The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-08-07
WALL STREET GOSSIP.
jay Gould mud Jim Keene Said TO Have Keen
Short OF Granger Stocks.

To THE EDITOR OF THE SUN-Sr. Tho
many stories in circulation regarding the re-
cent decline In the so-called Granger stocks, as
well as the reports concerning the gains and
losses Of the chief manipulators are so ex-
traordinary and void Of truth that something
accurate ought to be given that will set the pub
lie mind at rest. There has been decline Of
nearly twenty-five per cent in the common
stocks Of the Milwaukee aud st. Paul and the
Chicago and Northwestern. Tho preferred
shares have also broken from fifteen to twenty
per cent in the general melee This deprc-
citation has mostly happened within a fortnight.
and, notwithstanding the forced liquidation Of
many bull accounts. there has been but little va
ration in the prices OF stocks other than the
Changers Jay Gould. james II. Keene, and
Russell Sage were identified with the great rise
in the Northweserns. and as soon as these
stocks began to break rumors were circulated
Of the porilous condition Of the above named
gentlemen.
1t was extensively reported In tho columns Of
leading journals that Jay Gould was on his last
legs. that James X. Keenc would bc obliged to
return to San Francisco to retrieve his fortunes.
and that Russell Sage would have to give up
selling puts and calls and seek tho level Of the
Notwithstanding these savage attacks upon
their credit. this trio Of distinguished specula-
tors still do business in Wall street. and their
orders To buy and sell are eagerly sought for by
| operators who are themselves worth millions.
In order to find out the situation It Is n ccs-
sary to 10 back about twelve months. to the time
when the railroad riots had broken the stock
| that time Mr. Keene sold jay Gould n very
large amount of stocks at hard pan prices 10
cover the latter's shorts. Mr.. Gould agreeing to
60 in and sustain the market. The only stock
! which MIR. Gould did not buy was st. Paul COM
| mon and preferred. He remained short Of this
not believing that the rise in the general mar
As it happened. Mr. Gould remained short Of
-. Paul ever since and 1T 4 not until recently
that he was able to get back any. of the money
| put up in the street as margin. At the highest
! point Of tho rise in the Grangers his losses on
| 81. Paul were more than million OF dollars;
| Those losses were. however, countcrbalanced
| by his profits on tremendous long line OF
Chicago and Northwestern.
| Several months ago. through the good offices
Of Russell Sage Kind Of reconciliation was eff
| fccted between Messrs. Gould and Keene and
an understanding was arrived at 10y which these
| est. When Mr.. Vanderbilt sold out his line Of
Lake Shore, and. by eclaring ptifu dividend
| of one per cent, attempted to get back his stock
at lower figures, Messrs. Keene, Gould, and
Sage took every share offered. and p,nt 10 the
was forced to buy back many thousand shares
This Speculation WINS hardly concluded before
! the movement for a fall in the Grangers deve-
| oped. Mr. Gould wanted to cover his st. Pauls
at low figures. and Mr.. Keene was willing to as
thousand shares Of st, Paul, common and pre-
| fcrred upon which he had profit Of from thir-
ty-nye to forty-ive per cent. While the general
market continued strong he quietly unloaded
| his long stock and put out handsome line OF
shorts
| unaware OF his changed position.
In the mean time Mr. Gould sold rs much
! Chicago and Northwestern as possible outside
Of his regular brokers. and then began to attack
| Milwaukee and 81. Paul: MIR. Gould's regular
brokers were unaware Of his changed position;
| and not only bought largely Of Chicago and
| Northwestern on their individual accounts to
stem the decline. but roped in all OF their
Circumstances favored the break in the
market. Teegr9ms were received 81 cXceed-
which nterfered with the ripening and harvest
ing of grain. This news. bid enough in reality
was greatly exaggerated, and i became com.
Northwest was total failure. Large holders Of
stock began TO unload first, and then the small
| fry followed suit. People who believed that they
wers above want were ruined, and few bears
made q great deal OF money, Mr. keene's short
line Of st. Paul is said to show him profit OF
100000. Mr.. Gould has nearly allo the 81 600
600 he had up IN margins on his short line
Russell Sage is The only ono Of the trio who
was badly. hurt. Mr. Sage sold a very large
number Of puts for ridiculously small figures
on 81. Paul and in the sudden decline he was
unable TO sell enough stock to protect them. He
had sold puts on ~. Paul common at A. in
quantities for the remainder Of the year for 4.
OF per cent and at 40 and 46 for = and q Of
per cent While the decline was being pre-
eipitatted Mr., sage ran about between Houl,
chance to market enough stock To protect his
contracts. This, II is understood, they woul,
not agree TO do. So he has been obliged 10 staut
heavy temporary loss.
While Messrs Gould and Keenc were bearing
the Changers. they bought heavily Of Othc
stocks. partly To- prevent panic, and also be
causc they wanted the shares. Their prlncipa
purchases have been Of Lake Shore and Erie
i il an open question in Wall street whether
Mr.. Gould and kpcne are really working to
grther. but these seems To- bc no doubt that thei
relations are amiable, and there Is q suspicious
similarity in the stocks which they pick out e
hui or sell short. Tho reports in regard To- Mr.
Goulds precari1us financial condition induces
u somewhat extensive short interest To he mnd
in Union Pacific from GA down 10 81. Tn
price has consequently been advanced TO GO g
and the bears are uncomfortable.
STlRADoUT