The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-02-01
nov Jay GOULD LOSES MILLIONS.
The Herculean Task that bis stool Pigeon
now has on Hand.

he Ia put to his wits end not only To make
money. hut even to recover that which he has
already invested In some unfortunate scheme.
Gould's great aim 10 speculation Is to cover up
losses when they accrue. 30 that the street will
believe that he Is Invariably successful. By
doing this a following Is Induced, which bltndy
accepts his predictions and acts upon them. lie
Ia frequently enabled to escape from risky un-
dertaking by the existence OF such clique.
When he has sold snort and the market does
not fall he gives points to these friends to sell,
and covers his contracts with their stock. When
hts purchases fail 10 sustain prices, he finds
buyers by advising them 10 load IN for an ad-
vance. when the market responds one way or
the other To his purchases or sales, he gives out
no points, but increases hts own lines to such
an extent as 10 absorb all Of the profit.
He adopted this scheme IN 1873, when he was
obliged to liquidate In his gold speculation.
His friends were given point TO buy gold at
11711Is.
Gould had discovered that hrs fortune was MOI
large enough to MARGIN mp on the amount OF
gold which would be sold 60 him, and he accord
inglv resolved TO liquidate. First his friends
we're advised TO take hold Of the precious metal.
Then the press Influenced and cxtoled the
merits Of gold and the worthlessness OF green
backs. In this WAY Gould lquidated, but only
at loes Of several millions OF dollars. His
friends were nearly ruined, and several Of his
| gold brokers commenced suits against him to
recover money which was due to them differ
onces. His operations have been based on the
| theory that II is "easier to buy than SELL" and
50 far It has proved correct. lie finds 1t easier
to get other PEG pies stocks than to induce them
to take his own.
His North west, after the corner, was nnally
closed out at AN Immense loss. Hts gold could
not be disposed OF except at a ruinous sacrifice.
New jersey Southern, too, pet stock. fell
under his management from 10 To less than 1.
In fact nearly every bull movement which he
has attem pted, and In which ne has been Obliged
to take a large part Of the capital stock 81 the
company, has proved failure. In no single I'm.
stance, except in Western Union, has he man
aged to sell out his stocks above the figure at
which he bought, including interest aud COM
missions. His successful bull movements have
always been immediately after panica, when the
market has had strong natural reaction, aud
In times when. by the purchase of a small part
Of the capital stock Of n comuany, he succeeded
IN causing covering of shorts, which absorbed
HE holdings
Investors will not buy n stock In which Gould
Is Interested largely to any extent, realizing Uy
experience that they are sure, no matter how
lattering has promises aud prOsp sctusss, to be
nnaily vctimized.
1t has been his practice in every instance
when lie has obtained control Of a railroad to
unload his stock upon the public and then 40 tO
work and sack the corporation, all the time
making the most hAttering promises TO the
stoc kholders. When the concern has been
thoroughly sacked, be leaves 1t to tue tender
rperclss of tue bankruptcy courts, as witness
Ere and New Jersey Southern. In buying Pa
cihc Mail. however for the lrst time ia his W all
street experience, he obtained control Of IA com
psny at n high figure whose stock was so gen
orally known to be valueess that he could not
dispose OF IL to spectators at any figure, and
whose condition was 50 bad that there was
nothing left to make by grabbing.
1hIs has compelled MIN To make q two
fold expenditure, viz, interest upon the
large lines OF stock when he could not
sell, with commissions upon tue purchases
and sales necessary to keep 1t from be-
coming stagnant and to protect 1t from hostile
demonstrations Of spectators. and outlaws Of
money to provide for current expenditures
over and above the amounts earned by the
company. Notes have had TO be taken up and
shaves paid for their renewal. Money has
had TO be raised TO pay john Roach for the
iron steamers which we're contracted for by a
spendtnrift Board Of Directors. There has been
a continual outlay OF immense sums of money,
viii no way Of reimbursement. The stock
mAnipuiations have turned out failures. and he
steamers would not sell for enough, were tho
debts Of the CORPORATION paid. To give the share
holders ten per cent. In settlement Of their Ger.
tihcstes. There Is nothing which can be readily
grabbed. aud the outlook Is apparently hopeless
The Tribune and Goulds young editor have
periodically brought out sensation to
bull 1t on, In which the ships were rep
resented as obtaining piles of gold from
Australian Governments in return for a
trifing mail service; but singuiarly enough,
any credulous investor or speoulator has been
able TO procure shares of stock from 81 10 20.
even after the bonanza Intelligence was widely
dissent mated.
The young editor, although doing his pr ct
test to assist In transferring worthless stock
from the back ofThls muster To that of the pub
lie, has found the task hercuean one. While
1t was possible to shake people out OF their
stock that Gould could cover MS shorts, II Is
not easy To induce them TO take his subse-
quent purchases from his hands The truth
about the condition OF the corporation Is
known, ana buyers few and far between.
This Is one Of Goulds losing speculat ions,
where 1t is impossi BILE for him TO get out except
by the purchase Of Panama; and this u now
practically Impossible. compromise would
only be OF temporary advant ,ge. and would
not enable him TO dispose II the Immense
line OF tlnth winch II fdIlulY irltterlng aW " its
value in interest and never-ceasing stock ex-
change commissions.
Inside parties say that II ono or two heavy
loans called Gould Will he Obliged To liquidate
In the Pacific Mail bull speculation, as he mas In
others, and his losses will again be counted by
the milton.
1t will be seen that Gould's movements at
present are as usual, when no proposes to wind
up an unlucky venture For some weeks past
he has been giving out points TO intimate aud
wealthy acquaintance to buy Pacific Mail. Their
purchases have had but slight effect upon the
market. IL is but too evident who II Is that
supplies the stock and We may before long
expect lively drop In prices al the result Of
his retirement from the arena OF Pacific uayi-
gatlon ana speculation. bIIRA BOUT.
The Latest Curiosity In the Line Of Church
Congregation Gun rreIs.
In West New York, near Guttenburg, quarrel
exists between the oflcias Of the Zion Evangelical
Church ana the st. Jodns Lu heran Church. The con
gregadOns are composed OF Germans, there Is con
siderable rivalry to which has superiority in inru
erce and wealth Tue quarrel originated In Story cir
cumed ny Mrs. kickeinan Janltresa Of the Zion
steps OF the chuich hast weeN, che Approached by
the Rev. Mt. EuTChard, pastor OF 81. ,Iulu'a