, 1896-04-29

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committee had finally and unanimous
ly decided on Wabash preferred as &
stock Of which the value was unuues.
toned and the dividend properties
most assured. The money subscribed
was therefore expended in Wabash a,
above 80 a share.
TREMENDOUS WABASH BOOM.
1t did not appear that the stock was
sold any cheaper on account of the pur-
pose for which it was intended. 1t was
explained, on the other hand, that the
purchase Of such a huge block of stock
at once naturally had the effect of
sending the price a point or two higher.
1t was not added that every dollars
worth Of Wabash before its sale was
the property of Jay Gould and his asso-
ciates.
This little benevolent scheme reliey-
ed the astute financier of some portion
of his white elephant-like burden. But
pray don't go away with the impression
that the sale of the stock for the Grant
testimonial was the end of the scheme.
1t was only the beginning. The amount
he got rid Of in this way was only a
drop in the ocean.
Now regard the marvellous a%stuteness
Of the Little Wizard.
or course. he took care hat the de-
cision of the committe should receive
publicity. In every city in America and
Europe the journals announced that
Wabash had been selected as the most
promising investment in America. The
result was just what the great Jay an
ticipated.
From all quarters arose a demand
for Wabash. The stock had received
the finest advertisement that n pro-
moter could possibly wish, and Gould
and his associates were enabled to dis
pose of the entire amount in their pos,
session.
MR.. MORGAN'S GUARANTEE.
How were the committe induced to
choose Wabash as the fttest stock for
investment?
The explanation of this is only an>
other instance of the marvellous power
Of intrigue possessed by the man who
was at the bottom of the whole plan,
but whom MOI ,ody, except his secret
agent, ever knew had any interest in it
beyond his $50, 900 subscription.
This agent. after the money had been
collected, suggested that an investment
committee be appointed, and his idea
was adopted. One of the members was
a Mr.. Morgan-no. it was not ] Pier
pont Morgan-and when the question
as to the most suitable stock came up
he clinched the matter by offering to
guarantee the interest on Wabash ESQ
sure was he Of its soundness) for a
term of years. This settled it, and Wa
bash was selected.
Mr.. Morgan could we'll afford to do
this, as by 1t he. for it vas he who was
associated with Jay Gould and Russell
Sage in the scheme, cleared a profit
amounting to many times the amount
of the principal of the Grant testimon-
ial.
Most Of the stock which Gould and
his clique were by this advertisement
able to dispose of vent to England. OF
course the stock went to pieces soon
afterward. Within four years it de-
clined from above 30 to about s a share,
and also had to pay a heavy ASSESS
ment, but to this day the motive which
prompted the testimonial and the Sc
lection Of Wabash has never been
known to the un%suspecting committee
nor to any except a few Wall street
men.
The Grant estate-General Grant
himself having died shortly after this
magnificent piece Of generosity-came
out Of the affair just about even. That
Is to say. the interest the estate receiv-
ed for a number of years. which inter-
est was paid by the Morgan estate
just about equaled the assessment lev
led on the stock. Whether, however,
the heirs of General Grant were thank
full for having to pay a large amount in
return for what they had been annual
ly receiving as income, is open to ques-
ton. Had 1t not been for Mr.. Morgan's
guarantee, General Grant and his heirs
would. by this much advertised gift,
have lost a large amount of money. AS
1t was, they received a return from the
stock for a number Of years. only to be
obliged to give 1t back in a lump sum.
The fate that befell this same Nor
gan money-most of it gained in this
coup-forms. though not part Of the
story, a fitting conclusion to it. It
seems as though Nemesis has followed
at least one of those who played the
game.
Mr.. Morgan died, leaving a large,
though not an immense, fortune. Most
Of it-an amount something over ST.
000, 900, went to his son, who inherited
his fathers taste for speculation, with
out his ability.
Young Mr.. Morgan bought q seat on
the stock exchange and set up as .
broker. Just about this time one Of the
c~lsverest manipulators the street has
ever known conceived the idea Of =
huge speculation in Manhattan. A
boom" in the stock was soon ret adoat
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