The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-07-04
JAY ooULD,s LATEST OPERATION.
Sly Move In Western Unien Stock that
Disturbea feme Of ffts Friends.

"
To THE EDITOR OF TEE 5uN-Str The
prevailing topic Of conversation in speculative
circles Is WHY Jay Gould should have covered
his immense short line OF Western Union stock
last week without giving word OF warning to
his intimate friends. SO far az Ia known he gave
not one OF them the slightest inkling Of his In
tent,ons, and as a consequence manv specula-
tors have been caught heavily short OF Western
Union at figures Ave or six per cent below
who're II is nov ruling. As Mr.. Gould m owed to
Long Branch last Wednesday and spends only
the business part Of the day In New York. his
connding friends will not md II an easy matter
to load him with reproaches, or to imuortune
him for assistance TO escape from the pliyht into
which they have been led pv following his adj
wee Tnefr only GLANCE Is TO catch him on the
boat as he makes his daily trip to and from the
Branch.
The reasons for GouId's sudden change OF
only upon western Union stock, hut upon the en-
tire speculative and Investment lists FL the Wall
street market. are peculiar and inieree ting.
About eighteen months ago Western Union
stock was exceedingly active ~ ~ and s.. AT
that time vigorous contest was gotnR on be-
~ cen the bulls and hears. the former bein2
represented by several wealthy Cdlifornians.
who had entered into the ngnt under the advi Q
81 Mt. III. A. Solnver. This gen leman backed
his opinions 10y put ing rue part Of his private
me ne INTO the stock, aud was consid red gen
orally as the head Of ana manipuiat or for the
pool Jaw Gould was the leader Of the bear
clique, and most OF his oh, n taIes were made
below 70 loe prioe Of me stock cont inued TO
advance, under the Ders ent buying OF the bulls
mutii Guuld's short line showed heavy loss
From time TO lime he made desperate eGoits to
break the market. but without success. THO
pool exhibited such Strength that nearly all tho
bears who had follow 90 Gould IN his shot sales
became siarmeh ana covered their CONTRACTS,
le vin2 blu to n INT out the b,ttle alone. In
order q Keep the IN rket down ~ eacn of the
fecieants changed position. Gould was Obliged
70 sell atm enough stock to cover his sborts, and
In this way his original heavy line was vastly
croa sed.
II WIS impossible for Gould IN cover his con-
tracts kept at IT, mendous lose, for his
critical condition being knDwn Va several wealthy
circles. the price would rrooably baye been
IN rked up To par a. son - he entere1 tho
III irket To huy. HIS only nope Law In keeping
rtiil and seltng Whatever stock WA sought Tor
IN the stock Exchange. This he Cii. aud his
plurk we'd HIN, for when the Ciiiforu par
ties were nfking arrangements To call IN their
STOCK. and ny 80 dong tofoc bim to GOV, r. it
transpireo that their finances we're not IN stite
10 ENABLE them to ise the Ilr<e amount II
mon needed. In fact, the ngnt In san Fran
cisco between the Flood and % Buen party aud
the Bank OF California. whi n was Just -
ginning To- tell upon the Inst tion. for ed some
OF tue bull Il que 10 sell out their holdings TO
Obtain money TO project their Western Interests.
hie YVES doue oy some OF the Inem Ders Of the
Gould found out the weakness OF his antago-
uists he speedily broke down Tue quotations Of
western Union. covered MS stock at iarge
lront, and forced his opponents " settle at a
trIgbtiui loss.
Inc success Of the great Bonanza mines has,
however. pat some on pdrpes engaged "
the disastrous Western Union spec ilation in
compile e hshtine trim, snd they naturally feel
like Reitink TAX the money lost eighteen
months agO upon the same Il OK. anu from the
same parry VINO got " aw ~ from them. Wuen
they became al Ised OF ould's position IN being
he vily short Of " estefn uIipn TOW prices, "A
party sent to New YORK to arrange "A
scheme Tor his defeat. The agent reported his
progress by telegraph. and the wires were freely
used between New YORK and u Francisc In
maxine up full pool In Western TN "a strong
enough to beat Gould and cspturt erea, deal
OF money. 4 he pool waE to cOnsi of SIX mem
uers. one " them President u! a large bank Va
sn Francisco. two otut r. we lthy san Francisco
operators, and the remainder closely iden-
tile wi the great bonanza mining In
tere-ls. Each memuer uf the popl was to
buy 1000 HhhIes II Western Union, and
the enuro 6O.UOJ shares pur,nasrd ny all were
I" re PAID Tor. taken out Of che rect anu lock
ed up, 80 a. not to be Hy liable for borrow Ing
lhe scuome wa about mat red, and tue orders
would have o"cn given IN dtV or two TO pur-
suspicious Of trouble from tue san Francisco
people, managed L. yet hUlo OF tue substance
OF certain telcgr ans passing between tue uieui-
beers OF the pool. lie nad no particular desire TO
hRht o, or hts old bate Ia tue same way, ana
witn parties much stronger, Uy re.sOn Of their
dccum ions Of wealth from the great Boz
nanzi mines. IL sides. was mach dineren
IA tier 10 sell Western Union stock snort IN u e
eighties. thdn IN the sixties lie therefore par
la heavy orders to nuy on "Wednesday morning,
and chased the sto 40 three ana one n ali Der
cent IN MS hurry To- get out OF the way Of tue
san RI ncisco parties. IL Is likely that he saved
himself from thcir vengeance, winch would I'VE
manifested Nsei in a sharp squeeze IN the
stock. SrIRADoUT