New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-07-14
HEROIC MEASURES TO SAVE THE BANK
THE PUPILS WHO MANIPULATED THE STOCK
MARKET TOO SUCCESSFULLY WERE
SUSPENDED

Two men were seated in the cafe Of an uptown
hotel one afternoon recently discussing things In
general. One was an Army officer whose hair is
growing gray around his temples. and the other n
prominent business man from the West. These
men, both of whom had climbed well toward the
top notch In their different cangs were boys to-
gether on the Western Reserve Their paths In
life had led them apart for many years. and the
meeting at the hotel. while accidental. was in the
nature Of a reunion. The talk drlfted around
10 "reminiscences and the Army officer said:
when I was studying for the examina ton for
admission to the Point you left home to attend
school somewhere in the East. Did you gradu-
ate?'
NO" the business man replied "bnt II was there
that got my commercial education As he said
this he chuckied as II something funny was In his
mind. Then he added: II did not graduate there
owing to circumstances" Here he pufed a wreath
OF cigar smoke. and smiled contentedly through
the smoke. His companion. who scented story.
said How was that
WELL" said the business man. at Is old yarn
When lef, home l went 20 city 10 live with
relatives and attend high school took the course
In what known as the commercial department
In those days they were just introducing into the
schools what known as the Actual business
College. We used 10 call II the ID c Depart
ment account Of the initials. That system has
since become common.
Perhaps" he said. going TO West Point you
plain: The scnoolroom was rugged up as NINA
ture stock exchange After passing through so
many ledgers student was entitled TO seat
on the exchange and was supplied with slooV" In
school money TO operate with. The rules governing
the school were exceptionally rigid. knew OF a
boy being expelled for forcing balance OF two
cent?. The instructor at the head OF the BIC
banking and clearing house The assistant teacher
his partner. We had TO keep correct record OF
our transactions and. In fact 1t was a regular
stock market.
when l passed my ledgers got seat on the
exchange and the customary 100000 started into
the leather and hide business | paid particular
attention to tho Industrias and by exercising bust
ness acumen ran my account Zip TO about SGoocO
One day l came into school. and the Instructor
gravely informed me that my warehouses had
been burned and that after adjusting losses and
other liabilities had only SlS.0oo left. and had
better start over again. was mad clear through.
and for a couple OF days did not try anything
There was another little fellow IN school who
was bright dollar lie had rolled his original
capital up into almost million and he was daiiy
expecting a fire or something. He saw my plight.
and came to with the suggestion that we pool
issues and get with the bank said. 'What
shall do? He replied in whisper:
"'Iet break the bank.
, was % safo Tn 'f his pan entered into
heartily. Corn had been quiet at IS cents ana hn we
right and left until we either owned or controlled
every carload on the exchange. Then We went TO
the bank and bought for future delivery.
Corn was indicated by little slips with the amount
on II. We knew the bank could not Increase The
stock on hand and were safe We bought
more and more heavily until the bank saw mere
was something foot, and sent out agents TO BUY
to meet the demand. No to be found.
Eventually they got around 10 us. We admitted
tina, we had some They asked the price We said
81 %. They stormtd. but We were obdurate ihen
they had to meet orders. and bought our supply at
our quotation To do this they had TO borrow
money. We secured these notes. and also got the
corn back For days We were the kings OF me en-
change I was walking around with millions IN
my pocket and BY turn OF my hand controlling
The end was near. When the notes matursd
we presented them to the bank for payment the
bank asked for time. We refused II. and asked
that the bank go INTO the hanas OF = rec , b. We
hung on Talk about Black Friday The school
was IN an uproar. To adjust the matter a faculty
meeting was called. and they settled in their own
unique way" - ,
Here the speaker paused. and his companion
said: What did they dor"
"Oh," he replied. "they called mp our folks and
asked them to urge us to give up our money.
NV folks stood by me. and said that ought 10
have the money Then they suspended us for two
weeks for INSTRUMENTATION. and took away all our
wealth. / never went back