
aid
Pacific
to
of main
be made
to
surveys
Pierce
of connecting
feasibility
by railroads.
incorporated,and
begun.
was
of Franklin
several
1863 Government
In
to
ordered
RAILWAYS.
a
a
United
land
States
$27,000,000,also
extension
of
its road
on
and
grant
Bond
of
12,800
subsidy
long-term liens.
branch
lines it
secured
large additional
a
millions
more
This
the
of
Company
acres
of the
formed
was
Pacific, the
Union
65
TION.
SPECULA
subsidy and several
public lands.
by a consolidation of
Pacific
Kansas
States
Altogether it had a United
Bond
$33,500,000, and
subsidy of over
at
18,083,227acres.
grant estimated
Pacific.
Denver
The
Pacific and
Union
Central
Pacific
the
and
land
a
not
were
liens
making their payments on the Government
Thuras
requiredby the Act of 1864. By the
the charges for Government
Act of 1878, one-half
man
to be withheld, and
transportationwere
"
"
the
Central
annum
into
of its debt.
U.
the
on
Pacific
to
was
$1,200,000
pay
per
the extinction
sinkingfund towards
Similar obligations
also imposed
were
P., but neither Company has lived up
a
them.
to
the
In
World,
the
to
stated
The
of
recent
the
by the
exposures
united
debts
of
these
for
"
nominal
York
companies
interest,is
principaland
of over
at the enormous
sum
$157,000,000.
Pacific Railroad
has long maintained
Ring
a powerful and
ravenous
lobby at Washington.
Its objectivepoint is to secure
the passage
bill at a
seventy or eighty year extension
Government,
"
"
a
two
New
"
interest
of about
three
per
cent,
on
their
debts.
The
and
World
nail,and
ents
were
fightsthe
says
made
:
in
"
"The
extension
result,even
good faith,would
6
bill "
if the
be
tooth
pay-
the pay-
66
STOCK
interest
companies
the
by
ment
due,
and
estimated
the
C. P. at
at
been
be
now
of the
of their
in
a
highly
obligationsto
debts
fixed charges and
as
promptly
might have been
paid on the stock.
first to
of
this,the
last, has
wreckers,
at
the
P.
and
of
those
tion.
condi-
Government,
they
became
and
met
El
country,
has
been
in
dends
divi-
from
of all the
and
out
of
alternatelyinflated
enrichment
of
all
due,
good
Dorado
the
expense
stockholders,
Pacific,almost
the
the
prudence
prosperous
the
Union
been
conspiratorsin
Congress. Its stock
and
depressed to
arch
of the U.
with
managed
Their
Instead
tions
corpora-
principal."
debts
other
interest
in the
would
these
gift to
of the
$160,000,000.
roads
economy
eleven-twelfths
$200,000,000,
over
over
these
Had
they
and
stock, bonded
are
and
virtual
a
$150,000,000
of about
The
of
a
of
deluded
railroad
public.
6f per
of from
54 to
paid dividends
from
cent,
1878 to 1881, then 7 per cent, to 1884,
when
dividends
were
passed.
from
The
1880 to 1884,
C. P. paid 6 per cent,
the dividends
when
stopped.
The
130! in 1881,
highest price of U. P. was
and
in 1884.
C. P.'s
the lowest, $28 per share
102 J and
$30 per share.
highest and lowest was
Pacific
is one
Central
There
peculiarityabout
makes
stock which
operators shy clear of it
many
atat any
price. That is the personal liability
The
U.
P.
tached
fails to
Company
and
State
deficit
for the
in their
hold
all who
on
bankers
Some
stock
citizens, the
its
hate
even
own
assessed
be
can
it.
to
and
name,
that
obligations to
its
meet
if the
California,
of
laws
the
By
it.
to
67
TION.
SPECULA
it for customers,
carry
instances
cited
be
can
they have carried the stock in the name
clerks.
of irresponsible
of large and
In
men,
1882-3 sharp business
and
deceived
fooled
small capital,were
by the
in the value
and
atmosphere of over-confidence
They would not
stabilityof railway securities.
in which
stock
and
average
of the
that
the
over,
down
dividend
In the
It
not
was
Down,
the
some
in
involved
the
90s,
bears
Some
and
80s
ten,
they
of the
utter
on
70s to
twenty,
called
working
were
had
held
They
accumulated
before
Millionaire
it.
upwards.
in
more
a
halt.
their batteries
worthlessness
openly talked in the Street"
worth
$5 a share intrinsically.
"
was
went
in
50s, 40s
in
and
denunciation
stock.
it
1 10
shares
this time
of
believed
Some
up.
thirtythousand
All
all its fury,and
strong friends.
others
bought at
and bought
it
to
had
Pacific
investors
until the financial
bears
losses.
in immense
Union
with
burst
had
storm
them
of the
the arguments
believe
1884
and
cases
of dollars.
the
price,and
added
30s
at
to
the
passing of
the pressure
holders
were
to
sell.
throwing it
losses of hundreds
of thousands
68
STOCK
The
the
in
defaulting
covered
kept
of
system
U.
P.
had
not
decline
Jay
Gould
made
in
a
some
of
way
these
ratio
a
the
it.
less
Doubt-
price
was
after.
would
and
30
lower
stay
the
months
Stanford,
Union
radical
as
Crocker
in
change
the
U.
probably
P.,
and
obligations
adjusted,
can
Jr.,
in
the
but
for
ton
Hunting-
to
it
resume
is
not
place
of
its
the
the
assumed
of
Sidney
management
friends
it from
extricate
roads
Adams,
Pacific
which
would
their
great
to
of
when
turn
to
Francis
of
inaugurated,
hoped
peculiar
a
gone
power
blocks
58 three
as
have
his
large
went
Charles
Dillon,
affairs
it.
on
Presidency
until
to
up
hold
strong
When
the
to
of
by
would
profitable
a
Pacific
had
condition
asserted
purchasing
declined
the
its
concealed
and
28,
to
Central
have
obligations
and
up
went
spinning
sent
of
book-keeping.
by
he
dividends,
actual
the
while
paying
payment
and
Government,
was
been
had
stock
the
was
Company
difficulties.
But
Government
probable
the
payment
are
that
in
either
of
dends.
divi-
STOCK
70
In
1883.
the
in
break
"f
feU
tne
tnat
"
Villard
"
tne
came
year
great
stocks, following the
ing
driv-
golden spike,"completing the main
Pacific Railway.
line of the Northern
the
speculative public
January, 1884, found
est
A
large short interdepressed and demoralized.
was
outstanding,and in the latter part of the
the
of
"
combinations
month
bears
to
This
cover.
formed
were
things steady until March.
Strong bull pools bought
Lack,
and
March
there
the
for
139J
from
up
price
Del.,
and
Lack.," which
"
in
ried
car-
133^-regular,and
in
Shorts
the
Central,
to
123
stock.
cash
squeezed, and
also
to
price
in
corner
a
Y.
kept
of
largelines
up
N.
and
Western
was
prices and
advanced
the
drive
to
Y.
N.
run
C.
from
up
were
113^
122.
All the other
and
market
the
demoralized
in
strengthenedup
bears
for
time.
a
sympathy
But
large
advantage of the strengthto feed out
the stocks they had been
carrying. This caused a
until
fluctuatingand graduallydeclining market
May.
holders
took
THE
The
in the
and
of
suspension of
the house
trouble
On
rascalities
the
half
Grant
ruined,
and
a
"
Bank
Marine
"
Ward
million
Ward
Ward's
culminated
Ward
Ferdinand
of Grant
for about
May 9th
PANIC.
May 6th,
reported in
on
was
dollars.
were
reported
residence
trievably
irre-
in Brook-
SPECULATION.
71
lyn was seized by the Sheriff and placed in charge
Ward
shadowed
of a deputy.
was
night and day
until arrested
on
private detectives
by a dozen
May 2 1 st.
On
begun by stock
May 14th the panic was
and speculatorsthrowing their stocks on
brokers
the market, owing to the great shrinkage in values.
ed,
George I. Seney's Metropolitan Bank suspendBank
its correspondent,the Atlantic
of
and
half a score
of brokers
About
Brooklyn, followed.
under, and other failures
went
believed
were
to
be
impending.
Banks
united
On
May 15th the Clearing House
together to support each other, by the issue of
checked
the
This
certificates.
Clearing House
the
enabled
Metropolitan
panic somewhat, and
Bank
ing
to resume.
Manager W. A. Camp, of the ClearInstitution
House
said :
That
was
ready to
from one
lend the Metropolitan Bank
any amount
million
five millions
of dollars."
to
George I.
The
of the bank.
Seney resigned as President
that the
Second
National
made
discovery was
"
Bank
had
been
the
through
This
his father
hiatus
The
the
loss
and
in the
of about
robbed
speculationsof
immediately made
was
directors,and
business
failure
million
stock
other
morning
three
papers,
of the
the
there
lars
dol-
its President.
good by
was
no
bank.
same
day, had
of
ed
report-
President
and
,
chief
promoter
of
the
Bankers'
and
Merchants'
STOCK
72
On
Telegraph Company.
this
at the Exchange
60 per
cent,
Fisk
stock
more.
or
Hatch
"
Mr.
failed,and
of the Stock
President
opening of business
quickly dropped down
the
Hatch, who
Exchange, resigned.
was
The
general market declined from 1 to 5 per cent.
continued
amid
On
May 16th the panic was
The
Newark, N. J., Savings
great excitement.
Institution
An
attache
of
suspended payment.
of Grant
All we
" Ward
the house
reported :
"
know
at
twelve
On
is that
present
and
fourteen
liabilities are
our
million
dollars."
May 17th the panic and
and
two
excitement
failures
more
between
tinued
con-
was
reported.
were
On
Banks
the
and
May 19th the Associated
to
Sub-Treasury took measures
stop the panic,
and confidence
began to be restored.
Ward
On May 21st
Ferdinand
summoned
was
the Grand
He
before
was
Jury for examination.
arrested
all night at
during the day and remained
in charge of a Deputy Sheriff.
the Sinclair House
On May 22d Ward, pale and haggard, was
mitted
comStreet Jail.
to Ludlow
of the
On
May 26th James D. Fish, President
arrested
and
released on giving
Marine
Bank, was
a
bail bond
On
with
May 27th
Second
colony
About
National
in
sureties
the
in
$30,000.
dishonored
Bank
skipped
President
to
of
the
jointhe rogues'
Canada.
the
time
all these
events
were
transpir-
SPECULA
Bank
the
ing
of
robbed
TION.
the
of
73
Manhattan
$150,000 by
Company
dishonest
a
was
Teller.
During all this time while the panic lasted, the
had
their money
invested
in
general public,who
Wall
distrust,
Street, demoralized
by fear and
throwing
were
their stocks
over
losses.
immense
at
precipitatedby the discovery of
in our
hitherto unmatched
a line of giganticfrauds
of these frauds was
financial history. The
worst
perpetrated through the influence of the name,
with
but
the knowledge and
connivance
not
of,
Gen.
U. S. Grant.
the great Soldier-President,
From
1861, until he got into Wall Street, Gen.
Grant
a
was
Mascot, i. e., the very impersonation
The
of
panic
In
luck.
good
one
was
continued
success,
with
Ferdinand
floor of the
Wall
and
of
President
building.
He
usually came
elevator
sometimes
chat.
to
"
Street.
his office
had
and
his
was
his unfortunate
Ward
was
Bank
nection
con-
an
the
on
Building at
Gen.
Mexican
on
career
Ward.
United
the
his
in peace
until
office of Grant
The
the
and
war
Grant
Central
upper
ment
baseway
Broad-
himself
Railway Co.,
floor of
the
same
*
through
the
office,about
hall,to
10
go
o'clock
in
up
A.
M.,
stopping in the lower office awhile
Almost
at
invariablyhe puffed away
strong cigarand
presented a pictureof a man
and
contented
satisfied,
happy with himself
all the
was
world.
to
a
selfand
STOCK
74
knowingly standing on the brink
volcano, ready to burst under his feet, could
of prosperityand
shown
such an appearance
froid as he did up to the time of the crash.
No
It
he
anything
He
of
great profitsthat
being
were
of dollars of
be
sang
he
fidence
con-
shaken
by
of the
ness.
busi-
in the
realized
that
have
his
his stories
believed
and
led to believe
was
millions
an
Ward
trusted
hardly
earthquake.
his
and
boys
profitsin
undivided
a
Grant,
man,
a
could
man
short
He
in
put implicittrust
that
in
of Gen.
of the characteristics
one
was
that when
had
of
man
the
firm.
When
full extent
the
Gen.
revealed,in which
involved
in
of
Grant's
of
defalcation
a
Ward's
rascalitywas
great
millions
name
of
was
dollars,
the
fearful.
change in him was
During the panic the bears were
They were
figuratively"growing
"
of the
in their
glory.
fat off the
casses
car-
bulls.
Imagine the sacking of Magdeburgh, think of
cities looted, given up to slaughter,pillageand
has a good idea of the
rapine; then the reader
sophisticate
slaughterof values, the sacking and pillageof un"
in the
For
the
the
who
lambs
vicarious
four
"
business
who
had
become
of stock
five
entangled
speculation.
in the vicinityof
days the streets
Stock
Exchange might have recalled
legends of the hordes of Goths and
overran
or
the
Roman
Empire.
to
mind
Vandals
SPECULATION-.
Street
New
reminding
Streets,
In
pounced
on
his
lion
prey,
jaws,
their
licking
cubs,
and
formed
cries,
he
jackals
hyenas,
tore
had
at
away
and
vultures,
discordant,
uttering
tering
chat-
ludicrous
around,
circle
a
lion
lordly
a
while
and
eland,
an
forest
the
of
opening
an
Reade's
Eland.
the
and
Lion
the
of
story
Broad
and
Charles
late
the
of
one
quarters.
overflowed
Wall
Broadway,
Place,
Exchange
into
They
them.
of
full
was
all
from
in
flocked
people
Nondescript
75
to
behold.
simile
A
the
:
streets
jackals
spoils.
were
"bear
eland
The
their
of
of
hordes
of
typical
of
was
"
keeping
lion
for
and
the
cubs,
a
general
while
demoralization
garden
the
the
money,
people
nondescript
hungry
vultures
and
pillaged
demon
The
the
of
public
plunder
outside
hyenas,
share
lion
the
being
the
was
the
within
rabble
in
at
bay.
STOCK
76
XI.
CHAPTER
OPERATOR.
SUCCESSFUL
A
H. Vanand
the late W.
Jay Gould
derbilt,probably the most
prominent figure
the late Charles
speculationof late years was
to
NEXT
in
F. Woerishoffer.
He, Addison
the
since
Cammack
death
Henry N. Smith,
the
Garfield, were
and
of President
greatest, and, excepting Smith, the
Woerishoffer's
shares
000
Just think
againsthim at
of
ten
of
The
at
terrific,
were
combination
a
such
time,
a
the
loss would
have
jump of 20 per cent,
figure$4,000,000. And if
day
each
on
be
itself would
the
Were
in
a
been
few
stocks, or
But
$800,000
he
stocks
make
about
a
Woerishoffer
200,-
for
was
before
bull side
advance
sudden
sellingprice of his
figured$2,000,000.
on
him
would
loaning rate of $400
was
imposed, that of
one
day.
short
hands, such
strong
brought
shares
100
a
advance
a
the
on
and
above
A
per
times
side.
short
cent,
per
shorts.
risks
the
on
ful
success-
Street.
in Wall
bears
most
of
results
he
could
concentrated
could
recover
have
his
privatesettlement.
was
not
the
man
to
take such
78
STOCK
clientele of Dutch
He
the most
became
Street,"
German
and
and
except
known
to
have
as
brokers
to
His
were
brokers
all
Wall
over
It
Street.
house
were
opposite and
at
cross
but
sure
never
purposes
had
of
the
that
was
when
impossibleto detect his hand in the market
he attempted concealment, for the brokers
own
any
He
was
Jay Gould.
high as $500,000 a year in
for executing his orders.
operator,
commissions
"the
than
brokers
more
other
paid
lators.
specu-
speculator in
active
employed
and
bankers
his
man
preciselythe
client.
same
The
of his
extent
high as 50,000
the
followingamong
as
His
sometimes
colossal,
operationswas
shares
in
Germans
single day.
a
and
others
was
immense.
him
a
things which won
repute was
ists
fight,in 1879, witn Gould, Sage and other capitalsas
interested in securing the control of the Kanthe represenAs
Pacific Railroad
Company.
tative
One
of the
of
contracted
the
to
to
sell certain
advantage
the
Denver
But
decided
it would
be
70
to
as
declare
the
the
price at
old
contract
which
they
had
bonds
extension
80.
Gould-Sage syndicate at
afterwards
named
investors, Woerishoffer
Frankfort
the syndicate
to
their
off, and
would
take
bonds.
Woerishoffer
passed
between
said
him
nothing ; but cable
and the English and
messages
German
SPECULATION.
securityholders
before
and
;
79
New
the
York
cate
syndi-
campaign, he had corStates Trust
raled
in the United
Company more
than
a
majority of the bonds the syndicate were
the gentlemen who
Then
he informed
had
after.
insisted
that 80 was
too
as
high that, inasmuch
prepared
was
their
of
did
About
$6,000,000 of
deal.
It
and
It
in
London,
was
he who
pushed
Grande
stock
had
par.
in
the
Germany
York.
scheme
of
building
Railroad, which
realized
quoted
was
brilliant
most
a
inveigled into
he
which
in
to
he
large profits
friends.
and
the
stock
the
have
under
go
famous
in New
as
having
on
involved
were
conceived
Rio
bond
a
completion, and
for himself
Company
public was
bonds
well
as
"
to
When
let
not
Woerishofler
made
Denver
the
depended
bonds, they would
these
he
and
100,
pay
scheme
foreclosure
big
control
the
for his
and
the
no,
the
outlook, and
the
purchase
friends
his
above
held,
and
of
a
long
large
line of shorts.
then
He
and
as
low
sides
It
as
of the
was
size and
it.
until
deal.
Woerishofler, too,
that
gorgeousness,
He
had
priceshad
been
who
which
Pacific bubble
Northern
to
began the bear campaign on this specialty,
covered
is supposed to have
stock
some
profitson both
40, realizingimmense
a
advanced
was
men
bull
out
pricked the
on
famous
inflated to such
of millions
bowed
the Villard
stocks
of all
proportion
to
80
STOCK
their intrinsic value.
Then
the
short
Great
side, and
Bear, Ursa
Woerishoffer
he sold out, turned
got the
appellationof
"
to
The
Major."
declared
earnings of the
Northern
Pacific and
the Oregon Companies did
not
their stocks
the fancy price at which
warrant
line
were
quoted ; and he openly sold the whole
short.
mined
Arguments having no weight, it was deterto whip him
into line,and a syndicate was
formed
him
shares
to buy up
to
100,000
squeeze
of the way.
out
The
financial
Morgan
"
Villard.
His
a
for
a
cent.
other
Woerishoffer's
bought
for that
was
up
to
a
soon
the true
astute
singlehe
him
assured
and
with
Then
over.
was
a
But
not
the
found
millions
so
Street
of the
inwardness
until
of dollars.
did
rush
order
met
not
they
bid
was
stock
afterwards
dazed
began
they
as
to
wake
situation,and
themselves
their
20,000
filled it with
brokers
after when
financiers
bought
Their
shares.
panic,with the pricesof
tumbling down, down,
cleared
them
face
to
specialpurpose.
dazed
syndicate that
talk matters
became
had
Still Woerishoffer
80,000
filled.
It
with
influence, were
in its work
shares.
100,000
the
Mills, Drexel,
volcano.
worth
scare
of
friends
own
syndicateput
of the
others
he
Practically,
atop of
The
and
O.
like D.
powers,
Co.,
handed.
to
the
that
involved
the
in
a
sugar-coatedstocks
Woerishoffer
had
81
SPECULATION.
Woerishoffer
justas ready to
were
other
all the
than
In
bears
the Vanderbilt
of the
leaders
bear
Vanderbilt
and
scheme.
checkmate
they
would
was
into
adroit
an
the
have
Woerishoffer
and
H.
N.
Smith
small
a
he
advance
that
1885, for
At
time
one
and
"
favored
and
White
wanted
bruited
about
a
to
get
out.
that
he
long stock,all the bears in
jump on it and the pricewould
7
of
in the
'"
sult
re-
fall of
of
of
him.
wanna
Lackait.
cumstanc
Cir-
in the coal stocks
He
was
the
the house
short
was
big decline
his
after
The
heavilylong of
White
been
in the crash with
Co. down
Woerishoffer
S. V.
short
stocks.
carried
30
immense
have
to
under,
went
the
In
the deal, and
of
$1,000,000,and
over
Heath
William
said
other
and
Smith
their shorts
made
heavily
went
Vanderbilt, Granger,
was
both
left out
was
allies,
encounter.
covered
points'rise which followed
was
profits. Woerishoffer's
$2,000,000.
of
opposition
the market.
heavilylong of
went
make
to
to
two
let into their
and
move
had
summation
con-
confidence
the
formidable
most
otherwise
Cammack
and
West
PierpontMorgan
This
and
1885, on the
Shore deal," these
taken
were
leaders
of
boom
"
and
the Street."
"
on
portunit
op-
He
big bull
the
by
was
great
saw
of the market.
feared
more
he
bear;
a
he
bull when
turn
that side
on
Cammack
always
not
was
knew
if it became
throwing
the Street
"
over
would
drop rapidly.
82
STOCK
"
Lack."
knew
he made
They knew
opportunity offered for
did
a
of
sales
short
fear
not
the
the bears
it.
for it when
they
and
pet specialty,
White's
was
lic
pubclimb
Hence
corner.
did
it,but
fear
liquidation.
through the bear
instead
of sellingit directly
house
of Woerishoffer
It was
said that 80,000, equivalent
from his own.
full shares,was
sold in one
out
so
to 40,000
day, withmuch
appreciableeffect on the price. White,
it was
reported,cleared $1,000,000.
shoffer
short stock WoeriThe
public believed it was
it became
" Co. were
known,
selling.When
a
long stock, sold by
day or two after,that it was
the chief bull in it,the pricedropped like lead.
No
his stock
had
White
So
is
business
sold
heartless
more
yet Woerishoffer's
His
"
clerks
Street."
the
He
stock
of
thousands
spent
office in
of every
envy
lation,
specu-
ial.
proverb-
generositywas
the
were
than
dollars
helping other men.
of
he was
At his death
practicallythe owner
worth
in the Stock
at
seats
20
over
Exchange
all went
their
to
least $25,000 a piece. These
and
out
out
as
giftsto young
present owners
month
every
in
"
brokers
On
dollar
he
Christmas,
"
in his
whom
he
found
1885
distributed
offices,gave
and
had
"
and
it
was
thousand
one
District
fifty dollar
faithful
to
not
est.
his inter-
tional
excep-
dollar checks
Messenger boys twenty
greenbacks, and sent a
SPECULA
handsome
who
him
drove
He
horse
$500
was
as
and
up
All his money
was
and made
in Wall
Street
Wall
The
"
very
World
cabby
his
own
exertions
"
Street.
VS.
RICH.
exceptional
among
was
generosity
men.
illustrated than
the
the
few favorites of fortune.
rich,and
very
of people of
liberality
the
to
daily.
town
by
selfishness of the
handed
and
down
made
POOR
Woerishoffer's
present
a
of the very
one
83
TION.
poor,
in
Pedestal
never
was
the
the open-
moderate
more
means,
strikingly
popular contributions
Fund
"
for the
erection
to
of
a
fitting
restingplacefor the great Bartholdi Statue,
Liberty Enlighteningthe World."
ted
The freedom-loving
people of France contribuof their means
to
build, and the patriotic
Bartholdi nearlybankrupted himself to complete
and make
his conception of this famous
it
statue
to our
a free gift
great Republic.
of millionaires,bankers, capitalA committee
ists
of high standing had long before
and men
from other
been organizedto receive subscriptions
to
willing
people. But preciousfew of them were
tial
into their own
pockets for substango deep down
tokens of their appreciationof the great gift
and to set an example of patriotism.
and have it completedin
To providea pedestal
time became
a question of honor.
^-s=*==*=-=^
"
J
OF
THE
( "UNIVERSITY
84
STOCK
The
of
time
Government,
task
the
up
gave
inabilityto
their
it
Then
was
of the
editor
The
pedestal.
in
the
money.
that
the
Hon.
of
determination
and
the
to
tee
commit-
proclaimed
Joseph
the
up
raising
bag
money
raise
French
needed
was
despair,
World, took
the
ships.
war
dollars
thousand
the
complete
own
free transport
of
courtesy
of its
one
on
hundred
A
;" by
Goddess
"
the
for the
approaching
was
Pulitzer,
with
matter
the
forthwith
money
by
popular subscription.
headed
Pulitzer
Mr.
the
Lorrilard,
another
with
Among
millionaire
men,
and
Henry
Clews
But
in
from
months
the
of
individual
public
boot-blacks
pennies
sum
growth
; from
the
in
and
Pierre
followed
the
their
fund
$106,000,
had
and
contributors.
Wall
of the
Street
fund.
American
people
from
from
those
laboring
and
clerks, shop girls,
poor
schools.
the
and
Flower
handsome
in contributions
on
rags
P.
a
these,
circumstances:
women
children
in the
grandly
moderate
and
than
of
R.
gave
other
patriotism
itself
very
men
factor
a
real
showed
Hon.
Street
hardly
The
$1,000:
tobacconist,
Wall
contribution.
was
list with
$1,000.
$650,
gave
the
to
represented
boys
news-
contributed
streets
penury,
swelled
the
Even
until
the
in
a
few
magnificent
about
120,000
86
STOCK
only
their
throw
to
Others
have
who
object in
an
If the
their
stocks
after
bought
loss.
again at a
big decline
over
a
have
view.
bears
market,
greedy, have
too
are
stocks
and
in the hands
have
overstayed
become
trated
concen-
of strong
manipulating bulls,
the bears are
not
unfrequently caught napping
and
lose all their advantage.
The
bulls form
pools and suddenly put up
and
prices. The bears are
squeezed, cornered
made
the
to climb, at advancing prices,
to recover
stocks
hold
bruins, who
they sold. Obstinate
made
to
out, are
pay a heavy loaning rate from
stead
day to day, and the result is often a big loss inof a profit.
It is the
and
the
makes
of stocks
concentration
cohesion
short
bulls
among
sales,at times, as.
COMPARATIVE-
When
prices
feelers of the
they
their
advance
an
the bottom
nine
out
than
go
of
of
bull
If
the
favor
things
minimum
at
sell stocks
bears
losses
swim
of 20, 30,
or
40
per
previous decline,the
will go
that prices,
a
ten
up.
in the
The
pools that
dangerous as dynamite.
and
as
bulls
the
and
bide
cent,
from
time.
After
be
market.
quickly
cover
strong hands
SAFETY.
high
are
in
The
bears
when
bulls, with
count
the
no
on
chances
down
this and
are
rather
aim
to
righttime comes.
opposition to encounter,
87
SPECULATION.
inflate
prices prodigiouslybeyond real
When
intrinsic value.
a
great speculativecraze
in at the top,
is on, tha outsiders
always come
and
push prices still higher by wild purchases.
This is the opportunity of the inside bulls to sell
out
at enormous
profitsand turn to the bear side.
The
public always get left,"and get left all
if they follow
advice to
their banker's
the worse
from
all planned
"hold
on
top figures. It was
that the publicwere
the losses
in advance
to take
with
the profits.
while the insiders got away
in
stocks have
become
When
widely distributed
the country,
of the generalpublicall over
the hands
sion
cohethere is,and
can
be, no concentration, no
would
"
"
and
defense
no
in clover
They are
with
honey.
own
way.
tempt
to
others
wide
It is the
gorge
selves
them-
fret and
fume
can
sting their
pricesget low enough
as
for
and
advance.
an
of
distribution
in weak
stocks
comparative safe.
An
experienced broker, speaking of the danger
writer
He
had
of shorting the market, told the
that
hands
makes
short
their
turn
purchase
to
everything
and
even
until such time
tormentors
of
bees, who
The
losses,cannot
their
at
have
bears, who
by the
values
destruction
the
against
sales
"
seen
go
under
Travers
The
F.
Daniel
all of the great bears, from
in
and
broker
irretrievable
Addison
might
Woerishoffer, the
Drew
ruin, except
down,
W.
R.
Cammack."
also
have
excepted
greatest bear
of
Charles
them
all,
88
STOCK
Drew's
since
risks,
he
but
lived
by
Cammack,
wary,
and
Woerishoffer
in
belied
the
"
a
the
his
all
"'
Street
financial
while
probably
was
took
zenith
very
continued
have
of
under
died
and
would
Woerishoffer
time.
of
traditions
had
he,
too,
Had
success.
speculative
the
terrific
and
not
he
career,
dents
antece-
been
swept
whirlwind.
a
bold.
never
accustomed
operator,
took
to.
is
half
cautious
the
and
risks
SPECULA
CHAPTER
WALL
TO
Men
XIII.
STREET
VICISSITUDES.
illustrate the hold
who
those
Sg
TION.
have
which
Wall
Street
become
once
has
on
its votaries:
of
varying fortunes
from
which
would
think they
to vicissitudes
one
be glad to escape.
would
Perhaps one out of ten
thousand
begins with almost nothing and becomes
millionaire,and, not satisfied,goes on until once
a
subjectthrough
are
he
more
One
is
as
man
drawn
poor
came
into
as
when
to
New
began.
in 1864, and
York
then
was
him
to
called
a
open
of Brokers.
he
It
was
was
before
curbstone
the
first to
of
the time
He
of
was
was
and
left
and
office,
an
Subsequently he joined the
business.
and
he
speculative enterprises.
the
Fort
Wayne
corner,
in
swamped
entirelywithout means.
Necessityprompted
what
years
tempt
at-
brokerage
open
a
Board
ticker
vice,
ser-
inaugurate the system
prominent operators by
furnishingquotationsto
of pads.
In this way
the pahe secured
means
tronage
of leading speculatorslike Daniel
Drew
and Henry Keep.
He
became
broker
in time
of
a
great banker
Jay Gould,
"
Jim
and
"
the
Fisk
fidential
con-
and
STOCK
go
others, and
prominent
was
in the
Black
"
Friday
"
operations in 1873.
His
activity,industry and thorough integrity
for many
and
clientele,
gained him a numerous
thereafter
years
intrusted
was
important transactions
most
It
he
well
was
could
favor
understood
made
that
information
any
with
in the
neither
be
of the
some
"
Street."
fear
for
obtained
from
nor
him
valuable
his most
customers
to the
as
by even
operations he might be conducting for others.
To
the implicitconfidence
in his integrityhis
success
attributed.
was
the best known
the
on
offices at both
the great boom
Shore
deal," almost
Cammack
dark
as
by the late
branch
1885, based
the
on
"
West
all the
to
the
W.
H.
great
gurated
inau-
movement
Vanderbilt
and
J. Pier-
Morgan.
pont
banker's
The
the
had
Paris.
and
of
he
of
one
big operators, except
Street
Woerishoffer, and the whole
and
in the
were
became
Street, and
London
In
house
His
office became
bears, who
blissful
put
this
held
itself.
large
out
ignorance that
began.
As priceswere
on,
But
margins
exhausted.
and
in
the
pushed
house,
true
the
that
up
to the
hopes
the
the
headquarters of
lines
rise
and
had
kept
interest
boom
shorts, in
of
only just
on
the
vance,
ad-
of its customers,
would
exhaust
sequel proved that their
of their largestcustomer
own
were
SPECULATION.
The
the
The
October.
in
came
house
of the
failure
heavy
short
91
ascribed
was
cause
they
interest
inevitable,and
was
to
carrying for a
them, in Wall
were
large bear operator, who
got
Street
phrase, to the extent
it
into
of
over
million
a
dollars.
that this house
known
was
Although it was
tirely
ennotoriouslyshort of stocks, their failure was
unexpected, and excited astonishment.
under
arrested
The
banker
was
proceedings
instituted
by one of his principalcreditors for the
bitant
Exorof nearly half a million dollars.
recovery
unable
bail was
to
required,which he was
furnish, and
he
Jail,where
he
Then
the
sureties
bail
were
committed
was
remained
two
reduced
was
obtained
of
three
or
Street
months.
reasonable
to
a
he
was
and
Ludlow
to
figure,
released.
his
had
prosperity this man
and
numerous
powerful friends,but in adversity
His
health
was
they all left him.
impaired by
long confinement, his heart broken by the collapse
In
the
of his
days
fortune, the
troubles
in which
desertion
his
He
entangled him.
aggravated by
In his
of
his customers
to
fidelity
died
mental
the
friends, and
next
and
had
Spring
of disease
pecuniary
halcyon days he was a live lion
in adversityhe was
but as a dead
dog.
The
banker
had
a
costly residence
in France,
Avenue, an elegant chateau
in
the
bles.
trou-
finance,
on
and
Fifth
could
STOCK
92
retired
have
failure,with
The
this
church
house
in
the
he
said to
man
his
from
as
praying
with
he
saw
well
a
bowed
head,
able
fashion-
brown-stone
he
as
the sexton,
more.
