New-York tribune., 1915-03-26
SCALES, ONCE BROKE
GETS new FORTUNE
Wall Street Operator
Cleans Up Big Profit in
Wheat and Cotton.

On August % last, Eugene c. Scales,
one of the nerviest operators Wall
Street has known in recent years, an
nounced that he was broke By filing
"a petition in bankruptcy. The war and
the terrific smash in cotton had taken
away the last of the millions he
amassed in the famous pools in which
he was associated with James A. Pat
ten, of Chicago.
Now, Wall Street hears, Scales has
another fortune. How big no one in
the Street pretends 70 say, but the few
most familiar with his affairs say IL
is large even for Scales. the man who
"would rather be busted than have only
little" The sensational rise in wheat
following the outbreak of hostilities
gave him his first real start toward
Cpulence once more; the steady climb
of cotton has completed the work thus
begun. The rise from above six cents
TO the present level for cotton has been
largely engineered by Scales.
Since his failure Scales has net been
very much in evidence in Wall and
Beaver streets. and az the Waldorf,
where nightly brokers and spectators
used to gather in a niche near the
cashiers desk TO listen 70 his cotton
talk and his stories. has not known
him since he filed the petition in bank
ruptcy. Less prominent quarters have
been his, not because he lacked the
means 10 live at the Waldorf, but be-
cause, as he told one friend. "too much
sympathy Is getting on my nerves. I
want TO get somewhere where l can
saw wood for a while"
Scales began Saving wood" In May
wheat when IL was somewhat above
a dollar, with little money and q good
line of credit. This was at the time
when the veterans of the Chicago wheat
pit were moving slowly and the grain
was about as safe 20 handle as nitro
glycerine. He was in and out Of the
market, "pyramiding" his profits, un-
til finally. when il looked as though
wheat would go through the roof" he
was long into the hundreds OF thou
sands of bushels. The nearer IL got 20
$1.50, according 10 the story told IN
Wall Street, the more he bought.
About that price he began 70 IN
load. His market sense" told him it
was time TO get out and let the other
fellow have some of the profits.
With the profits he cashed IN he
turned to his first love, cotton. OF
cotton lore he Is a master and in that
the last in 1909, when he rolled 5000
obtained in a pawnshop upon a dia-
mond pin into S6,500,000. With this
and a small credit from his cousin, s.
j. Harman, of Shreveport, he began TO
trade in wheat. In other days Scales
had made connections with James A.
Patten In swinging big deal IN whest,
and ne was not averse 10 allowing
Scales TO trail along. When he quit
his wheat he was $4,000 10 the good.
Then he went into cotton, when that
staple was selling around eight cents.
In New Orleans he began TO plunge,
and when that town became too small
he moved to New York to operate.
When he finished that deal, late in De-
cember, 1909, his cash profits were es-
timated at S6,5O0,000. That was high
tide, and as he was not feeling in the
best of health he decided to clean up
all his affairs and take a rest. The
next day he felt better-the story runs
that a long walk and a good nights
rest had resulted In an appetite for
breakfast for the first time in weeks
so that he saw things in a roster light
than on the preceding day.
At any rate. he decided that cotton
was good for 20 cents a pound, or $50
a bale higher than the then ruling
price. That change of mind cost him
So. .5OO,0 900. After that he won and lost.
but he lost oftener than he won. and
last July when s. II. p. Pell G. Co.
closed their doors, forcing the New
York Cotton Exchange to suspend ope-
rations, he was s2S.000 worse than
broke. OF the millions he had only
100000 was left, and he owed s223,-
0OO.
Scales had not advertised his good
fortune, and has deprecated stories
told by his friends that he had come
back" The most he will admit Is, IL
have made little money!