Los Angeles daily herald. [volume] (Los Angeles [Calif.]) 1873-1876, 1875-06-16

come a stock speculator in Wall street.
and he went over to New York some
weeks ago in order to show Jay Gould
and the boys what a bonanza miner
| could do. He went into Panama
stock when it was 35, got himself
made Director, and went through the
usual ingenious mode of Initiating the
stock up to fancy price. All OF this
| is very easy to be done under the cir
cumstances that surrounded Jones.
He had plenty of money and the Jay
| Gould combination, in orier to more
| fully bleed him, aided him indirectly
| in his plans. Jones succeeded in
working the stock up from 30 to some
where in the neighborhood of 20. If
he had sold out the stock he held he
would have cleared some S400,000
| Senator Jones, however, was not a
small Speculation. Jay Gould had not
mistaken the man. Jones was ambi
tious and DESTROYS of striking terror
into the hearts of Wall street by his
| gigantic method Of handling stock af
fairs. He began by buying Panama
right and left until the stock touched
10. He was still buying. Jay Gould
and his friends loaded him up until
| they thoughtLe had all he could bear,
and then they hoped on him and his
stock. Panama tumbled to 80 before
| Jones had time to turn around. The
result was that Jones was about $780,
| 600 out. 1t is now stated upon good au-
| thority that he will not build q new
house in Washinfiton this year, as he
| first intended"
THE REPORT A GR0UNDLEss FABRI-
CATION.
Mr. Jones read the article, smiling
serenely. Then he said:
Well, you can say about that that it
! is all true about Senator Jones, with
the exception of the few unimportant
facts, that he did not drop 500, 900 in
Jay Gould's pocket; that he did not
drop 100000, or any other sum into
| anybody's pocket, and that he did not
intend to build house In Washington,
although if he felt like it he would
certainly do it, and that he has not
sold "a share of Panama stock since
February. 1 will tell you all about
my transactions with Jay Gould, as
they form an important element in
the history of the Panama Railroad
since it passed under our control.
found that the Union Pacific Rail-
road had control of the Pacific Mail
through Jay Gould. Instead of being
our allies, which they naturally should
be, the Mail company had Joined the
ranks of the opposition. After the
combination with the railroad the
natural instinct would be to throw all
the traffic they could that way, and
thus cheat us out of our legitimate
business. OF course the main object
| of the overland railroad companies in
combining with the steamers was
to raise the rates of freight. These
advanced rates will increase their rev.
enue about $8,000,000. Now we had a
direct interest in this, as by our con-
tract with the steamers certain share
of this freight, which YRS thus divert
! ed overland,
! BELONGED TO THE PANAMA RAIL
ROAD.
If they put up the rates so that
nothing would come our way, our
contract would amount to nothing. A
meeting of the Trustees was called to
decide whether we should continue
the contract. | offered resolution
dissolving it, which was passed, and
we gave the required ninety days no.
tice to the Mail Company. Mr.. Park
and naysolf were oho,cu 10 reopen
negotiations with the Pacific Mail
Company. We said to Mr.. Gould that
in his attempt to control all routes
from the Atlantic to the Pacific, he
had forgotten one important factor in
the calculation, to wit-the Panama
Railroad, of which we had the con-
troll; and that the control of the Paci-
tic Mail Steamship Company was by
no means the control of the route.
Nobody has the monopoly of the
ocean. We therefore demanded pro-
portionate amount of the increased
earnings of the transcontinental carry
ing trade. TO this end we presented
the schedule of an agreement, and
Gould said that it was fair and right.
Gould wanted little delay, and APP
pointed Il meeting at which the dOcu-
ment should be executed, but failed to
keep the engagement. Finally we
received word from Mr.. Scott, the
President of the Pacific Mail, that Mr..
| Gould had requested him to 20 over
the details with us. We met Scott.
He objected to certain items, which
we waived. He agreed to sign the
contract the next morning at ten. We
met him at that time, but instead of
signing the paper, he presented new
agreement from Gould, which was not
as good as the one which we had Just
terminated. The Panama Board of
Directors rejected it, of course, and in
structed us to stop negotiations and
take the proper steps to collect the
money due us. There the matter
ended, and left New York. During
the entire transaction neither bought
nor sold Il single share of the Panama
stock.
SENATOR JONES IN WALL STREET.
Reporter-In all this time did you
not operate at all in Wall street?
Senator Jones-Oh, yes; l had one
deal while this was going on. 1t was
small one, and made through Jay
Gould. When it was thought that
our proposed contract would be ac-
cepted by the Mail Company, the
stock of that corporation was at l45.
Gould said to Park one day that he
thought it would touch $50 and then
break He proposed to make a small
deal and he offered to take half and
give us half of 10000 shares. We told
him to go ahead. lie gave us 1850
and he kept the same number himself
He SAID he had bought 10000, but he
wanted to pinch 1000 out of the pur-
chase for friend, which we agreed to-.
Park and | talked the matter over that