The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1894-10-10

| were said TO be steadily diminishing
the earnings OF the Trust, and thai
| Congress in all probability would take
such action in regard to duties a
would still further deplete the purses
| of the sugar barons. Reliable author
ity" still further affirmed that pur
chases of raw material at high figures
! and low quotations for refined sugars
involved the Trust in actual loss The
chances were that the refineries would
be sold "under the hammer" and the
proceeds deposited with the court for
distribution when the rightful owners
should be determined by legal process
If Mr.. Gray's suit should be successful,
then the legal fees, interruption oi
business, and loss on the entire pro-
perties-the original value of which,
as stated by the owners, was under
$l3, 900, ,0O0-would surely and greatly
depreciate the value of the stock.
Further light on its enormous de-
probation is shed by an article in the
Sunday Herald of February 10Th. 1890
said to have been inserted with the
concurrence of one of the Sugar Trust
grandees. This article truly remarks
that "when the inside history of the
Sugar Trust which refuses to publish
any report is brought 10 light-as it
surely will be one of these days-a
most surprising chapter will be added
to the annals of speculation;n that
"the Messrs. Havemeyer received
about SIC, 900, 900 of the $50, 600, 600 GER
tificates issued by the Trust, and,
moreover, held the highest positions
in the board of trusteesn; that "it may
now be asserted that the whole of the
Havemeyers' SIG, 900, 900 of certificates
were sold out last summer for from
tn rc,I1 n h0r hv
did not begin buying them back until
a few days ago. The buying and the
selling were brilliantly managed by a
famous operator [James r. Keene],
and assuming that they have regained
the entire Sic, 900, 900 worth, it would
seem that he has made for the Have
meyers one of the most gigantic turns
on record-a turn which shows them
profit something like $6,OO0,OOO."
NEW BEAU OF LIFE.
The Havemeyers declined to buy
the certificates they had sold until
Judge O'Brien, on the 11th of Febru-
ary, 1890, relieved them from fear of
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
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.
Some may ask if there were any
purposed connection between Receiver
Gray's suit and Wall street operations.
Ii so, those who lost from 81 to SO on
each share of their panic sales might
be glad to learn the facts.
Wall Street is an institution whose
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,
rs executor, that (about 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
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
lime direct B to buy 1000 shares at
hat price. Or he may reverse the
process if he wishes to b3HE the stock. |
Either course may be followed SO :
ong "a il seems advisable. or course
he operator must contend with sup
lorters OF the stock he bears, and
content himself with the loss if they
irst accept his brokers' offers. But
his he may do, with probability of
Ultimately recouping himself, pro
7ided he has enough OF the certifi-
ates in his safe to carry on the con-
est. His may be one of the level,
onfident heads in the excitement Of
he battle. He who plays with loaded
lice can afford to keep cool as te the
ssue of the game.
ONLY KNOWN 10 FEW.
Whether my such strategy were
dOpted I'm the depression oi Sugar
rust certificates from l25 to 50 is
Ieither affirmed nor denied, for the
efficient reason that only dealers I'm
hem are acquainted with the facts.
he New York Tribune of July 81
S9i, declares that "most of the pres
mt transactions I'm this stock Tthe
sugar Trust are what is known "a
rash soles.'
Prior to this memorable transac-
ions n member Of the brokerage firm |
{ Fox, Leonard II Co, IN New York
which is now suing i'm the Supreme
'ourt of the state of New York for
heir commission OF y per cent. on
l9,50O, ono, or $i97, ,500-was employed
u September 1880, by Mr.. +. .. Mat
hiesen to buy what could be bought
+ the sugar -refineries then outside
he Trust, 40 IA TO control II all could
e obtained, the entire business
Within the United States. r.. &. |
Knight y Go. of Philadelphia were
he frat to oapitulate. In 1887 they had
itered 10 sell for 100000 Making