The Indianapolis journal., 1896-02-18
All the Defaults, which May Amoans
to Several Million Dollars, Likely
to 60 to the New York Banker.
FAIRY TALES ABOUT BIDS
GERMAN RESTRICTIONS ON AMER
ICAx INSURANCE. COMPANIES.
Omcini Correspondence ON the subject
The Credit Mobilfer md the Pa
cfnc Railways Inquiry.


what disposition shall be made of the bonds
on which the allottees have defaulted by
failing to make the required payment of
20 per cent. on receipt OF notice OF the
ceptance of their bids is now before the
Secretary of the Treasury. The amount Of
these defaults has not yet been ascertained,
nor Is IL expected that tie exact amount
viii be learned before the middle and pos
sibly the last of the week, when the re-
ports from the several subtreasuries are
expected to be in. 1t is believed, however.
that the bid OF William Graves and his
associates of New York city for $4,5OOOOo
at u5.3391 Is by far the largest. and il Is
probable that the aggregate will not exceed
tais amount by more than 100000 at the
most. Mr.. j. p. Morgan has filed with
Secretary Carlisle a claim on behalf OF
himself and associates to all defaulted al
lotments under his bid OF 110.6S7, and has
deposited in the subtreasury at New York
sufficient gold to cover them. The Sec
retary, within the last day or two, has
received a number of offers to take all
bonds on which default of payment has
been made at figures considerably in excess
Of the Morgan bid, but he is undoubtedly
inclined to the opinion that under the
terms of his circular OF Jan. he is in
hfbited from accepting any bid for bonds
after that date, and hence 1t follows that
Mr.. Morgan and his associates are very
likely to get an amount considerably in
excess of their first allotment. The Sec
retary. however. has not made an official
decision on this point, and does not expect
10 do SO before tomorrow.
The report that many people bid for
bonds who did not have a cent of money is
not confirmed here 1t is known that sew
eral bogus bids were thrown out on OPEN
ing day, and 1t is possible some were over
looked. A fairy tale about a New York
office boy who sent in a bid written on
paper used by his firm, and that he dis
posed OF his allotment at gain Of $4,000,
Is probably the work of an imaginative re-
porter. So may be the following story
from Boston: Abraham White, the Boston
man who has gained wealth and notoriety
by his bid Of S5,000.O00 Of government bonds,
practically without dollar in the world,
Is coming financier. On an investment of
A cents in postage stamps he secured the
option on $1.5OoOOo of bonds, and at the
market price to-day the deal stands him
10000 profit. or 2O4.054.45 per cent. on his
capital. Mrs. White, however, eclipsed her
husband in her investment, for, with the
expenditure of AGENTS postage, she Sc
cured an option on 100000 OF bonds, rep
resenting a profit of $4,000 at to-day's
price, or 100000 per cent. on her invest
ment. Ut isn't everybody who can make
1,OoO,O0O per cent. on an investment, and
that's why the millionaires and bankers are
interested in these two young people, whom
they have reason to know are as shrewd
as the ablest financiers. and who know a
trick or two that's worth all they have as
q stock in trade. 1t is a singular fact that
White and his wife, though without a cent
or any security 10 put up other than their
no n 81 ire
to-day worried by offers of millions of DOL
lars worth or gold by the most conserva-
and they smilingly return the editors an
thanks
.At first some of the financiers expressed
surprise that the government should al
low White and his wife to bid at all, and
they were more than astonished that they
should get an option on S1,500.o00 and $500. 900
OF bonds, respectively. Some of these gen.
tlemen were angered that they wrote
Secretary Carlisle that White was young
and reckless adventurer and couldn't fulfill
the requirements; but that is just where
they were fooled. White was next threat
ened that unless he let them come in on
the deal they would use their influence with
Morgan and Carlisle and have the bids or
himself and wife thrown out
white got little scared. and, borrowing
from a friend sufficient money 20 pay his
fare and expenses 10 Washington. he sent
telegram 10 ms ms wife that he had gone to
States. and silently he slipped out of the
city, and the next morning he presented
and early. He sent his card to Secretary
Carlisle. had an interview, and came away
with an autograph photograph of the Secre-
tary as evidence OF the amicable relations
that had been established between himself
and the Treasury Department. Next day he
was back In Boston, and made his payment
with the subtreasurer for his bonds. having
secured s1O00.000 in gold of the Hancock
National Bank at quarter Of per cent.
The bank. by the way, was big bidder for
bonds. and got left in the distribution, hav-
Ing over $50O0,Oo0 in gold on hand.
white is only thirty-two, a rugged sort
or chap. or bright appearance about
medium height with hair of auburn hue.
and a beardless but very strong face. He
was born in Galveston, Tex, and at thir-
teen began to shift for himself He has
never gone hungry, and though he has seen
the ups and downs of life from a cowboy
and dropped II. has been shot at and has
shot at others, he is not in the least wor-
ried to know which way TO turn now that
he has made ten-strike. He is on the road
to success. and he does not propose TO have
his head turned. When he was making ont
one bid for s2co.oO he said jokingly to a
that he would take him in on 1t If II went
and as consequence that lad is 5000 in
pocket to-day. White has sold S2OOOOO OF
his bonds for III. but he holds on to the rest
with a 125 grip. Mrs. White thinks she will
realize $4,000 by her deal on a postage
stamp and she proposes TO complete her
musical education, and her husband Is
anxious that she. should. as he says she has
Heavy Withdrawals OF gold from the
subtreasury at New York for use in fu-
issue, continue to be reported almost daily
and. so far as can be learned. there is no
prospect OF even temporary cessation un-
iii the last installment shall have been
paid. The Withdrawals to-day aggregate
H.424.s00 in coin and 81 800 in bars, which
leaves the true amount OF the gold re-