The Hawaiian gazette., 1894-10-12

few DAYS ago. The buying and the
selling were brilliantly managed by 8
famous operator [James r. Keene]
and assuming that they have regaineC
the entire Sl6,000,000 worth, it would
seem that he has made for the Have
meyers one of the most gigantic turn;
on recOrd-a turn which shows them
profit something like S6,000,0O0."
NEW BEAU OF LIFE.
The Havemeyers declined to buy
the certificates they had sold until
Judge O'Brien, on the l1th of Febru
ary, 1890, relieved them from fear oi
injunction on the payment of dividends
and the pressing of Mr.. Gray's suit to
a receivership.
The Court of Appeals in the follow
ing April heard arguments pro and
con whether the Trust, as then consti-
tuted, might legally continue to exist.
Its subsequent decision necessitated
reorganization, which was accom-
plished in January, 1891, in accordance
with the laws of the State of New Jer.
sey, under the title of the American
Sugar Refining Company.
may dSh IL WtIc ally
purposed connection between Receiver
Gray's suit and Wall street operations.
II so, those who lost from 81 to S75 on
each share of their panic sales might
be glad to learn the facts.
Wall Street is an institution whose
mysteries are most easily eXplicable
by inside cliques of operators who di-
rect its movements. One member of
the Sugar Trust is said to have sold
his own stock at more than 80; and,
as executor, that Cabout three mil
lions) of his deceased partner at about
so. He covered his own short sales,
and bought an amount of stock equal
to what he had sold at 81. How the
prices of active stocks are raised and
lowered on the Stock Exchange is
familiarly known to great operators.
The price of the last sale on any day
fixes the market value of any parti-
cular stock. The large holder knows
how to make one hand wash the
other by means of matched orders
the only expense to him being the
commission TO brokers that he must
pay in the process. He can instruct
A to sell 1000 shares whose market
value is 100 at 9S or 95, and at the same
time direct B to buy 1000 shares at
that price. Or he may reverse the
process if he wishes to bull the stock.
Either course may be followed so
long as it seems advisable. OF course
the operator must contend with sup.
porters Of the stock he bears, and
content himself with the loss if they
first accept his brokers' offers. But
this he may do, with probability of
ultimately recouping himself, pro-
vided he has enough of the certifi-
Gates in his safe to carry on the con-
test. His may be one of the level,
confident heads in the excitement of
the battle. He who plays with loaded
dice can afford to keep cool as to the
issue of the game.
ONLY KNOWN TO FEW.
Whether any such strategy were
adopted in the depression of Sugar
Trust certificates from lbs to 80 is
neither affirmed nor denied, for the
sufficient reason that only dealers in
them are acquainted with the facts.
The New York Tribune of July 81,
1894, declares that "most of the pres.
ent transactions in this stock Tthe
Sugar Trust are what is known as
IOdsh sales"
Prior to this memorable transac-
tiOns a member of the brokerage firm
of Fox, Leonard & Co., in New York
which is now suing in the Supreme
Court of the State of New York for
their commission of q per cent. on
S19 800, 900, or $4S7, ,500-was employed
in September, 1889, by Mr.. F. o. Mat
thiesen to buy what could be bought
of the sugar-refineries then outside
the Trust, so as to control, if all could
he obtained, the entire business
within the United States. E. c..
Knight & Co. of Philadelphia were
the first to capitulate. In 1887 they had
offered to sell for 100000. Making
about 100000 in 1889 through the
rise in the price of raw sugars, they
refused an offer of Sl,000,00O in cash,
but were willing 10 part with their
property for 81, 100000. They held
and operated it until March, 1892,
when the title thereto passed to the
Sugar Trust in consideration of S2,05O,-
600 in stock.
For the property of Harrison, Fra
zier & Co. of Philadelphia the New
York agent first offered S6,000,0 900,
and when this was rejected was auth
orized by his principals to raise the
bid TO Sl0,0O0,000, to be paid half in
cash and half in stock at the end of
twelve months. He did proffer
50, 100000, with probabilities of ac-
ceptance. His employer, on receiv-
ing the report, was so much pleased
with it, inasmuch as it left margin
of S1,000,000 for other negotiations,
that be promised the commission of
q per cent, or s250,00O, on the entire
$40 900, 600 that Mr.. Leonard was en-
powered to bid. He also further
agreed-as is stated in the sworn testi-
mony on records of the Supreme
Court-to pay p per cent. commits
sion to Mr.. Leonard on any or all of
these properties which should be ac-
auired by himself, or himself and as
sociates, or by their successors in the
Sugar Trust. But it was not deemed
wise by the Trust magnate and his
associates TO close the bargain until
Claus Spreckels should decide whether
he would or would not accept an
offer, first of five, and then of six mil
lion dollars in cash for his Philadel-
phia and San Francisco refineIies.
WANTED TO FIGHT.