The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-02-22

striking an Average Amer His Sichncss-A
Change Of Brokers.

Jay Could recovered from his illness IN the carry
rart ~ the winter Whit was caused ny r'"l'-
zation Of the desperate financial c"nd'u"h III
which he had heroine involved, he set ah"ut
calm survey II the entire situation lie hau "h
hand a. assets Pacific Mail mon fh'lh'' wv
Jersey southern. Kansas Pacific - L""'4 an"
N,r,bcrn. and New York Tribune better known
nc ,au t,vcrl .tocks He also held bonds Of the
N.v t.r.ov southern Railroad. Of the Union Pa
ono u.,llroad income bonds Of the Kansas Pa
,ie, ,nd 4, large quantity Of the NTH mortgage
of the Erie Railway.
ont of the entire batch, which AT face value
retro. en,cd many millions Of dollars. there was
nothing which could be realized on by actual
sale without producing disastrous break In
tricce They all needed TO he supported by
Gould buying, and in most instances had no
mafNct value
Take Sew Jersey Southern. either stock or
bonds: no market can he found for 1t In wall
street, and his entire holdings are really Of no
more value than an equal quantity Of waste
PAPER The quotations of Kansas Pacific
and 81 Louis and Northern are NOM
inal, and made entirely by Gould and
his friends in tho stock Exchange
Moncycd institutions do not recognize them
IN loan-. and 1t would be impossible 10 realize
anything hy forced sale. The New York
Titbup stock. upon which he has loaned 50
i-t4 The onl, chance to get back anything Of
the OUTLAY H. from politicians In the Ffc-druital
campaign. Pacific Mail could be marketed ny
to a certain quantity without exciting much
comment Onion Pacific could not Ice sold at
an thc bonds had fair market hut any cx-
| tti-lNc selling muNcmcni ihght hc ih'eu "hi'
and would not I've advisable. The Erie n"i
admitted of ready hyrothecation or sale. H.
| cash account had been drained down very low
| by the constant ABSORPTION OF Union Pacific
! Gould own -pecialtio- presented th'- agree
dt.hi,dl, the reverse. When Gould Wa taken
| -ic, bis brokers knew the reason ior i. and
! fearing that be might not recover. aud that n
| hcdid Bee would hc su crippled financially %. to
| make his business more perilous than advan-
! tuccuus. they began Co. cast about for new GUS
tom. They fci in with Eugene Rohin-on. very
! wealthy younr operator. WHO wa- engaged tl a
| ~lutc -tnoe. hc had taken hold ut ~ AZ about
Is. THE, tool hold nf his hU-iny.~. and CONCEAL
! ing the red danger which Mr.. could was
! the latter was llu t. a dodge. and intended to
| put the pric" of Lake shore above sevcnf}-hvc.
| In this WAY a hun movement was brought about
| which carried up Lake shore. Western Union,
| Northwestern. ST. Paul. Rock Island. and View
| York central. could was short of some OF thc-"
before Iii Illness. particularly of Central, which
he had kept short If for long time in anti'itA-
tion of Commodore vanderbilt sudden dents
lie recovered and was ahle I" d" hu.ih'--
again. just I'm time to see all Of these stocks
move up from hvc to fifteen per cent. Tie man
aged III the course Of the rise 70 Increase these
lines ~ shorts so a. to finally strike an average.
The situation To- most men would not appear
delightful. short Of stocks belonging TO other
people which he could not buy back except ~ a
fhghtful loss. and long of his own speclalties.
M'c91 ,aAe one III "i b. fhn ana fbs GlnG
Of a "straddle" was certainly neither
pie too, Disguised With his performance in Pa
cihc Mail. threatened TO put on rival line. Al
tempted to nut his affairs In more ship-shape
Pacific Mall threatened with the establish
meut 81 a rival line would soon become in
Volved ia trouble Of various kinds So he hegall
g. market his stock while 4 was possible. a
demot -tration made in Albany against New
York Central turned out unfortunately, H. II
aroused the grit II the Commodore. aud caused
a rise ia the price to ll0 on the succeeding day.
