The sun., 1903-12-13

poker Smith was regarded as one OF the
greatest players in the club and person
who would bet the limit every time he
held hand which, in his judgment, ought
to be able to win the pot.
He Is q natural specllator, and 1t did not
take him long after his arrival IN Chlcago
to learn the ms and outs Of trading IN the
Chicago grain pit. On his own Judgment
and on information from good friends
Smith piked along until he had pulled out
of the pit $4,000 or $4,000. About that
time the firm of Baldwin, Gurney d Co..
brokers in stocks and grain, was formed.
One Of the partners was young Charlie
Gates, and John w. dropped In frequently
to see that the firm was steered right.
Smith, soon after the formation OF that
firm. switched from grain to stocks ana
cleaned up in the course Of half dozen
years or 80 something like 100000. Mean
while John W. Gates. Ellwood. Edenborn
and their associates we're working out
the plan for the formation Of he American
Steel and Wire Company. Smith was
let in on the ground floor and secured
81 600 600 of the original underwriting
With that in his waistcoat pocket he came
to New York in the latter part OF 1888 or early
in 1899, with the idea of disposing OF 1t TO
his own advantage and in the hope OF In
teresting Eastern capital in the general
steel and wire proposition.
Not long after he arrived here he became
acquainted with one OF the Sehgmans,
and according to the story which Is told IN
Wall Street, got that firm to interest itself
in the Steel and " ire company. The stock
of the great corporation was foated. The
operations OF Gates, Elwood and the rest
of the Chicago crowd" we're the talk OF
the Street; but, while Smith was taking
his profits from the original underwriting.
few persons in New York knew him, and he
was very much In the background OF the
financial world.
Then came the formation Of the United
States Steel Corporation. the absorption
by it of the American Steel and Wire Com
pany, and the beginning Of one OF the great
est bull movements in 81 ocks that the world
has ever known. Smith was Johnny-on-
the-Spot and on the right side OF the market.
1t may be said. in passing. that thus far IN
his career Smith has always been on the
right side Of the market.
A characteristic Of the man is to plan
campaign Of speculation all by himself.
get all the information to be had that can
be of any value to him. and then back his
judgment to the limit Of his capital. But
the moment there is turn In the market
against him Smith loses no time In closing
out all his holdings, even at small loss.
necessary, and waits for new developments
to manifest themselves.
From the winter OF 1900 until the be-
ginning Of the recent bear movement
Smith continued on the right side Of the
market, and, considering the capital With
which he began his operations in the Street,
his profits were enormous. When the
tide began to turn, Smith threw out his
kedee anchors to steady himself, while
he closed out. pretty generally at profit,
the lines Of stock which he held. 1t might
be supposed that such man would have
Immediately Topped over to the bear side OF
the market and profted accordingly. Not
30 with Smith. He promptly gathered In
his profits and invested good part OF them
in New York real estate, which he holds
to-day.
His largest investments were in real
estate in The Bronx, but he also got some
good bargains in the heart Of Manhattan
Madison avenue. A man who knows some
thing Of his real estate transactions said
the other day that Mr.. Smith could close
out his holdings Of New York realty now
at profit of a million.
Real estate speculation absorbed Mr..
Smiths attention until quite recently,
when the cotton situation looked to him
to be worth investigating. He investigated
it and came to the conclusion that this
years crop was going to be small. There
fore, he ciphered out, cotton was buy;
and buy it he did.
He got into the market quickly and got
out quickly, and took with him few hun
dred thousand dollars as result OF the
plunge. Many months before that good
friend OF his, who probably knows moro
in this country, told Smith some things
about coffee. With that information Smith
began to study the coffee situation himself.
As a result, he sold coffee short. according
TO those in the trade who should know for
nearly year. A few days before the recent
rise In the market he began to buy coffee in
large quantities to cover his shorts. He
covered, took his profits, which were not
small, and now he Is regarded a. coffee
bull.
In his operating in Wall Street Mr.. Smith
does not intend. II he can help It, that any
body shall get on to his curves. To that
end, he has accounts in four or five different
Stock Exchange houses, and 1t is said that
under no circumstances does he ever allow
one Of his brokers to know anything about
the business he does with the others. And
this is the man who came out Of the West
five years ago with not more than $500 900
in cash, and in that time has cleaned up
$5,OO0,0o0!