St. Paul daily globe., 1893-01-29
The DEACON'S DEBTS
How S. v. White Paid $1,000,-
600 in a Single
~ Year.
Not Because He Had to, but
% Because He Thought 1t
81 Right.
He Started at His Task
Iss With an Empty
Purse.
His Achievement Is Re marka-
is BILE and Wholly Un-
precedented.

For man to pay $1,000, 600 of debts
within the space of year bet ween New
Years day and New Years day and to
pay this great sum starting practically
with an empty purse, and to pay 1t out
of the profits of his daily business Is
remarkable and doubtless an unprece-
dented achievement.
This was the achievement, however,
of S. V. White, known more familiarly
and atfectionately both in Wall street
and Brooklyn as "Hne Deacon" The
dates are interesting. 5. V. w hIte
failed in September, 1891. He had mis-
calculated the dimensions OF the coun-
try'S corn crop in ali effort to corner
that commodity, and when the corn con-
tracted for began to pour i'll upon him
he was compelled to notify the stock
exchange OF his inability to meet his
engagements.
Within three or four months after the
failure, Mr.. Whites creditors had re-
leased him from his obligations and per-
mitted him TO resume business. taking
his simple promise that he would pay
his debts when he found himself able to
do So With the ground thus clear again,
Mr.. White started in on the 9Th OF Feb
ruary. 1892, and by midsummer had paid
S4OO, GOO of his debts, and the final pay
ments were made during the last days
of the year.
There Were 800 Creditors.
How this tremendous feat was ac-
compliShed is of course largely per
sonal matter with Mr.. White, but there
is public aspect to be considered, and
m If fopt that record
should be made CT the facts for the
future writer of financial history, Mr..
White consented to tell for the New
York Press how he made S1,000,000 and
paid it to creditors in less than year.
''Of course | could have done moth
ing" he said, "had it not been for the
generosity and confidence Of my cred
itorS. All could say was tnat II they
would unbind my hands L would do
everything in my power to pay them
what l owed. l felt that if my health
remained good | should be able to do
this. Nobody was more surprised than
myself at the absolute unanimity with
which my creditors acted. There were
over 800 accounts on my, books at
the time of my suspension In Septem-
Der, and, with few exceptions, these
creditors all waived their legal rights.
There were a few small claims that were
arranged for by third party. Perhaps
they could not afford any delay, and
they believed that bird in hand was
worth two or three birds singing III the
bush, and, as matter of fact, my wife,
with a few hundred dollars, bought
them up. Finally everything was clear,
and on the 5th OF February, which was
eleven months ago last Thursday,
started i'll.
Setting Out to Make a Million.
''When L came to face the SITUATION
and was confronted with the exact di-
mensionS of the task that had set my
self, | made up my mind that it could
not be accomplished through the profits
accruing from general trading and
speculation. My experience taught me
that it would be no use in attempting to
follow the temporary fluctuations OF
the market. l am convinced that no
man can get in and get out quick
enough and do it with sufficient fire.
auency to realize large results, and he
is taking chances all the time. Besides,
the nervous strain is so great that rev
men are equal to it, and | was bound to
look after my health. as it was about
the only capital that l had. L was
compelled logically, therefore, to turn
my attention to properties that were
substantial in their character, OF un-
questioned intrinsic value, and IN
whose future | could entertain every
confidence after proper consideration
of general and special conditions.
western Union Made Him 100000.
Western Union was one OF these prop
critics. i began buying it at So at time
when nobody else was doing anything
in the stock at all. | bought largely,
and kept on buying as the stock rose to
80 and beyond it. My purchases aver
aged at about 81. and L bought over
10000 shares. | had gone over
the ground very carefully, and [
did not see how, under and circum-
stances, Western Union could break be-
low so. This would have been loss of
seven points, and | was prepared to
stand that temporary loss. knew that
even if such a break occurred, ultimate
iy the stock would recover. My opera
uons in the stock, however, attracted
attention, bred confidence. and as you
know, it rapidly touched par, and | may
saw frankly that it did me about S200,U00
worth OF good. In other words, il con-
1ributed one-fifth of the money neces-
sary to liquidate 81, 100000 indebtedness.
Sugar Next.
AS Wall street knows, afterWard
went into sugar. When was receiver
of the refineries at the time they were
operated under the trust had an op
portunity to become familiar with the
value of the properties and became
thoroughly confident at that time OF
the profitable future that awaited
them. | began to buy Sugar common
stock at about 80, and before the stock
began to advance l got great deal
of it around that figure. 1t is now SELL
ing at ia, and in the meantime has paid
9 per cent in dividends. which you will
see makes it as though [ had begun
getting into the stock at IA. In other
words, i have profited by an advance
of 40 per cent in the certificates, and
have made great deal Of money out of
them, and am in possession of great
deal of stock today, on which L hope to
realize at quotations very much higher
than those now current.
MIR. White Believes in s'Cordage'
las Too
Through this kindness of Mr.. James
7R. Keeue the merits of the National
lCordage properties became known to
me in such way that | determined to
do something in that direction. There
IS iSlO. .UOO.OUU common SIOcK anu S0,OUU.-
600 of preferred stock, and during the
last year this property has earned
is3, ,5OO,OOO. This has paid dividend Of
49, per cent on the preferred stock,
amounting to 100000, and has left S3,-
100000 as the net earning of the COM
mon stock, representing about 80 per
cent. l made about S150,000 during my
transactions IN Cordage, and this. of
course, contributed to the cutting down
of my milIon-dollar indebtedness in
very important fashion.
II know that'bitter attacks have been
made on the Cordage property, and it
has been stated that the stock exchange
quotations are largely the result of
manipulation, and that little or no
stock has been distributed. These state
ments are false, and the best proof that
| can adducs of my knowledge that
they are miSstatementS is that l have
advised great many people who have
come to me, among them many widows
and orphans who are dependent on
their small investments for their in
come to make their investments in this