Then Gould had talk with his principal hrok-
err. who were doing Robinson : business IN bull
Ing Lake shore and Ohio-. and who were also
personally interested In the speculation, ami ~
ter pointing out the folly Of their course. adj
vised them To- sell out and go to work to ham
mer the market.
Understanding Goulds position aud strength
they were unwilling To- do So, and when ne
wanted them to throw over Robinson and do his
business exclusively. they refused upon the
ground that one persons commissions were ~
valuable to them ~ anothers that they were
ahle 90 get along 10y themselves. and that their
opinion of the stock market was a. good a. his
Two or three interviews failing To- convince
th'W az THOR inability To think for theu-el't-
r,fi, ttl-ucd an, Gould procured oti cr lrrhtr
io transact hi- pu~lne~-. As "a token Of w. f,-
i rard he len their on .e- stuffed fun Of Uuiol
l't .!lc stool, which would require the use ut
'.,i t on, and fh.r.l,, ..t t.i,, out 81 .eriuu
mischief la the r,-f Of the market. buc nf th
I hroNrr- wa-so Iii gu-ted aud enris,d that h.
- oul ecd him go take up several thousand snare
. of Onion Pacific. and then lett New NorN ON
. | transatlantic Yachting tour. The Other i- ~tU
. u tne city and every day or two gossip blow
followed in few hours 10y their CoutridI, fion
one ol the new brokers was selected for III
. | position ON account Of his familiarity viii
LIQUID IS business in the Black Friday operation
of lsu'. and II j. understood has been authorized
D. To- buy NJ All claims against his principal. Wiur
. | can be Obtained NJ low pcr'.hihfr "h thel
( face. This course was decided ON because !
,ctnea llneiy mat sSN eral 81 tnc,s CAIN, ,"S
have been IN SUIT Tor long time would q
against could. aud encourage other partie. hoid
| ing similar claims Tor many millions oil dollar
, | recovery.
But tie great idea with Gould has been to "a
. | down an useless expenditures. make cVerythin
4 | pay H. much possible and 10y cnnccntrttio
i Of hi foroe- take money enough out Of IN
tcct those which he holds. but cannot sell.
q | steamers hv the Panama director- broke M hi
Il scheme for getting rid Of Pacific Nail before h
. had unloaded all of his stock.
= The attack upon Central at Albany whic
= might have enabled him 10 cover ~ shorts IS 10
BE- hlt little lo--. curuging the Commodore, lett h
y Central account showing heavy loss.
The Lake shore stock has been kept strong b
Robinson. aided 10y Gould old hrokcr- and
epie Of several vigorous Rtta'hH has not y'
Oho- have been broken somewhat 10y the sic
lcur, of the selling movement. hnt A. "
snow little loss or profit 10 either bulls q
y st. Paul and Chicago and Northwestern ha,
4 not Welded toh his sale bar have shown stead
aUN aluce for some time haNn.
= Within tie last few days he has scored poir
g ON Western Mon. which has broken under %
4 large -.I.- ahuut Xix PER cont. In his Le hi
, been aided by the Atlantic and Pacific rclc-rau
d Company. which by reduction oi rates veal
4' tutd tine confluence Oi holders of the stock.
,r 4 reference To- the -alcs Of stocks for wccl
70 past shows one thing conclusiyely that Goul'
g although he nuds ready market for oth'
II stocks can sell none ~ his own. and that he vi
j. be compelled 10y and hy, unless some most e.
n iraOrdiuary event happens, 10 cell out hoi
e Union Pacific and Pacific Mali for what he c'
y get. ia which case il h. likcly that they Wl
T. come down. as sailors say, by The run.
~TlKABOUT.
e BROOKLYN'S CITY GOVERNMEST.