The evening times., 1898-10-03

New York, Oct. 3.-James r. Keene
has made another fortune in Wall Street
IL is asserted on the authority OF per-
sons familiar with Mir. Keene's affairs
that that daring operator has made Sl'-
50O.0O0 out OF American Tobacco Com
pany stock within week.
Wall Street has stood aghast to see
the stock of this company, commonly
called the Tobacco Trust, go tumbling
from Sl54.75 per share, TO which price 1t
had scared within a few months, to
Sll55O The latter was the lowest touch
ed on Saturday.
The outsiders in the street could not
account for the decline OF 80 IA points
in the shares, or a shrinkage OF more
than S700O,e0O in the value of the $20,
01e of common share capacity of the
trust. They were sure il was not due TO
any rivalry with other companies. They
read in il the ruin of some one, and, as
they saw the market price of shares fall
ing at the rate of from s. 10 SO a day,
congratulated themselves that they were
not the losers, little thinking that James
r. Keene had made or was making hun
dreds OF thousands
heene Obtained Control.
Mr.. Keene has been interested in
American Tobacco stock for about
year. In company with James B. Duke,
now president of the trust; II. c. Ter
rell, Oliver II. Payne, representing the
Standard Oil trust, although the extent
OF this company's operations in Tobacco
stock are not known and a representa-
tive OF the firm of Moore * Schley, he
a n tai
trol Of the American Tobacco Company.
IL took months TO do this II was ac-
compIished. however, last spring. Mr..
keene al that time owned from - 600
TO 100000 shares OF the eompany's stock.
The other four controlled the greater
portion Of the remainder. Il was their
getting control of the company which
started the stock on its rapid rise.
Mr. heene, it is known, got his stock at
inside figures, which was considerably
below par.
Then these five big operators began a
vigorous fight with the manufact turers of
plug tobacco with the idea of forcing
them into the combination. 1t vii be re-
membered that the American Tobacco
Company up to this time was made UP
largely Of firms manufacturing cigarettes
only, although there We're a few manu-
facturers Of plug tobacco in it also.
Rumors Caused n Rise.
Such firms as Leggett & Myers. Drum
mond 4 Co, Sorg q Co. and others which
largely controlled the manufacture of
plug tobacco, were approached, and ne
gotiations were begun toward getting
them into the American Tobacco Com
pany.
Rumors OF this further combination Of
tobacco interests and the determination
n
table basis reached Wali Street and sent
the price of the stock upward faster than
il had been rising before
These negotiations with the manufac-
tuTers OF plug tobacco have either been
successfully completed or will be. This
statement is made on the authority of a
person who is manifestly fully informed
keene, Terrell, Duke, Payne and Moore
and Schley's representative meanwhile
held on to their stock and were gratihed,
no doubt to see the price mounting high
er each day.
There is said TO have been 4 tacit un-
derstandiHg between them that none Of
these five men should sell any American
Tobacco Company stock until, at least,
negotiations with the plug manufactur-
ers were completed.
While the price OF the stock ten days
ago had mounted To l5iS4, in connection
with further rumOrS OF a greater trust
forming, everything looked roseate. Deal
iugs in the stock even at that price con-
tinued to be heavy. There were prospects
of ii going higher.
TrumPcd Their Trick.
Mr. Keene, with the quick perception
which his long experience in the Street
has given him, discovered one day that
some one was selling American Tobacco
stock quite freely. Before the movement
was an hour hour old this shrewd spec
ulator had found out who ii was. He
had discovered, il is alleged, that three
at least of the combination of five were
disposing of their stock. 1t is supposed
they had succumbed to the temptation
10 sell at the high figure the stock had
reached, and without notifying Mr..
Feene Of their intention.
AS soon as the wires and messenger
boys could carry them went Mr.. Keene's
orders to his men on the floor of the
Stock Exchange
Sell American Tobacco without re-
serve"
Thousand share lots went pouring into
the market and the break in prices came
it is said that almost at the highest fig
ure the stock touched Mr.. Keene sold his
entire holdings before the men who had
sought to take advantage of him knew
His Partners Suffer.
To them was left the choice of keeping
the stock they had not already sold or
disposing of ii at a price much below
that at which Mr.. Keene sold.
This man, who for years fought with
his back to the wall. where adversely
had temporarily driven him, is probably
richer today than he ever was. 1t is
fact that last Thursday and Friday he
was out with offers to loan millions of
dollars. His deal in Sugar and other
stocks in July and August of last year,
in which he IS said TO have made s., ,000. 900.
is recalled.
In banking circles and among the few
Wall Street men who knew the inside
facts in the case the opinion was freely
expressed on Saturday that an attempt
had been made covertly, TO take advant-
age of Mr.. Keene: that he had seen the
attempt and cleyerly turned the tables.
The sympathy. where any was expressed,
was all on his side.