?"
his
to
fashionable
by
or
pew
street, and
aisle,escorted
him
in my
his
of
years
of dollars
down
driven
fashionable
a
up
nigger doing
had
banker
few
a
million
probably a
What's
"
within
time
any
sauntered
that
dressed
in his
what
was
colored
ioned
softlycush-
pew.
nigger, to be sure," whispered the
fawning sexton, as he opened the door of the pew,
He's
"
a
he's worth
"but
Introduce
"
half million."
the
to
me
banker
the
responded
cold
a
"
;
I
gentleman," instantly
shall be happy to know
him."
The
Street
is Wall
That
its idol.
bow
Men
Calf."
In
no
the presence
down
a
bulls
money
The
the
bear
en
"-Gold-
other
ness
busi-
heartless
BULLS
VS.
in
bear
operator
as
a
BEARS.
tunes
regard the misforjust punishment for
to
dealing. This is absurd,
are
just as culpable in their methods
from other people as are the
away
method
is
; money
of misfortune.
general dispositionis
of
his
in
homage to
other
place in no
so
cold, cynicaland
MORALITY,
The
is Mammon
"
world
is the
over.
Street
Wall
of
god
all
of
is the
conservator
of the stock
for
the
to
filch
bears.
market.
STOCK
94
takes
advantage
the
buyer
but
if
not
forthcoming, that
decline
severe
a
to
lamb
another
is
bulls
The
occurs
and
which
he
broker
is
resort
scarcity,of
is done
to
money,
margin is
posited
has already dewiped out, and
more
slaughtered.
sometimes
a
This
his
secure
makes
of it and
loan
the
stock,
in
idea
that
the
carry
trick of
the
to
there
ipulating
manroom.
is
large
a
hopes it will induce
chases,
purin anticipationof pricesbeing ptit up on
a
of such buying
of the bears.
Under
cover
squeeze
they will sell out, and leave their dupes in the
is no
There
The
lurch.
whole
thing is a cheat.
Stocks are plenty to go around
big short interest.
and
to spare, except for their trickery.
short
interest
Wall
Street
traps and
is in
for
for
years
bulls
choice
Stocks
which
are
and
a
and
keep
to
at
a
hold
he
way
out
turns.
of
those
of
reasonable
on
to
in
them
the
both,
price,
for
results,if necessary.
DANGEROUS
that
but
buys good stocks
them, and is able to
one
Charybdis, and
Scylla and
traps of the
no
dabbler
The
suckers.
whichever
is
there
catch
countermines,
and
mines
wrecked
being
the
Between
pays
is full of
drag-netsto
of
danger
unless
in
strait betwixt
a
bears
out,
the
corner
STOCKS
TO
SHORT.
talizati
comparatively small capison
particularly
dangerous, for the reafloatingstock is more
easilycorraled
have
effected.
a
TION.
SPECULA
Railroad
Long Island
$10,000,000. Nobody
The
sellingthat
is concentrated
jump from
figure.
the
has
is very
stock
is
Its
stock.
made
that it then
had
to
has
is
to
or
and
is
its
dark
as
their
fifteen to
generally
then
payment
held
twenty
to
the
its real
was
very
easy
floatingstock,
short, and
dition
con-
effect
a
balance
and
1882
Since
from
1880
68^
and
of this stock
investors
is
for
floatingon
of speculation.
for bull capitalists
to
buy
Street, the football
the
lators
specu-
passed them,
again. From
millions
closely by
dividends, while
It
reason
and
paid 8 per cent, per annum.
Its price
then it has paid 7 per cent.
has ranged between
to the present time
!5"i Per fuU share.
From
capital is
assaults, for the
in the
half
a
it
1885
to
of it
formerly the great
was
bear
grope
a
other
short
go
public statements,
no
at
up
any
Western
50,
stock
paid dividends,
resumed
then
run
can
value.
and
It
share,
and
par
it
distributed.
widely
$26,200,000. This
objective point for
price
hazardous
Delaware, Lackawanna
share
is,the stock
capital of $20,000,000
stock
a
bears
hands, and
the
a
the
of
reason
strong
$1,000
It
value.
unless
few
a
to
par
Pacific Mail
par
The
quickly and
cornered
be
in
capitalizedat
is
hears
ever
short.
stock
95
when
corner.
the
bears
were
is
the
the
up
heavily
g6
STOCK
pool in Lackawanna
put up the
price from 114J to I33i regular." In the height
of 4 per cent., or $4
of the squeeze
a loaning rate
exacted.
So largewas
per full share per day, was
111
1884 the
"
interest
the short
the stock
recover
pricesup
I39i f"r
so
they
had
"
stock
eager
were
the bears
to
sold,that they run the
from
133-J"regular,"to
themselves
on
u
and
for immediate
delivery.
Union
Pacific has a stock capitalof $60,868,500
When
this stock was
paying 7 per cent,
par.
dividends
held by investors
probably fiftymillions was
The
balance
was
floatingon the Street.
It
was
not
been
has
casn
an
matter
easy
cornered, and
a
to
corner
loaning rate
it.
of
Still it
-Jor \
per
day imposed.
Western
Union
Telegraph has a par capitalof
that it would
$80,000,000, and it is plain to see
of capitalto
require a very powerful combination
it.
buy up control and corner
This stock has the reputation of having been
It used to be charged, again
immensely watered.
and
again by the bears,that the whole plant,wires,
and all could be duplipoles,electrical instruments
cated
cent,
per
for
THE
The
$20,000,000.
GREAT
preferredstock
is entitled
the
common
years
NORTHWEST
both
stock
to
can
CORNER.
of the
7 per
Chicago
cent,
were
For
paying 7
western
Northbefore
dividends
get anything.
classes of stock
and
several
per cent..
TION.
SPECULA
dividends
extra
as
used
was
The
"
melon
Northwest
as
argument
an
preferredand
bull the stock.
to
price,at market, between the
stock is usuallyfrom 15 to
in
difference
common
cent.
30 per
In
October, 1872, Northwest
pricefrom 68-Jto 83 f, and the
to
The
cuttingof the
in the division of this surplus
became
a
standing joke,and
"
accumulating a surplus.
and
97
ranged in
preferredfrom 84!
common
90.
In
November
Northwest
of
that
in
corner,
year
which
occurred
the
the
great
stock
common
Jji to $230 a share,and probably
a very
high loaning rate imposed on it.
the highest price of the
During the squeeze
One
preferred stock was
only 102.
prominent
tempted
atwas
bear, who
heavily short of the common,
his deliveries in preferredstock,
to make
He
which
had to dance
refused.
to anything
was
but a merry
in settling
In
tune
up his contracts.
December
mon
comfollowingthe price of Northwest
dropped back to 90 and 8i-J.
from
put up
was
THE
In
27i
1863 Harlem
to
In
$179
a
stock
did not
in
CORNER.
ranged
at
all
pricesfrom
share.
1864 Commodore
priceuntil
time
HARLEM
June
appear
it was
Vanderbilt
held
in the market
afterwards.
8
put
up
the
$285 a share,and
quotationsfor a long
at
9^
STOCK
The
Fort
Wayne corner
when
the price was
put up
price for that year
average
98J-per share.
THE
Stocks
was
CHANCE.
dear
always
are
April,1864,
I52f. The highest
the lowest
1 16J and
to
OF
GAME
in
occurred
the
outside
public
prevails.If they
to
pricesare low and distrust
this is the very time
bound
to speculate,
are
long pull." But
they ought to buy for a
when
when
"
have
When
and
has
bubble
the
People
the
projected,
inflated
it is that
with
imbued
are
been
become
tension, then
utmost
in.
come
has
movement
great
a
will not
and
confidence
no
its
near
look
stocks
belief
they
cheap.
the extent
that
limit.
They rush in to buy and
who
have planned for
are
supplied by the insiders,
The
result is they get
just such a consummation.
left. Twenty, thirtyor forty per cent,
margins
are
wiped out. Or, if financially
strong, they have
boom
to come
to wait years, perhaps, for another
of the rise has
round
The
said
to
no
let them
whole.
out
saying, "A fool is born
have
to
originated with
prominent operators
that
a
and
seldom
new
crop
in Wall
fools
of
fails to
every
minute,"
of
one
street.
the
Certain
is
most
it is
always counted
upon
respond to the allurements
is
offered.
The
top of
positionof
a
boom
was
those
never
who
buy
better
stocks
near
illustrated
the
than
SPECULA
the
in
Wall
"
the
great
it says
column
November
rise based
99
21,
the
on
of
1885.
West
"
the
Evening
Speaking of
Shore
deal,"
:
To
"
"
Street
of
Telegram
TION.
attempt
to
reason
present phase of
the
on
be
Street is futile. It must
speculation in Wall
for just what
it is,a simple credulitythat to
taken
what
insures
a
profit,all
buy to-day, no matter
the greater the longer a sale is deferred.
ering
unwavPeople buy stocks to-day with the same
faith with
which
a
'darkey' invests the
products of a day's boot-shining in 4-1 1-44, and
culating
substantial
with about
the same
grounds for calhis venture.
on
a profiton
No
It is splendid sport as long as it holds out.
suffers
one
take
a
'
flier
'
with
one
every
:
gains. The
sufficient courage
t"ears
are
livingon
to
last
for such nourishment
sucking their paws
as
they may afford. Seats at the Stock
ished
The
Exchange are risingin value.
nearly famof a year
brokers
are
waxing fat and
ago
bank
Diminished
accounts
are
growing
saucy.
plethoricagain. The
pleasant bleat of the sagacious
year's nuts,
is heard
lamb
of
gold as he
himself, 'This
clink
to
or
sweet
clover
stay.
I shall
and
wool
so
counts
is
buy
me
back
a
as
of
sort
a
vision
as
will
thousand
chorus
to
his
over
high
have
soon
my
no
that
and
on
as
profitsand
of fancy.
grass
much
have
fat
make
me
more
of
the
says
This
to
come
on
my
ribs
ble,
comforta-
anything,'
STOCK
ioo
and
his broker
the
lamb
hands
pockets the $125
pledged another
has
of
state
things may
existed
have
conditions
before
changed, and, strange
to
has
He
foreseen
not
been
it.
in
caught
joyful bleat
is
changed
ignores him
friends jeer at
the
lamb/
after
the
'
Lord
don't
contrary, the
did
they
in those
to
if he
him
only
panic,to
Lord
has
do
to
the unanimous
Christian
Sterne
the
and
Street
Wall
saying is
for
On
the
kind.
the
of
out
shorn
"
of the
;
says
the
to
around
false
Elijah'stime,
days they treated
left in his debt
wind
look
come
in
sagacious lamb
almost
invariably
to
speak, and the
His
pitifulmoan.
though
anything
bears
change. Similar
this, and have
is not
the
how
see
a
; and
tempers
has
one
a
the
in
the
say,
deshabille, so
broker
that
hostage
chance.
of
True, this
his
and
commission
woods,
the
treat
the
wicked
verdict
of
"
as
lambs
as
boys, with
him
Served
right.
*
The
result
could
again
the
in the
land
and
'
of
not
voice
"
attempt
an
the
refusing to
fail to
of
the
lambs
be
to
be
liquidatethese
disastrous, and
will
mourner
weeping
comforted
*
*"
#
*
*
be
counts
ac-
once
heard
for their
because
profits,
they are
not.'
projectorsof this movement,
dentedly successful,have realized
beyond question, and now
The
so
on
stand
unprece-
their
tures
ven-
aside
to
STOCK
102
XIV.
CHAPTER
WALL
of
JASON,
Cathay
the
of
coasts
a
mission
both
of
all quarters of the compass.
day, between
9
Brooklyn, Staten Island
and
o'clock
10
and
are
sexes,
Every
A.
M., the
Jersey ferry boats,
horse
and
trains
elevated
dangerous
similar
a
multitude
vast
business
the
the
successful.
from
come
on
of
find it.
never
navigate
Street
Wall
scarcelymore
They number
and
who
adventurers
The
Far
in search
Colchis
ancient
Fleece, but could
Golden
of
old, sailed along the shores
and
the
SPECULATORS.
STREET
cars
full of
are
them.
They
from
come
off
way
Long Island, from
on
River
Jersey,from the Hudson
and south-western
and villages
towns
Connecticut;
ride
three hours'
from
or
anywhere, within two
and
of the Metropolis,by fast steamers
railway
in New
far away
trains.
and
Broadway
with
them,
bankers'
in
his
from
all
and
the
adjacent
making
brokers'
for
common
common
offices.
private carriage,or
the
a
herd.
in
streets
Dives
a
hired
are
alive
goal,their
comes
coupe,
down
away
SPECULATION.
Inside
Street
Wall
offices
the
papers
information.
with
for
They
each
there
other
they
feel at
and
news
the
bulls
home,
tape
inspectthe
for
the
brokers
their
consult
on
both
are
103
latest
or
gle
wran-
prospects of the day
and
in
bears
the
;
same
office.
At
o'clock
they congregate around the ticker,
for the opening quotations on which
to base
eager
their orders for the morning.
They hang over the
indicator
fluctuation.
by the hour and scan
every
10
Business
lasts from
A.
10
to
M.
The
tape speculatorsare there
and
the bankers, brokers
clerks.
numbers,
they
would
but
however, constitute
who
their
and
seldom
are
orders
Those
fraction
Wall
on
and
the
over
a
into
drawn
In
aggregate
These,
army.
of another
Street,but
who
telegraph from
up
class,
send
town
country.
manipulate
doubtless
happy
are
regularlyas
as
an
up
who
results
have
seen
by post
all
from
make
uously.
M., contin-
P.
3
their
the
the
over
coffers
for
market
by
sure
boodle
they
trickery and
craft.
The
bankers
to
But
the
the
of
and
brokers
frequency
life of
an
and
are
in proportion
happy
size
of
their
speculatorhas far,far
happiness.
outside
misery than of
The
of ecstasy to him
feelingis one
his ventures
rollingup a profitof $500
more
missions.
com-
who
or
sees
$1,000
STOCK
104
each
on
shares
ioo
will seize
If too
it.
he
he has
greedy,and
vanishes
coveted
If he
out.
he
like
is
waits, the
shadow,
a
wise, he
and
stance
subhaps
per-
engulfs his margins.
Prices
advance
or
decline
or
sells short
by fractions of eighths.
Each
i represents a loss or gain of $12.50 on 100
In an
active
shares.
market
prices jump up or
down
by quarters, halves or whole
points at a
time.
If
buys
man
a
market
his way
goes
there, his
deal
the balance,
1
broker
shares,and
100
cent., and
per
takes
$25
he
for his
the
closes the
commission;
is his
less interest,if any,
profit,
for carrying. If the market
1
against him
goes
per cent., and he closes the deal at that loss,he is
of pocket $125, of which
out
$100 is loss on the
stock and $25 commissions
the turn;
in addition,
on
$75,
all interest
is minus
he
that
accrue
may
for
carryingthe stock for him if he is long, or of any
loaning rate imposed if he is short.
be
divided
into
two
classes,
Speculators may
deal for a
those who
long pull" and big profitsof
"
from
5 to
20
per
cent., and
scalpingprofitsof
first are
The
who
hours
the
out
put
for
a
those
fractions
like the
a
respectable3
and
or
or
Isaak
wait
5
operate for
point
disciplesof
lines
their
or
who
two.
Walton,
patiently for
pound
bass
to
take
hook.
Those
weeks
who
and
go
months
in
for
for
a
long pull
results
At
wait
times
days,
they
SPECULA
may
have
They
hundreds
many
want
do
to
change comes
big losses accrue
who
longer for
again.
to
The
the
those
like the
for the
market
to
who
fellows
of
fun
wait.
weak
on
and
on
class who
other
and
profitin sight.
A
sudden
market, the profitsvanish,
the
over
105
of dollars
better
strong hold
are
TIOAT.
wait weeks
in for
go
fish for minnows
the
pullingout
their way
short
"
months
and
around
come
Those
margins.
turns"
at
the
little fish
are
creek,
fast
as
as
they can bait the hook and throw it in.
of the daily
They try to buy at the bottom
slumps and sell out on the bulges, at profitsof
be run
in a
market
$50, $100, or $200. The
may
for
groove
up
day.
and
This
They get
$100, more
moved
days
up
at
a
down,
is
in and
or
or
out
two
or
traders' market
with
several
less,daily. Then
down,
uniform
with
perhaps
good
a
time
to
a
much
tions
fluctua-
three
times
while
it lasts.
small
pricesare
higher
a
of
profits
suddenly
lower
or
side.
they are on the wrong
They lose all their profits,if not their margins.
It is the fate of most
speculatorsto get in wrong
The
times
of five.
at least three
out
gossip
news,
and
often
false rumors
have
circulated
a
subtle,
level,generallywhen
undefinable
influence
over
the
mind,
perverting
leading fools
judgment and discretion, and
into a trap intentionally
set for them.
The
The
is baited.
hook
anglers are
cool
and
powerful. They
move
the
market
cunning
at
will.
106
STOCK
They play
When
mouse.
their
with
the
as
game
is
time
a
plays with
cat
ripe, and
there
a
is
a
good run of suckers, the net is drawn in and the
profitssecured.
in Wall
is everything to a man
Street.
Success
The
fied
gambler is confident, self-satisprosperous
and don't
care
a
fig for the good opinion of
anybody.
better class of people whose
avocations
The
are
the
taint or suspicion of gambling, look on
above
business of stock speculation as disreputableand
the Wall
to know
come
demoralizing. They soon
who
Street men
hours, daily on
pass, at certain
and
from
the Street."
their way
to
tors
Speculathis and
know
also the opinion with which
they are regarded.
Unlucky speculators,outside the banker-broker
"
offices, often
have
the
furtive
look
exhibit
and
hang-dog feelingof a sneak thief,or a sheep
and
stealer.
they
They are Wall Street lamb
it
know
it,and they think everybody else knows
the
too.
HAPPINESS.
About
tip of
a
four years
good thing to
Next
morning
buy
him
1,000
did
so.
Northwest
had
ago
gone
up
shares
over
speculatorgot a straight
mon.
comhappen in Northwest
a
he
of it at
the-
advanced,
ten
his
ordered
points.
brokers
opening.
and
before
Then
he
to
They
closing
ordered
fitof $10,000.
SPECULA
TION.
All made
within
five hours.
MISERY.
Of
and
even
all the
gerous
danwere
more
cliquedstocks none
to go short of than Delaware, Lackawanna
It was
Western.
equallydangerous to buy,
on
30 per cent, margins,unless bought under
Its fluctuations
par.
for eleven
months
in
1884-5
nearly50 per cent., and this too was brought
about
more
by artifice than natural causes.
In January, 1885, its pricewas
around
down
82.
A speculatorbought 200, equivalentto 100 full
shares,at about 83. It advanced, and at 88f he
took
profitsand sold 200 short. Still the price
advanced, and at 95^-he sold another 200 short to
down.
The
price kept going up with
average
were
occasional
reactions
until in December
it reached
135when
Now
stock
"
goes
just the extent
Lackawanna
paid two
120
priceat market was
pricedrops
When
if the
and
be
be
of
the
per cent,
with
118 the moment
subject to
"
ex-dividend
off
it would
on,
a
the
dividend.
quarterly,
the dividend
it went
fluctuations
dend,
ex-divifrom
that
price.
If
a
is short of
bear
he has to pay
last borrowed
:ry, when
I
the
a
stock when
the dividend
the stock
dividend
it goes
to the
idend,
ex-divman
he
of, to keep good his delivwas
on
it.
108
STOCK
to
April, 1885, the
pay $400 dividend
in
July
bear
In
the
he
had
to
half shares.
his 400
on
$400
another
pay
had
mentioned
before
And
dividend
on
same.
and
he had
per
day, and
to
stock
the
been
loaning
day it was
a
pay
on
had
there
the meantime
In
one
became
one
^-to-j-
cent., then
per
the
in it
squeeze
of from
rate
and
easy
a
loaning
rate
ceased.
time, he
Altogether,at one
over
$5,000 on stock, dividends
October
The
cent,
per
this
on
was
He
annum.
per
a
loss of
and
loaning rates.
reduced
to if or
7
escaped
the payment
of
Whether
he caught
by covering his shorts.
of conjecture.
short again is a matter
Another
200
bear
at
more
on
his shorts
he
had
to
One
held
a
at
short
Lackawanna
92 ;
at
200
95, and
imagine the loss he
the loaning rates and
can
with
in
1
1
loss
His
half
88
until
commissions,
and
200
bought
on
share.
200
at
200
stood
88 ;
at
for
dividends
pay.
bull
stock
sold
90 ;
Anybody
98.
he
dividend
for
stood
and
years
500
shares
65
per
share.
1884
and
then
was
$25,000
at
he
on
Texas
of
It
lost all income
the
$32,500
fic
Paci-
declined, but
sold
on
and
it for
$15 a
stock, $125 on
for about
his
stock
two
cost
him.
bull
Another
in 1882
Oregon
at
bought 100 shares Bloomington
44^, and in 1883 he bought 100 shares
Trans-Continental
at
Prices went
5 5-g--
STOCK
no
continue
the
game
long
as
as
they
raise,
can
"
borrow
beg $5, the
or
As
long as
lowest
of wealth
men
ex-cabinet
congressmen,
deacons, church
limit.
and
standing,senators,
ministers,
wardens,
officials,
state
Sundayschool teachers, and
even
stray clergymen come
into the Street to speculate on
margins, just so
of respectabili
long will the business have an appearance
and
vestrymen,
legitimacy. Legitimate
in
law
it
is,but
morally it is all wrong, and leads to untold
hardship and misery, not alone to the guilty,but
of innocent
to multitudes
people.
The
Rev. W. H. Milburn, the blind Chaplain of
the House
of Representatives,on
March
22, 1886,
invocation
devoted
his opening prayer
to
to an
"
God
to
rid the land of gamesters,
in
whether
cards,
shops or boards
that
trje people to know
of the
than
by the sweat
dice, chips,stocks,wheat, bucket
of trade, and
making
money
face
onded
motion
by
ordered
to
Mr.
be
lead
other
contrary
was
On
"
to
of
to
His
Butterworth,
Mr.
of
Weaver,
inserted
to
buy
taken.
this
as
or
Ohio,
sec,
was
prayer
minutes."
precautions.
offices tissue
received
of
Iowa, this
in the
bankers'
In many
laws."
or
letterpresscopies of
sent
orders
purchases and sales are
Orders
in pencilare
often preserved ; all
A
a
precaution against future trouble.
sell,and
bills of
out, written
respondence
cor-
SPECULA
may
heavy
loss
bear
to
influence
this
But
The
man.
his
every
banker
letters,
oral,
is
If
disposed
don't
of
is
bills
orders,
clerk
in
and
broker
in
a
of
of
court
the
commissions.
ready
to
of
law.
and
man
has
He
the
fac-simile
purchase
a
brought
alone.
fight,
to
and
scrape
between
generally
office
the
bad
sake
often
against
count
a
influence
the
for
customer
redress.
no
in
him
get
into
damnable
the
through
to
led
directly
be
client
TION.
or
back
oral
fluences
in-
copies
sale,
up
and
the
STOCK
112
CHAPTER
GREAT
XV.
REMOTE
SWINDLES,
MISSISSIPPI
IN 1679
La
Salle
SCHEME.
discovered
of the
northwest
lower
River, known
became
In
as
the
confluence
of the
Louisiana,
and
property of France.
1717 John Law, a celebrated
Edinburgh, established
stock
by royalauthority. The
of 3,000 livres each, which
soon
of
became
bank
This
and the same
receipts,
it a Mississippicompany
in Louisiana
and
which
and
was
bank
1,200
was
bore
office
year
there
to
a
for
Paris,
shares
premium.
all public
annexed
was
had
expected
in
and
to
grants of land
realize immense
commerce.
plan for relieving
treasury by parcellingout
bankrupt French
stock jobbers
Valley of the Mississippiamong
commercial
gamblers.
Law's
the
sissippi
Mis-
financier
a
the
which
by planting and
the
great district
the
native
sums
RECENT.
AND
of
Thousands
mania
scheme
famous
for
a
was
colonists
were
speculationseized
sent
out
all classes
of
and
a
French
society.
In
1
71 8 the
and
bank
its shares
originalvalue.
was
rose
declared
to
a
twenty
tion,
royal institutimes
their
SPECULATION.
burst
bubble
The
in value
rapidlyas
as
widespread
left in
were
had
they
sank
risen,occasioning
and
bankruptcy.
of the people,who
the wrath
misery than ever,
poverty and
worse
SOUTH
the
the shares
and
1720
financial distress
fled from
Law
in
113
-
BUBBLE.
SEA
the
South
Sea
Company, a
trading corporationof London, having exclusive
privileges,offered to buy up the government
of the pubannuities
with a view to the reduction
lic
In
1720
year
debt.
proposal was
accepted and great numbers
of the people hastened
invest
in the stock of
to
the
to
rose
an
Company, which
extraordinary
premium.
It was
a stupendous stock
jobbing scheme, and
after running its course
few
months
the great
a
The
bubble
burst.
Merchants,
others
passed
wealth, and
Some
to
from
their
from
their
died
of broken
parts of the
remote
It
lawyers, clergy, physicians
characterized
was
fabric of
enormous
amongst
an
PANIC
New
wild
York
and,
in the
for that
OF
and
that
national
and
into
hearts,others
world
industrious
fabulous
comforts
wonted
at
of
dreams
never
time
delusion
as
and
ury.
pen-
removed
returned.
"the
ever
most
raised
prudent people."
1837.
of
1835-6 was the scene
time, colossal speculations.All
years
9
STOCK
H4
kinds
of business
and
its utmost
tension.
disastrous
commercial
Western
commerce
In
$150,000,000
Merchants
liabilities
of
and
60
were
storekeepers
right and left until the
$400,000,000 and
total
known
ever
About
the
occurred
1837
panic
Continent.
stimulated
was
of
banks
to
most
the
on
with
over
engulfed
in ruin.
all kinds
failed
indebtedness
tween
be-
was
It became
$500,000,000.
basis of settlement
standing joke that the average
this grand aggregate
but one
on
was
penny
the dollar.
Almost
in debt
to
on
everybody was
somebody else,and was
suing or being sued, until
a
almost
law
this entire
immense
sum
EMMA
MINE.
The
Emma
London,
Silver
Utah, about
The
par
in
in the
situated
25 miles
property
and
Mining Company
back
way
itself was
mine
at
up
in
costs.
THE
in
eaten
was
from
stock
"20 shares.
for nine
sixties.
in the Cottonwood
Salt Lake
capitalizedat "
was
half the
fifties or
originated
was
The
Canon,
City.
1
offered
other
The
half
,000,000
to
was
the
to
ling,
ster-
public
be
tained
re-
expectation of a high
premium on rich developments.
The
mine
proved productive, and the last half
of the stock
was
readily sold at a big advance.
paid,
Twenty-two dividends, the last in 1864, were
the passing of
amounting to $1,394,400. With
the dividends, the stock rapidlydeclined, and almonths
in
SPECULA
value
a
bullion
of
In
of
out
"st went
1871 the
new
the
It
director
the
as
of his name,
use
which
all the
An
expert
directors
had
in his report
and
which
in his
it in the
And
had
dollars
A
large
share.
The
the
already
London
paid ""100,000.
mine
expert
his
received
favorable
Shareholders,
500
shares
for
stock
use
mine,
several
facts
all
Mine
and
placed
of the
of
it."
floated
of the
world.
millions
from
at
,"20
scheme
banking
their
able
reason-
Emma
several
was
of
year,
a
visit the
the
removed
American
paid ""25,000 for the
a
beyond
of
promoter
An
become
great mines
value
of
amount
and
of great power,
been
public
get.
that
of the
to
ore
said
"
vein
category
that
to
conclusion
mineral
true
a
was
in
prominent
salary of $2,500
a
employed to
There were
:
promoter
a
the
of
established
opinion
the
doubt
said
that
stock
were
been
of
him
to
and
lish
Eng-
card.
take
present
chief
name
transpired
to
and
hands,
Englishman, who,
the
drawing
a
the
by
The
$5,240,000.
was
other
into
noted
a
induced
was
produced
included
afterwards
official
speculation.
a
formed, comprising both
was
5
1 1
capitalists.The
Company
S. official
as
passed
was
prospectus,
U.
had
mine
American
and
of the
sight
it
company
TION.
house
and
name,
."9,000 or ""10,000
for
a
was
was
the
ing
mak-
report.
both
English
and
American,
Ii6
STOCK
the
prise,because
name
in the
was
Dividends
United
prospectus
i
-J-per
as
a
public
cent,
per
official's
Director.
for thirteen
paid
were
at
States
months
month,
secutively,
con-
until
cember,
De-
1872.
people took
stock
bought at high prices. The
up to "32 per share in May, 1872.
Great
the
When
sold
of
numbers
out
ceased, the
dividends
and
short,
gone
the
and
the
bait, and
boomed
was
had
insiders
stock
had
a
rapid decline to "1 5s. per share.
The
collapsecaused great losses and distress to
of people,afterwards
numbers
immense
aggravated
the stock, until at the close of
on
by assessments
$1,832,000. The
1874 these levies had reached
exhausted
mine
had become
long before.
pany
Subsequently the personalproperty of the Coman
execution, issued
sold under
was
American
who
capitalist,
was
a
in favor
Director
of
of the
Company.
became
the subject of
In 1875-6 the matter
resulted
in a
Congressional investigation,and
of the
of censure
resolution
public official for
having had anything to do with the mine as a
of his posiwhile discharging the duties
Director
tion
"
"
as
In
House
an
England
of
officer of the Government.
accredited
the
matter
Commons
subjects.
The
developments
so
far
raised
was
taken
it related
as
a
tremendous
up
to
in
the
British
breeze
Ii8
STOCK
investigationseveral
An
the fact that
not
interested
were
Company.
Charges
afterwards
and
Senators
few
a
years
owned
had
and
Recommendations
made.
men
Congress-
stock
counter-charges were
and
ed
reveal-
in
the
ously
promiscu-
of
and
censure
offered.
expulsion were
All this,lockingthe stable door
after the horse
had been
stolen,did not help the people who had
fleeced to
been
The
Mobilier
Credit
with
and
the
their money.
recover
the
scheme
the
become
of the
construction
buildingof
had
railroad
so
Union
woven
inter-
Pacific,
promoted
gress,
by Conby grants of land and other assistance
it savored
much
of stock jobbery and
too
of the National
corruption, that any member
islatur
Legshould
had
have
any private interest in
either Company.
It was
the great scandal of the period and for a
long time a stench in the nostrils of the American
people.
as
Suits in connection
continued
a
to
out
in the
CATTLE
Wall
Street
York
Courts
Mobilier
down
even
of
have
to
men
RANCHES.
have
many
irons
in
the
land
speculation. Various
companies have their head-quartersin
issue stock of their corporations.
and
outside
cattle
the Credit
time.
recent
very
crop
with
was
stock
fire
and
New
TION.
SPECULA
of dollars
Millions
invested
are
and
raising in Texas
cattle
1 1
the
in
reservations
Indians
of the
set
"
apart for the exclusive
intruded
are
and
Terri-
western
Itories.
The
sheep
9
in the
upon
use
red-hot
pursuit of wealth.
made
the subject of
In
was
1885 this matter
by Gen. Edward
complaint to the Government
issued a
McCook, whereupon President Cleveland
to
remove
proclamation warning the cattlemen
their live stock
with
The
only
then
and
time
"
annual
same
effect
"
round
up
and
reservations.
for a
they did remove
back
again. In 1886 the
the ranges
on
proceeded the
the President's
proclamation
that*
ignored.
was
However,
herds, and
immense
ranges,
farms
stock
their
fences
barbed-wire
and
cowboys
thousand
gradually disappearing,and
are
acre
taking
are
place.
Park
Yellowstone
Even
of
came
before,
as
was
the
from
overrun
was
by
swarms
lyn
greedy speculators. An editorial in the BrookEagle in 1885, discussingthis matter, said :
"
KEEP
An
THEM
effort is
property
known
OUT
being
as
Political and
uses.
OF
made
PARK.
YELLOWSTONE
to
convert
Yellowstone
financial
Park
pressure
the national
to
can
private
readily
perhaps have been, brought to bear on
of land grabbers,
Congress to further the schemes
be,
and
STOCK
120
hotel
that
builders
in this
of
big
apart from
of
-fortunes.
Yellowstone
permanent
settlement
American
the
who
railway magnates, who
fancying
region are opportunitiesfor the makand
choose
so
to
scenic
many
exhibitions
of
interest
people and
explore it. No
cleave
canons
with
fantastic
the
roar
rock
of
to
There
cataracts
forms, painted
people
are
fearful
depth
plunging into
in
colors
tains
con-
of scientific
of
expanses
a
benefit
wondrous
many
phenomena
wide
earth
the
all other
beauties, so
over
set
was
spot of earth
this reservation.
peaks brooding
for
of
color,so many
as
Park
of
snowy
forest ;
and
sound
re-
them
;
almost
dot the mountain
sides ; clear
prismaticliveliness,
banks, gleam in the
lakes, with flower gemmed
valleys; hills of sulphur, dykes of crystallized
basalt and
volcanic
domes
of limestone
action, as
do
the
form
cliffs of
of
monuments
sparkling black
River
Palisades
; hot
glass,as high as the Hudson
of self-built travertine,
springspour from terraces
water
the frets and
growths that face and line
pools rivalingfrost work in their delicacy; paint
and
sputter, boiling red .and yellow
pots blob
slime of sulphurous odor ; fumarolesand
solfataras
and whistle ; boiling pools stripe the plains
roar
metallic colors,marking their lines
of sinter with
of outflow, and geysers
flingtheir columns
150
feet from earth, shaking the ground with the fury
with clouds
of their eruptions, charging the winds
with
and
of steam
scaring the elk in the covert
'
'
SPECULATION.
of
prospects
It is
pools.
