Daily Los Angeles herald., 1878-08-17
~s.- K..-." :. IN. East.

ssJsm Kssus" ~ she East.
Cnlllornians naturally take an
1o1orost In CalIfornians who have
xomoved the scene Of their specula-
'elvo activities from this coast to
Tho East. The most notable man
Uho hes changed his base of oper-
ofatIons 10 the famous Jim Keene,
.o( the California ck.brokers.
He has been credited with devious
Segtunss since he abandoned this
onast, but, On the whole, he seems
1s have held his own. There haa
bosn . decline Of nearly twenty
I'VE per cent. Ia the common stocks
e the Milwaukee and st. Paul
and the Chicago and Northwestern.
Tho preferred shares have also
broken from fifteen to twenty per
eont. in the general M elee. This
depfeclation has mostly happened
within = fortnight, and, notwith-
ntanding the forced liquidation Of
many bull accounts, there has been
hut little variation In the prices Of
stocks other than the Grangers.
Jay Gould, James r. Keene and
Russell Sage were Identified with
the great rise in the Northwest.
orps, and as soon as these stocks
began to break rumors were circu-
lated Of the perilous condition OF
the above named gentlemen. 1t
WAS extensively reported in the col
.mne Of leading Journals that Jay
Gould was on his last legs, that
James r. Keene would be Obliged
% return to San Francisco to re.
trlsve his fortunes, and that Russell
Sage would have to give up selling
puts and calls and seek tie level oI
an ordinary operator. Notwith'
standing these savage attacks upon
a their credit, this trio of dlstin'
gulshed spectators still do business
In Wall street, and their orders tt
buy aud sell are eagerly sought fol
BY operators who are themselves
worth millions. In order to I'm.
cut the situation 1t Is necessary t.
60 back abaut twelve months, Il
the time when the railroad riot
had broken the stock market to tn
lnwest point known for years. A
that time Mr.. Keene sold ia.
Cloud very large amour
Of stocks at hard pan prices, t,
cover the latter's shorts, Mr.. Goult
agreeing 10 50 ii and sustain the
market. The only stock whiel
Mr.. Gould did not buy was st
Paul common AMI preferred. He
remained short of this, Not believ
ing that the rise in the genera
market would be SO great. AS j
happened, Mr.. Gould has RENAME,
Short Of st. Paul ever since, and |
10 not until recently that lie wa
able to get back any of the money
put up in the street a. margin. A
the highest point Of the rise in tn,
Changers his losses OH st. Pau
were more than q million of dol
lars. Those losses were, however
counterbalanced by his profits on ,
tremendous long line of Chicag,
and Northwestern. Several month";
ago. through the good offices o
Russell Sage, u kind of reconcilia
ton was effected between Messrs
Gould ami Keene, and an under
standing was arrived at by which
these gentlemen agreed to work il
\ common interest. When Mr.
Vanderbilt sold out his line o
Lake Shore, and. by declaring ,
pitiful dividend of one per cent.
attempted to get back his stock a
lower figures, Messrs. Keene
Gould and Sage took every share
offered, and put up the price NOR,
than ten per cent. Mr.. Vanderbilt
was forced to buy back many
thousand shares at top figures
This speculation was hardly con
cludsd before ;hs movements for 4
fall In the Changers developed
Mr. Gould wanted to cover his st
PauIs at low figures, and Mr.
Keene was willing to assist him
The California operator held man,
thousand ehares of st. Paul, com
mon and prefsrre I, upon which h
had profit of from thirty-five t.
forty-five per cent. Whilo th,
general market continued strong
hsquletly unloaded his long stoc k
and put out handso me line O
shorts. He did this so shrewdI,
that Wall street was unaware O
his changed position. In the mea,
time ir. Gould sold as much Chi
oaSo and Northwestern as possibl
outside Of his regular brokers, an,
then began to attack Milwaukee
and st. Paul. Mr.. Gould,s regula
brokers were unaware of hi
changed position, and not on ],
bought largely of Chicago ant
Northwestern on their individua
accounts, to stem the decline, but
ropsd ia all Of their wealthy Gus
tomers.
Circumstances favored the brea /
IN the market. Tslegrams were re
coived Of exceedingly unfayorabl,
weather In the Northwest, which