New-York tribune., 1873-12-22

close Of the war their and their gains
| fabuous The public, still heated with the fever Of
speculaton bred by war continued to deal in stocks
and TO buy aud cell as the leaders directed But, as
less easily and as people earnod that the leading oper
stoys by any chance told their friends to buy
stocks except when prices highest and these same
leaders selling, their fever cooled and they gIar
ally ceased to operate. The panic following Black Fri
has received Since that time general speculation has
been steadily decreasing and each year the stock mar
ket has come more completely under the control ol
few operators, until one OF the unntated might as wen,
literally, gamble with loaded dice as to try to MAKE
failure 1869, of the old and influential house OF
Lockwood Co., left but two great rival factions 20
these was led by Commodore" Vanderbilt, the otherM
Jay Gould and Henry N Smith. The former naa .ne
prestige OF respecabilty aud the advantage IN nuei
and wealth but the latter possessed the most audac
brains, and ready money
INTERFERENCE OF THE NATIONAL TREASURY
In the early Autumn OF 1872 began the series OF events
| which directly led TO the recent panic. smith ana
Gould were at the head Of what technically known as
the "bear party; that is, they were operating for
decline in stocks The Vanderbilt party on the other
hand, was endeavoring to sustain prices the formr'
| taking advantage OF the natural demand for money
| from the West and their own immense resources va
rionslv estimated 10 range from sOoOOOOO to s500oO
succeeded in creating such stringency IN the money
market by withdra wing legal tenders from circulation
that the bull Vanderbilt party was forced to make
the greatest efforts lor selI,preseryau9n: B1t Ine
seriously felt among the merchants and, AS usual tey
appealed TO the Treasury for assistance Under ordi
been of no avail; but view OF the pending Presden-
tal election it thought necessary TO make things
meeting with the Republican General Committee at the
Fifth Avenue Hotel on the evening of Friday, Oct :,
sell 100000 gold and that he should receive cerlln
of deposit in payment for the gold BY TINS action
the NewYork banks gained temporarily about tlop
more and inc xcusabe bunder was never
committed by financial minister 1t not only iallod 10
accomplish the intended results but IL intensified sub
se1ueDt disasters Tor the willy Gould, always on the
alert heard. the same evening OF the intended action
i Has xru@A fhQf a.
position he was in danger o. being Sned W WIN ara pefK t
effort Accordingly, at the opening OF the Stock Ex-
change the next morning. score OF brokers were eay
rently regardless of prices or amounts until evening
Gould found himself master OF the situation and ready
tude of his operations may he gained from the fact that
he purchased through one firm. his principal brokers'
s " Cc Thus on Monday morning when the action
of the Treasury made public and STOCKS rose rap
,dy in consequence the man against whom the opera
ton had been specially directed in position TO
make millions by it, more t9rcible con commentary me M on on
the wisdom of governmental meddlng with the business
of the country could not he desired
TROUBLE AMONG THE GREAT OPERATORS.
Rut there was one circumstance connected with this
affair which, although apparently trivial. proved to be
of great Importance. Smith, the copartDer OF Gould In
the Erie roDberies in the nqute OF Black Friday and
in the many nefarous schemes which had made their
names notorious did not reach the street until noon on
Saturday Oct. BY that time Goulds strategic move
ment was under full headway, and Smith found himself
as bear" subjected to heavy loss by Goud's opera
wells action. he unwilling at that late hour to
chan &c position in the market This led to an es
arrangement between himself ana Goud, wnich soon
developed into btter hostility. and influenced all the
principal operations in stocks for the next ten months
could having fairly committed himself 20 the side of
the bulls. entered into their plans with his eharac
erisc energy aud daring and IN spite OF nus infamous
aDtecedeutS, he most Hospitality received by his
ne allies The fact that he had great wealth. and was
willing 10 IL TO raise the prices Of stocks. counter
balanced in Their jud gment his previous msdeeds But
Smith continued unregenerate; and against MIN and
Daniel Drew, who also on the "bear' side. Gould
and his new-found friends directed All ther Efforts
Their most important movement was the corner made
I'm he common stock of the Chicago aud Northwestern
Railroad IN November The control OF TINS road had
obtained by the Vanderbilt party IN pursuance OF
their plan 10 secure an uninterrupted he from New,
York TO san franclseo. Ihe nrce OF the st1ck ntu
ranged years from 60 o S. and at this time
WAS WAS general heef wRch lime has shown to have been
weltounded that the price wonld decline consequently
a great many sold the stock sAOrt-that is they
had sold 1t without owning ny.and were compelled.