To
inure
should
and
would
that
and
springs,the
the
park
used
thereto,
would
disgrace on
of the
robbery
the
as
Park
Thousands
for
and
the
and
farmer
for himself
as
easy
to
in
do
Yellowstone
that
it of
a
it
as
was
be
tative
represenbe
ple
sim-
would
as
lumber
be
have
no
twenty
yards.
every
instruction,and
ed
already secur-
the
sippi,
Missis-
21,000,000
acres,
who
way
opened,
Niagara,
year.
over
ranchman
moderate
Park
lobbyistswho
owning
and
at
territorybeyond
non-residents
peddling
Yellowstone
increasing every
Speculators and monopolists
vast
in
private corporations,
to
is
possession of
sides,
hill-
fence
canons,
so
panies
com-
the
would
health, pleasure and
number
le
from
It would
visit the
of tourists
Summer
railroad
much
stock
into
conversion
light,
de-
and
official and
act.
an
into
people.
be done
to
public,as
giftof Prospect
for
the
to
the
every
in such
engaged
wonder
among
and
geysers
admissions
cast
of
stripits forests
speculators who
land
to
still
in silver sheets
forever
the
apportion
manding
com-
purple mountains,
region
a
more
plains,slopes
showering
cascades
rivers,and
of
scenes
are
also ; grassy
tranquil beauty,
shaded
There
bellowing.
Leir hoarse
121
wishes
longer
years
at
the
to
start
finds that
ago.
Should
instigationof
trying to influence Congress to
have little beneend, intending settlers would
it.
The
are
park
cannot
be
turned
into
farms,
STOCK
122
for most
into
of its surface
plateaus from
The
sea.
in
the
used
cattle
as
the
along
be
valleys could
The
is richer
there
but
ranges,
are
Winter
and
Summer,
stays late.
abundance
more
of
the
above
chilly,frosts
is therefore
nights
early and
comes
8,000 feet
to
lifted
and
mountainous,
3,000
climate
common
is
Yellowstone
grass
and
below
the
park.
It has
been
asserted
this
through
which
be
The
to
is
park
the
to
so
secure
"
companies
a
push
a
railroad
than
almost
an
is
go
already
Ogden
to
in
westward
be
Pacific
together
at
drawn
least
at
lines.
another
where
200
a
it ;
difficult
the
and,
as
thing
to
for the
this domain,
tains
moun-
One
impenetrable barrier.
Helena
operation between
of the park, and that more
the
If it is desired
point,
miles
there
of
side
suffices for the traffic between
Northern
Hall.
than
narrower
either
on
through
railroad
form
and
to
no
fact, it would
of
matter
is
City
projectors probably hope
road
great hardship on the rail-
railroad
that
it
Streets
top of the
"
would
establish
to
Court
and
broad
Pacific
that
as
order
in
the
over
go
sixty miles
grant that
sensible
Fulton
between
necessary
as
road
rail-
a
tion
communica-
Union
and
that
claim
should
connection
was
about
assertion
an
establish
to
Northern
the
between
lines ;
region
of
is need
there
that
east
would
the
ward
Union
link them
to
line
and
be
should
from
the
naturally be
lowstone,
Yelmore
TION.
SPECULA
and
ivel
id
freighting
more
and
mountains
uninhabited
There
ryoming.
Park.
Yellowstone
out
than
of
it."
is
Keep
no
123
alkali
for
excuse
the
the
among
vandals
wild
deserts
despoiling
and
lators
specu-
of
STOCK
124
XVI.
CHAPTER
RAILROAD
stock
RIVALRY.
of the
of many
THElargely
that
watered
dividends
actual
on
These
cost.
When
they
capitalof
a
old railroads
to
pay
treble
or
corrupt methods
had
so
made
were
double
was
their
tive.
destruc-
were
monopoly of the
carrying business, with no competition,they got
along famously. But when they had to divide up
with
the business
new
competing roads, costing
stock of
but a fraction of the enormously watered
difficult to pay
it became
the old companies, then
and fixed charges and have anybonds
interest on
thing
they
the whole
left for dividends.
from
New
York
to
seven,
three
railwaylines connecting through
the
when
Thus
to
the
West
rise
it gave
increased
were
to
cut-rate
wars
from
and
crippledthe earning capacity of all of them.
formed
Then
to
pool partnerships were
stop
freightrates to a profitable
cutting and restore
In
basis.
business
The
was,
the end
enough
New
York
in its best
in the
country.
found
it was
to
go
that
there
was
not
around.
Central
days, one
It had
" Hudson
of the
double
River
Railroad
grandestproperties
tracks
from
New
126
STOCK
W.
a
H.
Vanderbilt
privatelysold 250,000 shares to
November, 1879, and 100,000 shares
syndicate in
January following,all
in
more
share, which
per
stock
the
bears,
take
it
time
of
pressure
$120
per
feed
to
a
it out
strength of
had
at
of
large amount
a
have
sold
Vanderbilt
meantime
about
nineteen
to
been
demoralization
was
to
the
to
the
such
that
the
to
Hence
market.
could
six
for sale, it would
was
it at
market.
price at
known
it been
Had
by
the
below
cent,
from
was
of
of
sold
down
the
whole
syndicate. They
a good profitaccording
the
market.
In
the
relief from
immediate
public opinion,while
stillvirtually
controllingthe road.
The
Shore
York, West
building of the New
and
the Central
Buffalo Railway, paralleling
son
Hudroad
its entire length,was
a speculation and
a
competition
Anything
of the
like
a
control
Central
the
under
has to
pay
West
Shore
the
the
of
on
road
new
a
four per
taxes
cut
rates
lease
cent,
bonds,
and
all
and
fixed
a
New
West
York
Shore
100
on
pay
charges
line.
of
out
was
Central
the
and
cured
se-
closure
fore-
under
years,
interest
must
the
saddled
became
ruinous
a
along
majority
fpr
and
business
remunerative
proceedings
bought up.
Thus
to
for local business
question, until
the
had
rise
It gave
menace.
bonds
it
the
on
it
now
$50,000,000
operating
of every
kind
of
penses,
exon
SPECULATION.
both
its
dividends
any
pay
In
the
and
own
former
Central's
to
charges on
Europe.
the
Now
revenue
wheat
great
found
from
deficit
before
it
can
stock.
own
was
wheat
Shore
of the
one
years
Y.
West
its
on
127
of
the transportation
in
the
of N.
sources
West
for export
nations
European
is
largelysupplied with the cereal from Russia and
can
India, especiallythe latter,which
ship its
wheat
by the short cut through the Suez Canal,
and lay it down
in the markets
of Europe much
can.
cheaper than America
/
When
there
products,all
is
will
the
Besides
divided
dozen
having
The
four
ever,
the
that extent
the
has
now
to
in the
be
loss
a
Central
different
on
before
the
outlook
immediate
dividends
cent,
It may
its
it
Lake
grain
home
sumption
con-
granariesof
in the freight
Hudson
Shore
and
for
and
more
the
Erie
than
half
the water
N.
Y.
eight per
more
Central
six per
pay
it will be
way,
all
York.
anything
eventually
pay
formerly
with
port of New
on
stock, but
can
with
up
railroads
into
entrance
per
divide
LAKE
The
for
our
carriers.
this,where
promising.
income
to
for
freighttransportationonly
Canal, it
a
required
naturallyremain
West, and
earnings of
is not
that
demand
export
no
a
cent,
than
is not
cent,
long time, if
again.
SHORE.
Michigan
Southern
was
128
STOCK
almost
valuable
as
it became
It
a
dividend
cent,
when
was
York
New
until
until
December,
passed
were
Central
York, Chicago and
road, and an eight
Vanderbilt
payer
dividends
the
New
the
by
paralleled
St. Louis.
per
the
as
and
1884,
resumed
not
The
again until the last quarter of 1886.
highest
and the lowest
135J-,
price of Lake Shore in 1881 was
about
115. Its highest price in 1884 was
I04f,
and the lowest 59^, but it did not reach the bottom
of its decline
1885, when
the
until the
Spring
under
pricewent
NICKEL
Summer
or
of
51.
PLATE.
York, Chicago and St.
buildingof the New
Louis
(Nickel Plate)so close alongside the Lake
Shore was
at the Vanderbilt
a fearful blow
pride.
Plate was
Nickel
the cheapest specimen of
The
that was
ever
a railroad
projected or constructed.
and a very brassy concern
It was
from
a speculation
The
H. Vanderbilt
W.
the outset.
of his life when
road
called
to
not
help
his
own
it.
bought
Vanderbilt
into the
go
He
was
caused
a
to
was
The
he
of the
destroyed
Lake
the
financial
to
only
ever
He
be
out
of
set
up.
lowed
al-
could
extremity
cutting
for
other
derived
it from
Shore.
that he
the
gain
bar-
the
was
receiver.
to
howl
fearful
keep
a
forced
only advantage
of it
of
It
it.
property
hands
protection.
interests
The
a
he
the worst
made
by the possession
ness
destroying the busi-
However,
state
of
the
as
it was,
it
latter road.
SPECULA
compelling it to stop
Nickel
the
issued
be valuable.
be
H.
worth
man
which
He
late for the
too
before
The
be thrown
in
news
was
It
would
to
wired
of December
reach
be
that
the
all
8, 1885,
Exchange
the Stock
thrown
that
the
on
disastrous
bear
the
over
expected
was
people, with
Also
ing
caus-
prices.
afternoon
news
the market,
on
the close of business.
Europe.
stock
power
naturallyexcites fear and apprehension
has left a largeline of speculative
the
on
DEATH.
first effect of the death
The
decline
died
When
time.
mighty moving
a
was
may
severe
a
VANDERBILT'S
market.
that he
stocks
a
much.
Vanderbilt
a
for
stock, except for control,
its
OF
in the stock
of such
dividends
9
is
But
EFFECT
W.
1 2
the bonds
fullyreorganized,
guaranteed by the Lake Shore and
Plate
will be
will not
TION.
a
country and
flood
market
results
operationswould
to
of
long
ened
by frightvalues.
on
add
to
the
demoralization.
At
the
opening
alleries of the
E
ger to witness
reak
big
of
was
of
Exchange
were
the first mad
the market.
bulls had
business
united
This
to
had
sustain
morning the
packed by those
next
rush
been
of the
bears
foreseen
pricesas
a
:
to
the
matter
self-preservation.
Somehow
not
a
singleprivatewire in the street
working. The bulk of country sellingorders
10
STOCK
130
expected
bears
battle
The
The
rush.
like two
at
o'clock
factions
in and
the
drove
positions. This, however,
their
bulls rallied
The
the
bears
lasted
offered
hoarse
a
roar.
from
back
but
was
up
wild
a
together
bulls
rary.
tempofast
prices as
The
down.
them
minutes, then
ten
bid
and
ments.
reinforce-
with
by
the
and
came
followed
clouds
closed
market
of these
lack
10
contending
thunder
bears
as
opened
the
of
out
handicapped by
were
The
kept
were
skirmish
the
retired from
the bears
contest.
opened one and two
the previous day's closing. Lake
points below
the pivotal stock, and
Shore, as expected, was
of the
Prices
off three
opened
bulls
it up
put
five and
up
a
figure.
Drexel, Morgan
first
the
York
D.
and
half
"
it around
kept
P.
bought
25,000
large buying
Morgan,
shares
in
in New
engineered
from
just arrived
had
who
opening
orders
London,
from
in
came
the
that
his pet
ran
points above
Co.
The
88.
85 from
at
Continent.
the
for the
But
to
86
flurry,then
Central
Mr.
by
cent,
per
to
list
chief bull in Lackawanna
The
figure.
stock
general
all
sell,from
have
been
country
trick in
the
over
compelled
held
stock
stopping telegraphicorders
to
country,
buy
in order
reams
to
the
bulls
upon
sustain
would
reams
of
the market.
SPECULATION.
131
XVII.
CHAPTER
MANIPULATION.
circumstances
WHEN
advance
decided
of the
decline
or
market
favorable
not
are
for
a
prices,the
in
almost
often
wholly
such
times
the
artificial. At
big men
keep
accumulating
prices steady by washes, without
fluctuations
are
"
"
stock,
leave
or
for
operate
The
traders
Each
shows
fraction
them
a
their
are
unless
commission,
them.
the
to
traders
room
to
scalpingprofits.
room
no
pay
market
the
brokers,
own
executed
orders
on
their
profitin sight
of
for
shares
100
on
way
and
each
$12.50,and
point $100.
As speculationturns
so
largelyon trickeryand
is to hinder
ten
some
or
artifice,what
twenty
"
to
repeat
I
To
a
or
different
job.
They
each
two
take
the
put
within
down
four
or.less,forming
traders, more
room
of Union
of
range
three
stocks
the whole
could
prices of
one
times
are
or
two
per
bine
com-
up
and
cent., and
day? Two, three, or
enough for their purpose.
a
list in hand
begin by buying
Pacific
stocks
certain
"
secret
a
would
be too
500
1,000
at, say, 50,
or
Jersey
big a
shares
Central
STOCK
132
at
55, Lackawanna
at
fraction
a
they
stock
to
their
hinder
by
want,
say
All
90.
raisingthe price,
vanced
time
the price adevery
the
two.
Having secured
or 4,000
shares,what is
2,000
washing prices up,
2
say,
cent,
per
o'clock ?
1 1
Then
sell out
to
pricescould
sold
or
at
without
they might pick up
by washing prices back
these
St. Paul
and
130
be
and
out
the
on
washes
on
up
short
until
side
washing down
play, and by 1
into
the top,
around
profits
the
Then
shares.
kept
got
take
and
had
they
2,000
process
4,000
or
could
be
o'clock
they could
their shorts and get around
the long side
cover
on
by washing
again,2,000 or 4,000 shares. Then
pricesup they might sell out and get short again
their deals by 3 o'clock, leaving
and close out
where
pricesto close just about
they opened in
Here
would
the morning.
be two
deals on
the
brought
bull side and
of
2
cent,
per
shares
would
$16,000.
each
000
two
of
to
But
If it
who
up
would
deals
Some
With
time
shares
gain
profits
2,000
on
total 4 times,
"
at
2
per
cent,
on
the
be $32,profitswould
the pool.
among
be buying all this stock of, or
?
Why, those fellows,the tape
sellingit to them
speculators,scattered
houses.
each
4,000
was
side.
deal, the
$4,000
four
divide
the bear
each
on
be
the
on
of them
around
in
would
the rest would
profit,
get
Such
practices are not
a
get
hundred
out
with
stock
a
little
left.
given
in
this work
as
STOCK
134
orders
have
in the
the
tide is
board
earliest information
running
office.
For
in
the
on
the
All
among
orders
usuallysent
entered
the
the
are
to
as
class who
which
the
way
the
speculatorsin their
executed
by the broker
immediately, by
own
are
be
to
messenger,
books.
confidential.
is
business
keep the secrets
operations of one
must
they
room,
of the
office and
reveal
not
to
customer
clerks
The
of
any
the
others.
Some
speculators maintain
the side
they are operating on
Their
dealing in.
they are
guessed
Others
at.
what
know
In
great secrecy
they
deals
free
are
of
the
stocks
only be
everybody
can
let
to
to
doing.
are
offices there
some
and
as
And
operate for big stakes.
large traders, who
are
if most
of
the
other
tion,
direcin the same
making ventures
the cupidityof the clerks is aroused
to get in
the swim, if they have a little money
to put up as
margin. $25, $50 or $100 will do for from 20 to
customers
are
50 shares.
Yet,
what
is
other
class
several
all
once
than
One
going
on
times
too
on,
the
they
are
Street.
in succession.
often
insight of
just as unlucky as any
They may hit right for
In the end they risk
chances
all the
with
and
are
and
left
as
the
bad,
or
off
worse
before.
young
in the Street
man
with
inherited
the idea
He
$20,000.
of
making
it
came
$100,000.
SPECULATION.
The
result followed
usual
became
clerk
a
he
The
parents of
home
for
got
have
per
a
with
bought
two
a
proved
where
gone
a
within
out
"
a
of the
in
like
vanished
of sweet
his luck
in
a
the
he
Had
well.
his
$20,000
and
market
But
and
way
turn
class the clerks
those
a
and
excited
for the
raided
values
in
He
to
the
is stilltrying
Street
any
down
chew
waiting like
up."
in almost
bears
$20,000
The
"
Wall
It
margin.
as
three
or
to
wise
up,
high
too
bitter fancies.
something
as
lated
accumu-
been
days.
dream, leaving him
small
paid than
Profits
luck.
been
margin
great strike,he bought stocks
two
and
a
small
very
have
bought
cent,
per
better
pay
would
on
"
closed
all
$20,000.
had
he
got control
a
point
was
to
absence.
shares
100
sure
of
full strength of
happened
As
a
run
by cupidityto make
for
"
$200
all would
away,
ber
The
the
great
a
until he
cud
him
stock
certain
a
ing
leav-
office,on
during their
that
clerk,with
basis, had
15
within
up
twineth."
Another
the
stock
a
his deal
steer, and
woodbine
in
expenses
point
sure
hours,
to
swallowed
vacation, left $200 with
a
good rise and
cent,
margin.
crooked
run
clerk
a
a
two
an
is often
household
and
He
lost it all. He
soon
of the venture.
hour
rent
a
shares,which
twenty
an
is
to
raise
can
he
;
impecunious clerk still,
mouth, always trying his luck
cent,
1 per
margin on ten or
and
hand
livingfrom
when
135
Micaw-
offices
are
other business.
136
STOCK
They
in
are
few
and
their
dangerous atmosphere
a
resist the
can
seductive
of
tion,
tempta-
influences
of
surroundings. They are thoroughly imbued
the
The
instinct of the gambler.
who
one
silver dollars,halves
scruple to match
or
with
would
quarters
of
contigency
down, would
or
up
the
on
a
be
almost
certain
a
stock
ing
go-
avis among
rara
his fellows.
WOMEN
People having
Street
have
can
into
sexes
excitement,
All
to
come
to
the
relieve
and
of
cackle
and
favors
build
In
the
their
luck
for the
castles
mothers
by
side
old
the
of
for
troubles.
with
a
son
in the great
at
the
tickers.
they laugh
moment,
in
cies
spe-
for wealth.
race
eye-opener
side
a
come
of other
the
in
or
sons,
Some
minds
fresh
and
young
of
extent
effect it is
maelstrom.
business, stand
If fortune
of
Wall
continually draws
daughter,just taking an
world
idea
allures
try their
fathers
Often
or
which
insanity which
of
both
faint
a
of
experience
speculativemill.
the
gristto
actual
no
but
hallucination
the
SPECULATORS.
air.
More
and
often
they are
depressed with gloom, or, if women,
wring their hands in terror as they see their money
school to initiate the young
a
disappear. What
into the mysteries of gambling !
A
great many
speculatorswho
offices have
commence
a
clientele
by dealing in
of
100
women
share
C ULA
SPE
ts
and
in the
the best
of the
ranks
fair
customers
sex.
correspondent of the Brooklyn Eagle got
followingdescriptionfrom a broker friend :
A
About
the
into
the
first
of
move
Gould
Jay
coal stocks
Chicago syndicate. Tick,
the
or
My gracious!" she exclaims,
"
out
my
at
Make
"
She
declines
and
of
flounces
half
to
bought
Telegraph was
eighth was
1
1
at
wants
74.
it immediately
becomes
to
an
got my
you
90!, and
office,only to
she
hour, when
an
It's
don't.
no,
she
Then
90.
of the
out
it at
gets
tick.
90J. Close
Telegraph 47J.
Have
four.
it at
the
St. Paul.
eighth. Oh,
an
yet ?
St. Paul
"
market.
short stuff at the
100
Buy me
eighth now.
latest
in
last fluctuation
the
or
await
lary
vocabu-
discussingthe
in
exercised
are
to
her
meantime
pops
gossiphung
herself
seats
In the
quotation.
organs
then
She
hooks.
the
all the
the
announces
loveliness
her
opening of the Exchange
the private office and reads
upon
ticker
the
before
minutes
ten
37
1
of
Some
upwards.
found
are
TION.
angry,
return
know
inside
if that
No, it was
not,
as
price touched, and the
of her query
uotation
at the time
was
75^. It is
not
they make
always thus, however, as sometimes
they become
"big winners;" but on the average
;
hardened
themselves
Sooner
by
100
the
to
to
or
"
margins," and
perpetuallosses.
call for
almost
later many
ill-luck that
share
lowest
the
lots.
they
Then
can
of them
no
they
become
so
longer swing
drift
over
to
resign
reduced
stocks
in
the offices
138
of
STOCK
the
Consolidated
continue
"
speculate
to
where
Exchange,
in
lots
share
ten
will
they
until
busted."
of the small
Some
A
try their luck
few
of
They are women
the propensity
support
on
women.
confine
selves
them-
the
their
future
and
of chance.
game
belong
Many
present
from
in
from
come
New
York
and
the
South,
the
cent
adjaWest
California.
The
ladies
Southern
livelyand vivacious
were
brought up
slaves
their
became
roamed
are
race.
a
kind, good-hearted,
Some
of the
older
ones
plantations with numerous
their
When
to
execute
slightestwish.
confiscated,and they
personal chattels were
impoverished by the results of the war, they
off into
adventures.
the
oil,others
by
good character,aside
risk
to
all of them
cities.
and
in
infested
are
stocks.
to
Not
offices
new
Some
on
fields in search
of
them
are
of
traveled
fortune
or
ladies of
tion,
highestintelligenceand far-reachinginformawho
have been nearly all over
the world.
In speculation,
as
a
rule,they are too impulsive
If they
and quick to jump at wrong
conclusions.
see
pricesgo up a point or two they buy, thinking
But
four times
out
a big rise is coming
sure.
or
six they find they have bought at the top and got
left. Hence, they seem
suffer worse
the
than
to
who
cautious
and wary.
men
are
more
calculating,
bulls,or as rampant
They are just as rip-roaring
SPECULA
bears
the
as
they
If
prices are on the
too
general principles,
men.
short
go
1 39
TION.
on
decline
often
to
the bottom
and got left
they have sold near
again. But no matter, like all votaries of fortune
they seldom give up the game as long as they can
raise a margin.
One
lady was asked if she expected to get rich.
No ! I only want
She answered,
to get even."
find
"
The
cat
enough
to
she
Here
the
don't
you
from
get away
are
whom
more
rumor
stock, are
A
very
money
of shares.
in
hopes
of
Fallacious
lost.
unlucky
asked,
was
said, "She
must
have
and
some
#
in the
All hands
was
quit?" She
family troubles
divertisement."
None
had
once
she had
money
lady who
Another
Why
had
swing stocks by the hundreds
was
dealing in ten share lots
gettingback
hope !
"
She
out.
was
so
says
market
than
are
besieged for
good story
keen
are
the
is told at
"
women.
operating
pointers.
the
after
in
expense
points.
Big men,"
this
or
of the
that
late
lady was in the habit
for straightpoints. One
of looking to him
day
and
not
he spied the lady coming in his orifice,
her, or give his movements
wishing to deceive
ing
The
door.
he hid behind
a
lady not findaway,
and
him in took
seat
a
kept it so long, that
Mr.
WoerishofTer.
Woerishoffer
before
she
was
got up
A
certain
almost
and
petered
left.
out
with
ennui
STOCK
140
ladies
Some
A
ladies,
always
prices
buy
going
cleaned
out
going
out."
and
down.
by
mostly
unfortunate
more
if
as
That's
if
they
prices
the
never
hold
and
then
as
would
prices
left
get
short
fools
blank-blanked
bottom,
go
them,
were
were
The
top,
the
treated
very
:
!
They
up.
near
are
sell
stop
the
at
show
customers
he
'em
blank
Why,
stop
Said
men.
satins,
costumes.
they
why
asked
was
the
than
has
jade
whose
broker,
young
silks,
Others
semi-genteel
well-worn
their
"
fickle
the
how
plain
in
street
diamonds.
and
jewelry
gold
the
in
come
way
on
get
would
until
ened,
frightnever
they
are
142
STOCK
penalty of losingtheir
seats
worth
in the Stock
Exchange,
about
$25,000 each.
The
Consolidated
was
dependent on the other
Exchange for its quotations of stocks and bonds.
which
were
Could
the
brokers
it would
have
service.
But
of the latter have
been
deprived of
it had
a
a
their way,
connecting ticker
with
contract
had
the
Gold
and
Stock
Telegraph Co., which did not
expire until
the Spring of 1886.
The
Oil Exchange first began dealing in railway
bonds
in 1884. Speculators can
stocks and
buy
sell there by the hundred
or
shares,or in fractional
lots of ten shares upwards. Stocks could and can
be bought in less amounts
than 100 shares at the
old Exchange, but stock is not easilyborrowed
to
make
deliveries
on
fractional
short
sales
of
less
is obviated
at the
difficulty
be bought, sold
Oil Exchange, and small lots can
borrowed
or
freely.
A
ticker service, invented
new
especiallyfor
solidated
into
in 1886.
it,came
use
Now, while the ConExchange claims to be independent and
its own
to make
quotations,it continues to follow
than
100
This
shares.
closelythe prices
which
latter
used
"
many
share
to
at
the
Stock
Exchange,
stigmatize its rival, in
rision,
de-
nothing but a huge bucket shop.
are
large part of the members
men,
young
for cusof them
tomers
cheap Johns," ravenous
will buy or sell ten
and commissions
; who
lots for their clients on the smallest margins
as
A
made
SPECULATION.
and
2
3,
all the business
is
trust
a
for
margins, and
when
they can
on
the
get
interest
the stock
holds
which
company,
carried
small
a
bought
collateral.
as
A
can
put
look
and
broker
is in the
He
Board
then
on
a
fourth
is to
attend
to
few
wants
A
cheap
fifth
or
to
book-keeping,
the
after
costing a
seat
capital.
some
up
perhaps, up
partner'sbusiness
The
a
broker.
a
is hired,
floor.
the
buy
can
dollars becomes
partner who
office
who
man
young
hundred
a
vation
self-preser-
on
capitalgoes a good ways,
stocks
bought for customers,
by
as
law, they will look out
safety,first,last,and all the time.
own
Most
But
customers.
first
is nature's
their
will do the best
They
cent.
per
for their
can
tey
1
even
143
tomers,
cus-
while
orders.
execute
for mutual
safety,
they may
agree,
The
)t to speculate themselves.
great thing is
is always
office man
to get straightpoints. The
in and
customers
the alert for points to steer
on
the big
down
the offices of
He
to
out.
runs
As
a
brokers,
firm
has
everybody
back
to
to
an
for
ear
hints
the office he
influence
or
open
as
to
to
is very
brokers
curbstone
ups
or
downs.
free with
lead his clients in
long
his
or
and
Then
opinions
short.
mutual
for
Notwithstanding the agreement
he has a straight
thinks
safety,if the office man
of several per cent,
pointer for a movement
up or
down
the
to
down, he will,not unfrequently,run
bucket
shops and buy or sell 100 or 200 shares on
STOCK
144
a
one
per
the broker.
He
The
another.
of
stability
when
it bursts
shorn
lambs.
will land
GIANT
Oil
Standard
behind
at
the
his
to
time
one
of
partner,
and
lose at
rests
gambling is on him
a
on
volcano, which
both
of
firm
the
A
power
win
may
infatuation
the
The
unknown
margin
cent,
them
;
the
among
MONOPOLY.
is the
Company
curtain
in
manipulating
all the great
ments
move-
time
The
petroleum in this country.
it had
when
was
practicallythe entire monopoly
of the world
with
this
of supplying the markets
oil
product. But later,the discovery of immense
fields in Russia
developed a powerful rival and
opoly
brought it into competition with another monof other nations.
in supplying the wants
in
The
it is
Baku, and,
than
Brothers
Nobel
any
wealth
is
have
control
said, now
other
in
concern
world.
the
at
petroleum
more
estimated
moderately
oil works
immense
Their
^"80,000,000
at
sterling.
The
to
uses
various, and
discoveries.
petroleum
source
which
the
constantly being
"The
value
distillation
of steam
as
of the
adapted
increased
residual
and
is claimed
in
development by
petroleum industry at
marvelous
be
efficient
an
power
conclusively established
the
oil may
to
the
the
Brothers
Baku
by new
product of
cal
economi-
have
with
connection
are
been
the
Nobel, of
Works, Rus-
SPECULA
"
TION.
145
through pipe lines of an aggregate
than
sixty miles, by the
length of more
apparentlyinexhaustible suppliesof the Aspheron
which
fed
are
,
Peninsula.
residual
The
heavy oil which remains after
illuminatingand lubricatingoils
or
extracting the
petroleum,and of which the Messrs.
alone
Nobel
now
produce 450,000 tons annually,
dred
is already used as fuel on
upwards of three hunthe
steamers
Caspian Sea and the
upon
the Trans-Caucasian
on
Volga, and by the locomotives
and Trans-Caspian railways.
of refuse petroIn regard to the employment
leum
fuel in locomotive
as
engines,it is claimed
that, weight for weight, it has 33 per cent, higher
the
from
evaporative value
60 per
of
cent,
75
is
efficiency
is
cent,
per
anthracite,and
than
ter,
the lat-
with
realized
with
obtained
that while
petroleum
refuse."
clerk's
A
The
bonanza.
"
pipe line
system, of conveying the
board
oleaginous fluid from the oil regions to the seathrough conduits, originated with a poor
"
clerk
and
in
a
New
York
office.
his
him
employers sent
for them,
business
some
chance
The
interior
oil
Kd
to
cars
as
was
Oil
to
well
in bad
as
to
health,
City to
give him
fix
a
recuperate.
shipment
to
He
the
was
of
the
refineries
crude
tide water
near
expensive
11
product
and
from
the
in barrels
troublesome.
146
STOCK
clerk fixed his business, then
The
his
at
leisure, took
in the
lookingaround
situation,and
last
at
"
idea of a series of tanks at distant
to an
caught on
pointswith pipesthrough which the oil could
be forced
from
station to another.
one
by pumps
He
counsel, developed his idea and
kept his own
'*
took
letters
out
it,"but he
Oil
did
know
not
soon
capitalists
the invention
There
patent.
and
"
was
millions
in
value
of
it.
the
saw
offered
immense
him
$500,000 cash
for
all his
right,title and interest in it.
He
was
only a poor clerk, on a salary. The
out
seemed
he grabbed for it,withso
enormous
a second
thought, and sold out. It is said had
retained
the
whole
monopoly of the fruit of
sum
he
his
it would
brain,
have
worth
been
him
to
$500,000,000.
The
from
time
York
Sun
The
;
a
a
diaphragm
other, and
boilers.
wings
enable
remove.
is
to
machine
transmitted
the
transported
cleaned
by
at
its front
can
pass
like those
somewhat
another.
which
it to
This
It is put into
the pressure
station
of
made
thus
of steel scrapers
one
petroleum
are
regions to the seaboard
stem
2$ feet long, having
it cannot
by
is thus
pipes by which
of
means
each
time,
to
pipe lines are cleaned,
described
by the New
the oil
from
end
these
in which
manner
fold
on
tion
obstruc-
an
carries
a
set
ing
in clean-
used
pipes and propelled
from
Relays
the
of
men
pumps
follow
from
the
SPECULA
the
by
scraper
noise
taking
party
if
for
On
of
stock,
each
of
average
on
each
to
by
about
it
make
pipe
70
have
their
line
to
$1,000
is
of
cents
a
If
loaning
deliveries.
certificates.
hausted.
ex-
hear,
only
can
will
equal
be
on
have
day
oil
storage
is
shares
for
in
tanks
\
same,
storage,
an
pay
charges
those
cornered,
rates
Oil
to
sell
or
100
the
to
it
buy
to
are
long
pay
their
location
supposed
barrels.
10,000
of
short
go
is
pipe.
which
is
other
of
out
one
progress,
the
commissions
oil
who
those
and
the
The
way.
it
its
margin
oil,
of
and
let
the
cutting
cent,
per
barrels
,000
not
its
as
unnoticed
stops
by
10
in
pursuit
must
established
be
oil
it
147
makes
it
the
up
They
ing,
TION.
borrowed
is
dealt
148
STOCK
CHAPTER
THE
PRODUCE
ABOUTforty
years
used
XIX.
EXCHANGE.
under
meet
an
purchases and
consumption and export
coasting vessels,bringing
New
As
merchants
walk
awning on the sideand South
Streets,where they made
sales of grain and produce for home
to
at Broad
to
few old-time
a
ago
York
for
a
the business
canal
from
wheat
and
boats
other
and
truck
market.
grew
the
and
membership
creased
in-
known
buildingwas hired,which became
business
done
Corn
Here
was
Exchange.
actual purchase, sale and
deliveryof products,
free from much
of the purely margin-gambling
a
as
the
in
the
deals with
of the
In
which
present day
i860
700, and
the
are
members
increased
the bona
fide transactions
mixed.
increased
had
accommodations
were
about
to
wanted.
selves,
themby subscriptionamong
and
purchased the block of ground at
Here
and
Pearl Streets.
Whitehall, Water
they
erected the first Produce
Exchange building,which
They
raised
a
fund
completed in 1861.
In 1879 tne
membership
room
2,500, and again more
was
"
had
increased
was
wanted.
to
over
STOCK
150
with
columns
engaged
The
the
on
and
cornices
sides
copings
the
of
trances.
en-
simple
are
but
prominently developed.
