Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-10-09
EXTRAORDINARY SPECIALS IN
BLACK DRESS GOODS.


In a hopeless fight against the plug manu-
featuring interests Of the country, and
believing that such policy was in direct
conflict with the best judgment of the
responsible directors then In the board,
and In previous boards, decided me to buy
tho stock
when, by appointment, my informant
called several days later, 1 had pur
chased 5000 shares OF the stock. and so
informed him. and then concluded the
arrangement referred TO above
1.-THE market at that time was In
great state of uncertainty. The war with
Spain was impending, and it was with
much difficulty that aid could be secured
TO purchase the amount OF stock required.
To add to the difficulties, the Maine was
blown up, But, despite these depressing
circumstances and the conditions which
they produced. purchases were steadily
made by all the parties in interest.
MR.. KEENE BOUGHT AT $50.
IT confded the Information and the
proposition to one friend, who agreed to
buy $1,000 shares, and having secured the
purchase of 10000 shares through another
gentleman, the practical control of the
company was secured.
my individual stock cost me s92 a
share, but a dividend coming off at that
time reduced The price to 500. l believe
that the average price of all the stock
bought to secure control of the Tobacco
Company at that time was not more than
800 a share.
THE stock rapidly rose TO SIT before
the books closed. When the facts re-
garding change Of control became known
to Mr.. Duke and his associates. who were
then In the board. they sold part OF
their stock, and II declined TO Sl share.
with the control of the stock in hands
antagonistc to the existing management,
every influence was brought 10 bear upon
the new owners Of the property. Messrs.
Schley, Payne, and Terrell, who repre-
scented on the books Of the company
small minority OF the stock, were be-
sieged by their friends, who were also
friends of the management, to continue
1t In power.
"The stock in my control was at that
time In excess Of 10000 shares. So much
pressure was brought TO bear upon me
that [ finally consented to give up the
original plan, which provided for an entlre
change OF officers. and consented TO com
promise whereby Mr.. Duke retained the
presidency, Messrs. Payne ana Ierren
bsoame directors, and i was to appoint
the treasurer of the company, VINO shoulo
be director representing me-
"The latter part OF this agreement has
never been carried out. l am sorry 10
saw so but IL is the fact, nevertheless
FEARED FORCED DECLlNE.
INV reason for permitting the minority
interest of 10000 shares or more 10 domi-
rate moro than 10000 shares was ms
Messrs. Duke Ahrents. Payne Schiey,
and Terrell would, IL compromise hau
not been agreed o,'have thrown their
stock upon the market, and some OF my
ossociates were not financially able 10
stand the decline which would have fol-
lowed such selling
"The election having been settled upon
this basis, the price of the stock naturaily
advanced upon purchases by Mr.. Duhe
and mis- friends. and upon the expectation
,bot tho Mug business of the country
would be consolidated into a new com
many This required the sale OF SUooVo
treosurv stock which was done az TINS
time the cash therefrom being required
10 finance the operation II 1t was eIlec.eu'
The stock so sold in the open market "aS
toten bv the management or the COM
panv. and it brought about SllO shdre'
mrhe negotiations for the plug compllla-
tion were discontinued for uine pc
cause of the efforts OF the Contributing
rIno interests to secure from the new
company payment OF 81 per cent. III eNOe9S
Of the actual value Of the plants so con-
tr,hutad But the negotiations were again
taken up. o.oria.y
.1rhe stock advanced upon the notorlety
~ the fresh negotiations 10 $50 snare
n price not warranted by the actual STU
80, IN nv opinion. But as the contrOl
90 tho stock rested in the hands or haii
dozen individuals, who for months mao
conferred together respecting the coil'iii-
ned control of the property althoush no
written obligation existed Among tnsHA
this price could readily have peeh shaueU
ten noints without occasionins Alarm
HE SOLD AT $40.
,e,,,. soeact,on of any one large holder
u,o,,ld naturally produce serious conse-
ouences in such a high-priced STOCK
which IL did, and when the most lndupita-
he evidence was furnished to me that
o,a or two of the parties had sold, sold
49, stock when I ascertained the Facts,
nnd did IT promptly on Monday ana
tuesday OF last week, between slio ana
$1Se." - - -,
you have not said VINO began 10 un,
load IL I suggested when Mr.. Keene had
concluded. o,so NAV
have something 10 say now, ne SAID /
have said what have to say.
A glance at the market on Monday ana
,ruesday I'm the light Of Mr.. keenes rev.
elations. shows how thoroughly ne player
bia band His personal holdings in Amer
,cor Tobacco were rated in Wall street at
about S0O0o shares, or 1000 full shares.
TN. stock on the Monday in question:
memorable one In Wall street-opened al
1l7 s-s showing a loss OF half point from
The closing Saturday price. Early on Mon-
dav some ona holding the stock was I'M
able 10 resist longer the temptation 10
unload. But before the STOCK han gone
10 14G Mr.. Keene had heard the news anu
was in the market UNKNOWN " e'ei' oi''
bu, his own brokers. -
perbans 10 600 or 1900 were sold pexofo
be made sure OF what had occurred. His
heavy settings broke 1t TO 49, Ii rallied
a, the close TO 1879 "a. The total sold was
| 100 cco shares and net loss Sis MT he-he
| sold perhaps 1000 shares that DAY
There was more mystery and excfte-
men, ON Tuesday aud general scramble
| 90 get 10 cover. Tobacco was on tho 20
hogan. but no one knew why.
,The stock opened at from l36 TO iSs-
,or ,ha onenin9 was marked BIZ much con-
s,,s,on-and lots OF 1000 shares were
.hro,vn about In the widest fashion. IL
hroLs m rail- but Mr.. Keene was out
q, tac The sales reached li2,Wo shares
tuesday was the big day IN Iopacco'
The net loss was 8 S-4
There was a rally toward the close, ana
the final price was l3i, gain OF "a over
the lowest reached during the day put as
Mr.. Keene says. he fnisned az iso' prdc'i-
cally the opening ngure.
The stock broke points yesterday soon
after the opening. Very heavy iealilg
AfatfC a all