The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-01-09

When tho public contrasts the treat
ment Gen. Grant received from SOME
OF his best friends with that whicl
he received at my hands they will not
be slow in discovering that his only
enemies were not those with whom NJ
was openly associated.
Instead of being one to induce him
10 enter into extremely risky transac
tiopss | was really Il rostralner, and
in many cases persuaded him not tc
90 into ventures which he brought into
our Office and in which he had implicit
faith, born Of the assurances of friends
who knew that even with, his cconncc
ton they were extremely doubtful and
without il absolutely hopeless.
This being the case, Gen. Grant
innocently and from no fault Of his
own, other than an implicit faith IN
those he had reason 10 believe were his
best friends. became indirectly factor
in the failure of the house.
! remember we'll when the Northern
Pacific railroad had completed its OK.
tension 10 the far west how Gen.
Grant was induced 10 join party of
prominent iinauciers in the FIRST trip
over the road, and how after returning
he came 10 the Office fun OF enthusiasm
over what he thought and was led TO
believe was one OF the greatest suc-
resSes Of the age. He told me ono of
his friends in the street had consented
10 let him have block OF some 1000
shares of the stock AT figure, and
that this friend had guaranteed him
against loss.
! told the general that in the first
place ! could not see where an cXten-
sion OF the road through a wild and as
vet unproductive country could show
any increase in lis earning power
for some years TO come, even though
its builders had procured valuable con
cessions from the government along the
line. ] also told him that to carry
such large block of stock meant a
heavy investment on our part, as IT
would necessitatc our putting mp at
least 50 to 10 per cent as margin on
any loans We might he able to get
on the stock. / also told him ] did not
look for any apprcciable advance in
the slock for some time, but, in fact,
that after the enthusiasm had calmcd
thinking investors would hesitate be-
fore putting their money in n stock
from which there was little hope of
dividends in the near future
! also told him that although the
party giving the guarantee was with
out doubt at present eminently re-
sponsiblc, still Wall street was an un.
certain place, and we could not tell
iIpti N''h ~ Ntth W NndI lll8Ul tDUlt
up to weaken the seemingly strongest
houses urged him TO wait till mat
ters became more settled, but hc felt
that he was right, as his friends were
In position TO know, and rather than
discuss the matter further ] consented
TO the stock being sent in, and il
was. I managed through various
houses and by putting up large margins
to carry it. but ] could not bring
myself 10 believe THAI any advance
would follow in the stock, and this be-
lief so grew upon me that ! decided to
personally sell block short, so that
IN case the stock went down ] could
at least save a portion of the loss.
This I did, and although for time
the stock held its own, soon il began
10 drop, and to such degree that ]
was compelled to add additional Sc
curities to the loan / had procured
for the firm on Gen. Grant IS stock
This decline continued. and after
time became so serious that | per
suadcd Gen. Grant TO 90 to his
friend aud get him to take bacl, the
stock This nc did in part and / closed
out my short sale at such Il profit That
our loss was comparatively small, but
had ] moi done this VIC would have
suffered a heavy loss, which might have
been embarrassing, as the person giving