On
the east
feet
200
in the
tower
which
is
fourth
a
form
of
North
high.
Stone
buildingon
by
40
space
additional
covering an
clock
of the
end
of
this
entrance
is
the
to
feet, is
70
Italian
an
Street,
Campanile,
from
terrace
a
a
of the
side
east
building.
In the
hall about
from
centre
hall
on
and
clock
south
of the
60
and
wide
upper
feet
several
terrace
tiled with
are
riegated
va-
oil cloth.
occupies about twofloors. It is 215 feet long, 134
high, lighted by both windows
skylights. On
galleryrunning the
the
another
the
on
verse
trans-
a
and
figureslike
and
board
and
On
halls
in blocks
a
Street, with
Broadway,
opening out
These
Exchange
thirds
on
side
tower.
stone
magnificent
running through the
Beaver
to
opening
the
first floor,is
15 feet wide
Stone
hall
The
the
interior,on
the
room
north
whole
floors
it has
end
width
in
the
of the
other
a
visitors'
room.
part of the
executive
offices,
building are about
300 offices,
All these
floors were
so
libraryand coat rooms.
be taken
down
designed that the partitionscan
and
the
of the
entire
bulls
extending
building.
There
are
space
and
the
five
added
to
bears, making
entire
length
elevators
on
the
present
one
grand
and
the
width
north
arena
room
of
end
the
and
SPECULATION.
the south
on
"ur
of the
roof
The
clock
Deposit
vaults
occupy
hundreds
to
runs
the
half of the building
125 feet square
space
safes
for
room
The
valuables.
vaults
are
burglar proofs in
the
Exchange
These
Storage Company.
and
plenty of
That
the south
under
a
of
the
which
for the vaults of the Produce
Safe
and
of
one
tower.
basement
is used
of
end,
151
the
the
for
of
use
the
whole
claimed
and
the
contain
sides
public,be-
storage of all kinds
building
to
be
is
the
fire-proof,
strongest
world.
Produce
of great
Exchange is a source
public benefit,in moving the crops and findinga
for our
market
and abroad, cannot
products at home
It is equally true
be denied.
that it long
since
became
the
of immense
gambling operations
on
margins for catchpenny profitsin grain
and provisions. The
kind of trickery,
manipulation,
same
and corners
to put up the price
squeezes
of wheat, corn, pork and lard are
resorted
to here,
and in Chicago, as at the Stock
Exchange to put
up the priceof stocks for a gambling profit.Prices
and remunerative
raided down
values destroyed
are
for another
who
never
gambling profit,by many
the bona fide owners
of the stuff,except
become
it is bought, sold,delivered and really
owned
as
by
the brokers
in any
carry
it for customers
on
margins.
largeclass of customers
operate on mere
which
the same
as
profitsor losses accrue
other species of gambling. Certainlythe
In effect,a
bets, on
who
scene
STOCK
152
prosperityof
operations of
the
the
of
the
expense
is not
country
bears
the
themselves
at
of the values
of
enrich
to
the
promoted by
destruction
other
people'sproperty.
Aside
from these gambling operations,the true
legitimatebusiness of the Exchange is of immense
benefit to agricultureand commerce.
have
with agricultuWe
a magnificent country,
ral
half developed.
than
resources
scarcelymore
In times
had the monopoly of
practically
past we
other articles
supplying Europe with grain and many
of
could
We
commerce.
continue
to
feed
plus
increasing population and have surof Europe for
enough to supply the demands
generations to come.
The Produce
Exchange Weekly says :
of land
The
adapted to wheat culture
acreage
fast
our
own
in
the
States
is estimated
coast
lie
25,000,000
Oregon,
Wyoming
The
bulk
3,180
is
of wheat
2,822,400
83,864
of
100,000,000
acres,
in
area
in
acres;
acres;
acres
acres.
;
Pacific
the
of which
California, 18,000,000
in
Colorado,
in
allotted
placed
at
of all this wheat
Territories
120,943
Territories
within
the
and
area
at
10,000,000
Idaho, while
the
and
Montana,
7,000,000
acres
Utah
each.
land yet lies untouched,
harvested
1885 being
to
10,000,000
in
as
these
States
follows:
Oregon, 876,102 acres
Idaho, 62,370 acres;
and
Utah, 96,861 acres,
and
California,
;
Colorado,
Montana,
Wyoming,
SPECULATION.
nd
153
yet, notwithstanding
almost
our
unlimited
capacityto supply the shortage of European
fast losingground in our
we
are
exports of
crops,
bread-
stuffs.
In
the
barrels of flour
flour
of
$6,092,439. To
there
years
was
time
same
1883-4
year
an
7,945,786
were
increase
shows
of the
of
exported for these
years
make
comparisons : for the same
of 80,216,465 bushels
decrease
a
exported, of
$92,671,807.
the
the
abroad,
sent
of wheat
For
there
880-1
exported;
9,152,260 barrels
value
1
year
crop
decreased
a
in
corn
there
value
money
was
a
of
decrease
value
of
46,660,665 bushels, of a decreased
And
a falling
$23,054,570, to our
export trade.
off,in the article of pork, of $3,509,570 in value,
owing largelyto the fear of trichinae in American
bidding
Bismarck, in forby Chancellor
pork, started
its importation into the German
Empire.
lands on the globe,why
the richest wheat
With
it we
are
fallingbehind in competing with other
of
parts of
The
the
world
export of wheat
question is easilyanswered
to
1st.
several
The
other
causes
cost
livingis,with
many
in
us,
flour?
is attributable
:
of labor
out
and
and
and
of all
the
enhanced
proportion to
cost
of
that
of
countries.
agriculture, under
Formerly Russian
sufficed for
little more
than
Boyards, but
of its own
the abolition
wants
people. With
2d.
the
the
of
STOCK
154
serfdom
came
new
a
Those
era.
slaves of the soil became
stimulus
advance
to
began
Russian
3d.
wheat
The
their
became
a
it
as
staple article
Canal
a
culture
Agribefore.
had
never
been
had
and
fortunes.
own
of the Suez
opening
factor
independent,
flourish
to
had
who
of export.
was
a
nent
promi-
merce,
development of Indian comfor
particularlyin the culture of wheat
in India
is very
exportation. Labor
cheap ; in
fact it is cents
with us,
it is shillings
a day where
with
in
thrown
board
the
across
the
The
short
cut
by canal
by the long dangerthe African
Continent, enables
Isthmus, instead
circuit around
pus
in.
of
in European markets
lay her product down
much
cheaper than we can.
is much
Our wheat
superior,especiallythe hard
India
red
to
wheat
winter
soft article of India.
cost
of
livingwere
the
But
and
of Minnesota
If
the
equal,we
Russian
Dakota,
of
wages
need
peasant
the
and
fear competition.
not
can
labor
to
live at much
agriculturallaborers, while
the wages,
includingcost of living,to the Indian
few cents
tiller of the soil represent but
a
a
day.
So it is that in the profitable
export of this staple
than
less cost
can
our
disadvantage.
Indian
The
Agricultural Gazette, published at
of the primaccount
Calcutta, gives an interesting
itive
methods
of agricultureemployed in India:
we
For
are
at
a
wheat
during
the
the
soil is cultivated
rainy
season
with
an
nine
or
more
implement
times
called
SPECULA
a
bulthur, a small
parts of
which
ground
the
which
and
are
seed is
connected
the
soil nine
by
a
known
penetratingdrill,
as
inches
pairof
with the
in November
sown
pegs, which go into
by an iron knife,
wooden
is drawn
instrument
J55
lightgrubber,the working
through
runs
This
and
two
are
TION.
the
use
deep.
The
oxen.
of
a
deeply
tifan,which
has
three pegs shod with iron and a hollow bamboo
The
three bamboos
attached
to each.
converge
the seed grain is placed.
to a hopper in which
drill penetrates to
This
inches,and
Only
20
bullocks
are
of
(one-third
which
a
is about
depth of about nine
requiredto draw it.
bushel)of wheat per
one-fifth of the quantity
The
America, England,etc.
usuallyabout 450 lbs.,or 7-Jbushels
in
sown
is
lbs.
sown,
are
acre
six
the
The
crop
takes three and
a
half months
to
product
per
acre.
mature,
usuallycut with a sickle,but occasionally
is pulledout by the roots, after which the grainis
This primitivemethod
trodden out by bullocks.
to Indian wheat,
of threshingis a serious drawback
and
is
which
contains
It is estimated
a
great deal of dirt in consequence.
that at least 30,000
tons
of dirt and
were
transportedwith last year's
foreignmatter
great expense, not only in the way
crop, entailing
jectiona
of the obof freightcharges,but in the removal
ing
materials by special
washing and cleanprocess in milling.
\T"RARy**K
TTNT"
156
STOCK
CHAPTER
THE
Board
of
known
as
in
the
Cotton
the
in
100
but
cotton
Exchanges,
business
bearing
The
new
cost,
with
$i,0O0,O0O.
favor
all the
Like
of
its
pure
prices for
strong
with
other
legitimate
speculativegambling
one
profitand a
true
for another.
Cotton
Exchange
edifice,situated
immediate
increasingin
with
of
of the
a
deal
up
Dealings
first excited
at
of
method
important part
an
since.
great
bulling up
down
form
ever
the
a
zation
organi-
new
introduced.
were
to
grown
the
in
changes
it has been
is mixed
a
"
a
With
500.
feature
men
York
1870 became
has
and
names,
transacting business
in futures began to
prejudice;
New
Exchange.
1870, many
This
in
and
Brokers,
It
1868.
in
the
of
change
Ex-
Cotton
a
made
was
formation
of about
business.
organize
to
Cotton
with
began
membership
the
EXCHANCE.
York
in New
shape
It
COTTON
first attempt
THE
took
XX.
locality of
the ground
The
on
the
on
dimensions
building
Beaver
of
an
posing
im-
Street, in the
It
House.
Custom
which
is
it
the
stands,
over
building are
158
STOCK
CHAPTER
PUBLIC
XXL
STOCK
EXCHANGES.
SHOPS,
they
BUCKET
by
regularbrokers,
as
the
The
in
number
York
New
fifty. Many of these have
cities and
large villages in
called
are
are
in
numerous.
very
city is
estimated
branches
in
other
sion
deri-
parts
at
various
of
the
country.
There
and
New
Streets.
and
the
are
of them
clusters
Others
Street.
Some
scattered
city. One
are
here
in the
and
double
Broadway to New
all with a large class of
from
Some
deal
oil,corn,
No
in
are
on
on
lower
Broad
localityof
there
Broadway
and
the
Beaver
City Hall
in different
parts of
building,running through
Street,had six of them,
customers.
stocks
only ;
wheat, pork, lard
stock, oil,grain,or
and
others
cotton
in
stocks,
futures.
actually
bought or sold, except in case of necessity. The
in the nature
of put and call privicontracts
are
leges,
and in rare
literal performance
instances
a
and
be required. Invariably
actual deliverycan
the deal is a pure gamble on
of the markthe turn
et.
Customers
want
profits. The shops want
provisions
are
-
profits.Neither
TION.
CULA
SPE
1
the article called for
want
59
by the
contracts.
These
places are
men.
They
which
draws
commission
founded
well
jealous of
are
away
direct
the
and
custom
change
regular Extion
any competiinto their
cuts
That
this jealousyis
profitaccount.
it is
can
readily be seen, when
allegedthat the aggregate
shops is often larger than
The
the
to
eyesores
of the bucket
business
that
of the
Stock
change.
Ex-
bucket
long since deprived of
shops were
quotations from the Stock Exchange over
and
Gold
Stock, and
But
indicators.
all the
same,
in
the
they get
indirect
an
Commercial
way,
pany's
Com-
their
quotations
by privatewires
telephones from unsuspected allies.
said to get its quotations by
One
shop was
and
roundabout
the
of
have
Poughkeepsie. Some
the walls of
five or six telephones,in a row,
on
their privateoffice,so that if information
fails in
direction
one
other.
they can
get it instantlyfrom anThe
Exchange brokers growl and threaten,
but
are
powerless. They are a unit in favor of
to close the bucket
shops, but when it
legislation
with their own
to legal interference
comes
tices,
practhey harp on another string.
way
In the Winter
a
of
bill in the
1886-7 Senator
New
York
Vedder
duced
intro-
Legislature,
proposing
levy a tax of one-fiftieth of 1 per cent, on
speculativetransactions in stocks, bonds, wheat,
to
160
STOCK
all
on
purchases
the
up
the
of
bulk
sales
or
business
of
practicallyall
shops.
A
New
York
and
Produce
Exchange
it
nail, denouncing
boycott
such
their
on
bucket
10
is
per
one
and
orders,
sufficient
by
other
hand
never
intend
order
bought,
the
play
a
just as
fat
for
the
stock
or
they
man
who
a
want
and
there
I
in the
if
margin
on
puts
sold
the
down
buy,
a
are
On
own
tected
pro-
the
they
cannot
They
sum
or
investors,
of the
turn
5
ers'
custom-
loss.
short.
gins
mar-
other.
on
and
own
ference
dif-
effect
the stock
possess
not
on
The
than
other
for and
order
on
they
against
no
cent,
will
stock
commissions,
do
is
per
brokers
carry
with
away
shops,
as
moval
re-
Jersey
to
Exchanges.
one
if
effect."
that
bucket
in
do
to
to
is the
they
a
State
at the
of chance
game
the
pay
and
of the
out
customers,
to
and
it tooth
the
the
sell short
or
carry,
Stock
tax.
a
cause
laws
difference
only
in
testimony
law, it would
just as demoralizing
The
the
at
commerce
on
point of view
gambles on
upwards at
cent,
margins
changes,
Ex-
that
make
moral
a
whether
and
:
done
;" and
If you
"
said
shops
in
Now,
a
make
threat
Exchanges
They
City.
tax
a
business
bill became
a
of the
the
"
that
fought
men
as
at
such
of
effect
the
to
as
tax
a
the
done
took
Senate
the
of
committee
was
which
margins
on
and
bucket
in effect
This
articles.
other
and
cotton
of
liver
de-
simply
market,
money
TION.
SPECULA
card
a
on
the
turn
a
bucket
shops
and
their customers
chance,
pure
and
simple, with
of
of
handling
stock
any
turns
the
on
And
all.
at
no
this
played
game
1
on
the
of chance
game
of chance
game
pack.
game
pretense
plays a
of the
Between
it is
board
faro
or
6
1
at
the
the deals in oil,
Exchange itself,or on
grain,provisionsand cotton.
Comparing the evils of gambling in the Stock
Exchange banking and
brokerage offices with
that of the bucket
shops, the latter are by far the
is bound
less harmful
and
to
costly. If a man
speculate and begins small in these shpps, his
chances
for profits
are
just as good, and he can get
Stock
his eye
teeth cut
influences
will,only
and
In the
banker-broker
often, be
too
milked
roped
places
their
customers
:
into
customers
only
At
Stock
the
business
and
the
their
and
this
or
is
of
out
tures
ven-
the
to
of
other.
bear
that, would
the
between
interests
is
Exchange
in the
run
the
For
be
one
the
induct
to
useless
real trouble
can
be
then
demanded
of
carried
the
of the
interest
big manipulators,and not
back.
Interest is charged at
stocks
e
he
and
suspicion.
arouse
the
offices,where
in
the
are
I
the
the game
antagonisticto that of
shop men, to bring influences
side
under
for fat commissions.
other
and
shops
the
in
than
far less expense
at
short
at 2
of the
6 per
per
interest
is that
brokers
public at
cent,
cent.
and
even
Shaves
not
al-
1
62
STOCK
lent,
long of the stocks
and
unless
the customers
keep a sharp lookout
by the
they see
question their brokers, when
tissues that a loaning rate is imposed. And
news
commissions
are
% per cent, on a turn in each ioo
ways
credited
to
those
shares.
shops there is
The
and
no
loaning rates.
pay
only one-eighth per cent., except
the same
out
day as made, when
In
each
To
the
bucket
interest
no
to
commissions
deals
on
it is
are
closed
one-eighth
way.
illustrate how
much
more
dangerous
gin
mar-
gambling is in a broker's office than in a
bucket
shop :
buys ioo shares of Lackawanna
Suppose a man
shares
100
at $135 a share on
a margin of $1,000.
at
go
135 is $13,500. Now, if the price should
for sixty days and
below
on
135 and he holds
be charged
his margin is not wiped out, he would
interest
on
cost
and
his
be
margin, making a
$125, besides the loss
and
the
commissions.
credited
difference
he
stood
If
the
with
interest
against him
for
deal
the
on
was
on
of
stock
closed
days by the loss of his margin, he would be
of pocket $1,000 on
out
margin, $125 on interest,
Total loss,$1,150.
and
$25 on commissions.
sold the same
and
If he was
a bear
thing short
went
the same
against
on
margin, if the market
and
the stock was
squeezed
him, and he held on
with a loaning rate of -Jor
day ; 1 per
$12.50 one
in 60
SPECULA
the
ent.
or
$100
400
the
third
would
out
rates, and
if the
for his
would,
the
margin
and
day,
next
4
cent,
per
customer
unable
was
to
63
or
put up
good any deficit,the
protection,close him out
broker
make
margin, or
more
1
day, his loss with his margin wiped
ing
$1,000 on margin ; $512.50 on loanTotal
loss,
$25 on commissions.
be
$1,537.50.
However,
TION.
own
This
exhausted.
was
the
before
is
broker
happen like a
always able to do, for events
stroke of lightning. In such
a
case, the broker
with
law suit and a
would
a
harry his customer
judgment for the deficit,and perhaps place him
the jaillimits for debt.
on
In the bucket
shops the usual way is to put up
cent,
1 per
margin, and to this additional margins
the
be added
before
can
margins that
any time
not
on
are
chances
I
has
his
made
to
that
loses
margin
declining he
with
If
will
would
" hing
the
as
interest
a
and
more
by putting up
one
point before
is wiped
contract
a
price declines
margin put on, he
and
is weak
ratio.
loaning
of
out
and
bear
against him,
reverse
has
the
generallydrop
was
If he
more.
market
whole
If he
market
result in
no
the
of Lack,
cent,
per
the
this loss.
with
2
take
can
man
a
pricedeclines
margin, his
$100, but no
with
extent
$200.
loses
more
on
he
and
out
If the
put
Hence
full shares
100
on
cent.
per
he
exhausted.
are
the
is
in the
deal
short
went
losses
same
There
rates
the
and
no
such
bucket
1
64
STOCK
shops
add
to
included
The
in the
The
New
he
lost.
is conducted
Stock
caller
and
the
are
posted
manipulation, trickery
the
machine.
big
influence
with
as
the
with
The
shops
manipulation
done
for them
The
those
who
things
have
with
a
shops
print cards,
of the
the
first
are
See
the
opposite
caller and
various
carried
table
or
on
the
are
stocks
down
shops
do
with
ery,
trick-
That
is all
from
illustrated.
the
are
one
rooms,
telegraph
cashier, the
high.
posted
side
on
within
The
large
full
clerks.
parallel column
under
at
the brokers'
five feet
about
quotations
closing quotations
Next
the
are
lead
same
bucket
mill.
rumor
partitioned off for
caller, book-keepers and
which
on
The
to
the
generally large
are
dividing partitionbeing
view
nothing
space
operators,
boards
the
to
operate
speculators at
the
the
by
perfection.
to
bucket
boards
rumors
at
have
and
announced
and
customers
class of
other
the
offices.
These
the
at
loss of time.
appreciable
any
above
made
are
the
on
are
and
prices
and
mislead, all originate from
or
commissions
fair,square
Exchange,
marker, without
The
The
quotations
York
the
losses.
margins
business
board.
by
his
to
on
of the
day
abbreviated
dealt
them
in, and
the
boards
gives
before.
designations
the
in horizontal
of
quotations
columns.
1
66
STOCK
If there
the
managers
the
close of
the
with
In such
from
a
a
with
the
on
turning the market
if
wipe out the profits,
held
shares
close
the Stock
at
the
at
of
15,000
and
offices,
shares
4,000
or
succeeds, of
customers
shares
4,000
view
to
trick
If the
their
skin
a
direction
margins,
?
is to
branch
rightside againstthem.
the bucket
hinder
shops
selling3,000
or
and
main
the
on
what
case
contrary
them
the
at
Exchange
the
not
out
customers
buying
Stock
in
any
shares
15,000
underhand
dealings,it may be
find on
inspectingtheir books, after
the day's business, that they have say
are
course
the
out
Exchange
against
they can
at
3,000
good
a
or
fit
pro-
besides.
All
and
and
margins
cent,
limited
sometimes
to
to
The
5 per
cent,
per
as
at
others
the
per
margins
ties
liabili-
the
cent., and
3 per
certain
on
also
erratic
very
margin put
up
is
cent.
guessing the market
Stock
Exchange.
of
chances
here
same
1
1
on
the
some
to
cent.,
5 per
Sometimes
stocks.
limited
to
contracts
In
unlimited.
profitsare
are
shops make
upwards. In
bucket
the
the
customers
guess
wrong
five to four
times
out
from
three
of six in the
bucket
men
know
this
margin
of
profitin
the
and
calculate
long
run
is
As
times
long
on
the
are
rule
a
out
run.
of
The
it,that the
largely in
their
favor.
Still the
business
is not
always profitable.The
167
SPECULATION.
market
bull
like
in
ran
of those
advanced,
of the
were
shops.
right it
took
wiped
out
like
picking
was
venture
bucket
shops
suffered
exhaustion
of
the
with
imbued
their
margins
were
wiped
of the
bucket
men
at
One
shop
issued
to
$00
to
No
to
pork,
the
free
street.
of them
the
being
a
operate
the
of
of
If any
centre
of
lunch
sideboard,
a
and
as
that
on
side
drawers
money
grain
at
pork
on
are
pan
in
and
lard.
handled,
it must
inch
an
piece
beans,
basement
or
the
be
square
of baked
the
from
on
single quotation,
a
ever
seen,
risks
take
and
stock,
are
in the
crowd
rate.
great
provisions
be.
the
into
shares
bushels
or
left
on
saloon
below.
down
Some
deals
for
in the
sentiments,
crackers, cheese, bologna, and
of
caught
profits, and
boom
to
correspondingly
grain
intended
profit
and
dodgers, offeringto
5,000
500,000
and
money
bull
continued
they
5
prices
as
immense
turned
up
The
it.
side
terribly,some
as
from
crowd
brought
long
on
of
was
bust.
to
thoroughly
the
it
way,
bear
to
the
one
short
go
the
When
every
The
to
who
Almost
compelled
long
so
fate
bucking against
margins
on
1885
shops
in
grain
margins
for corn,
which
and
on
wheat,
combine
stocks
provisions,have
deals
pork
based
and
and
a
Chicago
lard, viz :
on
oil with
posted
scale
quotations
168
STOCK
grain at
Margin on
$5 buys
10
100
or
sells
"
"
"
"
'*
"*
'*
1,000
On
pork
$6.25 buys
25.00
250.00
On
"
"
"
"
"
"
"
"
"
"
"
"
480
"
"
"
u
'*
1,000
200
stocks
lowest
out
limit
-
"
"
"
1,000
must
when
the
or
remain
be
cents
tierce.
per
25 tierces.
"
1,000
"
10,000
at
one
cent.
per
10
shares.
"
100
"
1,000
of
number
few
But
shares
at
shares
to
will make
tracts
con-
quotation.
one
100
The
in all of them.
handed
in,and
fresh
be active
points,when
stationary. To
two
"
100
figuresare
may
"
50
is 5 shares
Orders
class of stocks
one
"
**
1,000
sells
or
M
100
"
"
over
25 bbls.
10,000
shops limit the
on
a
singledeal.
on
barrel.
per
sells
48
100
"
50
48
"
$10 buys
cents
"
"
On
or
sells
"
4,800
Some
or
lard at
24
"
100,000
25
or
"
10,000
"
$12 buys
bushels.
1,000
at
"
2,500.00
bushel.
per
500
"
"
12.50
cent
one
and
on
closed
contracts
the boards.
advance
or
decline
pricesof another
expect the shops to
the
One
class
make
SPECULA
based
contracts
per
the
market,
which
catch
Customers
and
the
price as
with
Orders
and
accepted
to
stop
loss,
a
from
exhausted,
Settlements
have
the last
made
are
ninety days
of
Copies
with
to
carry
of stock
in, which, if
the
on
boards,
are
the
tomer
cus-
These
catch
the
before
figuresfresh
on
promptly.
The
similar
are
a
profit,
margin
contracts
ing,
follow-
:
Exhausts
Purchase.
value
received
March
York,
Mr.
1,
any
on
for
us
time
within
55^, provided
payment
declined
made
to
shares
10
Pacific
Union
ninety days from
said
stock
for the
54^ at
is
same
the New
this
called
before
York
BUCKEM
1887.
54
bearer, may
or
,
call
is
the boards.
the
to
$
For
to
sympathy.
No.
New
or
run.
contracts
variations
in
his will, to
time
any
up
singlejump
a
made.
at
out,
spurt
handed
fresh
contracts
stocks
of
appear.
are
those
close
can
or
margin
a
these
selections
own
or
rest
for
them
quotations
one
class of stocks
with
their
with
prices agree
One
down
make
at
are
of the
often
point
others.
or
up
will
full
a
the
others
unjust ;
moved
or
to
up
movements
be
not
half
a
quotations,which
the
would
have
down
the
below
cent,
two
old
on
169
TION.
for
the
Stock
Stock
at
date,
and
at
full
price has
Exchange.
"
CO.
at
STOCK
i7o
No.
I
Exhausts
at
Sale.
York,
New
For
received
value
March
Mr.
to
any
time
55^
per cent,
made
before
56^
at
within
the
Union
shares
10
us
of
par value,
price for
the
York
New
Pacific Stock
from
ninety days
this
in the
cash
in
those
do
a
at
to
Exchange.
"
margins, if put
the
and
column,
CO.
on,
carried
are
exhaust
down
limit
is
tended
ex-
proportion.
People do
as
date,
has advanced
BUCKEM
Additional
at
provided deliveryis
same
Stock
56
bearer, may
or
,
deliver
1887.
x,
not
lose money
fast in these
as
places,
who
at the
speculate through brokers
The
Stock
is the brokers
reason
ally
usuExchange.
want
$1,000 margin for their own
protection,
then
if the market
against their customers
goes
their advice
always is to ''hold on."
They hold
too
on
long, until the largerpart of the margin is
To
their stock.
exhausted, and then throw over
decent
shares
100
business
of
stock
they
at
a
handle
must
time,
or
they
at
are
least
of
no
account.
Interest, loaning rates
are
down
exacted.
to
the
What
wonder
bucket
cent,
or
two
per
cent,
commissions
double
then
shops, where
just as good, the
speculationare
a one-eighth commission
per
and
that
the
people flock
chances
of
nothing but
and the risk only the one
margin they put up ?
cost
SPECULA
TION.
1
71
The
big manipulators of the stock market
can
take up
hundred
hundred
two
or
pools of one
of dollars.
millions
to
They have the power
boom
as
high as Gilderoy's
up prices,figuratively,
draw
kite.
But
unless
in an
of
they can
army
small purse
people to buy their stuff,they cannot
get out again with the profitsthey are after.
withdrawal
The
from
the
often
works
Moguls
every
of
fool
of
brokers'
to
"
many
so
offices to
small
the
foil the
the
in the
bucket
conspiraciesof
Street,"whose
plan was
lurch
in
the
operators
shops
the
to
great
leave
final culmination
of
their schemes.
There
York
are
times
when
the
bucket
shops
of New
probably do four times the business done in
the main
The brokers growl
temple of Mammon.
threaten
of all sorts, at
and
measures
retaliatory
the bucket
which
metaphorically,only put
men,
their
their noses
thumbs
and
to
wiggle their
fingers.
The
is a lucrative and profitable
business
to
one
But
it is an
the brokers.
immensely losingone
of their customers.
to the general run
business
is a losing one
The
the playersat
to
the bucket
could
these
shops, else how
places
thrive and
pay high rents, gas, electric lightand
telegraphbills,and furnish a livingto the proprietors
and
a squad of clerks ?
As
action
close these places:
to
to legislative
in the Winter
Cantor
of 1885-6 Assemblyman
in-
STOCK
172
troduced
bill to
a
bucket
close the
shops. Those
predictedit could not
interested
only laughed and
be done.
And
nothing was done.
to become
They argued that if such a bill were
close out
all dealingsin privileges
a law, it would
dealt in
The
reader
contracts
are
stock
to
"
the
by
stock
in the
nature
"called
may
of
his
have
"
Sale
"
the
which
for,and
he
In
which
such
a
to
the
the
or
maker
full
the
case
the
contract,
put
can
tomer
cus-
any
demand
"
demand
and
contract
shop
"delivered
or
Now
Purchase
"
bucket
in
privileges,
from,
pay
his
therein.
stated
could
stock
of
market.
contract.
full
tender
stock
that
for"
of the
specified in
he
as
observe
makers
may
of the
men
will
be
may
the
big
price
makers
be
compelled to a literal performance. This,
want
however, is not required. All the customers
is their profitswhich
they get.
A
Just such a case as this happened in 1886.
stock
certain
One
on
He
one
it.
day he
saw
a
the bucket
large,and
This
took
man
of
handed
in his
offered
market
which
refused.
the
bull
side,
his way,
went
out
sum
was
alleged,$3,000
He
accept.
Suit
closed
the
that
as
payment,
be
to
$70,000, and
full
on
tions.
fluctua-
wide
profitof $10,087.50in sight.
him,
he tendered
was
The
contracts
not
about
obtained
contracts,
demurred
man
he would
erratic,with
very
shares
1,000
and
was
and
was
then
with
to
took
then
too
settle.
counsel,
this,as
demanded
; but
alleged,
the stock,
brought, and
STOCK
174
least
all
that
and
that
in mind
bear
''Always
is
that
stock
the
stock
hence
and
good
great many
speculation
to
prove
experienced
most
pious people declare
mere
a
gambler, and
is
speculator
liable
just as
the
profitable 'guesser' as
Wall
Street speculator."
A
The
'
a
"
less,
worth-
speculationis guesswork.'
individual
informed
'points' are
be
must
by all
avoided
reputable people."
This
"
have
It may
when
has
It is
demand
justas
lawful
makes
them
sell any
or
"
Stock
is
stocks
the
period."
when
limited
a
sell them
and
to
Puritans
Rock, but
laws
rot.
when
it is to
rise,as
an
buy
of nature."
exercise
American
gambling,
It
blue
buy
them
for the
is nonsensical
"
the
to
the
Plymouth
speculationpresents
of the
as
antiquated dry
among
cheap,
causes
product
discovered
it
about
outgrown
demand
active
of
orthodox
been
hovered
they
country
"
is born
criticism
in the
the best
of the
character.
ordinary
yet
avenue
activity
irrepressible
To
stigmatize
of
sense
the
term,
slanderous."
and
tremendously
attractive
to
the
sharp,
with a desire
aspiring Yankee, who is boiling over
he sees
to get
to get rich quick, because
a chance
on
a smaller
risk, in quicker time than
largersums
in any
"
and
other
He
that
way."
knows
it does
that
not
it is
largelya
in any
way
matter
of chance,
interfere
with
his
being
a
moral
of the
securities
and
Stocks
"
entitled
being
there
and
should
they
is
be
not
precisely the
market
moral
same
as
the
of
why
reason
the
in
sold
and
purchased
cate
certifi-
share
rata
pro
legal or
no
property
them, each
issue
its
to
the
represent
which
corporations
same,
good citizen, therefore
a
in it."
embarks
he
and
man
merchantable
any
commodity."
lard
for
Men
comes.
the
in trade
engage
sell stocks
and
make
to
get rich in both
figure in
no
"
As
long
stocks, to
money
in
the
one-fiftieth
preference.
whole
It is
struggle
philanthropy plays
stand
a
a
500
to
of
the
chance, by trading in
1,000
per
cent,
with
time, and
risk
This
is the
Alpha
and
more
one-
realize
by
stocks
in
Omega
of the
business."
THE
The
They buy
(sic?)than they can
merchandise, they will select
fiftieth of the
trading in
from
make
on
race."
men
as
and
it
reason.
same
money.
money.
cases,
the
for
make
to
hold
stock
of
shares
sell
or
sell when
generally
hundred
a
principle,and
same
They
buy
pork
profit. They
and
and
advance,
an
of
barrels
hundred
a
of trade
for purposes
these
to
buy
Merchants
"
subtle
REALITY.
reasoning
in the
foregoing
fine in
theory.
are
The
and
fallacious
arguments
very
eloquent, plausible,and
arch
enemy
of mankind
once,
176
STOCK
time
a
upon
point
of
and
bonds
;
lard,
or
of real
stocks, bonds,
and
actual
give
is,and
who
honest
make
not
and
grasp,
is
absolute
owner
who
men
own
etc., for
in the
right
same
nothing
to
of
of gas
an
it
delivery of
between
and
they
boat
back
:
of
they
it that
and
own,
chances
some
can
to
one
The
bets
of
plays
bucket
chances
on
delivery. The
brokers'
orifices
bets
chances, with
on
are
they actually own,
deliver.
make
cannot
in and
of it for
make
wind
classes
two
philanthropy does come
moral
figurein the race.
the
of
confine.
these
make
an
put up
profit out
cannot
between
the
make
who
men
atmosphere
they
speculators,at
loss of
the
it,and
out
in
analogy
no
nothing tangible back
margin
and
value
speculators simply
on
has
and
grain,pork,
gambling
a
out
tremendous
bet
the
tangible property
of
own,
that
traders
with
merchandise
profitby sellingwhen
be,
can
real
own
to
do
shop
stocks
buys
buys grain, pork,
These
honest
an
profit out
margin
the
who
honest
an
who
property.
