New-York tribune., 1884-03-04
THE LACKAWANNA SQUEEZE.
WHAT MR.. WHITE SAYS ABOUT 1T.
his SPECULATIVE HOLDINGS soLD-How HE RE-
CARDS TIE PROPERTY.

the price of cash and regular stock but this differ
ence gradually disappeared. A purchase Of 1cO
shares under the rule was made in the morning and
another of 400 shares at the price of regular
stock was made in the last hour. Both purchases
were for the purpose of settling disputes be-
tween members Of the EXCHANGE. The first
prices, 1909 cash and 1924 regular,
were the highest prices for the day.
The stock rapidly declined to 1874, but after
many fluctuations closed at 1854, final loss of
over per cent. IL was reported in Wall Street
that the pool had been enabled by the recent ex-
citement TO sell the bulk of its holdings. S.V
White, the manager of the pool. called upon
by TRIBUNE reporter, and the following conver-
satiOn tcck place:
Reporter-THE TRIBUNE would Ike TO print anything
which you would be willing 10 make pubic about the re
cent Laekawanna pool.
Mr.. white-I do not know Of any pool.
ReporterYou certainly have been identified with some
exciting transactions IN that STOCK and must have seen
what the papers about your agency for Vanderbilt,
Could Sage, Clain Higgins and other wealthy gentle-
What have you to say TO such reportsi
Mr.. WhiteI have say that never spoke TO Mr Van.
derbIt IN my liHe and until the last few days doubt
whether he had ever heard OF never did dollars
worth OF business In my life for Mr. Sage have. done
nothing for Mr.. Gould In some years. never saw Mr.
Higgins know him, and II Mr.. Clatn. with whom am
well acquainted, bought sold share OF stock of
certainly did not do II through me-
RepouerwhO. then, ineered the corner or squeeze
Of Saturday
Mr.. white-The bears engineered It themselves.
Reporer-Pleaso explain what you mean. l do not
quite comprehend
Mr.. WhileI mean that the short interest in
the market was such that the stock aoat IN brokers'
hands sufficient to make the deliveries and
that condition exists the law Oi supply and demand set
ties question In that well anything clsea to the
stock commanding premium for use, and rising In prcs
for cash.
TEMPEST IN A TEAPOT.
ReportcrWoud yOu object to giving the circumstances
then which precipitated the corner or squcezei
Mr.. whlte-I am a modest man, and am ayerse TO
paradng affairs which purely private but a. 80 much
mystery seems to exist about this simple affair do not
know but am ustsfed In quetiny this tempest In
teapot by succnct statement OF facts On Monday LAST
had no more thought of contest with any bear party
than you had. When the stock at lis and below
invested in a respectable amount OF the stock for man
Of only moderate means feeling that the stock Was
cheaper that price than any stock dealt IN hefeabou
taking in the value Of its assets and its earning
capacity compared with us capital stock
and bonded debt. Many valued acQuaiaances on tho
Exchange differed with me, and being short Of the stock.
lent 1t TO hen as they carried It without Interest, and
the money would have cost me something 10 putt In
loans. After time, Others concred with me IN the view
that it was cheap; the demand increased aud the supply
diminished aud the consequence was rise from ao0ut
1l5 to about 1872 almost without reaction. Having all
| wanted for investment, I did almost nothing
In the stock aud did accumulate additional SHARE
between 1T and about $780, although traded In small
amounts alone and Jointly With others all the way ap'
but always closed up each little venture by itseu mo
advance had made quite respectable profit for me on
PAPER but believing that at 1872 ii the cheapest In
yestment my knowledge In America had no intention
of realizing at anywhere near that price.
cTocg >,nT TEf TVRRFD
On Monday last very large and unusual amounts OF
stock were offered oi sale by feow-member OF the ex-
change and took of him in all $4,000 shares As my
other stock was low seemed reasonably prudent to
utlize somewhat the accrued profits on the cheap
stock NY friends were Immediately notified that
the stock was sold for Moses Taylors estate,
and that the managers that estate probably knew moro
about the value Of the stock than did thought
that If the premises were true the deduction was eg-
NATE but doubted the premises The next day tao
broker delivered me 900 shares OF stock and failed TO
deliver 10000 shares OF the 900 then thought that
If Mr.. Taylors trustees had sold the stock they
were derehct IN not converting converting cor,r..s r.o
and still more don5ted the truth of the premises The
next day the stock declined further, aud get! D0usns
& 6s s0%0 SToseTs SSTD ed fep TO deliver about half
stock sold me, and through courtesy let ne over u1a
safe e''ts deposit SaIt vault, and c0nd well not
pay for my stocks and put tncin ID ioans S,.. 80
upon pledge OF my stock and Anticipating tha, igns
be an exciting business day. cleared the decks or acoa
and asked my friends the bears TO send ID my s9cs me
events that followed you newspaper men have describes
more graphically than can possibly do The stock most
LAD came BEEN 1n deh7sras tier own ,sFop.Ty
vS% cSrrent not Of wall Street a Because they
to go Investors and borrow the stocks ana pay mem
for the trouble Of SPenns r ther ,a IStsmeSt NV
ReporerIt is said that you also borrowed STOCKS
Nj Mr. 'WSte-I do not deny that; inasmueh a. st!n
had spare cash thoughtt was as e-lun'aIe ios
S ito to- dcrs @e the S s IS' at a But only hired compare
lively small amount Of stock ana as dd not need u ~
much the bears, did not pay as hh ior IL as sous
VALUE OF THE PROPERTY.
Repor,er-what have you to say about the property
nowi
Mr. Whte- have to say that after as careful an exam
naton OF tho property my knowledge will permit IN
NV Judgment not a share Of Lackawauna sold In tbs
aeeze brought over 75 per cent Of IFS actual value as an
investment. 30 that paid more than value re-
ceived for his property.
Reporter-whst do you think the enect VIII Oe UPON
the speculation in the stock as the result OF giving TINS
Mr.. W6ite-I. do not know and-o give you short
down their broad acres OF coal ans nor remove iher
solid steel rails. nor Loosen teir weEp1cAed ballast
This leaves their dividend ,arnlug capaCy - great .s
though II had pleased the bears and declined without any
reaction whatever care more Tor that nan 40 icr
tie amount OF StUck-samhlng that may DC saley iR
Reporier-wen, do you stin hold all this largo amount
Mr. White-Oh no ] should have liked TO keep " AZ.
Put a. bsd TO 20 largely M debt for H. and the contest
with my friends tie bears was on tle NNo' 700 'hS.'
ing to lie pleasant concluded to let them nave I.t
o, INV stock fOr the sake OF quiet But was gao IA PHtt
ING with II that had changed their estimate q, ts Nue,
SO that they willing "a p1y l32 or me "sh
had sold me AZ lI2 lam stu large holder OF the soes
bnt have no more than / can hold without hOftoNlns
money on IT, II bad 20 bc c1nspcucusy ~ oe'1 e'eu
II YOUR collsterals are hrst-clstSs.
PROM WHOM ,tr. WRITE BORROWED.
Reuor,erYou have spoken Of borrowing lafsc amounts
y, money from banks Did you borrow any lIoD private
lndil i6ualsf
Mr. Whlte-You mean. did borrow money from II. B.
CIaaiu & COT answer, yes borrowed few hundred
thousand dollars, and borrowed OF Drexe Morgan Co.
and OF As. Wermser more millions than borrowed
hundreds OF thousands from Cladn Co. 10 each
of e perctly satisfactory security and neither OF thu