The morning call., 1893-03-16
DEACON WHITES JOB.
How He Fooled the Wall-Street
Men in the Sugar Deal.
They All Made Pool and Then the
Good Deacon Went In and Sold
Them Short.
Special to THE MORNING CALL.

New YORK, March l5-Ever since the
American Sugar Company placed its COM
mon stock on a - per cent dividend basis
and concluded to distribute part of its enor-
nous cash surplus with its stockholders by
declaring an extra dividend of 10 per cent
somebody has been persistently feeding the
market with long stock. As one house gave
out nearly all the orders there was but one
conclusion To be arrived at, and that was
that inside interests have been parting with
their holdings.
The steady Shrinkage in price ever since
the stock has been quoted "ex-diyidend of
Il per cent" has created uneasiness, espe-
cially as the belief has been entertained that
after the dividend has been deducted from
the market price the stock would lock cheap
enough to the average trader tc induce him
to go IN for another upward movement
These premises we're correct, but the bulls
did not calculate the insider would sell out
on them.
To accOuntfor the weakness of the stock it
was limited an application would be made
to enjoin the payment OF the dividend on
common stock. The boardroom story, and
probably the true one, is that some time
ago pool Of 900 shares of stock was
made up, tie syndicate comprising some of
the richest men on the street. The man
agement of the pool, so the story goes,
was placed in the hands of Deacon White.
Everything went swimmngly for a time.
The promised dividends were declared
and the stock advanced. Monday the pool
began to suspect there was q leak some
where and certain members Of the syndi-
cate demanded an immediate dissolution
of the compact They said the insiders
had sold $1,000 shares of stock since Mon
day morning, and under the circumstances
they did not care to be connected with the
pooi any longer. To add to their discomfi-
tuFe the whisky directors passed their diyi-
dend and New England broke badly on
stories of the impending receivership.
e The street is pretty well disgusted with
this latest phase Of tie sugar deal.
In view Of the bad break in the stock and
the report of the treachery in the sugar
pool, President Havemeyer's remarks on
the situation are particularly interesting.
He says: II know that sugar stock is being
largely bought for Investment According
TO the statement of the officers Of the com
pany. which statement can be verified by
any one who desires to do so, the company,
after paying dividends or April l, will have
money enough in Its treasury, from its
surplus earnings prior to the beginning OF
this year, 10 pay per cent on preferred
stock and per cent on common stock for
the year 1898. All the earnings for the year
will belong to the holders of common stock
1t can also be stated that all our bonds are
in our treasury"
The feature in stocks at the opening to-
| day was the tremendously heavy selling In
American sugar, under which the price
dropped from 96 to 92k The general
opinion Is the 75.000-share pool. formed
some time ago, is liquidating, because of
the treachery of one of its members The
| general market is heavy. The excitement
! iD sugar. however, soon subsided some
what, and it got back to 94k. Whisky trust
broke "a TO 30A on the announcement that
the directors had decided to pass the divi-
dend. New England was another weak
spot, falling from 24k to 21K. 1t is cur
rently reported an application will be made
by the bondhOlders for the appointment of
a receiver. Lsckawanna was hammered
by the brokers usually acting for a leading
bear operator, who has contended all along
| that If the stock ever broke to I4O stop
! orders would he reached. The prica did
| fall below the figure named and then fell to
1881 in jiffy. Considerable long stock
was thrown on the market below 14O
! Jersey Central sold down to 115K and
below ana Hudson to 125. Coalers were
still untavorably affected by Yesterdays
| action of the coal sales agents. The trunk
| lines and grangers were singularly free
| from excitement and held tolerably firm.
Lead preferred broke to 7SA to 793k
At II o'clock the market was steadier and
prices showed a rally Of Il to from the
| lowest.
After II o'clock stocks were steady, ex-
cept Unioh Pacific and Western Union,
which were weak and pressed for sale
! Union Pacific declined to 35h. Western
Union to 92I. New York holders do not
| like the result of yesterdays election. At
noon the market was weaker.
The movement in stocks was decidedly
erratic near the close. A rise In sugar to
9S@s led to firmer feeling In the general
list for the time, but the rally was checked
by sudden break in Missouri Pacific from
5394 to 45Ia. The drop was accelerated by
| sales on stop. orders. Sugar went back to
| 96B and some other shares touched the
| lowest figures OF the day. Gould stocks
| were heavy. At the close the market was
a little steader with Missouri Pacific back
10 4912.