There
a
merchant
species of
him, becomes
make
comes,
It
investor
tangible property.
advance
they
the
to
hold
men
fact, the
other
any
it delivered
and
ble
eloquent, plausi-
theoretical.
and
In
just as
least, was
at
a
else who
Besides
profitat
gets
no
or
this
the
tend
in-
they
expense
value.
in
177
SPECULATION.
EFFECT.
THE
In effect the whole business
oil,grain,provisions and
of
dealingin stocks,
futures
cotton
gins,
mar-
on
leum
practicedby the Stock, Produce, Petroand
Cotton
Exchanges and the Bucket
deceptionand
Shops, with the attendant trickery,
manipulationto allure in and mulct the peopleby
wholesale, is debasing and demoralizingto a far
ness
busigreater degree than any other legalor illegal
as
American
the
on
The
votaries
absorbed
and
Continent.
of the
game
enslaved
by
of chance
become
hallucination
in
the
When
they have been cleaned
that they can
out to the extent
no
longerswing a
scend
share lot at the brokers' offices,
hundred
they dedown
the bucket shops and continue the
on
as
long as they can put up the lowest limit
game
of margin.
hazardous
The
or
business.
business
brutalizes the mind, and
hardens, if it does
less extent
finer
of the
feelings
The
bucket
shop
innocent
the
in
this:
made
I
destroy,the
more
not
the inhuman
honest
make
or
guess
are
and
and
made
on
and
make
un-
machinery
deception. That is all done
They honestlypresent the market as
by the superiorpowers and influences.
contracts
own
far
they do
market, or work
of allurement
them.
are
that
more
a
heart.
human
men
not
to
for
it is
The
the basis of the customer's
selection.
13
178
STOCK
There
suddenly
be
may
rich
are
ninety-nine
big
strike
and
again
and
until
one
the
at
chance
vicarious
chances
retire
it
that
that
with
disappears.
it.
a
man
But
game.
he
He
will
will
get
can
not
risk
there
make
it
again
a
SPECULA
TION.
CHAPTER
LOWER
A
N
79
XXII.
SCALE
OF
1886, there
December,
1
GAMBLING.
opened in Newwhich
Street a room,
was
an
originalimprovement
the bucket
of bucking the
on
shop method
tiger. Quotations of stocks actuallybought and
sold
at
place of
markets
the
the stock
was
done
were
ticker,there
with.
away
was
In
clock with
a
an
which
annunciator
rings every half minute or so.
At every
hidden
ring figuredcards fall from some
receptacleinside the clock and the figureson the
cards state
that D. N. has declined """,
that T. P.
or
M. has advanced
J, or O. T. has improved -J,etc.
A boy marker
records
this on
the boards
under
the
indicated.
letters
On
one
divided
of the walls of the
into
five
clock
What
the
carried
were
room
these
know.
Trans-Continental,
was
quoted
at
the
New
the
a
blackboard
of
top
L. B. ; T. P. M.
From
on
these
the
cards
;
these
J. M.
letters the
from
the
the columns.
down
initials
did not
was
At
panels.
the letters D.
panels were
C. ; D.
N., and O. T.
out
came
figures which
room
represented the crowd
O. T. might mean
but
it did
York
in
gon
Ore-
not, for that stock
Stock
Exchange
in
180
STOCK
the thirties,and
sold at
to
113
here
O.
T.
The
115.
being bought
was
fact
representedfictitious thingsand
If the
of real stocks.
asked
shop were
humorously that
the
to
on
Late
in the
white
with
on
stocks
had
within
day
had
initials
in the
assistants
place
in the
for
the blackboards
afternoon
and
figures,
the
boards
showed
fluctuated
up
the
record
stood
or
manager
the
explanations, they replied
D. L. B. meant
Delaware
gage
LugPostmaster, and
; T. P. M., Toledo
end of the chapter.
Bureau
so
that
was
or
a
limit
of five
crowded.
room
that
and
would
these
be
The
fictitious
down
during the
points. Nearly everybody
shabby, hungry look.
$5, and were
Margins did not exceed
generally
less than half that sum.
Quotations were
ground
out
no
on
time, there was
waiting. Money
weary
lost or occasionally
that was
made, was lost or made
promptly.
The
thing was gambling pure and simple. The
the principleof a battery,
out
on
figurescome
the margin of profitsin favor of the
worked
to turn
bank,
the
no
a
which
matter
advantage of
business
hours
way
were
over,
long as the presence
profitable.This place was
after a few days.
"
The
in the
Winter
Indicator
bet.
being obligedto close
not
as
Later
the crowd
could
but
of the
crowd
pulled by
another
Stock
keep
up when
on
ning
run-
made
the
it
police
self
callingit-
concern,
Exchange,"
It had
was
started
1
82
STOCK
CHAPTER
BIG
XXIII.
THERE
with
Stock
are
SMALL
ON
BUSINESS
CAPITAL.
Exchange
firms
brokerage
capital. These
weak
considered
are
capital is
; $100,000
very
decent, but not strong ; $500,000 capitalis strong
which
and
can
respectable,while those houses
show
$1,000,000 and upwards are called A 1, gilt
edged.
The
followingwill no doubt be a curious exhibit
of
how
not
firm's credit
a
business
enormous
$25,000
over
may
done
cash
on
comparatively. Speculators
make
big profitson a turn of
houses
take
and
A
firm's
own
5 Customers
a
very
take
small
the market.
their commission
capitalis,say
put up margins
Customers
Customers
Customers
each
Stock
$100,000
of
$50,000
250,000
put up
margins of $25,000
250,000
put
up
margins of $10,000
each
20
capital,
profits.
each
20
an
ness
their busi-
each
10
and
terrific risks to
risks to extend
enormous
increase
stretched
be
200,000
put up
margins
of
$5,000
100,000
183
SPECULATION.
Customers
20
of
margins
put up
$1,000
$20,000
each
firm
The
hand
I
has
capital and
in
margin
of
$920,000
Speculativestocks may range in pricefrom $140
for gilt-edgeddown
to $10 a share for the
a share
of the
cats and
dogs. Usually there will be more
medium
and low-pricedstocks bought for speculation
than of the high-priced
ones.
So, callingthe
price$60 a share,a stock firm can use the
average
lateral
stocks they have
paid for to hypothecate as colthe banks
to
buy and pay
hypothecating
for
to
for
indefinite
The
the
value
figureswill
Stock
firm
hand
This,
stock
system
to
to
per cent,
The
collateral.
of market
margin
in
$920,000
$60 per share,will buy
and
pay
for shares
15,300
1
shares, at
80
per
12,200
shares
cent,
of
5,300
value,
$734,400
borrows
$734,400 pays
following
:
process
of
at
borrow
is exhausted.
stock
80
capital and
of
almost
an
credit
the
which
rehypothecating
carried
about
illustrate the
with
This
and
abilityto buy
good
on
before
will loan
banks
be
can
with
of money
stock.
more
buying
buy
extent
and
money
and
to
money
for loans
for shares
borrows
12,200
$585,600
1
84
STOCK
$585,600
$465,600
Here
$465,600
for shares
pays
$369,600
for shares
pays
would
be
stock
$3,075,200 of
margins and money
all
on
the
and
could
shares
firms'
borrowed
of
stock
last
bought
capital,customers'
collateral
stock
on
$100,000 of the firms'
basis of
a
6,100
51,000
and
"
7,700
borrows
7,700 shares
$369,600
9,700
borrows
shares
9,700
for shares
pays
6,100 shares
of
own
stock
capital;
bought
hypothecated for $292,800 more
money.
To carry the thing to the extreme
limit of buying
and
as
borrowing credit capacity is unnecessary,
idea
of the
the foregoing is sufficient to give an
Street men.
tremendous
risks taken by Wall
This
on
a small
system of doing a big business
and is probably often
capitalis a common
practice,
be
here
shown.
Jpeyond the extent
are
bought, paid for and carried on 10
less,by the broker firms
margins, or even
Stocks
carried
The
customers.
they carry
buy more
of
the
to
20
as
a
The
to
the
stock.
firms'
banks
banks
the
on
or
more
lend
cent,
for their
the stocks
pawn,
obtain
to
If the
value
market
margin,
per
money
80
per
to
cent.
stock, it is equivalent
margin againstthe banker-brokers
protectionfrom loss by a decline in the market.
lend
their money
banks
conditionallythat
they
per cent,
can
of
call in their
the brokers
must
put
loans
up
more
at
any
time,
margin
to
or
that
protect
185
SPECULATION.
the banks
their
on
fail to return
will throw
the money
their stock
themselves
save
Every
has
a
Clerk
Loan
when
loans
ticker.
The
the
market
on
stock
to
lateral
col-
President, Cashier,
supposed
they have and
closely. If danger appears
to
money
The
in mind
bear
to
watch
securities
is taken
on
for,the banks
loss.
which
are
banker-brokers
called
collateral
from
bank
If the
loans.
the
imminent,
or
the
quotations
instant
tion
ac-
protect the bank.
of
doing a brokerage business, as
illustrated
the
by the foregoing figures,makes
all bulls,and their deals to
speculatingcustomers
system
stationary,while all the stock is being
In
bought and hypothecated to obtain loans.
are
buying and sellingand
point of fact customers
stocks
Both
taking profitsor losses all the time.
are
being turned over .and over
again
money
is steadilyadvancing
nless it be that the market
nd all are
holding on for big profits.
Then, again,almost every office has its quota of
bears
who
put up 10 per cent, margin and sell
stock
gin
they don't have to sell. All this bear maris so much
surpluscapitalin the hands of the
banker-broker, and he can use it to help buy stocks
remain
(nd
for his bull customers.
The
bear
realized
money
did
stock
to
until
the
not
have,
keep good
bear
has
from
is used
the
the sale of
as
a
tender
deliveries
covered
his
on
stock
to
borrow
short
shorts.
the
sales
When
1
86
STOCK
stocks
is
day
have
the
all
broker
dollar
of
do
buy
stock.
is
used
to
large
out
of
the
his
The
all
office
an
No
and
are
bears,
are
bear
to
margins
of
is
the
a
wanted
stock
short
or
the
without
money
from
delivery
hands
from
deficits
business
The
the
stock
premium
a
bear,
own.
for
the
mium,
pre-
margin.
money
deal.
in
at
enormous
borrow
capital
protection.
an
capital
to
close
of
customers
can
of
the
his
from
drawn
loan
loan
against
without
value,
the
stocks
gone
course
If
market
for
If
day.
prices
the
exchanged
to
of
flat
loan
buy
sold
stock
to
aggregate
broker
for
a
his
SPECULA
TION.
CHAPTER
of
expense
in the
vicinityof
office is
EXPENSES.
erage
running a well-appointed brokis so valuable
very large. Room
Stock
the
made
is often
rent
much
so
Exchange
a
that the
foot.
square
A
well
office,
twenty-fivefeet square, will rent
$10,000, which is $16 a square foot. This space
located
off into
divided
customers,
brokers'
The
largestexpense
clerk, say $50
a
week.
week, and
in
however,
The
month.
15
a
for
room
bankers'
and
and
or
and
tape
news
oil,provisionsand
in
a
expense
News
month
stock
under
per
a
year
week
each.
for clerk
four stock
indicators,
and
provision
tissue service.
news
cotton
are
exceptional,
office.
of two
stock
ticker and
each.
$10
grain
one
A
clerks, $30 each
at
Total
three
An
week.
a
other
week.
oil indicator
Deals
is
is for clerk hire.
messengers
offices have
ticker, besides
"
Three
two
Total, $195 per
hire,$10,140.
one
for
rooms.
next
Some
stock
room,
private office,and
a
managing
clerk,$35
per
reception
a
87
XXIV.
OFFICE
THE
1
news
tickers
tissue
Total, $720
a
is about
$30
service
about
year.
a
88
I
STOCK
books, stationery,postage, printing and
Railroad
Statistics,"
advertisingis a heavy item.
Blank
"
the
or
"
Financial
Review," given
Commercial
The
Co., and
outside
sum
up
:
and
tions
publica-
telephone, telegraph and
which
must
there
is any
aggregate
of
show
a
have
houses
for
year
a
brokers, dealing in
and
to
quarters, up
the
buildings.
Notwithstanding
from
five
houses,
dollar
All
year.
of
sheet
before
twenty
times
of
accounts
expense
even
to
from
more.
on
share
$10,000
Small
expenses.
or
lots and
upwards
skin
along
can
a
even
one-horse
large expenses
at
for
in confined
year,
top floor of five and
the
grand
a
profit.
Exchange,
$1,000 expenses
on
per
balance
Consolidated
$500
make
$22,000
get along
ten
miscellaneous,
:
numbers
annual
doing
$50,000
to
Inferior
$5,000
round
in the
business
much
$30,000
go
clerk hire, $10,140 ;
;
service, $720
of at least
houses
Other
$10,000
rent,
in
total expense
a
Street
fees,altogetherwould
news
$1,500, would
from
Wall
"
$1,500.
tickers
the
the
and
file,with
on
messenger
To
as
reports of R. G. Dun
Agency
Bradstreet,
kept
about
is another
of customers,
hundreds
perhaps to
heavy expense.
away
six
story
of first-class
speculate
brokerage firms, who never
themselves, grow immensely rich solelyout
some
of their commission
profits.
STOCK
19"
missions
the
on
which
went
for he
probably
the
In
the
his
to
his deal
on
in
Fall
few
a
shares
He
$125,000,
afford
could
less than
not
it,
$10,000,000
months.
the
Winter, after
or
of
1884,
from
recovery
large operator
one
sold 250,000
have
to
brokers.
cleared
May panic
known
of 500,000
turn
shares
of the
was
of
stock
singlerailroad,besides having large holdings of
He
other stocks.
picked up his speculativeline
around
largeprofits. As
panic prices and made
the turn
in
he paid full rates the commissions
on
$62,500.
250,000 shares of a singlestock were
When
transactions
are
pens
very large,it often hapof the total
that perhaps one-fourth
more
or
of from day to day.
sales are
not
kept account
a
In the
testimony before
in relation
to
a
tax
on
the
Senate
Committee
speculativetransactions,
Stock
Exchange testified
Secretary of the
in 1886 were
that the
as
reported transactions
of
listed
follows
stocks;
:
103,952,804 shares
bonds; $635,937,320
$13*367,100of Government
"
the
of State
and
strike
to
an
average
between
low
$50 a share, the entire cash
$7,247,640,200 in stocks alone,
at
other
exacted
shares
41,000,000
price stocks, suppose
reported sales of listed and
very
entire
bonds, and
stocks."
of unlisted
Now
railroad
and
securities.
on
If full
the whole
rate
the very
lump
we
unlisted
value
the
stocks
would
be
of
exclusive
commissions
144,952,804 shares
high
all
were
of
listed
SPECULA
TION
191
.
stocks, the
unlisted
and
among
the
Exchange,
$16,471.90,exclusive
which
would
of the
Stock
other
securities.
many
brokers
each
on
line
But
buy
brokers'
execute
$4
is,in
at
The
orders
at
aggregate
full
commissions,
of stocks.
cent,
per
among
interest.
wild
in
full
hard
of
Almost
call
was
alarm.
The
the
sales
ticker
that
,600,000 shares
were
the
the
and
between
siders
out-
at
tional
frac-
say.
any
day
one
ever
on
Exchange, were
everybody was
long
manipulated up to
This
annum.
$2
dividing
brokers
to
Stock
on
per
estimated
was
and
for
free, or
the
caused
margin operators who
They threw their stocks on
reported by
it
York
Money
so,
of
transactions
be
15, 1886.
December
scare
New
is not
where
Just
the
the
this
all
on
commissions
at
largest transactions
known
give each
commissions
fact
be
ers
brok-
1. 100
sell for themselves
shares.
100
of
in
or
rates, it would
365
would
up
divide
$18,119,100.50to
one
commissions
for
that
great
a
had
the
to
pay
market
day as
1,096,509shares, but
total
one
transactions
were
Stock
Exchange, and
it was
said that
shares
more
changed
500,000
hands
Consolidated
at the
Exchange, making a
in one
shares
grand total of 2,100,000
day. On
these full rate
commissions
would
be $262,500.
If we
that day's business
done
to estimate
were
in all the bucket
shops in the city at 1,000,000
changes,
Exat the
two
shares, and add it to that done
1
the
total
at
would
be
3,100,000
shares.
STOCK
192
And
these
$50
at
deals
in stock
$155,000,000
share
a
INTEREST
From
could
be
cent,
per
annum.
all the money
about
2
time
at
3
4
were
brokers
Some
to
first few
months
collateral at
having long
charged 6 per cent,
"
obtained
cent,
per
stock
on
customers
them
for
legalinterest.
on
All
cent.
carried
stock
wanted
they
per
the
to
so
from
had
day.
one
plentifulthat call loans
day to day at from 1 to 3 per
Brokerage houses could obtain
was
money
for
represent
PROFITS.
January, 1884, up
1886
of
would
their
loans
for
annum
per
"
six
months.
It is immaterial
of stock
whether
buys
customer
100
costing $2,000, or 100 shares
$1,000 margin the
150, costing $15,000. For
shares
at
in
one
If
decline
A
them.
as
a
at
buy 100 shares of either of
in price is likelyto be as great
other.
in the
puts
man
20,
will
banker-broker
up
$1,000 margin
costing $15,000,
$14,000 as long as the
shares
Now,
and
of
a
4
if the
banker
charges
6 per
per
cent,
at
he
must
stock
obtains
the
expense
buys
interest
pay
is carried
at
money
cent., he makes
and
an
of
2
per
cent,
profit
customer.
profitpays the banker-broker
$1.55 per day, $46.66 per month, $280
and
months
$560 for a year, if carried
sometimes
which
happens.
This
on
for him.
interest
his
100
interest
about
for
so
six
long,
SPECULATION.
f
a
high priced stock
ividends
the
he
interest
there
nor
another
the
for 30
$1,000 each,
is
$60
per
the
"
here
gets
charges,
carries
for customers
shares
100,000
interest
on
cost
average
at
2
margins
of
of all this stock
at
$60
cent,
per
100,000
"$6,000,-
is
the
banker-
for 30
gets the money
broker
stock, and
banker-broker
and
share
the
the
to
big profit.
days
With
000.
a
offset
an
the
time
the banker, who
and
to carry
long
a
this is neither
But
him
for
Suppose
gets is
pay.
rate
one
rate
shares
to
between
at
money
is carried
customer
has
193
days for $10,000 ; he
$30,000 and pockets $20,charges the customers
for interest profits,
besides
sion
000
$25,000 commisprofitson the turn, buying and sellingthis
shares.
100,000
It is
nothing
that
report
of
this,"or
shares
one
that
of that
unusual
for
house
"has
another
within
In times
of
onths.
Some
the
tissues
news
just bought
house
"has
to
30,000
sold
30,000
past hour."
the
sion
activitythe brokers make commisIn
rapidly and in large amounts.
money
do not see
times of dullness and stagnationmany
for days at a time.
a commission
A few houses
combine
stock brokerage with the
Their
purchase and sale of commercial
paper.
profitson discounts range from 4-Jto 6J per cent,
on
good prime notes, running from two to four
houses
do
H
a
business
of
from
STOCK
194
$5,000,000 to $10,000,000
their
and
alone,
question, the
'"As
look
we
stock
banker-broker
it,stocks
at
it
spread them among
have
dealings in
are
specialty
large.
very
SOPHISTRY.
HOUSE
morality of
in this
year
profitsfrom
STOCK
If the
a
speculation is called in
will generally reply,
and
to
are
a commodity
it is necessary
investors
them
; otherwise
to
railroads
no
This
is
improvements made."
all well enough as
applied to investors, but the
roads
fact is that often the entire
capital stock of railfrom
and
over
are
bought and sold over
week
to week
on
margins for mere
gambling profits,
the stocks
in which
not
are
spread among
could
built
be
investors
actual
the
invites
the
back
boys
to
banker
when
out
cover
two
the
cum
out
the
are
go
points
is
one
short
commissions,
in
and
whiskey
in his
do
Always buy
that's
down,
of
it,
the
"
The
that
the
one
it
one
taken
to
in
whole
too
this
frequent
often
margins
or
scoop
be
knows
is
sell
up, then
banker
rope
brain,
and
to
way
should
which
beautiful
and
business,
points down
two
or
points
long again
go
one
scooping
fellows.
to
nip, after
a
and
fellow
two
or
salts.
a
take
how
convivial
a
office,with
profits." All
grano
is
to
shorts
your
system
other
banker
expounds
stocks
and
all.
at
the
Sometimes
then
or
trous
disasof
the
SPECULATION.
qustion is
The
all the
with
where
show
Stock
sometimes
Exchange
has
"
the
Wall
1,100
"
..2,500
"
Oil
Stock,
will
:
Members
"
Consolidated
into
of it go
"
"
fed
gets away
following exhibit
millions
many
Cotton
is
the
Perhaps
Produce
asked, who
that
money
mill ?
Street
MONEY?
THE
GETS
WHO
195
500
and
Mining
Exchange
500
Associated
Bankers
with
them,
say.
.
.
Total
If
the
:
annual
private and
5,600 brokers and
estimate)each,
of these
t
$2,500 (a low
tal of $14,000,000.
there
Then
the
are
rents
offices,the clerk hire and
o
De
to
paid
there
before
accumulate
offices and
as
average
their associates
it would
the
anything left
from.
each
expense
a
to
expenses
to
The
live
on
and
of
number
might
be
fied
classi-
:
Offices,say. .300.
Produce
Offices,
Stock
.
.$ro,ooo.
300...
say
and
make
banker-broker
all the other
fortune
a
follows
is
of
penses
family ex-
Total.
Average Expense.
Stocks
1,000
5,6oo
put
we
.
Oil
200.
...
.
.
.
.
.
$3,000,000
2,500
750,000
2,000
400,000
196
STOCK
Offices.
Cotton
Total
.
.
living
private
$250,000
$2,500
100.
.
.
.
brought
expenses
down
14,000,000
Grand
This
the
hundreds
the
interested
the
of
their
transactions
where
come
into
does
from
the
the
into
wealth
dollars,
speculation
by
bankers
not
are
fed
money
of
sums
and
bucket
shops
altogether.
case
are
bankers,
get
the
big
their
to
of
out
who
the
millions
and
taken
money
and
There
"
thousands
add
to
expenses,
of
part
get
capitalists
brokers
small
a
brokers
of
leaving
out
only
and
annual
represents
course,
bankers
of
$18,400,000
$18,400,000
is, of
and
total
probably
clerks,
brokers,
living
at
all
the
hopper
in
all
the
one
the
out
from
come
Wall
who
feed
Street
who
"
of
?
Does
their
mill
p
the
oh
Where,
Exchanges.
money
persons
etc.
another
or
speculators
of
15,000
messengers,
way
these
than
less
not
it
money
not
!
I98
STOCK
and early Fall the rates of
During the Summer
foreign exchange favored an influx of gold from
the
Europe. This helped speculation and made
market
buoyant.
In
the
market
latter
part
working
was
of
November
towards
the
money
stringency.
The
surplus bank reserve, .which a year before was
about
the legal limit,became
$65,000,000 above
reduced
less than
to
$8,000,000 in December.
Rates
on
any
carry
above
were
advanced
on
days
some
Gold
ceased
to
legal interest.
flow this way,
and the high rates
bills of exon
change
tended
towards
large exports of bullion
These
back to Europe.
things operated to check
speculationon the bull side.
With
affairs in this shape, it is supposed that
of the
some
largest operators sold out large
take
of stock
with
of
amounts
to
a view
profits,
lower
buying back their stocks at much
prices.
all events, stocks
At
became
largely distributed
of small holders.
in the hands
Big bears sold the
market
short,and for days previous to the middle
of December
priceswere
tending downward.
is calculated
to
High interest rates for money
make
margin speculatorscarry as few stocks as
there is a movement
able
favorpossible,txcept when
The
banker-brokers
to them.
charge legal
interest,and in addition can charge their customers
to
far
call loans
higher
the
rate
stocks.
they
Hence,
have
with
to
pay
call
for
money
loans
to
ranging
SPECULATION.
6
itween
stocks
having
the
on
and
the
call loans
on
cent,
the
of business
was
What
day.
per
Journal
them
reached
was
14th, near
the rate
next
of December
THE
wildest
The
for
bull
customers
margins
on
were
seat.
climax
December
the
cent.,
per
carried
anxious
The
per
40
199
close
of
afternoon
TO
of
business, when
manipulated
happened on
day is told by
16th, thus :
RUSH
to
up
the
one
ing
open-
the Morning
SELL.
in Wall
scenes
the
on
Street
since
the
rible
ter-
carried
down
panic of 1884, which
witnessed
strong houses, were
yesterday.
May
dozen
The
the
greatest day's business
York
New
sales of
The
do
could
and
let the
When
flung
the
open
sounded
began.
There
raph
to
was
to
rest
from
All
the
the
of
the
morning
pressure
the
to
for the
dealings
that the
trading to
quotation reporters
sales as they could
Exchange
and
the
sell
buyers. Orders
London,
Chicago,
no
of
Stock
begin business,
The
was
mad
gather as many
go entirely.
doors
in
share
ed
report-
were
It is estimated
too
was
of.
track
transacted.
was
1,600,000 shares.
up
excitement
kept
e
all.
history of
of stock
fair
a
at
foot
transactions
The
1,096,509shares
recorded
not
were
the
Exchange
ticker,but
the
by
Stock
in
a
the
tumble
was
gong
in
were
was
prices
tremendous.
by teleSt. Louis, Balticame
in
STOCK
200
Philadelphia,Washington,
throughout the country to sell.
Boston
more,
A
have
to
panic seemed
the whole
length and
Pandemonium
reigned on
The
great
Insanity in
have
to
The
attacked
came
viewed
the
under
room
floor
the
of
land.
the
packed with
was
violent
the
mass
of
form
change.
Ex-
ers.
brok-
seemed
men.
out.
The
words
could
losses
avert
One
lower
after
they
It looked
values.
day
1873, when
or
secure
the
if the
feared
men
wasted
to
The
buttons
pick
could
came
went
and
expostulation.
It
all needed
was
the
be
not
down
at
and
the
excitement.
Black
home
were
were
plunging
than
worse
them
ripped
crushed,
coats
was
derstood.
un-
led
tramp-
were
profits.
the prices dropped,
seemed
morning millionnaires
less
time
in
for that.
bottom
who
much
pushed
greater
Street
understand
and
in
were
be
not
went
Wall
was
Button-holes
another
as
no
undone.
valuable
too
was
heads
was
brokers
could
heard,
brokers'
came
cuffs.
from
Talk
himself
There
foot.
below
crowd
made
Neckties
up.
A
the
most
fell off the
Hats
to
of
its
frenzied
one
any
but
breadth
tors
specula-
struggled and yelled and shook
order
pads in making their bids and offers.
gallerieswere
packed with spectators who
the
wonderful
who
to
see
sight. No one
The
torn
upon
all
brokers
their
how
seized
and
town
found
into
for
ruin.
Friday
in
of
the
night paupers.
SPECULA
In the
^S
TION.
surrounding the Stock Exchange
wildness
the same
reigned as on the floor. Men
in the height of fashion
clad
and
wearing the
back
and
forth in the
glossiestsilk hats dashed
as
pouring rain until they were
bedraggled as the
sodden
st
streets
in the
turn
dimes
to
their
on
of
who
vagrants
financial
ward
bank
bank
to
of
"ith
ghter. They
before
On
they
for it and
the
I
hat
Baron
r
asked
Von
the
the money
e
lenders
most
the
most
filled
were
money-bags the
perfect security
loans.
any
The
and
a
year.
thousands
action
of Baron
marked
the
Hoffman,
and
tremendous
enders
the
make
offered
their
offer of half
of 6 per cent,
ken.
hundreds
was
run
pricefor money
up to
over
night," or for a single day.
the rate of 365 per cent,
a year.
L.
he Board
te
by
"
at
was
depended
floor the
cent.
per
The
it.
clutched
would
and
They hurried from
money-lender to moneylender.
from
and
and
fortunes
wanted
was
every
disaster.
They begged
extravagant pricesfor
alarm
Their
at
for nickels
begging
mart
buy whisky.
efforts.
Money
to
men
encountered
are
charges
a
turn
banker,
million
a
The
at
sent
the
brokers
regular
grabbed
after thousands
Von
of
the
in the
Hoffman
greedy
into
were
ended
money-
tide.
subsided.
allayed fear and the excitement
the departure of the
wildness
With
pricesbegan
to improve. The
day of terror went out with prices
ascending. A great deal of apprehension remainIt
STOCK
202
ed, and
rich
was
reflection
the
left to
was
who
man
a
many
that
the
another
would
make
him
descending values
burning brightlyin hundreds
Lights were
Wall
in
great
The
and
figureswhen
morning.
Hotel
Windsor
who
decline
The
this
on
on
to
brokers
rendezvous
in
of
nothing but
probabilitiesfor
was
the
from
day was
list,and
rightthrough the
this and previous days
cent,
went
of curiosity
out
came
financial
night. It is the
the evening, and the talk
of yesterday and
events
last
of offices
with
packed
people
operators and
penniless.
the Journal
was
of
day
strugglingwith
were
of
masses
this
press
clerks
Street, and
fore
be-
day
the
\
from
and
pious
decline
to
10
day.
to-
c/J-per
to
total
was
the
15 per
cent.
of the
One
market,
after
The
"
it
was
situation
is cleared
A
prominent
"I
am
a
bull
needed
market
and
in when
and
make
did
money.
it will go
said
The
friends
tell your
break.
sold
was
what
You
a
Wall
Street
through
"
an
took
out
the
heap of good.
they can
buy almost
it
It
:
break
to-day'sin the shape it did."
The
principaloperators
"
by the
principaloperators
days ago."
now.
the
:
up
room-trader
of
men
the
several
their stocks
said
over,
expected, and
was
can
truly good
can
be
thing
anyed
bank-
experience
their
like
and
profits
SPECULA
stood
from
out
the
did
under
But
always do.
be
"
lambs
They
course.
good" the
who
break
wiped
were
out,
tell.
to
THE
of
heap
a
of
hard
203
in time, of
what
thousands
it would
TION.
AFTER
GOSSIP.
One
said to have cleared
prominent bear was
$350,000 out of the break.
A
risked her principalin a certain
lady who
stock had
fore.
$48,000 profitsin sight a few days beThe
panic wiped her out clean, principal
and
profits.
A gentleman had
$18,000 in sight on $3,000 of
too
margin. He waited
long and his profitsand
margin disappeared in the whirlpool.
The
club men
suffered severely. A gentleman
he knew
stated that of over
100
men
personally,
to
meet
at
Delmonico's
day time, not
going to get
One
Club,
to
cheaper
of
a
whose
the Club.
that
money
the
was
vanished
leavingthe
dollars
members
do
or
a
seems
of the
with
knew
steward
the
A
the
lifetime
a
fortune.
stranded.
of
told
was
at
some
for
an
in
resort
steward
him
a
vortex
to
story
steward,
entrusted
savings of
to bring in
in
connossieurs
and
the
in the
they were
holidays.
compelled
member
member,
for the
without.
that
Street
where
were
liquors,were
wines
It
Wall
on
them
hundred
a
between
row
before
of
one
and
wines
rare
or
of
the suggestion
time
ment
invest-
Result, the
the maelstrom,
STOCK
204
The
shares.
them
One
the
panic caught up about
who
men
margined up
small
lators,
specu-
from
iooto
2,500
on
gobbled them up bodily without
enough to buy a midday lunch.
It
Wall
old
panics
harm
all the
than
Street
since
1873,
of the
any
habitue, who
said
:
others.
This
"
leaving
had
did
one
Its victims
all
seen
more
may
be
by the thousand, as in the whole list of
his speculative acquaintances, he had
only met
that was
not
man
one
wiped out, and lost all the
profitsand capitalhe had been nursing for months.
The
had
closed
his accounts
out
one
lucky man
counted
the week
before
THE
to
go
AFTER
abroad."
MARKET.
The
large inside operators improved their opportunit
another
to pick up and recover
largeline
of stocks around
the bottom
prices of the panic.
Values
improved again and the talk and rumors
all in favor of a big bull market
to come.
were
the Inter-State
bill in Congress;
Then
Commerce
ing
Fundthe Pacific Railroad
Seventy Year Extension
bill,and the Russian, Turkey- Franco-German
war
cloud, with the subsequent great labor strikes
the coal-handlers
and
'longshoremen came4
among
up as disturbing elements, causing a haltingand
irregularmarket.
of Congress, expected action,
session
At every
affectingrailroads,land grants and
mail
subsidies, is brought in as
United
a
States
bug-a-boo
2o6
STOCK
With
market
in Januthings in this shape, our
ary,
1887, was
adverselyaffected by the largesales
for English and
stocks
in London
American
of
Continental
and
war
irregularin New
A largeamount
borne
for
in mind
York
the
of
American
Exchange,
market
London
hours
the
stocks
that
and
very
difference
the
time
is the
A.
10
pean
Euro-
alsoi"e
New
between
is five hours.
from
same,
listed
are
It should
securities.
our
that
and
market
York.
