The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-06-08
The c. ?. CAMPA
Inside History of the Stock Raid
That Caused Ames & Co.
to Fail.
The Facts Make a Very Interesting
Romance in the Ways Of High
er Speculation.
Special TO The Journal.

er SpeculaJlOn.
Special TO The Journal.
New York, June s.-The history of the
market campaign in Canadian Pacific |
which eliminated on Tuesday, June g in
the failure of the banking firm of A. e. |
Ames & Co., Toronto. is an interesting
romance of speculations
The history of the original Canadian
Pacific pool, as it is known in Wall street,
has been written before. But the cam
paign that has just ended had little or
nothing to do with the Canadian Pacific
pool as Ames & Co, were not members
of that clique and had nothing to do with
this select coterie who pooled their cheap
ly bought stock under the able care and
consummate generalship of one of the clev-
crest speculative leaders that has ever
jousted with the free lances of Wall
street This original pool started opera
tions early last spring and accumulated
stock at intervals up to the middle Of the
summer Of 1902 1t is believed it sold out
the last share of stock within week of
the beginning of the money stringency
in New York
While this pool was unloading its stock
several other smaller pools were formed
to participate in the benefits from the adj
vance of Canadian Pacific to 175, this be-
ing the optimistic figure these manipu-
lators set for themselves. One of the
members of this fraternity was identified
with the firm of A. E. Ames & Co. There
by hangs this tale.
Early in September 1902, certain
powerful New York flnancier whose
operations are not always in the specu-
lativer market, and whose millions have
been made as much in the legitimate field
of railroad development as in the wreck
ing of companies and the running of for
tunes, turned his eyes upon the specula-
ton rampant in Toronto and Montreal
With the genius of the stock market gem
eral he saw that this speculation had gone
| a great deal too far Once before he had
made many millions by magnificent at
tack upon the inflated securities of COM
pany whose stock had been for months
the center of speculation, and he be-
lieved that he could repeat the process
with the stock of the Canadian capitalists.
That idea was the origin and basis Of
the remarkable campaign that eliminated
with the failure of A. E. Ames & Co.
The Work OF Spy.
Early in the fall of 1902 he secretly
sent to Montreal a certain young man
who had come out of the west five years
ago and had made for himself on the floor
of the stock exchange a reputation for
shrewdness, sagacity and lack of princi-
pie. This young man spent many days
in Montreal but came back empty handed
He reported to his chief that he could not
| find in Montreal a spot weak enough for
a stock market attack. Two of the most
powerful banking institutions on the con-
| tinent stood squarely behind the Montreal
men who had handled Canadian Pacific
so fearlessly and SO we'll. He advised his
chief to abstain from the attempt to
break into Canadian Pacific. He believed
| that the pool was sold out, and was not,
| therefore, vulnerable.
| His chief then sent him to Toronto.
The expert scalp hunter returned within
a week. He reported that he found a
powerful banking firm that had COM
mitted itself too deeply on the bull side
of the market, and that had tied up its
available funds and it's capital in a class
of securities that could not be liquidated
with advantage in a falling market. The
market at that time was declining in the
first break of the early autumn. The New
York Spectator had found the opening
he looked for. It but remained to bring
his forces to bear upon the weak spot.
Saved by st. Paul Raid.
He came within an ace of accomplish
ing his object within thirty days. Cana
dian Pacific touched 124 Immediately after
election day. Just why it stopped at 1874
no one could then underst and. Recent de-
velopments, however, have cleared this
matter up. 1t stopped at 124 for the rea-
was made by a syndicate of bears upon
the securities of Chicago, Milwaukee &
st. Paul. This may seem at first glance
to have nothing to do with Canadian Pa
cific, but it will be more readily under
stood when it is stated that the capitalist
who supplied the sinews Of war to break
the Canadian Pacific account was him
self deeply committed to the bull side of
st. Paul. He had sold much st. Paul al
ready, but by no means all he intended to
, sell. 1t behooved him, therefore, to sup
port the market not depress it. He put
aside for the time being his sinister at
tempt to wreck the fortunes Of the Toronto
men, and turned his attention strenuousy
to the saving of his own thousands Ir
!, consequence-so great is the power of this
one man-St. Paul rallied nobly, and the
bears were repulsed with heavy loss. With
; it Canadian Pacific also rallied, the press
ure of the attack being removed, and the
New York capitalist helping the rally con
> siderably by covering his shorts in Cana
dian Pacific. .S,1s-
Since then the capitalist in question has
passed thru a severe illness. Moreover
: since then more newly made millionaire
: of the west have been cajoled into buy
> ing St. Paul at prices between 100 ant
\ 160 on the understanding that the North
y ern Securities com any would. if success
! full in the courts, take in st. Paul at $22
per share, which would, of course, net
, | handsome prOHC. -
n How the Crash Came.
: And after that the crash. This shrew
man of Wall street and his nunerou
: friends having unloaded largely of st. Pau
: and other stock. proceeded to knock tn
q bottom out of the market. and gather il
IL the profits as they fell
y This is a matter of market record. TIL
g especial efforts, that have been directe
y against Canadian Pacific are not a. matte
8 of record They are here written for tn
/ first time. An effort was made tire
y weeks ago to test the market in Canada
IL Pacific. by heavy short selling. The resu
:, was not just what was desired. It be
9 came manifest that the Toronto accour
~ was not standing, and that. new force
y. were at work beneath the surface. It wa
just at this time that a whisper frol
Is Montreal reached the street to the effec
= that Canadian Pacific was again goo
+ for 145.
= It happened, however, tina an even nor
/ powerful influence than the united strengt
I'd of the Montreal capitalists was working
the New York market for 4 decline. FL
the first time in two years really power
full bear party entered the Wall street list
Standard Oil cut its dividend. The Cit
at National Bank preserved an ominous S
lence The powers that be talked littl