The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-02-07
The BREAK IN TURPENTINE
y the beginning of the beginning the
distuers Of turpentine carried COM

. 80 @Re@4s4 44@ 80 S%%@4@AS@+
- the beginning of the beginning the
dist1lers Of turDentine carried COM
petition to the quarreling point.
It was Alfred Neustadt, a banker IN
q famous turpentine district, who first
called his bTother-in-law' attention TO
the pitiable sight. Jacob Greenhaum's
scUl thrilled during NeustadCs recital.
He decided TO form q turDentine trust.
First he bought for song all the
bankrupt stills-seven of them. Then
he secured options on nine others, the
tired untO-death plants Then the
banking house of Greenbaum, Lazarus
d Co. stepped in, Interested accom-
plices, duped or cOerced into selling
enough other distiIiers TO assure sue
cess, eajoled the more stubborn,
Wheedled the more CredUIous, gave way
gracefully 20 the shreyder and gathered
them all into the fold. The American
TuTpentine company was formed with
"A capital Of $50. 600 600 or 800 600 shares
a. 800 each. The cash needed to pay
Greenbauu, Neustadt and others who
sold their plants for part cash and
part stock" was provided by an issue
o. $4,000, 000 of 6 per cent bonds. IN
derwritten by a syndicate composed Of
Greenbaum. Lazarus a. Co, I. a s.
WechsleT. Morris Steinfelder's Sons,
REFS & Stern, Kohn, Fischel & Co,
SHERMAN e. LindheiH, ROsenthal
Shaffran & Co, and Zenan Brothers.
n due course Of time the public sub
scribed for the greater part of the S25,-
G00000 of bonds, and both bonds and
stock exChange-that is, they were
placed on the list of securities which
members may buy or sell on the floor
Of the exchange.
TabuIarly expressed. the syndieate's
operations were as follows;
Authorized stock ...................s $50 Co. Go
Authorized bonds ....-...-...,...-. e5,9el,eGJ
Actual worth Of property ...... Y, s0o0o0
Aqua pura .-....----....-.-......Si2 So, 200,003
Paid 10 owners Of forty-one distH-
1eries, representing 80 per cent of the
turpentine production (and 121 per
cent Of the consumptiOnD Of the
United States:
Cash from bond sales ............S S,975.gs5
Bohqs ...........-....+..-- IL Vtj5.DOb
STOCK .--...-'.......... 4oz4s,so3
Total Ss39 90. rS.i
SyHdicates commission, stock. j. 81, 5o0
Retained in company's treasury,
Expense and discounts on bonds,
etc -.-.... .-.-.-.-- 4S5.flf
Total e.. ...-........................s55o0o, 900
These figures were not for pubIica-
ton. They told the exact truth. It
remained for the syndicate to make d
market"
All the manufacturers who had re-
ceived stock in part payment were told
most impressively by Mr. Greenbaum
not 10 sell their holdings under any
circumstances at any price below SO
a share.
Mr.. Greenbaum took charge of the
market conduct Of ''Turp." as the tape
called the stock Of the American Tur-
pentine company. At first, the price
was marked up by means Of matched
s-precOncerted and therefore not
bona fide transactions.
''Turp" began at ., and as the syn
dictate had all the stock in the market,
it Eas easily manipulated upward to
%. Every day many thousands Of
shares according to the stock exchange
Official repOTds, changed hands
from Greenbaum's right 10 his left
hand and back agsin-and the price
rose steadily. But something was alb
sent. The manipulation was not con-
vincing. 1t did not make the general
public nibble.
Every attempt 10 sell "Turp'' met
with failure At length il was decided
TO allow the price TO sink back 10 an
"invitingly low" level. It was done.
But still the invited public refused to
buy. Efforts to encourage a short in
terest 20 over-eXtend itself into
sQueeza BILE proportions failed SINH
larly.
In the course Of the next few months.
grrs Hsr-4r. Ire
tions, which gave "Turp' a bad name.
even as Wall street names went, de-
spite glowing accounts of the COM
pany's wonderful business and after
distributing less than $1,000 shares, the
members of the "Turpentine Skindi-
cate as IL was popularity called. soT-
TcwfUlIy acknowledged that, while they
had sknfully organized she trust and
had done fairly well with the bonds.
they certainly were rot bowling sue
} ceSses as manipulators. During the
following eight months they sold more
stock. They spared not the widow nor
the orphan. They even 'stuck" their
intimate friends. They had sold for
something which had cost them moth
ing; it was natural to wish to sell
more.
1t was decided 10 put ..Turp" stock in
the hands of Samuel Wimbledon sharpe
the best manipulation Wall street had
ever known. CTeenbaum said he would
conduct the negotiations with tbs
great pluBger.
Sharpe was a financial fTeeiance, free
bootef and free-thinker. As A man
inltIator Of stock values he had 10
equal or thu bull side he rushed q
stock upward 50 steadily. SO boldly
end brilliantly. bat. above all so per
suasiycIy. thar lesser gamblers almost
fought TO be allowed to take it of his
hands at incredibly hisn prices. And
when IN the conduct Of one OF his mas
terly bear campaigns he saw fit 70
'aamme.' the market. values melted
away as by magiC-S2tanic magic, the
v0or lambs Thought.
Clreenbaum was promptly admitted tc
Sharpe's private Office. It was a half
Garkened room, the windows having
wire screens summer and winter, IN
order that prying eyes across the street
might not see his visitors or his con-
dCential brokers. whose identity II was
advisable should remain unknown II
rhe street He was walking up and
down the room, p2using from time u
TIME 20 look at the tape
sTfaUo. Greenbauin."
How do you DO, Mr.. sharpe" quot
the millionaire senior partner OF Ihs
firm OF Cfreenbaum. Lazarus & Co. -
hone Won are we'll 20 He bent his head
80 one side. his eyes full Of a caressinl
scrutiny, as though 10 ascertain th'
exact condition OF ShaFpe's health
yes. you must be. I haven't seen yol
look 50 fue in a long time
You didn't come up here Just 4
tell me this, Greenbaum, did you
TIow's your turpentine? On'-with ;
long whistle see. You want me g
e. into il. hey?-' And he laughed
sort of half chuckie. half snarl.
Cyreenbaum looked at him admiring