London
the
at
alternate
the
the
made
rumors,
peace
with
This,
account.
With
M.
ness
busi-
3 P.
to
M.,
latter
Exchange is justclosingas the former
opening.
On January 24th there was
don,
a war
panic in Loncaused
and sellingorders
by allegedadvices
is
from
Paris
and
place the financial centre
heavy sellingof Americans
decline
in prices,
and so
of
in New
York
Private
York,
that
securities
our
on
cable
and
the
at
This
Berlin.
the
same
advices
made
the
war
fever.
of the
there
brought
had
been
turn
sold
received
of
commencement
The
serious
a
London
intimidated
they in
day.
former
ers
hold-
heavily
in New
business
the
first quotations
below
the
1
the
and
list,
per
cent,
The
moving
cent,
to
2 per
opened off from i-Jprevious day's closing,right through
a
further
decline
in
some
of
instances
followed.
panic arose
troops
from
rumors
towards
the
that
France
frontier, and
was
was
SPECULA
horses
buying
of
denial
French
abroad
these
TION.
for the
of
War,
of
Gen.
by
rumors
Minister
use
207
the
A
army.
Boulanger, the
caused
sudden
a
sion
revul-
from
sellingto buying stocks back again.
At
the
opening of business the next
day, at
both
and
London
New
York, prices were
jumped
at first quotations. The
decline of
up 2 per cent,
the previous day was
recovered
almost
at a bound.
The
panic was
nothing but a financial somersault
for stock-jobbing purposes.
And
the unexas
pected
always happens to those who least expect
it,the bears
both
on
sides
livelytime climbing to
the strength of the
on
The
had
been
But
there
By
had
The
a
of adverse
wishes
Inter-State
The
the
another
elections
German
having
a
put
a
out
Commerce
subsidence
bill
of the
war
upward
halt.
action, inimical
legislative
Chancellor, Prince Bismarck
previously dissolved
factor in
as
of
shorts
had
again. The
labor strikes also helped for a
market
strong and buoyant.
came
soon
reason
the
the
big pond
rumors.
booming
of the
make
to
the
stocks
out
fizzling
time
war
the
their
cover
discounted.
sent
scare
to
of
passage
of
for
the
new
German
Parliament.
members
speculation,both here and
bearing on the question
made
was
in
of
Europe,
peace
or
war.
Something
leaders
in
always
of the market
Europe
to
act
on
comes
in New
advance
up
that
York, and
enables
the
their allies
information, and
to
208
STOCK
in
trade
their
profits,of
of the
the
roll
clouds
the
assuring
for
of
is to
wait
"
for
1st,
and
Europe,
till
up
2
tion
vindica-
probably
was
of
interests
strued
con-
speculative
cent,
3 per
or
it, giving the
knowing
ones
Then
profitabletrading.
slump
to
down
again
to
their stock.
get back
to
March
Now;
pockets
least,and
at
boomed
made
was
them
enable
The
of the
victory
a
of
the
were
opportunity
market
in
awhile
to
strength
another
recourse
mind
master
Stocks
the
out
come
only
favorable
finance.
to
resulted
peace
as
profitable turns.
by."
elections
for
the
have
course,
crowd, whose
The
on
for
stocks
'87,all
hands
waiting for
are
the
all fears
expiration of the 49th Congress. Then
of legislationunfavorably affectingrailways and
speculation will
stock
to
And
come.
Street
is to
seen
ever
The
rapid
long period
the
conclusion
must
follow.
and
a
by
many
to
realize
a
for
of
of
the
a
long
time
of Wall
men
biggest bull
gradually worked
recovery
market
up.
country
from
its
depression has naturally led to
that
of inflation
a
long season
the
If
does
financial
doctors
it will be
come,
are
right,
interrupted
slump, engineered by the
big men"
for suctheir stocks
ceeding
profitsand recover
bulges
The
believed, the
be
boom
big
end
an
then, too, if the wise
be
to
are
be at
average
"
and
reactions.
speculator
will
do
well
to
let the
SPECULA
side alone.
ar
his
margins
He
cent,
30 per
it
of
market
written
on,
is
almost
reams
A
now.
with
the
and
signof
of
reams
it
paper
was
eagerlygrabbed
vast
stocks
up
the least
upon
worth
floated
Good
stocks
poor
when
Street.
In
vice
value,
will
advance
and
them,
boom
a
of
appearance
the
on
up,
of worthless
amount
being put out in Wall
anything,having an
will sell.
at
run
he will do
profitin sight.
time
preceding the big bull
it not
was
it is
just so
stock
of
And
make
to
a
188 1-2,
stock, much
still better
strong.
still to
in the
was
209
will do
better
superlatively
danger when he has
As
TION.
drag
in
versa
a
the worthless
stuff helps to
decliningmovement
in
drag good stocks, having real merit, down
value.
the
is to
(It
interest
of
the
insiders
everything,good, doubtful,
1
hen
ey
they
the
bubble
cunning enough
are
have
Then
will be
market
1884, when
to
of
enticed
of
hold
will
on,
come
out
bull
great
of
1883
the outside
the
out
5
market
all
and
left
the
er
brok-
will turn
right,"will
anc*
lic,
pub-
were
by illusions,
who
those
rely on
banker
all
money.
in
of their whilom
"
the
old, old story
Then, too, all
you
slowly feed
pocket their
of thousands
been
superiorwisdom
friends,to
again and
the
tens
had
stranded.
and
farther,
no
to
final culmination
the
who
sell
to
worthless,
and
inflated
be
can
boom
to
up
be all
STOCK
210
the
the
ruthless
of
their
be
the
pocketed
the
roasted
worse
raids
of
bull
the
bears
And
property.
very
longer
same
profits
they
fellows
out
of
who
of
hold
destroy
to
some
"
these
these
enticed
very
on,"
the
by
value
bears
may
in
innocents.
and
SPECULA
TION.
CHAPTER
THE
THE
to
Street
ROAD
TO
SUCCESS.
unlimited
abilityto command
form
pools and combinations
millions
of
XXVI.
of
dollars
what
is
and
money
of hundreds
makes
Wall
the
irresistible.
They can make the
what
market
they will. Against them the general
public,as speculators,have not the ghost of a
kings
Here
chance.
that
so
manipulator
of the
confidence
there
and
operate with
of
stocks
or
less
"
public in general are
the meat, so
to
speak,
f Wall
buyers
Street.
To
is necessary
These
in the victims
being
is
not
escape
without
absolute
ruin.
no
Hence
world's
in
goods
comfort,
chance,
only
to
with
have
safe road
no
to
schemes
support
no
of the
allowed
to
ending
which
surplus
business
in
wealth
is to
to
Wall
a
this
families
game
Street.
scratch
there
of
and
risk in
of
losses,if
only enough
themselves
as
culminate
less serious
or
in
come
always
fix from
a
prey
farmers
money
successful
have
the
the victims, the
the
left in
or
let into
be
public to
more
who
those
and
get the
to
their schemes.
be
of this
results.
sure
The
nd
friends
may
circle
inner
more
few
a
from
of
Their
morn-
STOCK
212
ing to night at
every
and
employment
save
penny.
To
only
honest
some
the
there
almost
which
safe
as
leased
a
to
Rensselaer
and
leased
is
Canal
Company,
bonds,
and
Delaware
and
bonds
which
to
These
their
on
the
are
are
stocks
corporations,
prosperous
bonds
and
Saratoga Railroad,
the
which
8 per
cent,
Delaware
dividends
Canal
before
it
dends
divi-
Hudson
interest
on
The
the stock.
on
Good
stocks
stance,
in-
for
Company must
pay anything on
can
stocks.
and
and
guarantees
Hudson
charges
own
other
which
stocks
their stocks.
on
these
of
mortgage.
for income
invest
to
classes
interest
guarantee
The
wishes
certain
are
as
of roads
who
person
pay
its
like this,
market
in the
guaranteed, are seldom
for sale ; their quotations are
very high and they
not
are
subject to speculative fluctuations like
other stocks,because
they are so closelyheld by
of
investors, for the income
they bring. Some
leased
the
strongest railway corporations have
are
lines
which
on
but
on
paying
8
is offset
They
on
their
their cost
a
are
or
by
The
dividends
priceis so high
down
9 per
the
seldom
"wash"
and
interest
to
outsider
to
cent,
4
or
teed,
guaran-
are
brings the
it
5 per
cent,
dividends.
on
income
those
This, however,
from
taxes.
being exempt
except
reported in the market
get a pricequoted.
stock
should
never
Only professionaloperators,
sell
who
stocks
short.
thoroughly
un-
STOCK
214
know
they
they
make
can
them
to
things don't
for
money
whether
their
as
hardened
who
feed
boomed
of
their
ers
the blood-suck-
the
after
40
or
who
have
That
comes
crops
and
bad
years
of poor
and
with
To
three
two,
with
depression.
All
the stock
sum
these
up,
outsider
the
follow
seven
good,
poor
ically
periodof
years
in
four
their
Egypt.
prosperous
then
there
business
be
who
and
bered
remem-
meddle
should
2.
Never
buy
buy
street
very
market.
short the market.
Keep away
gossip.
that
so
things should
on
by those
Never
4.
all
crops,
1.
3. Never
the
or
business
calculated
is the
of famine
years
seven
are
the
inflated
like
market
stock
been
pricesare ing
singduce
most
alluringnotes to inbuyers. They are ready
and
sweetest
has
above
cent,
per
for speculation
price
as
people to come
to sell out
through various brokers
be traced.
operationscannot
The
good years and the bad years
years
gambler,
buy stocks,either
30,
those
plenty and the
Usually there
one
The
not.
or
as
previous decline.
in the
it is all
confirmed
heartless
never
20,
a
when
time
can
if
so,
him.
upon
up
a
and
way,
themselves,
clients
investment,
or
bottom
and
should
People
that
becomes
tape speculatorsoon
and
work
on
top of the booms.
on
a
from
margin.
stock
office influences
and
SPECULA
5.
Operate only
TION.
investor
an
as
2 1
for dividend
5
come.
in-
declines.
Only buy low after severe
By followingthese rules and buying good stocks,
has surplusmoney
who
and has patience
any man
6.
months
wait
to
make
an
and
or
a
interest
enormous
the
above
year
dividend
for results
or
two
on
his investment
he
income
quarterlyor semi-annually.
should
invest
The
family man
secure
should
He
and
sure
a
income
payers
their
spare
considered
year,
the
may
suffer
dividends, and
family.
can
are
one
to
money
he
use
sound
receive
for his
support
only surplus money
operations. Stocks which
in stock
good
certain
over
will
his
can
heavy
decline in price through deceptive book-keeping
road
or
by being too closelyparalleledby a new
In such
a
fighting for business.
contingency a
text
year
pass
should
man
be
dividends
of
price of
the
it
him.
cost
worthless
to
Everything
comes
to
at
for
and
least the
him
to
market, unless
stock
for the payment
years
resumed,
advance
should
the
unless
"
the
price
who
it is
keep
from
market
from
away
a
Wall
Street
prices. Then, with
cent,
will be the
off
the
from
time
to
top
look
and
distance, through the
reports, for great depressions and
newspaper
per
wait
past redemption.
People
in
to
be
to
stock
the
waits, in
watch
prepared
a
values
of
a
from
30 to
clines
de50
previous boom,
all around
the
business
216
STOCK
If crops
horizon.
they likelyto
growing, are
are
If crops
have been
harvested, have we
good?
a
large surplus for export ? Is there a large
shortage of European crops of which we have a
Are
we
exporting or importing gold ?
surplus?
and
Are the railwayearningslarge and increasing,
be
the
are
roads
Having
future,
things
at
cast
if satisfied
and
favorable
are
with
several
to
man
?
war
horoscope
the
that
an
can
dividend
buy
hundred
may
If
stock
one
take
stocks
his
in his
in the
name
Railway Companies.
for.
pay
and
done
different
well, he
others.
He
Then
have
offices of the
Having
buys
should
do
not
the
away,
he
all his eggs
have
does
good results on
he can
buy only what
recorded
these
he
of several
achieve
should
of
If
shares,
thousand
or
basket.
should
near
most
payers.
good selections of stocks
he will not
Companies. Then
one
the
ness
improvement in busiin and
come
buy good
make
in
of
confidence.
should
He
at
mental
a
interests,a
stocks
or
peace
he
them
different
this,he should
place them in
Then
he
the vaults of a Safe Deposit Company.
Wall
from
and keep away
should
Street,
go away
and wait patientlyfor months
and watch
or
a year
It will come
for the good time
more
coming.
or
lock them
sooner
The
or
man
in his
up
strong box,
or
later.
who
low, and
has
has
bought his stocks
paid for them, can
tively
compara-
afford
to
SPECULA
TION.
2 1
7
the
price go, temporarily,10 or 20 per cent,
the
under
should
be
never
price he paid. He
his stocks.
It is a
frightenedinto throwing over
trick
work
to
common
on
people's fears, and
e
them
freeze
tocks
at
:
The
out,
low
a
so
that
price to
positionof
men
hold
for
who
has
man
a
other
a
get the
can
big advance.
paid for what
impregnable. The bears may
hurt him, if he
worst
they cannot
; but
keep cool, and laugh at their fictions.
The
at
good time coming will come
olds
is
within
may
be
two
years.
three
Aided
months
by
natural
booming or will be put
artificial manipulation 20,
go
Then
is the
down
into
time
Wall
The
market.
his
out
theirs and
go
wait
another
a
minute
venture.
30
or
Street
and
short
for
a
away
to
to
by
on
come
the
sell out
can
sell
decline.
gather
He
away.
for his banker
Get
will
cent.
per
big insiders
should
run
or
force
them
sure
It
one
stocks
40
be
only
last.
main
dump
the
will
of stocks
should
Having sold out, a man
principaland profitsand
not
by
holder
before
profits
take
up
their
take
causes,
for the
outsider
and
it may
or
do
he
from
to
up
should
talk him
Wall
his
Street
into
and
keep away from its influences until another great
around.
Then
into
periodicaldecline comes
go
bottom
and
invest again as near
the market
prices
the
and put away
be guessed at, and record
as
can
stocks and leave the Street until another
big bull
sends
market
priceskitingagain.
218
STOCK
This
and
if
process,
advances, will,in the
result in
years,
A
Here
man
can
was
what
a
all the
repeated in
of ten
course
declines
big
twenty
or
big fortune from small beginnings.
always prophesy after an event.
been
done.
In Janucould have
ary,
1885, Delaware, Lackawanna
could have been
bought around
83.
of 100 shares at 83 is $8,300.
Western
and
The
In
lent
equiva-
December
100
$135 a full share.
followingthe price was
shares at 135 is $13,500. This, if bought and sold
have
at the righttimes, would
yielded a profitof
about
$5,200. In addition, during that time three
dividends
were
paid on it,two of 2 per cent, and
of
one
if per cent., making $575 in dividends,
made
net
to the profit,
a total
which, added
gain
"f $5"75" after
paying commissions, all made
within
one
In the
the
year.
same
Spring
of
over
Summer.
or
and
once
$4,000
on
nineties,
advanced
1884
Lake
year
Shore
The
28
to
Union
three
in
58
51 in
in the
was
1886,
in
par
shares.
100
from
fall it
next
crossed
below
was
a
Pacific
in
months,
a
gain of $3,000 in the value of 100 shares.
It is always .more
safe to buy the dividend
But
sometimes
the
among
O.
shares.
time,
Then
T.
in
In
worth
will
Fancies
1884
less
$3,800,a
there
was
a
pay
down
was
than
two
Central,
from
tremendous
$625
to
of
fit.
profor
it was,
years
difference
Ohio
ers.
pay-
judicious selection
a
gain
at
100
one
$3,175.
the
poorest stuff
SPECULATION.
the whole
85,
han
r
pe
shares
100
a
list,down
cheap
stocks
for investment.
in
less
in
shares,a gain
100
sold
of receivers,or
of interest
wiped
the
and
out
Great
of 1,500
"
s
to
At
one
safest
Lake
of the
latter
around
on
both
on
dividends
were
Fan-
"
bull and
bear.
sidered
con-
were
the lists.
But
passed
were
Southern
N. Y. Central
and
income.
the
stocks
investments
Canada
the
among
Vanderbilt
Shore
was
per
the
by
dend
divi-
cent,
7 per
dividends
reduced
followinglist of
about
Pacific and
their
down
the
ago
on
rily.
temporahad
their
by parallellines, causing the
for a time, while that
suspend dividends
to
pay
years
into
cut
former
they
few
other
changed and
Michigan Central and
The
is
tion
selec-
in the
for
times
business
stock
after
the
time
The
sale does
sought
the
kicked
the
A
all 6 and
were
they dropped
be
hands
for defaults
exercised
stocks.
and
after
passed,and
foreclosure
be
must
Pacific
one
ent
inher-
into the
Nashville,the Central
and
payers,
But
be forced
with
and
management
under
of investment
the Union
meddle
annihilated.
discretion
Louisville
riskyto
very
If the
principalon bonds.
bonded
indebtedness, the
or
cover
are
By bad
they may
rottenness,
seen
share
cent.
The
not
\2\ cents a
$12.50. It boomed
to
$200 for
to
year
for
219
most
annum,
one-half.
are,
so
reliable,
the surface.
with
stocks
in
far
the
as
the
order
dividends
named,
things can
be
STOCK
220
Dividend
Chicago
Northwestern,
and
rate, per cenl.
pref.
7
...
Illinois Central
8
Chicago and Alton, pref
Chicago, Burlington and Quincy
Chicago, Rock Island and Pacific
8
Palace
Pullman
8
7
Car
8
Western
and
Delaware, Lackawanna
7
Chicago and Alton, common
and St. Paul, pref
Chicago, Milwaukee
Chicago and Northwestern, common
St. Paul Omaha, pref
St. Paul, Minneapolis and Manitoba
St. Paul and
Duluth, pref
and
Delaware
Oregon Railway
Lake
N. Y.
Shore
and
7
6
6
7
7
Co
6
Southern, last div.
Hudson
Long Island
Chicago, Milwaukee
.
5
Navigation
Mich.
and
Central
Canal
Hudson
7
2
.
River
4
4
"
St.
Paul, common..
5
mostly active stocks which
roads on
less widely. Leased
fluctuate
more
or
stocks
dividends
not
whose
are
guaranteed are
comes
such
too
are
closelyheld for inquoted, because
The
to
York
list
above
be
Central
Hudson
and
other
as
is
rollingstock
and
New
able
valua very
intrinsically
crippled as a big dividend
of
Central
the
West
Hudson
Shore.
in
New
along its line
least $100,000,000,
at
equipments.
cities and
worth
The
market.
is
incubus
the
the
in
active
property, but
by the
payer
of
real estate
are
towns
The
York
mated
is esti-
besides
STOCK
Atlantic
Pacific
Central
Pacific
Cameron
Coal-
Canada
I3l
Pacific.
and
Canadian
73
5i? 33
44
7i* 34f 63*
I20f I04i H5"
Southern
Chicago
Northwest.
and
pref.
Island
Rock
Chicago,
Chicago, Burlington
and
144
Pacific
Quincy
and
St. Paul
"
pref
Cincinnati, Washington
,
and
East
pref... 12
and
Cincinnati
and
and
Ind....
Western
Canal
Virginia and
new....
."
n
""
Fort
""
and
Worth
Denver
Bay
Indiana, Bloomington
Lake
Shore
Lake
Erie
2(j
18-
City
3 io3|
87
I
11
28
25-
28;
Western
!36f
115
15
8
14
and
b4j
67!
pref
pre"
Western
"
18:
"
assessment
paid
..
Island
Louisville
Michigan
Central
69.
12
and
Milwaukee,
Minneapolis and
"
33t
175, 120
69^
Charleston..
Lake
4
80I
98* 61$
Consolidated
Manhattan
22:
IOO
Nashville
and
Memphis
43*
lOOi
and
"
Long
j st
""
Winona
and
Green
""
""
751
35:
6;
'*
a
24
io8j
Georgia
""
45
143;
Co
Grande.....
Tennessee,
it
10
in
Hudson
Rio
and
5
21
Gas
Cleveland, Columbus,
Delaware, Lackawanna
Delaware
6
2*
6
Valley
Hocking
Denver
125?
Coal
Colorado
140
I3I3i2o" 126*
141? I28|I36
82" oof
"a 116
ir8J!
Baltimore
"
Consolidated
135
Shore
and
Western,
St. Louis
"
pref
pref
2CL
23^
%
5^1
40*
103
32i
SPECULA
TION.
223
5
o
oS
Missouri,
Missouri
Kansas
37|
Texas
and
Pacific
New
Jersey Central.
New
York
New
York, Chicago and
Central
York
New
York,
England
Nashville, Chattanooga and St.
Lake
Erie
and
Louis
"
York, Susquehanna and
105
pref
Western
"
Northern
55
31
()S
Western
"
New
pref
New
and
64
17:
'"'
New
119
"71
St. Louis
"
Pacific
and
"
".
Ontario
'"
and
Pref
Western
and
Trans
Oregon
Oregon Railway and Navigation
and
Ohio
Mississippi
Pacific Mail
Peona,
Decatur
and
and
West
Richmond
Evansville
Reading
St. Paul
and .Omaha
St. Paul
and
St.
pref
Paul, Minneapolis and
St. Paul
and
Manitoba
Duluth
"
St. Louis
and
Southern
Pacific
San
pref
71*
12
pret... 33*
Texas
Union
assessments
paid
58^
2n
2C4
59s
52$
22#
20
38
33f
Western
Union
Wabash,
St. Louis
Pacific,pref
"
3 1*
ioi|
35
29i
27
"
54f
35
77
7I,
74
59
36^
48^
48
36
08
1 1
IO9
1
124
115
115
58
J
6o"
I06A
37f
3I"
32i
774
65
65i
28|
24*
8o"
and
104
47}
I7f
67
68"
Pacific
27f 27f
22I
Pacific
"
35
333
6if
"5_
pref
83
I2#
67
Francisco
6o|
55
88
33i
55
6
Omaha,
i8f
73
34
Point
6|
14
2S
81*
I09
".
67
112I
34i
3*|
Western
"3
108
38f
Pref
Norfolk
3o|
33?
108
22
receipts 41
36|
24|
6i|
75*
14
35^
27^
I
30
STOCK
224
XXVII.
CHAPTER
OF
POSSIBILITIES
TO
as
money
and
of
right sort
the
level at all times
;
has
who
man
basis ;
a
FINANCE.
RAILWAY
whose
one
head
has
who
one
millions
of
is cool
great subtlety
manipulation ; who is thoroughly heartless and
end ; who
to attain
an
unscrupulous in the means
occasion
can
buy up politicaland judicial
upon
who
favors ; one
can
buy controllinginterests in
great railway lines and has the directory in the
in
of his
hands
creatures
own
;
who
reports of his companies cooked
speculativeeffect ; one
of plausible rumors
stocks
and
and
ruthless
culmination
a
long
career
and
a
of his
left to
to
:
such
crafty
as
his
out
and
by socialists, communists
with
man,
anarchists,
of speculativerailway finance
possibilities
giganticand unlimited.
the
Given, then, that such
hundred
could
million
have
manipulate
one
of
could
man
for
dollars
hundred
the stock
a
years
market
"
final
ference
by legalinterturbed
designs undis-
him, unchecked
work
is
a
for
his
inception and
the
schemes
before
who
way
rail-
in invention
water
can
; one
pirate in
order
to
cunning
who
;
his hand
conceal
as
is
who
the
have
can
have
are
one
beginning, and
a
of
what
life to
active
then
?
SPECULATION.
Why, profitingby
successful
Wall
great
fortunes
adopt
their
his
He
hundred
to
could
and
have
them
out
as
a
bears
public
and
suited
into
had
made
he
would
of
by
the
with
and
scores
entire secrecy.
mill of his own,
rumor-
the
so
in irretrievable disaster.
brokers
news
most
estates,
his orders
execute
of the
ones
improvise new
the practiceswhich
avoid
employ
allure the
to
left vast
and
would
could
experience
kings, who
Street
engulfed the great
often
He
the
methods
He
own.
225
market,
freeze
to
or
his purpose.
By buying 51 shares out of every 100 he could
get control of railway corporation after corporation,
elect himself
and
and
his
to
creatures
own
directory. He could manipulate the stock of
his companies for stock-jobbingprofitswithout
the
the least
regard to
If he wished
buy
them
in
institute
the
payment
had
send
of
pass
If it
wars.
on
their
to
and
non-dividend
were
to
interest
stock
the dividends
buy cheap he
object by causing a
wished
same
depress prices of good
low, he could
cut-rate
he
stocks
to
holders.
the interests of the other stock-
could
plish
accom-
in the
default
bonds.
When
he
bought all the stock he wanted, he could
pricesbooming upward by resuming the payment
of dividends
and
interest
bonds.
16
on
stocks
and
faulted
de-
226
STOCK
If he
wished
in
was
default
he
debt,
buy
to
in
the
railroad
a
up
payments
cheap
which
its bonded
on
could
edness,
purchase a majority of the indebtand by proceedings in foreclosure
and sale
could
buy in the road for perhaps less than the
incumbrances
on
it, thereby wiping out all its
stock capital. Then
pany
Comby reorganizinga new
and circulating
of great improvements
news
be
to
float
made
immense
an
inflate
and
them
rehabilitate
to
The
the
to
out
bonds
new
high
prices as
of Wall
lambs
admonish
him
cornered
bears
values
when
the
he wished
the market
sell stocks
brokers,
he
short
all the
deliveries.
the
corner
make
them
while
he
he
and
a
would
call
could
a
When
encourage
the
in
million
and
half shares
bears
to
stock,
all his loaned
pay
of
catspaws
of the
out
(profits)
buy
ing
boom-
high loaning rates and
up againstthemselves,
exact
his hundred
would
destroying
low.
pricesaway
using them as
chestnuts
With
stock
bid
was
be
loaning them, through his
their
to make
they wanted
cumulated
large short interest had ac-
by
bears,
to
He
in
as
would
market
the
buy
would
When
he
to
sell
bears
others
latitude
utmost
stock,
such
by opposition combinations.
allow
and
Street.
short
to
never
could
kite to
a
as
experience of
Jacob Little and
Drew,
he
road,
disastrous
Daniel
own
of
amount
their
the
of
for
stocks,
rake
his
fire.
dollars
a
to
as
million
at
the
a
ning
begina
lion
mil-
bottom
of
or
SPECULA
the
big
top
of
booms
two
stocks,
all
his
on
and
of
wealth
He
in
might
the
the
York
and
what
of
been
public
d
d
"
!"
the
the
of
and
of
would
of
would
by
save
100
a
years
combined
Europe.
all
whole
villages
mill
big
profits
he
all
?
railroads
the
wealth
the
the
dividends
bonds
of
who,
his
the
present
surplus
to
the
end
control
multitudes
grist
bringing
be
the
with
he
kings
towns
vast
per
trade
to
all
:
the
on
than
ownership
the
50
process
on
shearings
at
with
entire
would,
money
money
country,
compass
the
acquire
to
the
sell
and
worth
the
all
the
on
20
opportunities
he
colossal
more
from
his
interest
be
evasions,
out
repeat
buy
on
them
could
sheep
the
stocks,
fortune
of
advances,
accumulate
tax
profits
all
to
periodical
his
sell
year.
up
and
and
declines
of
a
followed
he
his
in
times
227
slowly
he
years
three
or
If
*
at
Some
cent.
and
declines,
the
TION.
enough
city
to
New
of
besides.
But
this
had
Why
time,
!
"
The
228
STOCK
CHAPTER
XXVIII.
EXEGESIS.
history of antiquitywe may read of the
of the magriches and glory of Solomon
and
nificent
of gold and jewels with which
he
wealth
have
We
adorned
the sanctuary.
a
glimpse
may
of the opulence and luxury of the ancient Romans.
Domini
But we
need
not
go back beyond Anno
IN
the
for faint
there
of the
of finance
game
if game
"
was.
have
We
Son
glimmers
the
of Man
the
drove
Holy Writ
changers
of
evidence
money
"the
that
of
out
the
Temple."
"he
inspirationof
the
have
We
hasteth
who
That
the
through
(richmen
shall
it
"
of
eye
like
a
for
easier
be
than
needle
"
these)
to
be
not
camel
a
for
a
into
enter
that
Almighty
shall
rich
be
to
the
to
rich
the
cent."
inno-
go
"
man
kingdom
of Heaven."
And,
whole
"
such
this
and
world
If the
a
usual
lose
it
should
his
as
ought
pray
to
be
that
gain the
soul ?"
own
that
if he
man
closing exercises
connection
work,
people
shall it profita
What
in
the
that
from
were
to
follow
in
general scope of
all right-minded
the
wiles
of
man
GREA
230
T
CHAPTER
RICH
THE
FOR
from
OF
THE
OF
NOBLES.
many
the
years
Herr
was
affairs in i860
Nobel
of the
Czars
ROTHSCHILDS
DUKES.
richest
individual
Steiglitz. When
he
held
But
the
at
THE
WEALTHY
"
nearly ^"2,000,000.
land
EUROPE.
WEALTH
Russia
of
MEN
ENORMOUS
AND
XXIX.
property
the
richest
present time
he
to
in all
retired
the value
men
are
in the
the
two
They are of Swiss origin. While
sands
travelingthrough interior Russia they saw thouof land
of acres
aglow with the lightof oil
They at once
purchased entire districts of
gas.
sunk
oil wells,and
the apparently worthless
fields,
control more
cern
now
petroleum than any other conTheir
is reallybeyond
in the world.
wealth
calculation, though a correspondent thinks that
brothers.
is not
"80,000,000
It is to
the
extravagant
an
estimate.
Rothschilds, however, that belongs
Their
men.
being richest among
be
their properties must
united properties and
from
their peculiarfamily
united
considered
as
relations
and business
beyond the milpass even
the
honor
of
"
"
WEALTH.
In
lions.
231
they have loaned
to certain European governments
nearly "90,000,Their
is shown
in a modern
000.
lordly power
the
last twelve
In
1866
instance.
of Frankfort.
in that
break
The
city
attempt
an
the
indemnity
an
bank
every,
in
the
of the
Rothschild
Count
Bismarck
the
force
to
Berlin,
manded
de-
government
"5,000,000 from
of
to
made
was
Prussian
head
word
sent
years
city
house
levy he
would
Bismarck
and
if
that
was
wealth
of
The
enormous
give way.
from
the
is doubly remarkable
the Rothschilds
fact that the
a century
family was
totallyunknown
Inferior
are
only to the Rothschilds
ago.
have
the Baring brothers, who
at instantaneous
command
"60,000,000. It is noteworthy that
their
rise to
the
commercial
an
Barings owe
American, Mr. William
Bigelow, of Philadelphia,
compelled
to
"
"
who,
the
many
years
American
Among
who
income
of
allowed
had
the
richest
of
; in addition
appointed
support
of
have
immense
Dukes
I
the
of
to
wealth
at
he
Czar
of
his
personal estate an
of Turkey is
Sultan
his court
over
"1,200,has
privateincome
of "1,000,000. The
Emperor of Austria is granted
of "2,500,000.
a yearly allowance
There
several
in England who
noblemen
are
000
this
is the
moderns
enjoys from
"2,000,000. The
for the
house
in London.
Agency
the
Russia,
ago,
their
Buccleuch, Devonshire
Marquis
of Bute
have
each
a
The
command.
and
Norfolk,
of them
rent
and
rolls
GREAT
232
The
of Portland,
Duke
^"400,000per annum.
died recently,left unentailed
who
property of over
^"2,000,000. The
greater part of his palace was
constructed
room,
underground. His banquet-hall,balland a number
of superb guest
riding-school,
veritable tunnels, decorated
in a fashion
are
rooms
of
splendid
so
to
as
when
seem,
like
described,
a
story of the Magi.
Richer
than
even
of
the
Duke
the
largestincome
Westminster,
of any
lies
fortune
His
Dials.
Seven
He
aristocratic
most
His
income
said
by
in the
to
amount
millionaires
to
in the
of the
his tenements
and
in the world.
credible, and
minute.
a
End
of the
acre
upon
slums
^10
world.
the West
as
London,
worst
has
diametricallyopposite
acre
in
is
undoubtedly
individual
the limit
passes
some
who
owns
domain
miles
cover
these
largely in the
London, known
regions of
and
of
any
"
is
London
Times.
PEOPLE
RICH
Common
the
OF
report estimates
richest
people
followingfigures:
of
AMERICA.
the
wealth
in this country
at
of
some
about
the
Estimated.
The
combined
Cornelius
W.
K.
wealth
of the Astors.
Vanderbilt
1 1
Vanderbilt
...
Jay
The
Gould
four
daughters
H. Vanderbilt
$250,000
of
5,000
000
000
100,000
000
100,000
000
the late W.
combined
42,000
000
WEALTH.
Collis P.
Charles
Mrs.
Huntington
$40,000
000
40,000
000
Hopkins
30,000
000
Mitchell
30,000
000
Greene
30,000
000
25,000
000
25,000
000
30,000
000
15,000
000
15,000
000
15,000
000
13,000
000
12,000
000
Stanford
Mark
Alexander
Mrs.
Hettie
Mrs.
A.
E.
D.
T. Stewart
Morgan
Taylor
Moses
233
David
estate
estate
estate
Dows
Russell
Sage
Garrett
'.
