The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1867-04-03

Financial Developments How Fast
/ Men Operate.
[From Boston Correspondent Of the New
i York Tines
/ Some three or four years AGO, q nice
new iron store on Congress street was
occupied, for the first time, by three
young men, under tile style Of Mellen,
Ward g. Mower, with capital of $780,
900, it is said. They started well, but
how sad the ending. The first two
years they did u large and prosperous
business, being agents for the sale OF
/ Government securities, ON which their
commissions were large, and as COM
mission stock brokers they also receiy-
ed an excellent share of that sort OF
business, which was then in the "full
. tide Of successful experiment." But a
change came over the spirit of their
dreams. The sale Of Governments had
its run, and their profits from that
source rapidly declined; the specula-
ton in stocks, which was so rampant in
1864, became a thing Of the past. Of
/ flee expenses and cost of living were
both heavy, and something must De
done. Mr.. Mower retired from the
firm, and, after some unfortunate oper-'
ations in gold, retired to the Green
Mountains, the home Of his relatives
Mellen and Ward kept on, and admit
ted Carter, a director Of the First Ma
tional Bank at Newton, into the irn.-
He is reported to have paid in $50, 600:
"Big thingsn now began to be talked
Of. Carter has big ideas. He was
building a big house at Newton; ne
kept a big span of horses, and was con-
siderel ssbig bug" He was interest
ed in the raising Of swine. 1t is said
he recently had on hand 100 big hogs.
He soon conceived OF big operation in
stocks, and matters were arranged Tor
a big corner on Copper Falls, but the
thing seemed to hang fire--the brokers
were shy, and outsiders could not see
why Copper Falls, which never paid
but one dividend, should sell at $40 per
share. Finally an told stager' in Cop
pers was found, who thought the thing
had gone about far enough, and was
willing to "sell short" Another joined
him J. between them both some two
thousand shares were oversold. Now
was the opportunity, through Carter,
but money must be used, and freely
too. The entire funds Of the Newton
First National were absorbed; the
funds Of the United States sub Treasu-
ry had been used through the cashier,
it is said, at one time as high as ST.
100000 until suspicion began to rest
upon him, and he could not go on in
that way. 1t was too much for his
nervous organization, and was killing
him. His cash was to be examined
the deciency was to be- made right on
examination day. What was to be-
done? A large amount Of gold certifi-
Gates were to be purchased in New
York and sent here (how they were
paid for, if at all, does not appear.)-
They were carried to the Merchants
Bank and deposited, and u loan of
S600,OO0 obtained from Mellen, Ward
& Co. That was something in the
way Of working capital to carry on the
corner" To get the certificates away
from the Merchants Bank, Mr.. Smith,
the Cashier Of the State, was called in.
He requested that the depositors be
allowed to remove the certificates to
the State Bank. The point was not
seen by thesMerchants' until Smith sta
ted that the check Of Mellen, Ward
& Co., on that bank was good, and was
willing to certify to it, which he did,
and the certificates were removed, but
not to the State Bank. Down they
went to the Sub-treasury, the cashier
wishing, as he told them, to bridge
over the first of the month, when he
would return them next day. He had
no idea of doing this, however, for he
was already tired of the game. His
wife had found out about it, and, it is
said, q detective was at the time Oh his
track. The certificates once in the
treasury Office Of the custom-house, the
Government cash was made right, the
cashier resigned the certificates were
not delivered to the Copper Falls
"ring," when they applied for them the
next morning. The jig was up-the
checks Of Mellen, Ward e. Co.. were
refused at the banks during the day
the explosion took place, very fortu-
nate, perhaps, for had the clique again
got control of the certificates as they
intended, and Of the sub-treasury cash
ier, the matter, as bad as it is, might
have ended worse a month or tive
hence. The men who have caused this
row are all young, and all have now OF
have had Woodworking and frugal an
cestors, but they were not willing to
tread in their footsteps to acquire
wealth. short cut must be resorted
to. They thought they had the game
in their hands, and were expecting to
make the "old fogies" Of State street
take off their hats to them. It is pos
sible that State street may be instru-
mental in having their heads shaved at
Charlestown. The father of the CASH
Ter OF the Newton Bank (who is thought
to have known all about the matter) is
said to be clergymen at Somerville.-I
Carter lived in style at Newton, and
moved in the first circles. Smith, Of /
The State Bank, was keeping his fast i
horses and building a large house at !
Jamaica Plains. The directors Of the
bank supposed he was a prudent and i
economical young man. Hartwell, the
sub-treasury cashier, was keeping up {
appearances, living III a large house,
With rich merchants for neighbors.- |
Neither Of them have been arrested as j
yet. Everybody wonders why. State :
street has experienced no such financial +
excitement before, and it will not soon y
20 forgotten. But it seems that only t
innocent parties are to suffer. The |
treasury reports its cash all right to-
lay. About a year ago the salary Of t
he cashier Of the snb-treasury was t
aiSed Mr.. HartvelI daemed his nav +