The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-02-08
HOW WHISKY FELL.
Some westerners Played False with
Jim Keene.

New YORK. Feb. S.-Ths Ersning Sun to-
day says the history of the recent dealings in
whisky trust shares is today told Tor the first
time. 1t shows. continues the paper, how
some western men attempted to play Jim
Keene, the manager of the pool, false, how
Keens detected them. but professed to accept
their denials. how he turned around and made
a cool million out of the western men. The
tremendous shrinksge that has taken place in
the shares would indicate that there is not any
thing to do except for tine members Of the
pool 10 take their Losses and Join in the ohorus
of lamentations that has been singing in Wall
st. for two weeks. Now that the smoke of the
battle hes cleared Gp, however 10
appears that 50 far as the pool il
concerned, those of its members who played
fair and trusted ID the ability of its manager,
James X. Kesne. have lost nothing. On ths
con .rary although the pool for most of the
time operated on the bull side and the price OF
the stock Was cut in two. a dividend of S4 q
share is awaiting its members. The pool in
disiilling was ball pool and IL began its oper.
ations when the stock was selling at So Il
was understood that 150, 900 shares were to be
bought and the stock advanced to a point com.
mensurate with its stated dividend-earning ca
paeity.
James Z. 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-sL men. Very
little stock was acquired By the bull pool on
the stocks rise from 30 TO 81. but the buying
continued, and by the time the different pool
members had taken . 135. 000 shares the stock
was quoted at 20. The last 1900 shares were
then acquiring, when Mr. KeeDe detected a
look about the selling he did not like. Some
OF The certificates, II Is said. We're traced d.
TeetEy 10 the western clique. He sent for
them and told them OF his suspicious. One Of
the parties protested his innocence and offered
10 put up s250000o in government bonds to
guarantee the dividends IN the stock Tor two
years. He assured Mr.. Keene the condition of the
COMPANY was all 1t should be. 1he stock crept
up 10 721z and more suspicious certificates ap-
peared. From that time the pool holdings be-
gan To be liquids,ed. As fast as the market
would absorb the stock Mr.. keene sold il.
Then the break began. IL is said the western
people who had been steadily selling short on
the rise above y thought that the decline was
due to their sales. On the break down 10 90
the bear crowd began TO cover They then be-
gan TO buy the very stock that was pouring out
of the pool. The holdings OF the pool were
liquidated finally at about co. But as most Of
the stock had been acquired above that figure
tneFe WIS an ugly loss staring ne pool In tno
face. Then came Mr.. keene's chance TO recoup.
The western members OF the pool were loaded
wiki the stock, confident that the pool was stiil
working on the bull side. In day or two the
street was startled by the tremendous sales OF
dstlling by the house of Montague, Clark &
Co. The dealings in the stock became of enor-
nous volume and the price began to weaken.
Around IS a tremendous fight took place. The
western people rallied again and the stock
crept back TO 50. but il did not stay there. On
volume OF business rarely seen in Wall-st.
the slump came and continued Until on
Wednesday the stock grounded at 81, the low
est price OF which il had sold The capital
stock of the company was deal. in on Wednes-
day. OF the $4,000 shares which had been
sold, 5000 shares were bought by Mr.. Keene-
IL was short stock, too. and it had been sold
around 60. The purchase price averaged 40.
The profits on the turn a cool million
dollars, or enough TO wipe out the losses in
Cured by the pool on the bull side. That 10
where the per cent dividend will come from.
The westerners now find themselves The own
ers OF the property they brought on TO sell.