New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-17
MR.. SAGE GAVE THE TIP.
MR. WHITE. OF BOSTON. PLAYS 1T AND
LOSES 500, GOO OF HIS BOND PROFITS
NOW THE HANCOCK NATIONAL BANK OF BOSTON.
WHICH WAS TO FURNISH THE LATTER
WITH GOLD FOR HIS LARGE OPTION on
GOVERNMENT BONDS. is BRINGING
SUIT FOR ITS COMMISSION AND
SHARE OF THE PROFITS.
SHARE OF THE PROFITS.


Some interesting operations of Abraham
White a Boston man, who made thousands OF
dollars on an option for bonds OF the latest
Government loan. and lost them In the stock
market on a tip given by Russell Sage, were
disclosed yesterday when Justice MacLean. In
the Supreme Court, denied an application for
mandamus to prevent Mr.. White and his wife
from dlsposing of the bonds to the amount OF
s2Ol.s 75 Not the least interesting disclosure
was that Mr.. White had bid for the bonds
ION wind" and had made conflicting arrange
mehts with people in Boston and New-York to
supply the gold for the bonds.
The application for the mandamus was made
by the Hancock National Bank. Of Boston.
Mr. White who is a broker was awarded an
option on 5000 900 OF the bonds He did not
have the gold necessary to obtain the bonds.
and he made an arrangement with the Han
cock Bank Of Boston. to handle them. The
agreement entered into that the bank
should receive SIS 900 of the profits and com
mission OF u per cent The bank did not nave
enough gold to pay the call loan. and 1t made
an ARRANGEMENT with the Third National Bank.
of this city, to pay the necessary gold Inc
Third National Bank paid 900 on the bonds.
and the first instalment was deposited In the
Sub-Treasury.
Mr. White at this time began to deal on the
stock market through the brokerage firm OF
f.. g. Cuthbert & Co.. OF this city and Boston.
on coming to this city he was introduced TO
Russell Sage, who said he was amazed at the
enormous profit the Hancock National BANK
was to make the bonds and said that ne
could operate for him for great deal less MI
White consented to allow Mr. Sage and f. b.
Cuthbert & Co to furnish the balance on 'he
bonds. thus going back on his contract with
the Hancock National Bank.
All tho gold that Mr. Sage and the brokerage
firm could furnish at the time was to pay for
500 900 If the bonds Mr. White induced Zim-
hermann & Forshay to furnish SSoooo more IN
gold According t. agreement. MI mite was 10
get the profit due him after those who furnished
the gold were reimbursed.
White was well contended until encouraged by
his sudden gains. he obtained f.om Russell sage
a tlp on the stock market. and played 1t. He
lost $50 600 Of his profits on the bonds In TINS
Nay The Hancock Bank hearing u MS dear
rg with Mr.. Sage and the others hs'ltu'en
suit FOR the recovery y the sloVVo anu We s
Der cent commission. The bank also applied for
the Injunction. Mr. Sage aud the other brokers
are made party defendants in the suit
The counsel for Mr.. White. In opposing the
apulication for an Injunction admitted the pur-
chase # the bonds and the transaction with the
Hancock National Bark He asserted. how
ever that the bank president had tod MI
White that J. Pierpont Morgan. the head or IN.
Tank syndicate had filed n protest against the
bonds going to Mr.. White. and that II he would
allow the bank to operate for him the protest
would he Withdrawn. Mr. White alleged that II
,cas on this statement that he was irduced 10
give the bonds t. tho Hancock National Bank.
and an agreement u that effect was signed on
February 6. >..,,
The allegation ma lie by the Hancock National
Pink that writ ana his wife were insolvent
Vas denied by them. They likewise asserted
sf.,,tal RAJ
~, furnish an the gold necessary X practically
broke the agreement causing White ana MS wiIe
To- nav 81 800 In excess Of what they would nave
,aid had they not been delayed. and causing
, ioss In interest Of 81 900 This total of $500
viii h. made a coun,er-claim when the Hancock
National Bank suit is tried