The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-07
THEROGERS.LAWSONDEAL
INSIDE FACTS ABOUT DEAL THAT
MELTED ROGERS sf6,OOO,O0O.
Amaleamated Copper Was Worked Up
to 40, the Public Got in and Then
the "CIique" Began to Unload.

ton. testified. was Amalgamated Copper No posi-
tive statement made public before as
to the extent OF those profits but they were
known 10 be immense The campaign made
shortly after the capitalization of the big cop
per corrpany was raised TO So, 1000 0OO
BY manpulative agencies the stock worked
up to above 100 and then the unloading process
was commenced. Lawson figured quite extern
sively in this deal. although he the
main broker. as he has often claimed. The i'm
portant work was done. by James r. Keene.
whose genius called into play and who gave
substantial assistance TO the Standard Oil group
in their successful attempt TO confer upon the
public a of Copper securities. He sold one
block of 200 600 shares for II. H. Rogers above
120
The proceeds of this block of stock. amounting
TO s25.OoO.OOO in round figures represented clean
velvet" on the slump Of 1903 Amalgamated
Copper was sold below 3d. shrinkage of about
as per cent: from the price at which the public
got the bulk of the capitalization.
John, d.. Rockefeller. pere, is on record as
formally denying that he had anything to do
with Amalgamate1 Copper although ii has al
ways been classified a Standard Oil stock.
The understanding Is that this deal was engi-
neered by William Roekefeller, II n. Rogers
From first to last this little clique has probably
raked in from $50 O00 600 TO $50. 900 out of
their Montana copper juggeries. and their control
at the present time stands them practlcaliy
nothing.
Tolerance of their manipulation of the Copper
been one Of the black chapters in the records of
that institution. 1, has been piracy from first to
last and the fact that il carried under
the protesting Endorsement Of the Exchange is
one OF the things which the apologists for the
loose methods prevailing there md trouble in ex-
cusing.
his chief grievance against Rogers Is that he
was betrayed by the latter into the false position
ct N me & sebeme M IN of s
silence and then TO have gone ahead with his
opposition. In the Lawson code of morals there
was nothing wrong in organizing hold-up or In
him accepting $1,000 900 in settlement, but for him
10 appear to have taken the price and then
IL was all right 10 hold up the scheme, but II
graft and put the latter gentleman in an ethical
hole 1t was on account OF Iawson's supposed
Company after having been bought of that led
to his being refused admission TO the Boston and
mitted the objectionable onense of not staying
bought something which is considered amply
10 pu. Nun on sell me ssf nd tbsn
back on the bargain. In Wall street. as well as
in politics. 1t is the supreme test of honesty to
stay bought
If Rogers had taken the 100000 in gas stock
which was given him to turn over to Lawson and
had bestowed the gift in fee simple there would
probably have been no scandal Instead of that,
however. he handed the stuff to Lawson. who
sold it for Rogers's account and turned the
money over to that astute operator. retaining
only a commission, Rogers excusing himself
done il for the best. Lawson's yachting
fiasco and the attending humiliation having &C.
CURED in the interim. however. the broker was
not in a frame of mind tamely acquiesce in
Mr.. Rogers's advice TO forget it, entirely, and
he has ever since INDUCED himself in the pleas
ure of discussing the incident and anathematiz-
ing Rogers.
To Lawson the affair was one OF consequence.
To Rogers. the transfer of the proceeds of ST.
0.COO in stock 20 his own pocket, when it
should have gone into Lawson's. was, apparently,
a minor incident, and all the satisfaction Law
son ever got out of Rogers might be embodied
remark on the Constitution: What's a million
dollars between friends"
Another incident fresh in mind is further IL
Illustrative OF the average morality in the gam
| bling game IT is sometimes played in the spec
ulative markets. 1 refer to the last Sully cotton
| pool wherein the deposed cotton king charges
Hawley and Ray, his associates. with hav-
| ing laid down on him, after having previously
| divided hundreds of thousands of dollars in sue
| cessfuI operations. In his recital of the wrong
which he says Ray and Hawley committed re-
sulting in his ruin. Suly broadly intimates that
they deuged the market with offerings at a
| time when they should have been giving him
support, thereby breaking his back. instead of
| lending him their bank accounts. To their
! friends Ray and Hawley both make the private
| plea that IL was Suy who acted in bad faith
and that he had handed them out dirty deal
po9is are very common IN wall street street, put II
in establishing the principle Of partnership
] popular in the future than heretofore.
| The unwritten history Of Wall street is full of
tive pools in which treachery and deceit figure
| conspicuously. The feud between James r. Keene
e ae of sad a hSd in ITS
| with famous tobacco deal An historic blind
pool in Reading stocks some years ago was
made especially interesting to wall street by
reason of the sudden transfer Of the pool &C,
| Reading stock advanced 80 TO SIS share which
| circumstance was considered ample confirmation
for private account against the pool holdings and
could not deliver the goods n; In other words.
! r
The early manipulation of the whisky trust
| stocks when the distiers' corporation was con-
| troled by Illinois parties is another chapter
which reeks with charges of chicanery. That
story was written up in dramatic style by Ed
win LeFebre in his 'short Stories of Wall
Street." under the title of "A Corner in Turpen-
| tine
1t is undoubtedly true that in their trading
| and in their direct personal relations the code
| of business morals between Exchange members
is very sIrict and Is rigldy lived up TO. but this
code does not ns9asSary extend to anpuls
| outside. although executed on the floors Of the
| exchanges
| groups of hnanciers to conspire to wrest proper
! ties from the hands Of others and to resort to
|
ends. Private credit may be assailed and for
of this sort so long as those who behind the
scenes are not caught red-handed in the act.
| and provided also that they win out.
| The Rockefeller proposition that business is
war holds good with special force in the fnan-
the w Mnn ene Of Ma street 9s is AS faT IN
| less the of determination in darkest
Africa. 1t is every fellow for himself and glory
to the winner.
The mystery attaching to the late heavy buy
| ing Of Union Pacific Southern Pacific. Atchison
and the merger stocks remains impenetrable to
| the general public. The controlling interests OF
| the several properties embraced in the move
ment unanimously deny all knowledge of the
| identity of the purchasers and profess ignorance
! OF what is going 1t is the habit OF the kings
of finance to indulge themselves in this kind OF
| talk while they are working most actively be-
| Consequently. nobody Is deceived by the pre-
tended Ignorance Of insiders. although there is
deep End genuine curiosity as to the meaning OF
that II is leading to a better and more endur.
| ing understanding between those in OF
| tran<contnental railroads OF Mis-
| sissipri The details Of the latest phase OF the
| be mede public in due time. although seems
| to be the present idea ot the big en-
| shroud their programme ia a fog.
There has been heavy borrowing Of money ~
| both the Morgan-Hill and the Standard oil rar
ties during the last fortnight. and these loanine
operations are supposed 10 have direct bearing
| on the large purchases OF transcontnental rail.
| way securities and In the carrying out OF un-
| derstood deal. AS incident Of the campaign
| or rather. basis for II. il is expected thai
| the Federal Court will eInbody in ruling ar
| ties of the Northern Securities COMPANY will hs
| distributed. This may come along at any t!me