The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-12-21
BROKER SAM MILLS'S POOL.
LONDON SPECULd TORS, VINO LOST IN
ERIE, INVESTIGATING IT.
Asking Why the stock Fell Although u was
Under Bun Movemcnt-Teiegrnn,s that
Evidently were the Reverse of the Facts.

Asking why the stock Fell Although u vn.
Under n Hun Movemcnt-TcIegrnn,s that
Evidently were the Reverse of the Facts.
MIR. Bentley, the representative Of some
OF the members Of the London Stock Exchange
who lost heavily in tho bull" movement on
Erie stocks last summer. will sail for England
to-day with tho result of his Investigations.
There is sort OF langud interest among the
stock iobbers to SEQ the outcome OF his report
1t is believed that the London Stock Exchange
will have no difficulty in reaching the conclu-
sion that its members have been done" by
the Wall street men. but the wonder is in regard
to what the London spectators will do about II,
for II is conceded that the New York Stock Ex-
change will not discipline any of its own MEM
bers for any transactions with outsiders.
The Erie pool. which collapsed withisuch dis
astrous results to the English brokers, was
formed about July last by James Keene. Jr..
Rufas Hatch Samuel NJ Mills and several
other operators OF lesser prominence. II was
Intended to buy up Erie stock and to bull" it
up to good figure in the London market.
Sam Mills's factatum. George Crouch. an ex-
reporter for the Herald was sent ovor to Eng
land as the London agent OF the pool 1t was
thought that rs Crouch was an Englishman by
birth he could overcome more easily the pre-
vailing prejudice against Yankee stocks" in
financial circles. 1t was arranged that Mills
should manage the pool in New York and keep
Crouch in London closely advised Of the stua-
ton. Things went along swimmingly for
few weeks. From about7 = Erie climbed stendily
upward until II reached 10. Crouch and Mills
daily interchanged tclegrams. Mills would
send cable despatch saying that everything
Crouch would send back word to buy more
For some reason the New York quotations Of
Irl a4f dom Il "A fiaft.
the Spectators there. There seemed to be
weakness in tho market here. and when, In
spite of encouraging nova from Mills prices
suddenly dropped from 10 to a. the men who
had been induced to Invest boy Crouch began 10
vigorously in sending messagea to Mills lie
told Mills that somebody must be- unloading
Erie here. ILLS promptly replied that every
thing was well. There was II temporary check
TO the downward tendency and a slight adj
vance. Then came the notice Of an assess
ment on the stock and tho final crash
was precipitated. Erie was weak at
Al. Crouch scnt a telegram to Mills
demanding exulanati2ns. Mills replied that
stock on the market. Patrick Buchan. the
heaviest London dealer in American stocks.
Stock Exchange. His failure brought ruin to
many others. Crouch. who had gone 10 Lon
| don to engage in business was made tho scape-
goat OF the entire affair. and found his pros
poets ruined. He sailed for New York 10 in
| quire into the causes OF failure. and 10 see what
| could be done TO restore Buchan aud hlQseli 20
| their positions in business circles. At Crouch's
urgent request. the London spcculators sent
| over their agent. Mr. Bentley.
1t was ascertained that Mr. koene instead Of
unloading his Erie, as Mills telegraphed 10
| Crouch had all along held 40 600 shares OF his
| own, besides carrying 10000 for Mills and
| 10000 for other persons. report had been
industriousiy circulated in the street that Keeno
| had sent cipher despatch to his san Francisco
| brokers. who at once advised |. a 5. Wormser
heene's brokers in this city. To- sell Erie. The
falsity Of this report established by the in
vestigation. Broker sam Mills was repeatedly
| Invited 10 explain matters. but no contented
| himself with the assertion that al he had tele-
| graphed to Crouch was true. An effort was
made before the London agent sailed 10 bring
about meeting between Mills and Keone by
request Of Keene. but Mills would not nssent.
Other members ol the pool say that Mills sold
II out. and the London agent goes back with the
firm Impression that Mills himself unloaded on
tho English brethren. Crouch has made numer-
GUS copies Of the dispatches between Mills and
himself. and Is anxious 10 have his partner
shoulder all the opprObrium that he has been
forced ~ bear from the swiudled EnElshmen.