again or borrow delivery. Ordinarily operator
I'm Was easily follow either course; but when all
f fine STOCK is controlled by a single individual the per
son no els short" absolutely the mercy Of that
indy dual who force the unfortunate bear To pay
any price le may designate As Gould and Smith mad
fogethcr Leen largely short" of Northwest. and as
could that smith Drew, Travers, and scores of
less important 81 bears" were still short" Of 1t. his
active Drain fertile in plotting evil against man
Kind discovered III the situation fine opportunity TO
deal crushing blow 10 his principal adversary, 50 re-
Gently his bosom friend.
OF INTEREST TO THE OUTSIDE PUBLIC
Thereupon he formed pool" consisting Of himself,
Horace F. Clark, Augustus Sche, and James III. Banker
Of which be had absolute control, aud the object of
which was TO buy up all the Northwestern Common
stock amounting to some sl6OOOOOO He executed his
scheme with his usual impeuous celerity. and before
the street" realized it, he controlled practically every
share of the stock But, catke he is he played for
while with his victims. The stock was distributed in
the Offices many brokers, who directed lend
freely TO such as were short OF IT, Thus the bears
were luled false OF securit Meanwhile |
Gould received from his brokers reports showing the
number OF shares Of which the various firms and
individuals were short' so that when he ready |
to pCunce upon his prey he knew exactly where to |
strike such was tue situation when on the afternoon
OF Friday Nov o. Gould was arrested at the nsSatlon
OF Smith on a charge Of fraud In some OF bis former
transactions with the Erie Railway. While he was at
short sales of Northwest by buying the stock; but
there little or no stock for sale And, this fact
pane seized bears and IN their frantic efforts 10
the stock the price bounded up with unheardof
for tan advance Of 100 per cent within an hour The
next day opportunity was given to the less mpor-
fant victims 10 settle AT l5O but the prominent bears
were compelled pay more, and TO further intimdae
them the price advanced Ill the afternoon to 2O
which sure il stood when Saturday night brought 10
oil terribly exciting week dhis affair s thus par
tcuary described because its effects are felt 10 this
day both Wallst. ana throughout the country. Tue
losses inflicted onsever OF the great specuators
enormous. Smith, after many ana desperate struggles
10 shake of grip OF his relentless enemy
10 pay between and two millions of dollars and
elee'uay crippled Inc veteran Drew WI the hero
payment OF million and half to his too apt pupil,
and has not since entered into any STOCK operations
Scores OF specuators ranging from s50O0O
slOOOoO. and rendered both incapable and unde-
eIrous Of further transactions An element OF
tanty was added the fact that the pool" owned all
the Northwestern Common stock and the question was
universally asked, What will they do with itP' The
nIce GRADUALLY declined about TO- and would
deal in The "Dus" thought IT TOO dear even al that
figure and, naturally enough the bears" did not care
10 sell it, So it remained an unwiedy burden hamper
ING those who IT, and filling the minds OF men with
fear lest IL should prove insupportabie.
COMMODORE VANDERBILT TAKES UP HEAVY LOAD
And now another important phase OF the affair pre-
sents itself. Although Gould was compelled to be
heavy holder OF Northwest, he had again become
.lesrp Oh other stocks, and especially on Western
Union Telegraph OF which Vanderbilt was consider