St. Paul daily globe., 1894-07-15
LOWERING SHOE co.
Exchange, and they had about $4,000

Exchange. and they had about $4,000
capital.
That $4,000 of the Meekers' was used
by Ives in private investments. and
they, too, expelled him from their house,
wiser and poorer for their few months
acquaintance with him. Ives went up
stairs in the same building, No. 25
Nassau street, and IN that famous
little back office" began his intimacy
with George II. Stayner.
Ives" said Woodruff, at the time of
Ives trial. formed Stayner'S acQualnt-
ance in this way: While Ives was down
stairs, either in the firm of Meeker, Ives
& Co. or just after that firm was dis
solved, Stayner was treasurer Ell the
American Bank Note company, and
held considerable of its stock Oh mar
gins. Ives. who was dealing i'll the
stock. learned of this, and began offer
Ing it cheaper than the figure at which
Stayner had it on loan, and a number
of loans were called. Stayuer sent
a note to Meeker. whom he knew,
ana told him that il he did
not stop Ives little game there would
be trouble. l was sent around one day
by Ives to see Stayner aud ask him
what he would give for 100 shares of
American Bauk Note stock. did 50,
and this was the first time ever saw
Stayner. He wanted to know where l
was from. told him Henry s. Ives.
He said: L do not want to have any
thing TO do with him. | don't want 10
havesany dealings with Henry S. Ives
He was very much provoked. Then
Ives went around to see Stayner In order
TO fight ii out. and thus their acqualnt-
ance began."
Here is another illustration OF Ives
methods. Learning that he could easily
Garner tile outstanding shares of Mutual
Union stock, but not having the $1,000
. necessary to carry out his purpose, he
issued what are called debenture bonds.
Nobody bought any. He then tele-
grapaed to brokers III Philadelphia. in
Chicago, in Cincinnati and i'll st. Louis,
asking them either to buy or sell these
bonds at a certain price. He tcle-
graphed somebody in Cincinnati to re-
ceive $1,000 to $4,000 worth Of these
bonds, pay for them, and ship
them to broker in Chicago, who
received and paid for them ami shipped
them to broker in ST. Louis, who re-
ceived and paid for them and shipped
them to a broker III Philadelphia. who
received and paid for them. and was to
ship Them to Henry S. Ives in New
York. The idea was to obtain the use
of the money for the time the bonds
were out and until they came back to
Ives. The neat plan was success
fully launched, and with $4,000 i'll
hand Ives started to cover Mu-
tual Union. He induced friend
of Woodrutf's to send kilograms
to number of brokers to sell
100 shares of the stock and $1,000 Of the
bonds on the promise tOsforward the Sc
curities the next day. Most of the bro
kerS did SO. and Ives bought in every
thing offered. expecting that when the
gullibIe brokers found no letter from
White next morning they would rush to
buy back the stock. and be forced to
pay whatever figure Ives asked therefor.
But. by singular coincidence, some of
the brokers compared kilograms. smelt
a rat, complained to the governors OF
the exchange, and had all the tranSac-
tions declared off.
When clerk at Wings Ives had re-
marked the opportunity to get rich
which lay in the Mineral Range rail-
road. few miles in length, hidden away
in an unciviliZed part of Minnesota.
| unknown in New York. 1t paid divi-
dends of 10 per cent OH small capital
stock. 1t was very rich, because il was
the only means of transporting the
products of certain great Minnesota
copper mines to the lake. A Boston
syndicate started to parallel the
Mineral Range. This frightened the
stockholders so that they sold their
stock TO Ives and his friends
at very low figure. AS the Ives party
had little money, it resorted to most
ingenious scheme. 1t invested as much
| cash as it could afford to give up. 1t
then hypothecated the stock thus OBJ
taiped and with the money. bought
more. THIS process was kept up until
Ives was able to appear at the stock
holders meeting in July, 1885, with a
majority of the stock, and to get full
| control of the road. On various pre-
| texts he proceeded to gut the treasury
| of the road. Stock was over issued and
bonds were put forth. From July, 1885,
until December, 1856, he stole SS3S, 1854
Ia this way.
But meanwhile the operator of less
| than twenty-five years was revolving
other projects Having ousted his
friend Woodruff from the firm, and ad-
| mitted Tom" Doremus, he spent S34,-
0OOof his mineral range money in buy
ing a seat in the exchange for Doremus.
| and began to work upon his long
tnought-of plan of transcontinental
natl. Hamilton and Dayton-a road run
ming to the North from Cincinnati, and
having inc surplus, fine income and
a. drowsy board of directors. Ives
went to Cincinn att, and be-
gan buying stock, starting with
| the last dollar wrung from the
Mineral Range. He bought stock and
sent it to New lork with draft at
tached. Stayner would get a loan on
the certificate at once as near the market
| price as possible. filling up the balance
| of the sum required for the payment of
| tho draft with oyer-issued Mineral GER.
| tificates. He would borrow certified
check from his bank by some mysterious
| pull. get the stock, get the check on the
| loan. pay back his bank and get ready
for the next consignment. When they
reached limit on this daring business
they induced Christopher Meyer, a
wealthy India rubber manufactures of
| New Jersey, to come in and buy more
stock ON the promise of an interest in
the pool.
The plotters secured bare majority
| of the stock oy the annual election in
| June, 1885, because Ives raised enough
money by overissuing Cincinnati. Ham.
| iton &c Dayton certificates 10 buy in a
| lot of 11,550 Legitimate shares that were
| held at $50 by pool. Ives had Stayner