K.obert
.
red
Vanderbilt
eorge
Then
Vanderbilt
there
the
Mackays, the Fairs and
harons
of California,
the silver kings of Nevada,
the rich lumber
of the Northwest, the Packers
men
and
of Pennsylvania, the millionaires
others
of New
and Standard
Oil
England, the Crockers
people, with wealth ranging from ten to fiftymillions
each.
I
**
Howard,"
hundreds
the
of
the
in
World,
millionaires
at
worth
least
a
from
score
in
two
whose
to
"
says
New
heard.
general public never
hundred
and
are
:
York
There
There
of
are
five millions
wealth
individual
are
whom
half
a
each,
may
reasonably estimated
anywhere from $25,the
to
000,000
$50,000,000, concerning whom
ordinary citizen is absolutelyignorant. Yet they
be
are
men
of
affairs whose
relations
that
affect
transactions
belt the
globe
"
whose
mercial
com-
busi-
GREAT
234
has
conduct
ness
known
fuel
"
industry
It used
mechanics, oil,lightand
said
throughout
New
York
to
men
the
said,
snow-clad
hills of
the
kings
of
and
the
coal barons
States,
fortunes.'
the
tune.'
for-
a
Nevada
the
and
California
from
range,
great middle
lands
to
petroleum princesof the
York'
New
to
spend
the
dle
Mid-
their
others, like
the
and
men,
extraordinarilyquiet
rich and
all the
it,like
the iron
seek
of the country,
men
of
England,
"
Phenomenally
about
The
Sierra
the
to
go
'
shores
golden
cattle
New
to
go
it is
Now,
"
every
in which
be
to
young
from
with
do
to
factors."
are
'The
something
the
and
men
the stock
and
men
soap
oil
to this
speculatorsin California,they have come
cityas to a place of refuge,a place largeenough
to insure
enough to make
quiet,a place crowded
desirable privacy certain."
at
Speaking of the opening night of the season
Howard
ther
furthe Metropolitan Opera House,
"
"
"
says
:
It is
will to-morrow
actual
you,
the actual
is,real estate,
estimated
"
fact that
curious
night
possessors
but
a
occupy
not
the
possessors
bonds
modestly
and
in
their
who
men
boxes,
are
the
mind
representatives,
"
stock
the
the
of property
of
various
stupendous
;
that
names,
sum
of
aires
millionof dollars,while
millions
eight hundred
will be as plentiand quintuple millionaires
ful
in the opera house as pebbles in an aquarium."
WEALTH.
The
million
one
they
do
not
did
man
After
rumor
securities
Bank
personal
mly.
millionaires
for
count
hundred
a
W.
that
in
the
property
a
market
alone.
now
death
of
inventory
vaults
so
that
plenty
as
a
$5,000
ago.
Vanderbilt's
private
revealed
are
much
as
years
H.
a
235
of
of
But
his
was
National
in
$305,000,000
this
a
and
money
Lincoln
the
value
there
was
rumor
236
INEQUALITIES
CHAPTER
THE
INEQUALITIES
bonds
RAILWAY
just
of the
But
of
these
desire
The
burdens
universal.
The
richer
a
whose
is said
fib and
lic
pub-
is almost
truth
in almost
be
to
as
quibble to keep
if
is,particularly
man
gambler,the
just share, or evade
Railway stocks are
holders, for the
he
taxes
bulwark
taxes
altogether.
reason
exempt
that the
of taxable
aggregate,
of
shield
behind
property
hundreds
to
of
is
in the hands
roads
too
which
the
his
of their
is all
often
right
made
evasions
amouut,
millions
lative
specu-
local and
pay
That
a
shirk
is to
prone
all
and
he
more
along their lines.
just enough. But stocks are
State
made
the
throw
word
in
their taxes.
down
a
and
way
in rail-
whatever.
tax
will tell the
will
money.
one-half
that
people'sshoulders
who
Men
or
of dollars
any
pays
taxation
other
on
mortgages
as
bonds
personalproperty,
as
hardly probable
evade
to
taxable
of millions
everything else ; men
good as their bond,
and
are
thousands
it is
TAXATION.
OF
much
as
bonds,
amount
XXX.
of
in
are
the
dollars,
238
INEQUALITIES
increased
of
cost
As
a
the
in
provisionsand clothing.
rule,especiallyin the country,
the
to
as
he
amount
to
it.
stand
to
it
swear
This
his friends,who
him
put
to
thousands
high figure,
a
or
can,
often
to
assessor
it ; the
to
pelled
com-
done
part of the
up
be
underrates
few
a
is too
the
gratifypersonal spite on
man's
every
is liable to
if he
down,
enhanced
who
for.
is made
and
or
and
Occasionally a man
or
property by a few hundreds
his personalvaluation
put up
taxed
has
landlords
to
is taken
word
his
rents
assessor
always taking refuge under the plea that he is only
doing his duty ; and this too often when he knows
ingly
he is making mockery of his oath of office in knowallowing others to evade taxes to a far larger
amount.
is all
This
should
compel
every
it is made
time
every
himself, let
found
The
wrong.
him
one
;
law
or
the
practice
verifyhis assessment
if he willfully
then
jures
per-
take
to
the
when
consequences
out.
Ours
is
a
free country.
We
want
no
harsh, ar,
Legislation should be
bitrary,or despotic laws.
just,equitableand beneficent.
The
huge speculativegamesters and their stool
pigeons
brought
and
grow
thousands
the
in
to
New
York
markets
They prey
enormously rich at
of dupes.
Many have
of money
book.
and
taxable
on
the
should
the
be
credulity
of
expense
fers
overflowing cof-
securities.
Once
a
year
OF
the
office it is
tax
ires shirk
taxation
felony has
If these
the fact that
ate
deliber-
a
committed.
will not
men
million-
see
the
reveals
been
to
new
plea that their personal
stocks.
Death, or some
under
circumstance,
239
nothing
is all in
property
other
TAXATION.
bear
their honest
of
share
public burdens, then, in justiceto the people
have
at large,let us
thumb-screw, star chamber
inquisitionlaws to take these high priestsof the
by the throat and make them
great god Mammon
of evasion.
a chance
isgorge without
the
There
are
market.
Small
$10,000
as
from
up
margin
$100,000
don't
they
on
have
none,
and
from
assessment
put
short
on
sales.
dealing
are
own
the
have
no
than
in
stocks
more
Big
stocks
to
put
same
be sure,
to
sell.
they
They
exemption
to
if their money
bears
the
for
claim
stock
$1,000
from
up
$1,000,000
to
in the
of bears
scores
bears
They
purpose.
but
scores
in visible
was
real estate.
gamble, a
speculative interest is a mere
bet that pricesof that they sell,but did not have
Besides
the margin put up,
to sell,will decline.
Their
rudent
bears
ousands
encies.
of dollars
This
precious little
There
paper,
are
which
carrying from
thousands
will have
in
ever
dealers
latter
$50,000
pays
in
is
to
be
any
stocks
taxable.
hundreds
for
reserves
should
money
of it
cash
or
of
contin-
assessed,
but
tax.
and
commercial
They
may
$500,000 of these
be
prom-
INEQUALITIES
240
stocks
word
the value
The
"
the
assets."
our
affidavit
make
magic
liabilities exceed
our
dodger is indigenous to both
They fall back on stocks, or
tax
of
But
exchange.
in, or
comes
of
country.
value
bills of
and
issorynotes
their
their
that
debts
in
personal property,
city and
tingly
unhesita-
the
exceed
whole
or
in
part.
There
millions
are
locked
up
in the
that
safes
millions
upon
of
of
Wall
greedy
dollar
dollars
Street
ulators
spec-
of
just taxation.
These
not
the
men
are
ignorant. They are
in the city. They
men
sharpest and shrewdest
sands
study the law to evade it. They will pay thouof dollars to unscrupulous lawthousands
yers
on
rob the
to baffle justice. It is a luxury to
and defraud
the people.
government
w
A
never
fixed
certain
fixed
other
richer class shirk
of the
able
burden
to
One
An
instance
for
entire
on
of
expenses
is evident
that
share, the
people
municipal
if the
greater part
who
are
revision
question
of
the
delayed.
revealed
$30,000,000
longer
railway bonds
assessed
fall
pay
indirectly this
and
everybody.
not
due
to
sustain
expenses,
least
it.
Directly
should
It
their
must
bear
to
cities,and
counties.
and
towns
wanted
are
in
for State
is levied
sum
sums
governments
one
pay
laws
be
in the
only a
tax
affects
hands
fraction
of
of
one
man,
a
million.
of
taxable
which
was
OF
TAXATION.
241
The
for years
king pin of all the capitalists
The
of public
paid no personal tax.
pressure
of
assessment
opinion at last brought out an
that figure until
at
$1,000,000 which remained
Then
after his death.
his will revealed $33,000,of clear palpable taxable
000
personal property,
which
How
was
bound
much
more
held
be
to
up
covered
was
as
and
a
fund.
trust
concealed
wonderful
residuary estate, of which
taken, is only known
inventory was
a
public
no
to
in
those
mediatel
im-
interested.
According to the World's exposure, this great
fund of $33,000,000 went
the assessment
roll
on
evasion
of $25,last year at only $8,000,000, an
The
000,000.
in this
sum
the tax
so
rate
that
failure
instance, in
one
from
other
$2.20
$25,000,000that
People estimated
off with
to
to
way
had
known
and
in the
shirk
to
claim
assessed
that under
passed in
assessed
on
their
5,2 19
the sixties,a bank's
againstthe
$2.29per $100,
the taxes
pay
on
to
tens
be worth
from
of millions,get
$25,000
up
their
share
section
against the
to
of from
a
banks
this
on
York, increased
to
personalassessment
$500,000.
The
tax
dodged.
was
up
the
New
$100
per
taxpayers
this
five million
collect
to
deavor
capitalstock enof the tax.
They
of the Banking Act,
stock
should
not
be
corporation,but
individually.A majority
bank
shareholders
17
as
a
UA
INEQ
242
of the
banks
LI
TIE
suit
brought
S
against
collectingthe
were
Seventy-five banks
it from
the
city to
strain
re-
tax.
assessed
on
an
gate
aggre-
capital of $60,746,294, representing 882,000
held by 21,946 shareholders.
were
shares, which
shares
If bank
individual
is
holders
alleged,would
almost
their assessable
exceed
There
are
speculation wrho
have
rich, some
do
tax,
or
pay
of
they enjoy
who
1886-7, the
for the
under
World
about
$100,000,000
hands
of
and
but
tax
sum
of about
figures
lead
fools.
by
personal
of
privilegesand
tion
protec-
National, State
our
Fall
the
by
rich
grown
dollar
a
mously
enor-
others
and
Winter
and
brought to lightand exposed
in the
of personal property
private individuals, in estates,
was
gas lightcompanies, which
evaded
This
have
of
arena
of deluded
pockets
municipal government.
York
In New
city,during
of
debts
if not
commissions,
contribute
anything
claim,
their
the
wealthy,
grown
out
not
then
that
within
men
profitsfilched from the
fellows
of these
Many
immunity
would
able
avail-
tax
personal property.
of
scores
entire
of cases,
in thousands
it is done
the
holders
therefrom, because
as
shares, then
of such
lose
against the
the city,it
assessed
be
to
were
road
city rail-
taxable,
taxation.
if assessed
would
$2,000,000.
to
the
The
have
brought
World's
irresistible
facts
conclusion
in
a
and
that
TAXATION.
OF
there
which
property
Of
all
Astors
and
of
burdens
A
of
bulk
great
large
Then
it increased
when
estate
than
acre
per
Its
foot.
of
of
can
growth
York.
now
It
loss
and
and
deluded
suffering
old
:
what
would
Island."
age,
"Could
I
now
buy
bought
was
not
of
built
of
tens
the
real
estate.
trade.
the
by
of
of
the
in
real
far
less
square
the
tory
his-
great
as
up,
the
at
for
part
a
prosperity
are
of
thousands
many
of
expense
city
the
foolish
people.
original John
The
be
is
of
property.
purchased
growth
the
share
because
so
be
fortunes,
ably
honor-
is in
and
speculative
railway
said
it
most
investments
by
could
of
in honorable
originated
subsequent
the
New
his
land
is
personal
on
rapidly
sonal
per-
that
honest
most
property
paid
fortune
Astor
The
the
This
Astor
is also
tax
the
taxation.
the
of
one
bears
of
assessment.
fortunes,
undoubtedly
was
dollars
of
escapes
American
great
acquired,
the
millions
of
hundreds
are
243
if
he
I
know
every
Jacob
had
not
life
and
had
foot
of
over
again
to
money
land
asked,
real
much
too
begin
when
Astor,
on
in
estate,
knowing
invest,
Manhattan
I
KING
244
CHAPTER
XXXI.
BACCHUS.
KING
NEXT
to
most
speculationare the
drinking saloons.
of
area
and
gets the
the
brokerage banking, probably
places within
profitablebusiness
of patronage
cream
lunch
restaurants,
Of
these
fets
buf-
Delmonico's
takes
and
the
the
lead
in
style.
Delmonico's
for
The
Broadway
adjoined the Equitable Insurance
to
rent
for the
building
lunches
and
to
Equitable building at
The
customers.
The
stories.
than
the
the
block
from
Beaver
less rate
than
$20,000
Delmonico's
below
other.
a
used
a
furnish
to
was
of
service
moderate
a
tenants
an
was
in the
rooms
all other
to
the
entire
five
The
bar,
year.
probably
cost
more
rent.
Another
other
of
the
was
waiter
fact
in
"
Delmonico
restaurant
rent
and
cuisine
streets
consideration
In
it.
annex
meals
Cedar
and
Pine
long time
tween
building be-
a
Stock
Broad
expenses
A
third
Street.
was,
and
is,three
doors
Exchange, running through
to
of
Streets.
New
this
was
down-town
as
The
great
and
rent
as
Delmonico's
the
in
is
the
on
246
KING
Charles
Delmonico
C.
retain
to
his
for his
name
restaurants.
There
saloons
are
on
block, sometimes
every
adjoining each other, fitted up with
to
splendid bars, mirrors, cut glass,and caterers
free lunch
side-boards, where
soup,
preside over
boiled
ham, roast beef,baked beans, crackers and
two
three
or
cheese
A
served
are
cents,
20
of
bottle
a
galore.
out
beer
is ten
of
pony
brandy,
other
no
tense
so
out
go
in
as
going
out
"
to
brace
too,
up
one's mind
on
adverse
hundreds
market
this habit
of
these
in the world.
bottles
the
effect
the
From
many
drinkers
with
Cliquot"
overmasters
up
15 to
25 cents, with
"
brace
the hardest
become
whisky,
by the
glassesof liquor.
of the first few
of
strain
an
often
of mind
excitement
In
relief.
to
20
Men
speculation.
seek
to
is the
business
a
the "Widow
and
Pomery Sec, Burgundy
up in proportion.
In
cents,
men
Women,
brought by
of beer
messengers.
Street
all Wall
Not
men
drink, but
very
many
seen
were
panic of '84 men
and toss off at a gulp a full half glass
to pour
out
of undiluted
brandy. Others stiff potations of the
The
next
still more
day or two
fieryabsinthe.
In
do.
the
the
of
names
in the
So
Street
financial
news
one
or
tissues
great
at
that
men
as
times
more
"
them
would
appear
busted."
are
dressed
of
the
in the
vicissitudes
of the
height of fashion,
BACCHUS.
with
gold jewelery
deal
to
lots, and
monico's,
will
something
to
or
to
Then
there
beer
and
free
lunch
the
up
as
table
much
food
that
as
second
beer
they
free lunch
would
as
for
cost
5 and
cents
10
baked
with
with
saloons
glass,and
a
a
beans, pickled tripe,
cheese.
the
described
side-boards,
Del-
restaurants.
following lines
The
glass of
a
at
the
on
basement-cellar
are
liquorsat
and
crackers
at
land
impecunious,
With
the
at
the
will descend
saloons.
cents
20
fat of
so
they
fiends,to gobble
15
the
become
chance
their
customed
sparkling diamonds, acstocks
share
by the thousand
upon
eat
third-rate
take
and
in
feed
to
247
published
were
of the
men
young
in 1820, and
period
in
the
to-day
villageof Brooklyn. It is no doubt
equally apropos to the pursuits and club life of
of the great villageof New
York
the young
:
men
then
"FOR
To
the
Editor,
This
STAR.
ISLAND
"
humble
trust
you
goodness
effort of
can't
printit for
To
For
LONG
Sir, I hope your
Dear
And
THE
a
will
female
excuse
pen
;
ungallantlyrefuse
those
bipeds, call'd
m"n.
young
surely, Sir, this villageoft presents
As
Ladies
strange
all
anomaly
lonely!while
e'er
as
the
Sit at the porter house,
or
was
known
;
dandy gents
stroll the town.
248
BACCHUS.
KING
Alas
the
No
"
more
th'
more
lovers'
fragrant
than
and
ale
and
beer
;
sighs,
segar
?
regard,
spread
beauty
eyes,
fam'd
the
they
circle
inviting
wit
Where
sparkling
fragrance
lesser
Have
No
must
sparkling
like
charm
can
temporal"
O
ladies'
when
age!
sweet
a
repast
.
terrapins
and
Oysters
pleasures
Exalted
What
are
Pay
are
early
our
usurp
hopes,
to
of
prospects
taste!
land,
the
"
charms
court
refined
most
"
rising
female
When
What
the
board;
the
no
more
when
pleasure's
many
can
a
wake
soul
band,
youthful
poisoning
the
bowl
?
"
j
ULIA.
;"
WALL
STREET
DETECTIVES.
CHAPTER
WALL
THE
XXXII.
STREET
financial
249
DETECTIVES.
of
centres
the
city
under
are
ploy
by detectives in the emof the Municipal Government.
They are
less fashionably dressed ; wear
Prince
more
or
Albert
mer,
coats, white
high hats or derbys in Sumblack derbys or
high silk hats in Winter,
with shoes highly polished.
watch
constant
No
the
but
one
suspect
these
business
but
of these
gentry used
Broadway
around
idle away
to
stand
to
of Wall
corner
other
their
by
time.
the
a
keen
eye
on
would
having any
A couple
hour
then
Street, and
Wall
positions,down
Streets,keeping
Street
of
gentlemen
urbane
to
the
of
habitues
on
the
saunter
or
Broad
passer-by.
every
for their enormous
chiefly notable
mustaches
and imperials.
all the
The
detectives
are
supposed to know
prominent thieves, pickpockets, sharpers and
bunco
in the country, certainlyall those
steerers
whose
portraitsadorn the rogues' gallery. If any
They
such
him
were
appear
on
the
on
"
the
shoulder
Street"
and
the
tells him
detective
to
taps
skip ;
or
WALL
250
arrests
him,
wanted
for
On
if
his
caught plying
in
hair
unkempt
about
Policemen,
a
him
in their
word
He
was
his rags
and
on.
and
body
his
move
Wall
on,
but
a
was
detective
a
of the
Street
his
on
there
cornei
whisperin;
was
Detective
Agency
change, on
the
just
is
below
of New
corner
th"
on
Nationa
the
Street
aler
knew.
offices of Pinkerton's
main
unde
in every
cover,
alone
passe"
an
that took
he
fo
rounds, steppei
under
whom
criminal
some
lonj
face, stood
they each left him and
picture to contemplate, but
squalor
keen, glittering
eye
feai
and
ear,
apparent
He
body.
lay for
One
a
to
his head
their
on
one,
and
Turk,
a
around
the
on
by
one
order
to
up
streaming
hours
two
i
or
singular-lookingobject
most
a
baggy clothing,like
fullyragged, with an old cap on
dressed
vocation,
past offence.
a
occasion
one
STREET
Stock
and
Ea
Exchang
Place.
There
are
agencies
them
man
the
If
is
is put
Does
the
and
If so,
the
own
jealous
one
other.
to
both
or
The
bleed
plot
a
his
on
man
a
a
detectives
business
ruin
track
detective
othe
evideno
his wife
her
the
game
principalsas long
?
I
husband
on
a
o
unde
some
and
doubt
play
Some
city.
suspicious of
put
their
the
to
detectiv"
private
infamous
most
manufactured.
wife
of
more
parts of
there
detective
a
or
various
in
follow
heaven.
score
a
as
trail
o
of thei
possible
DETECTIVES.
whole
The
thing
ends
that
On
"
the
the
Ward,
the
under
He
on
guard
all
guard
roofs
He
the
the
down
to
in
approaches
the
to
could
one
of
he
finally
was
To
these
office
the
and
or
go
detectives.
out
detective
a
;
others
;
the
impossible.
morning
halls
were
except
and
on
over
was
the
sat
were
escape
building
Hawkshaws
arrested.
in
placed
was
scuttle
office
in
come
surveillance
house
block.
the
"
private
night
his
his
nouement
de-
a
Grant
and
Finance
at
of
Bank
dozen
a
friendly
a
were
No
hall
followed
was
of
of
in
or
asunder.
Marine
home
around
and
the
Napoleon
"
espionage
in
moonshine,
families
of
followed
was
in
tears
failure
251
;
tectives
de-
;
all
outside
guarded.
under
Vidocqs
the
til
un-
GOVERNMENT
252
CHAPTER
THE
XXXIII.
SUB-TREASURY.
chapters in
operations of
THOSE
the
Custom
House
Banks
of
the
and
relate
features
this book
which
treat
of
the
the
Treasury,Assay Office,
ings
National, State and Sav-
only to true finance, with
of speculative gambling
none
about
them.
The
United
block
second
Wall
and
as
from
Nassau
the block
the
States
to
Pine
the
Sub-Treasury is on
of
Broadway, at the corner
Streets,running the length of
Street.
the site of
It stands
Federal
Hall
on
torical
spot his-
a
in the
time
of
Revolution.
posing
Although but two stories in height,it is an imRoman
Doric
building, built after the
order of architecture, of massive
granite blocks,
with
It has
plain cornices and entablature.
a
the porticosof
gable roof projectingfar out over
the Wall
and
Pine
Street
fronts.
The
pediments
on
supported by eight fluted granite columns
each end.
that they were
They are so immense
built up in sections of five pieces in each column.
are
The
the
floors
windows
the
are
of stone,
are
protected by
doors
a
are
grating
iron, and
of
round
254
GO
the
or
way
other
VEKNMEN
are
T
generally
in
the
hundred
thousands.
On
Saturday,
debtor
was
March
the
at
of
$843,526.61,and
that day was
:
5th, 1887, the
ClearingHouse
the statement
Receipts
Payments
Coin
Coin
The
are
and
sum
of business
for
1,476,121 47
133,554,447
Balances
Certificates
most
in the
$1,466,29227
Balances
Currency
urer
Sub-Treas-
busy
made.
paid at
March, June
74
19,198,241
Outstanding
time
About
is when
200,000
32
18,944,886 00
the
pension
checks
ments
payin
come
the
ber,
Sub-Treasury every Decemand
September. In December,
1885, it was
computed that the checks so paid, if
make
placed one on top of another, would
a
pile
seventy-one feet high.
for redemption have
Called bonds
to be sent
to
the Secretary of the Treasury at Washington and
These
and the
checks
are
paid there by checks.
interest on
U. S. Bond
are
paid either in
coupons
venient.
conYork, as may be most
Washington or New
are
The
office
is
splendidly managed
and
is
no
The
Assistant
Treasurer, Mr.
place for drones.
Charles J.Canda, is a gentleman of great executive
a
ability,
thorough financier, and rules his force
with a kind
firm
but
He
is ably assisted
hand.
FINANCES.
William
Mr.
by
with
the
When
and
he
fact
that
that
for
Assistant
Treasurer
retired
is
of but
the
the
ascent
the
from
up
the
the
to
Nassau,
street.
stone
the
office,when
of
of money
is two,
the
of
three
from
front
Street
Wall
the
honesty
Pine
the
is
handled.
a
Treasury
and
four
to
the
to
Wall
to
ascent
by
on
steps
grade of
Street,
the
portico
flightof eighteen
whole
the
extending
steps
and
WASHINGTON.
that
so
and
over,
the
sidewalk, according
slopes downward,
on
force
portico
front
Street
Pine
OF
in
speaks volumes,
sums
STATUE
existed
turned
upon
enermous
expired
Canda, the
cents
measure,
working
the
consider
The
three
years.
time
Mr.
to
property
good
connected
twenty
Acton's
bright commentary
a
integrityof
we
of
been
than
more
of
sheet
favor
has
give place
to
difference
a
in
and
Sherer, who
Treasury
balance
the
255
width
of
the
building.
end
This
Drexel
the
Built
and
feet
in the
a
"
On
this
level
the
about
On
into
of the
centre
base
high.
letters cut
stands
and
partly facing
partly looking
Street.
risingfrom
is
Treasury
building opposite
Broad
down
the
of
the
the
site
steps of the Treasury,
of the
fifteen
front
stone
Wall
feet
is
the
Street
square
and
walk,
sidesix
inscription in
:
in Federal
Hall, April 30, 1789,
256
GO
George
the
of
top, forward
on
oath
first President
as
of America."
States
United
flat
Lying
T
took
Washington
of the
the
of the
centre
flagstone,
well-preserved reddish-brown
five feet wide
by ten feet long, and on it is
base, is
about
a
inscribed
in
Stone,
this
on
:
the
of
balcony
Hall, April 30, 1789, George Washington
Federal
took
letters
in chiseled
Standing
"
VERNMEN
oath
the
of
first President
as
the
United
of America."
States
The
pedestal
marbfe
top of the base, and
flagstoneon
of
back
stands
on
the
brown
side
one
is inscribed
:
"
Auspices
floor
the
of the
pedestal
portico
colossal
the
it stands
of
Chamber
of
the
26, 1883."
is about
foot
a
Treasury,
the
bronze
of
Commerce
York, November
top of
The
the
the
of
of New
State
the
by Voluntary Subscription under
Erected
of
statue
above
and
on
ton,
Washing-
facing south.
The
the
face has
Stock
in
and
down
reflective,benignant expression,
is half
right arm
palm
a
outstretched, with
fingerspointing
Exchange,
on
hand
towards
over
Street
Broad
the
the
opposite, as
if
deprecation.
Thrown
back
from
the
reaching to the
designed by J. Q. Adams
bronze
his
name
is
on
the
base
shoulders
ankles.
Ward,
of
the
is
The
the
a
of
mantle
statue
was
sculptor,and
bronze,
as
is also
FINANCES.
The
Henry
Company of New
"
257
Bonnard
Brenze
Manufacturing
York, 1883."
THE
ASSAY
OFFICE.
The
Assay Office adjoins the Sub-Treasuryon
Wall
Street,separated only by an alleyon which
is a car track,with a hand
truck to roll the crude
bars
of precious metal
the
door
of the
up to
it is delivered from trucks in the
as
smelting room
street.
In
front
it is
building two
imposing in
story and
a
stories
low, studded, white
in
height, and
In
appearance.
the
marble
has
nothing
is
rear
five
a
basement
buildingwhere the work of
melting and refiningis carried on.
The
Treasury and Assay Office,previousto the
of the rebellion,
both in these buildings,
war
were
while the present Treasury was
used for a Custom
House.
In
1862, owing
of
business
war,
these
the
side of Wall
The
and
also
a
But
found
further
inadequate.
down
the
on
the
the
The
site
oppo-
purchased for $1,000,-
House
then
in the
of
account
removed
moved
into
there.
its present
part of the Assay Office
transacted
occupied.
on
Street,was
Treasury was
increase
enormous
Government
the Custom
quarters, and
was
the
buildingswere
Exchange,
Merchants'
000,
to
business
first
building when
of the Treasury
business
in
the
18
258
VERNMEN
GO
increased
required the
soon
Both
the
latter
is
Assay
grand
a
the
fast,as
so
entire
Office
and
T
progressed, that
building.
and
the Treasury, which
war
noble
architectural
it
pile,are
dwarfed
by the tall structures, eight to ten stories
in height, in the vicinity.
are
Quite a large force of men
required in the
keepers,
a
Assay Office
superintendent, assistants,book"
workmen
clerks, guards, and
and
The
in the
ing
smelt-
refiningdepartment.
is received
metal
Crude,
mines.
of
bars
just as
it
silver
are
the
from
comes
fifteen
about
long by four inches thick and one of them
It is a sight to sse
molten
masses
a good lift.
cibles
gold and silver boiling and bubbling in the cruof refining over
in process
intensely hot
inches
is
of
fires.
Visitors
the
are
to
refined
or
must
handle
and
gold
bars.
from
the
is the
The
employees in
time they enter
and
On
gold
eye
the
until
unless
crude
metal
of the
is
room
shown
things
the
examine
and
on
conductor
the
visitors
they leave,
so
into
bricks
or
from
$500
strict
surveillance.
refined
The
which
touch
not
of the
and
times
at certain
but
processes,
allowed
admitted
are
gold
of all sizes
is
cast
in value
to
bars,
$5,000
over.
a
visit
bars
on
the
writer
counters
was
in
the
shown
$150,000
refining room,
in
and
FINANCES.
in
!,ooo,ooo
room
When
it
made
down
into
at
it
is
immaterial
in
coin
There
all
is
sight,
another
in
to
the
is
to
up
gold,
export
shipments
When
bars.
it
is
exchange
profitable
short,
are
is
exchange
profitable
import
to
Europe.
the
see
go
There
the
machines
strips
and
also
they
is
are
and
cut,
have
a
on
the
coining
must
one
through
countries
of
process
Philadelphia.
thin
sterling
gold
for
money
passed
in
whether
or
484,
from
To
of
rate
demand,
to
gold
of
the
for
and
all
bars
gold
vault.
or
490^
259
gold
rolled
under
S.
out
and
Mint
silver
and
where
museum
metal
U.
the
to
tempered
exhibit
refined
into
is
long
stamped.
the
glass.
coins
260
GOVERNMENT
XXXIV.
CHAPTER
YORK
NEW
IN
great fire
the
burnt
Merchants'
Exchange
of checking
the means
conflagration.
On
the
site
same
erected, which
was
afterwards
stock
brokers, and
Merchants'
five
The
rang
rotunda
board
a
as
with
their
it
was
of the
Exchange
six years
or
old
the
build,
to
was
for
by the
peculiarcries
room
clatter of voices.
In 1862
the
since
ever
Merchants'
of the
the hands
has
the
1842.
used
years,
and
took
Street,
destroyed, but
further
spread
was
new
a
in
being completed
Beaver
with
intersection
its
to
originated in
through Pearl Street
1835, which
of
Slip,and
Coenties
HOUSE.
CUSTOM
United
used
been
Exchange
States
as
a
passed
Government,
into
and
House.
Custom
occupies an entire block on Wall, William
Street.
It
Streets, Exchange Place and Hanover
is a massive
building,built of dark Quincy granite
and is absolutelyfire-proof.
and solid masonry,
A
series of stone
platforms leads
steps and
It
from
Wall
floor.
The
Street
up
to
architrave
the
over
rotunda
the
on
entrance
the
main
is sup-
262
all
GO
VERNME
the
along
N
duties
with
false
concealed
sides,
in
diamonds
wrist
escaped
the
to
bottoms
inside
detection.
men,
warehouse-
of
watch
evade
against
and
tied
valises
and
pockets,
rattle
of
payment
trunks
shoes,
a
ernment
Gov-
examiners.
and
of
S.
gaugers,
invented,
heels
NCE
constant
on
tricks
constantly
A
and
are
New
are
as
accountants
detectives
smuggling.
FIN
fronts,
river
appraisers,
T
diamonds
in
to
one
a
stance
in-
baby's
TRUE
CHAPTER
XXXV.
CLEARING
IN
former
a
houses
?
so
Because
their
and
were
HOUSE
the
their
National
there
is the
banker, who
true
the
of the
true
Business
men
who
turn
as
banks
same
kinds
and
the
of
same
the
as
of
true
writer
relation
depository
people'smoney,
Spitzenberg stand to each
Why
keep
two
view
in the
stands
the broker-banker
the
are
Spitzenberg
in
State
and
checks
on
money
Now
anybody else.
apples, the bastard
Spitzenberg. Hence
the
stock
"
at
out
BANKS.
chapter the proprietors of
styled bastard bankers."
and
they deposit their money
accounts
pay
263
BANKING.
and
to
guard
safe-
the false and
the
other.
their
over
money
and
usually keep
frequent transactions
with
and
some
account
an
deposit their money
checks
they draw their own
bank, against which
These
other.
to each
checks,
in making payments
when
paid at the bank and returned to the drawer,
of vouchers.
the best kind
People who keep
are
cashier's drafts for safety
bank account
no
procure
to
more
in transmitting money
convenience
and
over
or
in
their
less distant
All these
points.
checks
and
drafts
come
back
into
as
264
TRUE
different
many
for
banks
payment
them
there
as
collection.
or
paid by the
until they come
drawn
large city,
a
Perhaps
bank
are
in
are
not
which
on
around
it
to
of
one
they
due
by
are
cess
pro-
of transfer.
all
Banks
the
over
banks
New
in
cities, through
which
their customers
are
For
on
instance,
or
sent
by a
payable
the
the
the
certificate
the
a
the
and
for
collection.
