Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-11-30

was to hit him hard Mr.. Gould started
a bear campaign in Western Union. II
was one of the spectacular events of the
wild stock market year 1880. The price OF
the stock declined from 116 1-2 to n 1-2
And at one time Mr.. Gould was cornereo
in 1t.
HIS BROKERS BETRAYED HIM.
After he had sold a great deal of West
ern Union stock short, borrowing II for
delivery as he sold 1t, he discovered one
day that his brokers had betrayed him
They had informed a group of unattach-
ed spectators. among them Keene and
lWoerishoffer, and, making certain that
Mr.. Gould was selling Western Union
stock short, they formed a pool among
them to buy all the stock he might offer
for sale. BY the time Mr.. Gould learned
, of this they had him cornered. He had
sold more stock than he could deliver
If the holders of his contracts should
call upon him together, which was un-
| doubtedly what they intended to do. MI
Gould anticipated them. He called In
his lawyers and instructed them to pre-
pare charge of conspiracy. Then he
served notice on those members of the
buying pool whom he knew that he pro-
posed to move against them on the
ground of conspiracy. They had con-
spired with his confidential brokers to
put him In this hole.
The effect was what Mr.. Gould ex-
pected. One member of the buying poo
took fright and began to sell out on his
associates. Mr.. Gould was not a man
with whom people went lightly TO law.
AS soon as Mr.. Gould detected this sell
ling he sent his brokers into the Western
Union crowd with unlimited orders to
sell. There is, perhaps, no other in
stance of such an order His brokers
were instructed to sell as much stock as
anybody would bury, until further notice.
This selling, combined with that of the
pool member who was secretly getting
out, caused the market to collapse, and
in an hour the conspirators were in full
retreat.
Mr.. Gould continued to pound Western
Union in the market, and the American
Union Continued to pound the Western
Union in the telegraph businesses. At q
point Mr.. Gould turned buyer Of West
ern Union stock His object all the
while had been to do so. He had al
ready considerable interest in the stock
as a result of the Atlantic and Pacific
deal. Now he bought enough more to
make himself an important factor in the
company, and continued, as before to
antagonize the Western Union agrees
sively through his American Union. The
Vanderbilt interests. early in 1881, capitu-
lated. A deal was contaminated. In the
second week OF January Western Union
stock went to 40. The fighting was over
and it remained to perfect the means of
hiving profits.
Also, this was the stage at which tall
rumors found hearing in Wall street. For
instance. on February f. 1881, the Finan-
cial Chronicle printed: cit is rumored
that the United States government pro-
g. IL
OF Messrs. Jay Gould, William H. Wander
bilt, and others the entire postoffice bust
ness of the country. No other compensa-
ton is provided for than the right for
the syndicate to charge any rate for post
age deemed advisable. The main argu-
ment urged for tn echange by the syndi-
cate is that it would be for the public
good, We are unable to trace the above
rumor to any authoritative source, but
1t furnishes keynote to the prevailing
sentiment at the close of the week, and
the public mind has been gradually led
uI to the subject by the consultations of
stock waterings of the last IL months"
To effect the telegraph DEAF the West
ern Union Telegraph company increased
it's capital stock o$3S, $50, and proposed
to exchange new Western Union stock as
follows: For each 100 Shares of American
Union, 100 shares of new Western Union;
for each 100 sharessof old Western Union,
1875 IA shares OF new Western Union;
for each 800 shares of Atlantic and Pacific
telegraph 300 shares of new, Western
Union. It was a comprehensive and retro
active scheme of profits The American
Union got par in new Western Union.
Old Western Union stockholders got
more Western Union. The old Atlantic
and Pacific, which was the heritage of
a previous fight and a majority of
which was already in the Western Union
treasury--it got new Western Union, too.
There was a great furore at once. All
the financial press denounced 1t as an out
rageous stock-watering operation, and
there was much litigation. The Issuing
of the new Western Union stock was en-
Joined. But 1t was finally issued.
CONTROL AT LAST.
In the outcome jay Gould actually own
ed nearly 80 per cent of the company s
capital stock, which, with the rest scat
tarad Oava him TIndfaniited control The