The morning call., 1890-09-29
THE RISE IN SILVER.
The Profits Divided by Some
Speculative Congressman.
Forty Millions of Ounces Pooled-0ne of 1t Is
Carried for Senators and Representa-
tives-A Sure Thing.

The rise of silver has put into the pockets
of Senators and Representatives of this Con-
gresS 81 ,U00,0 One of the most actice
workers for silver legislation makes this
statement, and he gives names and figures.
The largest amount of individual profit is
1915, 900. That goes to the credit of a West
ern Senator. The smallest amount is $4,000,
which will help out the campaign expenses
of a Western Rep resentative who finds it
hard work to make both ends meet on his
salary, writes a correspondent from Wash
ington to the st. Louis Globe-Democrat
Twelve Senators and fifteen Representatives
participate in this handsome cleanup of a
sure-thing speculation.
81 tell you it is pie" ''said the worker,
who is himself ahead enough to make him
feel comfortable about the immediate future.
1--WE were figuring up in New York the
other day the extent of the deal and the pro-
fits on it, We found that before the silver
bill became law the amount of silver taken
in by the various pools for the expected rise
was 100000 ounces. That is our entire
product for eight months, you know. Just
think of itp'
'What have the profits been?"
The pool | am in bought some at little
less than 95. The rest cost Us something
more than %. The average for the whole
was about 81. August Belmont and his
friends got in at from % to 9S. Silver has
been as high as 100. 1t is now III. | think
20c an ounce is fair estimate of the profits
of the pools to this time. Twenty cents an
ounce on 100000 ounces is SS,000,000.
Well, that represents the profits made by
the New York and Washington pools OH the
advance of silver"
DO you know how the 100000 ounces
were divided?"
81 HAVE A PRETTY GOOD IDEA.
THE August Belmontpool got hold of $780,
600 ounces. don't think any of it cost over
100. and most OF it was got below 9S. Wood
ard and j. NJ. DOnnell, of the Hanover Ma
tional Bank, IL. V.Parsons of Wells-Fargo
Express Company, F. Il. Olcott, President
of the Central Trust Company, and their as
sOciates took in the 100000 ounces. The
Seligman Bros pool had from 100000 to
100000 ounces. Hutchns. the Vice Pre>i-
dent of the Third National of New York,
was at the head of a small syndicate which
bought 100000 ounces. The Fourth Ma
tional Bank held 100000 ounces Smons
& Co. got 100000 ounces Those were the
principal pools made up in New York.
THE largest pool of all, probably, was one
which took in seven United States Senators
and a plumber of New York capitalists.
That pool had 100000 ounces. The other
holdings were small. but altogether they,
made up 100000 ounces bought and held for
the rise, W ich we knew was as sure as sun
rise if Congress passed favorable silver
BILL"
WAS any money spent in Washington to
influence legislation?"
Not in the way of buying votes. We
had men under employment to watch things
and give the latest information. Then we
worked up sentiment. Something was spent
in publishing articles in the newspapers.
Several good silver men were kept there un-
der salaries to talk and to represent the
strong silver feeling in the West"
There. was a lobby fund, but not cor
ruption fund.-?
THAT is about it. No Senator or Repre-
sentative was offered as much as dollar to
vote for silver bill. Some of them were
shown how they could make little money
by specializing on the rise of silver, which
was sure to follow the passage Of favor
able bill. They were approached through
friends who were in the pools. These
friends offered to let them into a good
thing. Several Senators and represent
atiyeS put in their money and took a few
thousand ounces apiece. There were others
who hadn't the money to speculate with.
1t was arranged that the impecunious
should have certain amounts carried for
them by the pools. If silver went up they
were to have the profits. If it didn't go MP
they were TO get nothing. About S250,000
was put up
TO GEE THE SILVER,
Which was bought and carried for those
Senators and Representatives who didn't in
vest their own money. OF course this $780,,
600 was not spent or lost Those who raised
it got it all back, less interest and commits
sions. The Senators and Representatives
for whom the silver was bought got the
profits"
did any of those approached by friends
to 90 into the speculation refuse?"
Yes Senator Cullom, for one, declined
to allow any Of the silver to be carried for
him. Senator Teller was another who would
not touch it,
GLOW ABOUT the House?"
"Well, Joe Cannon didn't get any. Gros-
venOr Of Ohio was left out. too. You see
the proposition wasn't made indiscrim-
inately. The silver men picked out few
fellows who would be useful, or TO whom
they wanted to do good turn, and let them
in on the ground floor. The silver specula-
ton has been handled mighty well, tell
you. The men who were in 1t were close
mouthed. They didn't 20 around scattering
money or pointers either. I'll give you
little story to illustrate this. A certain SEN
ator went over to New York while the Sill
yer Bill was pending. He drew 100000
through Wells-Fargo to carry his silver.
That night Ed Stokes went up to the Sen
ator's room at the Hoffman House and
asked him what he thought of the prospect
of favorable silver legislation and whether
silver was good thing to buy at the market
price. The Senator replied: It's danger
Gus, Ed"
Has most of the 100000 ounces been
unloaded by the poos?"
Only 80 per cent of it. Some of the
holders nave been letting go gradually. A
good deal is tied up by agreement not to
sell until the price reaches 126. Some Of the
contracts prevent any selling until Noyem-
Der or December. The pools are so well
organized that there is no danger of over
4 Iii, Il ,rsa rha
profit, as the investment stands to-day, IS
twenty cents an ounce. or SS,00O000. 1t will
be better than that for some of the pools
when they settle"
" You think silver is going higher?"
e 1t will go to 12S or 126 by March next
There isn't any doubt of that, for the men
who are in the pools are shrewd inauciers,
with plenty of capital behind them. The
advance was steady until 120 was reached.
Then the
TIGHTNEss OF THE MONEY MARKET
Came on and some of the holders had to
have means. They unloaded enough to drop
the price to III, but you will see silver begin
to climb again just as soon as the strlngency
is passed"
on the list for whom silver was carried by
the pool?"
ounces for him. That would give him
profit of $1,000"
WAS he Democrat or Republican
"a Democrat. tOne of the Republican
members. understand, was told of what he
could have done for him, but lie wouldn't
touch it. l know of only one Missouri
Representative who was on the list of those
carried. Representative - of New York
! expect made more than any other member
of the House on the deal. He got a barrel
full ont of it. Then there were two Cali
fornians, two of the Illinois delegation, one
Kansas man and two Iowa members, that l
remember now, on the House list. l think
that there were not more than fifteen Repre-
seDtatives who were taken in"
Republicans or Democrats"
ooh, Republicans mostly, of course
There were one Southern and three Western
Democrats among the Senators who had
silver carried for them. Altogether there
were twelve Senators L know of who made
good stakes out of the rise of silver.
did the pool take in any officials in
Washington outside Of Congress?"
81 heard that two or three subordinate
officials in the Treasury Department were