The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-05-30
SAVED BY BLUFFINC
Jay Gould Equal to the Occasion When
Ruin Stared Him in the Face.
AND HE DID NOT ASSIGN
He Made the other Fellows
Pay Dearly for Their
Fun in Bearing
His Stocks.


the first time the account Of a momen-
tous incident i'm Jay Gould's career
hitherto known only to a few OF his
most intimate business acquaintance.
The truth of this story is absolutely
guaranteed The source from which
the facts have been obtained is un-
questionably trustworthy. No complete
biography of any completeness has
hitherto been published regarding that
exceptional career. The truth, the
whole truth, will appear gradually,
and the stories the Press is enabled to
publish are the most authentic state
ments yet given to the world.
1t is generally supposed that jay
Goulds career was uniformly prosper
Gus; that from the day on which he
entered on the intrigues and his specu-
lations on the street" he carried
everything before him; that with the
exception of n few minor failures his
fortune continued to increase. Thls
idea is incorrect. There came day
when, after years of successful specu-
lation. the great financier found all his
schemes thwarted, his hold upon the
strings which regulated the market
snatched from his grasp and ruin star
ing him i'm the face. His own son was
so apprehensiVe of the result of the
turn of affairs were taking that he re-
peatedly urged his father TO make an
assignment fearing that otherwise
nothing could be saved The manner
in which jay Gould turned circum-
stances which appeared about to ruin
him utterly to his own favor and the
destruction of those who were schem-
ing against him proves more than any
other incident in his career. his remark
able genius.
Here is the story: In 1884 Gould's
fortune was almost entirely invested
a..
Western Union. This fact by some in
cident came to the ears of The leaders
of the clique on the street which was
designated as the Twenty third Street
Bear Party" The most prominent
members of this party were Mr.. Woe
rischoff and Henry Nj. Smith. They
thought they saw In the circumstances
mentioned a chance at last to cripple
the Little Wizard" As much capital
as could be had was collected, and
they started to bear. e.. to depre-
ciate the value of the securities. They
succeeded. Within two or three months
Western Union fell to so and Missouri
Pacific TO 62.
Each stock had fallen between 30 and
40 points. From valuable investment
securities they became, practically
speaking. almost worthless. Not know
ing how much their value would be de-
preciated no one would invest except
for speculation purposes, ana what
was more to the point as far as Gould
was concerned, IL was impossible 10
borrow money on them, as naturally
enough, capitalists waited until they
found lust how low they were going
Gould was in a quandary. His whole
fortune was invested I'm these two Sc
curities In order to prevent them be-
ing pushed down TO ruinous quotations
he required ready money, and this was
Just what he could not obtain.
For a short time he was obliged to re-
sort i'm order to keep the necessary adj
vance at his bankers-to an expensive
expedlent. The only way the stocks
were of value was for speculation.
Every day he sold enormous blocks for
cash and bought back equal amounts,
at the same prices regular That is
TO say he sold for cash payments, and
what he bought he paid for next day.
OF course, he was selling for fraction
less than he was buying for the differ
ence between cash" and regular
quotations being a small fraction. This
gave him the use of large amounts of
money for a day at "a time, but no one
knew better than he that II was an eN-
pedient that would soon ruin him.
Every afternoon immense bundles of
securities could be seen issuing from
the office of Conner q Co (Gould's prin-
cipal brokers) and every morning equal
ly large amounts We're brought in But
every day meant a loss of thousands of
dollars. and IL looked as though crisis
were impending.
1t was at this Juncture that those
closest To Gould urged upon him the
necessity of making an assignment
His son, George. who had assisted his
father for some time, was especially
anxious that this should he done, as he
feared that otherwise the fortune that
was accumulated with so much skill
and pains would he entirely lost. Jay
Gould hesitated lie saw the danger OF
continuing under the existing circum-
stances but he knew that should he dc
what he was urged his standing would
be gone forever For the first time his
courage deserted him. on Saturday
things came TO head. Could he not
manage TO turn things I'm his favor IN
some way. without delay, he decided e
do as his friends wished.
The next day Sunday the principa
members of the Twenty-third stree
bear party met at Long Branch. Goult
decided on a blum lie went there OF
his yacht and saw Mr.. Woerischoffer
and told him that II his clique would
not desist from bearing the market n,
(Gould) would start in To lower prices
himself. and send every security dowI
to nothing Whether Mr.. Woerischoffe
believed this is uncertain. But at thii
meeting he made a proposition I,
Gould. which. as il appeared later wa
the turning point OF the affair.
The bear syndicate We're unaware o
Gould's monetary emharrassments
otherwise they would not have mad
the suggestion they did. but would hav
continued TO pound the market until h
gave up. The clique We're In troubl
themselves and Mr.. Woerischoffer. un
fortunately for them. made a sugges
ton which enabled Mr.. Gould TO 20
where their weakness lay. They wer
bearing the securities. but IL was neces
sary for them TO secure a large bloc
Of Western Union in order TO do 81
Mr. Woerischoffer made a propositio
TO Gould to buy $4,000 shores outrigh
at 30 OF course. the price was a ridiC
ulous one but Gould did not hesitat,
The offer was accepted. and he had tW