The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-02-04
s1IoK JIM IzERNE
Plays TIC ohunips IN the Whisky Trust for
NIL They ara Worth.

all They RTe WORTH
NRw York, Feb. 3.-The Sun to-day
says tho true history OF the recent deal
ings in whisky trust shares is to-day
told for the first time, 1t shows, con-
tlnues the paper, how some western
men attempted to play Jim Keepe, the
manager of the pool, false, how Keene
detected them, but ,proiessed to accept
their deniRls, how he turned around and
made q cool million out OF the western
men. The tremendous shrinkage thai
has taken place in the shares would in
dictate that there was not anything to do
except to the members OF the pool to
take their losses and join In the chorus
al lamentations that has been singing
in Wall street for two weeks. Now
that the smoke OF the battle has cleared
up, however, it appears that so far as
the pool ia concerned, those oi its mem
bers who played fair and trusted to the
ability OF its manager, James r, Keene,
have lost nothing, although the pool
for mostof the operatedon the bull
side and the price Of the stock was cut
in two, dividend Of 81 share is await
ing its members.
The pool in distilling was a bull pool,
and it began its operations when the
stock was selling at 80. 1t was under
stood that 100000 shares were to be
bought, and the stock advanced to q
point commensurate with its stated
dividend earning capacity.
James r. Keene was made manager
OF the pool with full power to operate
as he saw fit. The members OF the pool
were the company's directors and
number OF Wall street men. Little
stock was acquired by the bull pool on
the stocks rise from so to rs. But the
buying continued, and by the time the
different pool members had taken up
$4,000 shares the stock was quoted at
TO- The last $1,000 shares were then
acquiring, when Mr.. Keene detected q
look about the selling he did not like.
Some OF the certificates, it is said,
were traced directly to the western
clique. Ho sent for them and told OF
his suspicious. One Of the parties pro-
tested his innocence and offered to put
up S2,500, 900 in government bonds to
guarantee the dividends in the stock
for two years. He assured Mr.. Keene
the condition Of the company was all 1t
should be.
The stock crept up to 729, and more
Suspicious certificates appeared. From
that timethe pool holdings began to be
liquidated. AS fast Us the market
would absorb the stock Mr.. Keene sold
it. Then the break began. II is said
the western people, who had been
steadily selling short on the rise above
72, thought that the docline was due to
their sales. On the break down to 60
the bear crowd began to cover. They
then began to buy the very stock which
was pouring out Of the pool. The hold
ings Of the pool were liquidated finally
at about go, but as most OF the stock had
been acquired above that figure there
was an ugly loss staring the pool in the
face.
Then came Mr.. Keene's chance to re-
coup. The western ministers OF the
pool were loaded with the stock, con-
llident that the pool was still working
on the bull side. In q day or two tho
street was startled by the tremendous
buleh ol ul5tlUlnS ny thS House VI ~"
Montague, Clark & 90. The dealings
in the stock became Of enormous vol
ume, and tho price began to weaken.
Around IS tremendous fight took
place. The western people rallied again,
and the stock crept back to 80. But 1t
did not stay there. On a volume OF
business rarely seen in Wall street, the
slump came and continued, until
Wednesday the stock grounded ut
81, the lowest price at which
it sold. The sole capital stock OF
the company was dealt in between
Monday and Wednesday, OF the $685.
400 shares which had been sold 5000
shares were bought by Mr.. Keene. 1t
was short stock too, and 1t had been
sold around 90. The purchase price
averaged 40. The profits on the turn
were cool million dollars, or enough
to wipe out the losses incurred by the
pool on the bull side. That is where
the four per cent dividend will come
from.
The westerners now find themselves
the owners of the property they bought
on to sell.