The
National
Broadway
Bank
through
is done
the
York.
bank
leaves
settlements
at
account
the
cate
certifi-
must
look
adjust
to
whom
to
his
latter
be
may
party
keep
be
may
party in New
The
Bank.
of America,
Bank
of
draft, drawn
or
Omaha
may
the
large
checks
Nebraska,
payable
there
to
of
order
the
with
pondent
corres-
other
and
check
Omaha,
at
is
in
or
drafts
certified
a
correspondent of
National
Broadway
The
York
their
adjusted.
bank
to
have
country
the
it. This
Clearing
House.
the
Under
had
to
banks
around
run
to
exchange
settled.
differences
had
gold
at
to
carry
between
the
of
old system
one
all
and
rolls
and
peril of
imminent
drafts
of
the
bills
or
another
in
being
robbed
various
have
and
unfrequently
large
bank
the
between
day
checks
Not
clearances, messengers
all
gers
messen-
bags
of
settlement,
on
the
streets.
The
idea
of
a
Clearing
House
system
first origi-
265
BANKING.
with
nated
what
is
latter
of
Association
new
Gallatin
the
now
the
In
late Albert
the
National
of
part
Gallatin,President
1853
a
fiftybanks
over
of
Bank.
Clearing
House
formed,
was
and
a
ized
departure taken which completely revolutionthe old system of clearances.
and simplified
The
of
Clearing House, formerlyat the corner
Wall
William
and
and
Nassau
occupiesthe
first story, at
the
building,above
Pine
Streets, now
the
Streets, opposite the
whole
of
corner
ury.
Sub-Treas-
well lighted
long, airy,high ceiling,
with a platform at one
end for the Manager,
room,
Assistant
tending
ExManager, proof and other clerks.
of double
lengthwise are three long rows
with wire network
desks
partitionsrunning across
Imagine
desks
the
a
three
every
with
separate desks, each
Each
in
the
has
The
bank, of which
checks
and
his rounds
he
whom
accounts
to
has
the
at
one
the
desk
its bank.
about
sixty-five
Sub-Treasury,
Delivery Clerk.
of his bank
to
The
drafts.
on
the side
Delivery Clerk
opposite facing the
of all the other
the desks
SettlingClerks, to
with
are
and
of
name
Association, including the
Settling Clerk
SettlingClerk sits
makes
the
form
These
apart.
there
one
receive
feet
exchanges, and
Settling Clerks
banks
distributes
to
be
his
receipted
for.
By a system of
settlingclerk makes
debit
up
and
his
credit
accounts
tickets,each
on
a
settling
266
TRUE
sheet, and
of
the
He
the
credits
bank
a
the
case
must
his work
ticket
also corrects
makes
settlingclerk
over
correction
and
back
the
makes
a
send
the
to
account
his
manager,
clerks
clearing
of the
in their
are
A.M., the
stroke
second
and
in from
tered
en-
up,
on
mistake, he
the
result
on
a
proof clerk, who
his proof sheet and
remain
banks
of
the other
banks.
work
to
is
money
from
completed
one
their
attention.
ces,
commen-
within
bank
is
bank
to
simply
to
pay
the
tling
set-
and
own
hour,
an
has
debited
is done
proofs, and
their
between
by 1:30 o'clock P.M. each
paid balances credited or
the Clearing House, which
receive
o'clock
10
the work
make
the
the Treasury
and
making exchanges
differences
the
the
various
clerks, and
fifteen minutes, except that
to
ascertain
All
and
of the gong
the business
ten
assistant
places. Promptly at
of a gong
brings all to
stroke
clerks
and
received
or
it,through
the
over
agent
to
to
other
an-
adjustment of the daily differences.
day,
Saturdays, or if that happens to be a holithen on the day previous,the bank
statement
in the
On
tickets to
credit
it balance.
The
a
and
ceived.
re-
totals balance.
any
go
debit
manager's desk, to be
footed
proof sheet, which, when
make
In
the
opposite the name
exchange was
the
proof clerk, at
must
At
his
sends
on
it
which
from
then
debits
or
BANKING.
for the
week
is made
in all the
As
brokers'
the
tickers
of
variation
and
up,
the
o'clock,noon,
12
267
a
result
increase
it
minutes
after
the tapes
on
appears
offices in the
reel
few
city.
off,it
is in
form,
with
serve
decrease, like this : ReDecrease, $4,086,200; Loans
Increase, $r,063,500; Specie Decrease, $4,578,400; Legal
Tenders
Decrease, $586,800 ; Deposits Decrease,
or
$4,316,000; Circulation
This
bank
Decrease, $39,900.
statement
was
for the
week
ending
Saturday, February 26, 1887, and left the reserve
banks
in the
of the
at
$11,398,000 in excess
ruary
Febtwenty-fiveper cent, limit requiredby law.
22d
was
a
holiday,Washington's birthday.
The
of the week
total business
of five days was
;
Totals.
Loans
Specie
Legal tenders
Deposits
Circulation
.
The
on
Inc.
$368,413,500
87,068,800
21,189,900
387,462,800
7,606,700
of money
movement
influence
Changes.
stock
Dec.
$1,063,500
4,578,400
586,800
4,316,000
"
"
"
has
at
speculation,as
39,900
times
it is
potent
a
a
sort
of
the financial wind
showing which
way
of the bank
ment
stateblowing. The
appearance
for and the figures
is eagerly watched
closely
barometer
is
scanned.
At
times
withdrawn
the
South
immense
from
and
the
sums
banks
West,
or
of
to
for
ready
move
export
money
the crops
to
are
in
Europe.
268
TRUE
this
All
will
show
in
decrease
a
of
the
bank
reserves.
In
of the
speculationone
is the
is close
often
resort
banks
artifice to
make
in safe
it up
objectof creatinga
of
stocks, and
at
a
of it from
more
the
deposit vaults with the
panic to depressprices
money
them
enable
still
money
millions
withdrawing
lock
to
ments
argu-
the bank
gold. When
serve
rethe legal limit, the bears
around
to
by
scarce,
of
export
strongest bear
to
their shorts
cover
good profit.
Previous
at
was
time
one
below
the
to
the
panic
of
between
twenty-five
the
1884
six
and
cent,
per
bank
reserve
millions
seven
limit
required by
law.
the
After
the
and
business
and
the
in
1885 the
of
bank
to
reserves
House
Clearing
of close
sum
the
sion
increasingdepresof capitalfrom speculation
withdrawal
crease
a
enterprises,there was
steady inpanic, owing
to
on
until
in the
banks
had
$65,000,000 in
Summer
the
excess
legalrequirements, and a total reserve
which
of $160,000,000 of ready capital,
the
begging
and
two
one-half
from
at
interest
cent,
per
of
one
per
per
annum
mous
enor-
cent,
of
of upwards
went
to
on
one
call
loans.
So
immense
the
mere
old
tactics
chimerical
idea
of
it
plethoraof idle capitalthat
of the bears having recourse
to their
market
so
was
cornering the money
was
was
the
not
even
mentioned
till the
Fall
TRUE
2/Q
friction,great credit
W.
is due
the
to
A.
Camp, and to no one
Assistant
Manager, Mr. John
The
most
profitablesource
banks
which
discounts
from
range
Some
have
the
are
4 to
or
of
revenue
commercial
to
the
to
the
paper,
cent.
per
the
to
experts
more
Mr.
P. Ritter.
Institutions,notably
one
than
more
on
6J
Manager,
Chemical
on
pass
Bank,
the
paper
be familiar with
the commercial
They must
whose
most
rating of the makers
paper
the market.
be
on
frequentlycomes
They must
able to judge if it is doubtful, good, or giltedged,
and
to decide
to accept or
quickly whether
reject
presented.
it without
Bradstreet
Time
business
Next
and
with
the
amount
of
is done
within
discounts,
to
collateral is very
in brisk
the
stocks
to
same
banker
such
G
Dun
or
the
expedition
profitablekind
most
banking
interest
banks
loans
on
as
of
on
is
money
relatively
occupy
positions in making
brokers,
an
hours.
profitablewhen
The
demand.
about
of R.
case.
is money,
immense
stock
in every
books
the
to
recourse
loans
the latter do
in
on
rying
car-
In
margins for their customers.
of danger they can
demand
collateral
case
more
to be put up as
security,or call in their loans, or
stocks
throw
if necessary
market
In
to
on
be
their
stock
collateral
on
the
sold.
proportion
$300,000 divided-
to
into
the
amount
3,000
of
shares
its
of
capital,
the
par
BANKING.
of
value
in
Bank,
it pays,
$100
per
point
of wealth
271
share, the
overtops
and
Chemical
of dividends
amount
other
any
National
bank
single
in the
city.
Summer
the
In
of
1886
it had
$4,500,600, and paid 25 per cent,
the par value
bi-monthly. $3,200
for its stock
bid
In
from
The
to
a
pays
other
at
words,
a
surplus
dividends
per
share
of
on
was
time.
one
its
originalcapital increased
value
of $9,600,000.
$300,000 to a market
par value of its stock $100 per share increased
of $3,200 per share.
value
market
And
it
of $600 per share per
dividends
at the rate
annum.
Next
in
wealth
the
was
First
National
capitalof $500,000 par 100
surplus of $4,322,800,and paid 10
per quarter. $1,050 per share
with
a
"
Bank,
which
"
per
cent,
was
bid
had
a
dends
divifor it
in 1880.
Exchange Bank and the Bank of
had a capital of $5,000,000 each
Commerce
par
100, with a surplus of $1,382,100 and $3,063,200
each respectively. They paid 3! and 4 per cent,
semi-annually,and their stock was quoted at 133
American
The
"
168 each
and
It is
have
best
The
safe
a
the
per
share.
singularfact that
least capitalare
and
profits
Lincoln
deposit
pay
the
the best
National
vaults
most
of
Bank
any
of the banks
ones
that
which
make
the
dividends.
has
bank
the strongest
in
this
coun-
TRUE
272
and
try,
it
here
is
wealth.
it
number
of
and
vaults
could
task
stocks,
bonds
And
in
Bank*.
their
of
L.
ex-Postmaster-General
James,
The
of
people
small
and
Without
insignificant
have
for
provision
of
the
make
milions
of
wealth.
and
an
as
Thomas
the
lay
old
Saving
class
aggregate
only
by
Banks
of
of
make
to
The
age.
an
would
and
saving
and
thrift.
month
or
to
vators
conser-
and
could
be
poor
blessing
are
week
per
the
what
economy
who
sickness
middling
interest,
of
to
into
turned
sums
probably
great
They
pittance
terms
Minister
is
a
means.
incentive
no
are
people
the
to
the
is.
promoters
them
vast
in
country
That
Banks
Savings
according
ex-Cabinet
an
President
the
securities
other
sonal
perdeath
over
go
and
no
have
Vanderbilt's
H.
up
their
keep
to
them
divide
family
a
W.
small
will.
his
of
Vanderbilts
the
After
no
was
BANKING.
by
small
hundreds
people
hundreds
to
draw
of
VISITORS'
DIRECTOR
VISITORS'
IN
AND
AROUND
NEW
York
It is
only
exceeded
in
Paris
and
Canton.
So
is the fourth
buildings and
inhabitants
hence
probably
rank
as
that two
radius
Hall
other
of twenty
there
are
or
city of
cities and
miles
three years
Canton
and take
surpass
present populationis estimated
and
YORK.
largestcityon the globe.
population by London,
rapid is the increase in
the third greatest
Brooklyn
273
DIRECTORY.
New
it will
Y.
of
the
at
the world.
1,400,000.
Its
With
villageswithin a
New
York
City
of
probably about
3,000,000
Island
is
long,narrow
stripof
than
two
miles
in its widest
now
people.
Manhattan
but
little more
a
across
land
admirably adapted to the elevated
railwaysystem it enjoys,of which it has four lines,
all with a terminus
at the Battery,and
all,except
the Ninth
line, running through to the
avenue
surface railways
It has numerous
River.
Harlem
and
is being rapidlygridironedwith
cross-town
of improvements and
lines. Already the march
of rapid transit is in the direction of undermeans
part.
It
is
19
2
VISITORS'
74
ground railwaysand
tubes
pneumatic
running the
lengthof the island ; the first for both passengers
and freight,
the last to shoot
packages, messages
and letters through from
one
point to another.
take
in half the
Strangers to the city cannot
sightswithout a guide to post and direct them.
The
central
is from the City
point of direction
Hall, which
the
is about
southern
extreme
Battery.
City Hall
Broadway.
of
three-fourths
end
Park
is
The
Post
a
the
of
triangleon
Office is
a
mile
above
island
the east
side
the south
on
the
at
of
point,
of it is the
back
City Hall, and back of that, on
Chambers
Street, is the County Court House, that
Tweed
built.
Park Row,
Printing House
Square,
from the southern
runs
point of the triangle,on
the
side,
east
York
end
great
newspaper
south,
of
block
the
Street
and
is
Church
on
end
Fulton
On
is
of the Post
city. Fulton
on
side
the
Street, a
are
few
side of
way,
of Broadblock
next
Office,Fulton
Market
blocks
from
Broadway,
on
Street
the
on
and
the west
New
Street.
Vesey
south
the west
on
Washington Market
side are
of
River
perfect museums
old United
and vegetables. The
River
the
Brooklyn Bridge. Nearly all the
offices are
in this vicinity.
House
corner
crosses
Chatham
St. Paul's
and
One
of the
Astor
The
to
the
East
North
food
meats,
sea
States
Hotel
Fulton
south
the tall buildingsof the North
to
is
Ferry.
tery,
the Bat-
British and
DIRECTORY.
Insurance
Mercantile
Co.
Telegraph
Church
Thames
New
Church
the
and
Western
Union
The
Trinity Building and Trinity
the whole
block
churchyard occupy
and
from
Co.,
275
Rector
to
Street.
Streets, and
This
is
Broadway
of the
one
most
to
teresti
in-
ories
memplacesin the city and recalls many
of by-gone generations. Here
is the grave
of Charlotte
of Alexander
Temple ; the tombs
Gallatin, and
Hamilton, Albert
Captain James
who
Lawrence,
killed
was
frigatesChesapeake
words
"
and
Don't
in
action
Shannon.
between
the
Lawrence's
last
the
ship." Many of
tombstones
fast crumbling to
the old brown
are
decay. Parts of the graveyard are honeycombed
it is only at long intervals
with old vaults, and
is opened to give sepulchre to a descendthat one
ant
were,
of
On
the
who
men
and
20
side
The
feet
high,and
the roof
with
a
stone
base
the
British
to
It is 40
stone.
Trinitybuildingis
the
to
victims
House.
from
near
Monument
died
Sugar
brown
family.
north
Martyrs'
the
old
old
some
give up
or
15 feet square
is surmounted
sphere on
rises
which
the
cruelty in the
45 feet high, of
is about
of which
of
memory
with
a
is
a
chin,
balda-
pinnacle capped
an
eagle with
outspread wings.
The
was
steeple of Trinity Church
formerly a
take
to
a
bird's-eyeview
great point of lookout
much
of the city. It is now
not
used, as visitors
the roofs of the tall
ascend
to
can
by elevators
276
VISITORS'
in
buildings
vicinity without
the
the
fatigue of
climbing the steep spiralstaircase.
Street
Rector
Below
Adams
the
and
offices
the
are
American
the
of
Express Companies.
is the
Stevens
House, and
Bowling Green
the
Washington Building, 1 1 stories high, is at
the foot of Broadway, at Battery Park.
On
the
Fulton
side of Broadway
from
east
Street
south, is the
Building.
Evening Post
The
covers
Building now
Equitable Insurance
Near
"
"
three-fourths
about
the entire
of
Cedar, Pine
Nassau
and
block
way,
Broad-
on
Streets.
It
was
than
its original
twice
recentlyenlarged to more
of probably between
and two
size at a cost
one
millions of dollars, all of which, with the land, was
for from
paid
the
policies. It
hundreds
of
of
source
its
National
occupy
and
9
stories
offices.
own
the
fact
that
from
and
entire
the
Building, on
stories high above
name
Bank
the
to
Bank
Street,is 9
takes
It
for its
United
The
Wall
rooms
used
life insurance
high, and the
rented
most
are
a
profitable
sides
to the
Equitable Company, beis 8
revenue
those
forfeited
profitson
the
the
of
Bank
first floor not
basement.
the
the
First
Republic
for hall
used
of
corner
room
elevators.
The
Schermerhorn
structure, with
as
triad of the Vedas.
through
to
a
building
many
On
transverse
faces
as
is
a
the
tall,narrow
Trimurti
or
Broadway the hall runs
hall extending through
27 8
VISITORS'
The
old
Produce
Exchange,
the
by
is
Over
front
the
1886
has
and
acres
Garden
Castle
the
old
people
The
beautiful
the
city,who
then
lived
ferry
ferries,the
Barge
Office
block
to
Street, is the
to
all at
Pine
13 Wall
and
the
Cotton
the
to
Staten
the
marine
Battery
8,
at
and
10
Park.
Wall
12
building. The
Stock
Exchange
Further
the
great Mills
Manhattan
is the
Exchange
Custom
the
is
down,
is
Wall
on
solid
is around
and
on
the
Street.
and
the
The
sombre.
Beaver
just
east
of
Office,
buildings.
Company
most
House,
entrance
Sub-Treasury, Assay
magnificent building
House
ferries
Ridge,
foot
Street.
Street, is the
of
vicinity.
of
the
of
Broad
Bank
in the
Press
Mortimer
at
Drexel
richest
the
Building running through
Street.
Opposite, at 9 Wall
below
the
wall.
tall Astor
gallery
the
trees.
sea
Associated
the
20
railway terminus,
Broadway,
Street, is the
the
the
of
Avenue
Bay
to
elevated
and
are
from
Off
Hamilton
and
the
by
resort
the
office
side
about
shade
and
the
it
Island
news
walks
west
purposes.
of
area
was
South
Brooklyn,
the
on
times
in
an
new-
a
"
States
covers
is
and
inscription, War
Army Building."
is the
United
at
purchased
for army
erected
entrance
Battery
Streets,was
Government,
being
now
Department,
The
In
States
United
building
Pearl
and
Whitehall, Water,
block
the
on
The
most
tom
CusThe
Street, near
building formerly
DIRECTORY.
occupied by
Pearl
and
On
the
Street,corner
and
House,
Insurance,
block
one
of the
city.
his office there, and
the
Street
is
"
Chester
A.
hardware
occupied
The
of the
Broadway and
building,formerly
Centre
City Hall, on
building
of
the
Chambers
store.
the
wholesale
dry goods
Canal
and
Streets.
six blocks
cityprison is about
Tombs
:
of
wholesale
the
Reade
district is between
hall read
Arthur.
largelyby
very
had
Ransom,
town
while
trade,
the
directoryin
down
ing
Clear-
Arthur
Ex-President
Knevals
Stewart's
is the
beyond is the Mutual
most
magnificent office
City Hall, corner
Street,is the Stewart
T.
of Wall
corner
Pine,
the
Chambers
A.
is
of
one
the
buildingsin
Above
Bank
Marine
Streets.
Nassau
Life
279
It is
Street.
order
Egyptian
of
an
north
ing
impos-
ture.
architec-
Bowery is a wide busy street, a few blocks
Chatham
of Broadway, running from
east
Square
It is mostly occupied by Jews
Place.
to Astor
The
and
Germans.
The
one
Astor
Free
beneficent
of the most
The
buildings
$1,000,000.
Hotels
are
are
mostly
Library
and
very
in the
Lafayette
on
institutions
books
numerous,
vicinityof
are
in the
valued
and
Madison
the
Place
is
city.
at
over
best
ones
Square.
280
VISITORS'
Union
Square
Street
is
It is
nice
and
Fourteenth
fine little park of between
a
place with
is surrounded
by
a
and
Broadway
at
3 and
fountain
a
and
handsome
4
acres.
shade
trees,
buildings.
It has
of
Washington, Lafayette and Lincoln.
Madison
Square, the finest small
park in the
Avenue
city, is between
Broadway and Madison
and
It
Twenty-third and Twenty-sixth Streets.
statues
is
beautifullylaid
fountain, grass
of Wm.
is close
Seward.
and
Fourth
It has
a
Madison
the
by, occupying
Madison
walks, shade
flowers.
and
H.
with
out
bronze
block
and
a
ute
stat-
Garden
Square
entire
Avenues
trees,
between
Twenty
sixth
and
Twenty-seventh Streets.
Gramercy Park, at Twentieth
Streets
and
Third
and
place,surrounded
The
set
with
a
endowed
apart for
Bible
The
$5
Avenue
Third
brown
ing,
build-
stone
$630,000,
school
place, and
year
is
Third
Mercantile
initiation
a
free
a
House
Streets, between
Astor
junction of
at
of
Rooms
and
science
art,
which
was
libraryand free reading room,
with $150,000 by the late Peter Cooper.
The
The
Fourth
Bowery, is a massive
stories high, and
cost
six
are
Twenty-first
Avenues, is a fine
by elegant residences.
Cooper Union,
the
and
and
fee
for the
Eighth
on
Fourth
and
Library
contains
is
is
at
about
$1, with
and
Ninth
Avenues.
Clinton
Hall,
185,000 volumes.
charge
libraryprivileges.
a
of
$4
and
281
DIRECTORY.
The
is on
York
Universityof the City of New
the east side of Washington
Square.
and
West
Chickering Hall is at Fifth Avenue
Eighteenth Street.
The
York
is corner
College of the City of New
of Twenty-third Street and
Lexington Avenue.
College of Physcians and Surgeons is corner
Avenue.
Twenty-third Street and Fourth
tieth
FifColumbia
College is on
Forty-ninth and
Streets, between
York
New
third
foot
American
Dentistry
is at
Twenty-
Avenue.
Hospital are
Street
Art
nues.
Ave-
Madison
and
Bellevue
and
Twenty-sixth
The
third
Second
and
Morgue
of
of
College
Street
The
Fourth
and
Gallery is
East
the
River.
6 East
at
near
Twenty-
Street.
The
Mus^e
Eden
Fifth
of
tween
Twenty-third Street, be-
on
Sixth
and
Academy
is
Avenues.
Street
Music, Fourteenth
and
ing
Irv-
Place.
State
Arsenal, Seventh
Avenue
and
Thirty-fifth
Street.
Ludlow
Street
Jail
is
on
Ludlow,
near
Grand
Street.
Jefferson Market
and
West
Institution
Court
Tenth
for
and
Prison, Sixth
nue
Ave-
Street.
the
Thirty-thirdand
Blind, Ninth
Avenue,
Thirty-fourthStreets.
tween
be-
282
VISITORS'
Coal
Iron
and
Church
Exchange,
Croton
Fifth
Water
Avenue, between
Streets.
Just
back
Crystal Palace.
Lenox
Library
Seventieth
DistributingReservoir is on
Fortieth and Forty-second
of this is the
Art
and
Rogues' Galleryis
Mulberry Street.
There
are
old site
Gallery,Fifth
of
the
Avenue
Street.
The
300
New-
and
Streets.
The
and
Cortlandt
Police
churches
in
Broadway
and
400
over
at
Head-quarters,
the
city of
rious
va-
denominations.
Grace
is
of
one
next
Church,
to
of the
the
at
most
fashionable
Trinity Parish, is
P. E.
the
Tenth
in
richest
the
Street,
city,and
corporation
denomination.
St. Patrick's
Cathedral, Fifth
Avenue,
Fiftieth
and
Streets,is the most splendid church
Fifty-first
edifice in America.
The
height of the front gable
is 156 feet,and the towers
and
pleted,
comspires,when
will be 330 feet in height. The
building is
marble
rior
inteof white
base of granite. The
on
a
The
is as grand as the exterior.
appearance
estimated
when
cost
completed is $2,500,000.
The
is open
Cathedral
dences
resito visitors daily. The
of
city are
some
in the
of the
greatest millionaires
in the
vicinity.
dred
High Bridge Croton Aqueduct is at One HunTo
River.
and Seventy-fifthStreet, Harlem
reach this point take Sixth Avenue
elevated trains
283
DIRECTORY.
from
South
Ferry
One
Hundred
and
Northern
the
Fort
One
by
the
One
on
the
more
A
Paul
the
by
bridge.
River
bluffs
York
Institution
of
3,000
for
men
was
the
its kind
tured
cap-
Deaf
and
America,
in
Sixty-second Street, near
and
River.
houses
than
a
the
of
are
better
and
score,
Halls
dime
many
numerous,
very
class
there
are
museums.
and
many
of
disreputablecharacter.
monster
paintingby the noted French artist,
TheCyclorama of
Philoppotteaux, entitled
Battles of Vicksburg," had a largerun, but is
of the
them
British
play
Concert
thence
;
the
to
to
Seventy-fifthStreet.
and
garrisonof
in 1776.
and
Hundred
North
Of
stations
the Hudson
on
largestschool
the
Dumb,
is
mile,
one
Hundred
New
The
is
Railroad,
earthwork
The
intermediate
Street
Fifty-fifth
Washington
around
and
"
be
to
soon
fare
The
cents
most
removed
all hours
at
railroads
elevated
the
on
the West.
to
and
for
is
all distances.
five
now
The
trip
Avenue
the Third
line,
Bridge over
passing through the Bowery, is a pleasant one.
road
lands
This
right at the Grand
passengers
Harlem
to
Central
The
Depot.
most
delightfulexcursion
by the Sixth
Battery
within
The
to
one
high
elevated, gi miles
Avenue
One
mile
the
city is
from
the
Fifty-fifthStreet,
High Bridge,all for five cents
Hundred
of
inside
trestlework
and
above
One
Hundred
and
284
VISITORS'
Fourth
Street
excites admiration
and
The
wonder.
Lesseps, when
the highest
passing over
point of the road, was asked his opinion of it as
He repliedsententiously,
a triumph of engineering.
In places paswith one
word
:
Stupendous."
sengers
the tops of four story
passing look over
and
basement
buildings.
from Fifty-ninthto
The
Park
extends
Central
De
Count
"
Hundred
One
to
It
Eighth Avenues, an
is reached
by Sixth
Fifth-ninth
Street, and
Tenth
and
by
about
elevated
Avenue
and
Street
of
area
from
840
acres.
trains to
lines of
various
Fifth
horse
eighteen entrances, designated as the
Gate,
Gate, Artists' Gate, Hunters'
It has
cars.
Scholars'
Mariners'
Gate,
Warriors'
Gate,
etc.
It
has
tains,
bridges,tunnels, terraces, marble arches and founlakes with pleasureboats, a carrousel,casino,
The
Mall is a grand
and carriagedrives.
rambles
promenade near the line of Seventy-second Street.
of Columbus, Commerce,
Near
this point are the statues
and
hunter
Halleck, Humboldt,
dog, MazScott, Shakespeare, Webster,
zini,Morse, Schiller,
and
a
bronze
statute
in
of the members
memory
Regiment who fell
The
in battle during the civil war.
menagerie in
Avenue
Fifth
is near
at Sixtythe old Arsenal
and
Obelisk
The
Street.
fourth
Metropolitan
Fifth Avenue
at Eightyof Art are
Museum
near
The
art galleryis full of fine paintthird Street.
ings,
of New
York's
many
famous
of
Seventh
great value.
"
Columbus
before
286
VISITORS'
bay to Staten Island and through the Kills, is
be had
pleasant. A taste of the ocean
by
may
and
Rockaway
taking boats to Coney Island
the
fortifications at the
Beach, passing between
sail of thirtymiles
An
Narrows.
extended
ocean
but
60 cents
excursion
to Long Branch
at
costs
rates.
in
Railways radiate
pleasure seekers to
Beach
various
to
run
half
within
directions, conveying
Island
Coney
an
hour
resorts
on
River, along the
Hudson
New
all
to
and
Others
hour.
an
Long
Sound,
Rockaway
Island,
and
the
up
places in
to
Jersey.
Island, the
Governor's
of the
Department
of
Military Headquarters
Atlantic,lies 1,066 yards
of the
the
about
Battery and contains
70
the
On
east
acres.
ridge of the island are the
other
of Major-General Schofield
and
residences
the landing is the
Above
officers of the post.
Guard
House, with a squad on hand to take turns
in relievingthe sentinel
on
duty, day and night.
is near
A militarymuseum
by, containing a great
southeast
curiosities,not
many
the
and
horse, stuffed,mounted
rode
Sheridan
"
From
of
least
is the
which
Gen.
accoutred, that
Winchester,
twenty
miles
away."
the
On
north
an
are
the
around
immense
soldiers'
the
four
of
centre
the
island
earthwork,
quarters
sides
of
a
in
is Fort
of
inside
lumbus,
Co-
which
buildings ranged
square.
It
can
mount
DIRECTORY.
105
South
guns.
Battery
towards
William,
built
was
in
and
guns,
end
tower
commands
of
It
has
forty can
be
mounted
used
and
others.
seen
immense
and
as
the
island.
the
northwest
Ferry
mortars.
shore
is
eighty
barbette.
en
balls and
cannon
end,
for
casemates
north
proaches
ap-
Castle
militaryprison for
a
Along
pilesof
the
the
on
1812.
is sometimes
cannon
that
round
a
287
deserters
be
to
are
dismounted
by
run
It
the
ernment
Gov-
free.
Bedloe's,
yards
southwest
site of Fort
the
called
now
from
Wood,
great Bartholdi
the
World."
Liberty, Island, is 2,950
Battery. Formerly the
the
restingplace of
of "Liberty Enlightenstatue
ing
The
pedestal and statue is 305
it is
now
the
It is
to
high from foundation
top of torch.
in height in this country
by the
only exceeded
phia
PhiladelWashington Monument,
555 feet, and
City Hall, 535 feet. Ferry from Barge Office
round
at the Battery ; fare, 25 cents
trip.
called Hangman's, Island, is
Ellis, sometimes
of Bedloe's, and
north by west
is the site of Fort
Between
Gibson.
it and the New
Jersey shore is
feet
another
island,with
powder magazine.
In Brooklyn the
the
United
the York
and
a
chief
States
street
Government
Navy Yard,
The
gate.
the
places are
Lyceum building.
point
most
of
immense
interest
with
will
entrance
and
be
at
interestingthings
and
museum
The
storehouse
libraryin the
dry dock, built
288
VISITORS'
of
the
granite, is
feet
286
long by 98 feet wide, top
feet long by 35 feet wide
$2,000,000. A
over
visitors
four
five
or
Ark.
Near
curious
the
to
over
Cob
Ship Colorado
house, built up on
of
the
largest in
machine
Marine
shops,
Hospital.
the
alongside
which
It has
dock
immense
be
600
500 and
Ocean
The
feet
210
with
wide,
at
Brooklyn,
It contains
from
number
about
over
Cypress
library,
a
and
ship
of
war
in stores,
The
site is elevated,
York, the bay
meadows,
wooded
and
parade
grand boulevard,
a
Park
the
and
the
to
course
Con-
Island.
of
one
450
acres,
tombs, and
hold
and
inspect.
acres.
broad
Cemetery,
is
is
to
Parkway,
runs
Coney
Greenwood
Noah's
a
store-houses
lake, ponds
depressions, a
ground.
height
a
Brooklyn's pleasure ground,
It is covered
hills and
to
taking
overlooking the city,New
ocean.
of
sort
Barracks
there
allowed
ing
Receiv-
a
like
chapel
refittingor
Park,
between
covers
looks
Marine
Usually
visitors may
Prospect
the
ship
a
cost
conveys
the
It is
of
sailors'
a
scrupulously neat.
and
hull
It
ferry
moored.
the
is
bottom.
at
dock, where
is
and
measurement,
rope
stories,and
by
world, being 307
1,500
a
the
and
in
in
has
many
fine
Tomb
which
The
of
part
finest
Receiving
bodies.
south
the
this
interments
country.
ments,
monu-
will
in
it
200,000.
Hills
Cemetery,
about
one
mile
east
of
289
DIRECTORY.
Brooklyn, contains
400
and
acres,
somely
hand-
is very
laid out.
To
get
Port
idea
an
of New
of the immense
York
has
one
storehouses, bonded
of the
commerce
only
to
warehouses
visit the
and
great
tors
grain eleva-
the
front
from
Brooklyn water
Canal.
Navy Yard to and up along the Gowanus
The
and
receiptsfrom home
foreign ports, and
the shipments for home
consumption and export
the
along
are
enormous.
Brooklyn is par excellence a city of residences.
It is also the"Cityof Churches."
Plymouth Church,
on
Orange Street, and the Brooklyn Tabernacle,
will seat
former
The
latter
De
only to
Witt
limited
about
a
fame.
world-wide
2,800 persons,
and
the
3,000.
over
Second
T.
Street, have
Schermerhorn
on
by
Talmage,
the
people packed
size
like
is the
Beecher
Mr.
his
and
audiences
We
sardines.
of Rev.
are
Tabernacle
the
of
fame
to
have
only
hold
Talmage
still.
Beecher's
fame
far
was
so
Henry Ward
always filled
reaching that Plymouth Church was
York
In New
when
to overflowingto hear him.
he
the way
to Plymouth Church
a stranger asked
Fulton
told to cross
was
Ferry and follow the
Rev.
"
But, alas!
crowd."
Mr.
burial.
lie in
Beecher's
The
state
At
body
pulpit and
in
the
the
very
time
lies cold in
his
church
20
death, awaiting
coffin,as
he
of this writing,
loved
his remains
so
well, are
VISITORS'
290
with
banked
missed
was
the
Take
to the
he.
No
man
Who
has
all in all he
can
doctor, were:
"
You
in
lic
pub-
America
will
fill the
orator
His
void
I cannot
?
He
of his time.
man
last words, in
say
cession
pro-
The
the greatest
was
produced.
endless
last look.
a
greatest preacher and
him
country
as
almost
an
for
is universal.
sorrow
so
flowers, while
passing by
are
be
DIRECTORY.
this
answer
get well."