The Indianapolis journal., 1885-03-01
JAY GoULD's METHODS.
Smiths Prediction of His Downfall-Gould's
Fear of Personal Violence.


New York World.
Picture Jay Gould going around turning tho
crank of hand organ and leading monkey by
a string and catching pennies in his cap When
the two fell ont, that was what Henry n. Smith
said he would have Gould doing Gould has not
come to it yet. His present style Of travelling is
not as a mendcant. On land he rides IN n pri-
vate car and on the water III a private yacht A
forced settlement of Goulds affairs now. how.
ever, would not probably leave him any better off
than the average Wall street speculator. In the
first place. he is the greatest borrower of
money in Wall street. If he were obliged
TO pay all his loans at once he would
be materially shorn of his strength
Gould is III constant fear of his life. He is ter
ribly afraid of being attacked when he goes out
at night. Now and then. i'll the evening. he goes
to the Windsor Hotel directly across the street
from his residence. He is quick in his move
ments. and in passing along the street looks fur
lively from side to side and ever and anon be-
hind him. In the little run from his house he
trips nilnbly down the steps from his door and
skurres across tho street If he meets any ono
he will look searchingy almost anxiously, into
the persons face. and at the same time. seeming
ly. edge away. He hnrries up the steps Of the
hotel and plunges through the door as If some
one we're after him To see him n person would
think he did not draw his breath from the time
he left his house until he was safe in the eorri-
dor of the hotel.
Guuld's affairs are like wheels within wheels
BY his plan he can build a mighty fortune on a
mighty small foundation. The arrangement,
too, is simple hut it takes the prestige aud the
potency that Gonld possesses to carry it on II
is easily illustrated. The sum OF 81 900, coo may
be taken rs a basis This will be invested in n
certain stock. The stock in turn will be pledged
with collateral upon which to secure the loan of
more money. The money thus secured will be
used to buy still more stock which will be
pledged was the previous lot So Gould will
go on until he has in his name or control several
millions of stock. 4 batch of stock may have
been bought at very low figure. 1t will not. of
course be taken as collateral at its full quoted
value. Mr.. Gould may manipulate it as to
increase its market value two-fold. In that
manner its value collateral is increased consid-
erably beyond the first cost A money-lender
in ordinary eases will probably accept stock from
Gould as collateral at two-thris or three -fourths
its market price Through an operation Of
this sort he can largely increase his working
capital at will. He forced Missouri Pacific stock
from little over go to above par. 1t fell back
to between 80 and par, and he is now using the
stock for collateral at one-thrd more, probably
than when it was at the low figure. Gould has
not gone through the heavy decline in values
without sustaining losses
In the early part of 1881 tho "streetp credited
him with being worth $60. 900 at the values
then quoted, His decline in paper has, using
the street" figures. been $50 0000 900 or $35, 000.
600. The constant changing of his securities