Year: 1877

more recent failure of an old-established
Boston house that had weathered the
three great financial storms of 1887, 1857
and 1878. recalls to the Trareiier some
remarkable instances of financial ruin
caused by speculation in uniried fields.


In 1858 there was large firm engaged
in the boot and shoe business, probably
at that time the largest in Boston, which
concluded to dissolve. The aggregate
Of the available cash means of the firm
was S1.20O.000. The senior partner in
vested his money in paving securities,
and died a few Years afterwards, having
doubled his capital; the junior partner
did the same, and when he died he had
nearly trebled the amount. The other
partner accepted the honorary position
Of president of a bank, and became in
terested in wildcat speculations in min
ing and new inventions, and to-day he
is almost a pauper. About forty years
ago young man began as porter in a
large concern on South Market Street
he rose gradually from one position to
another till he had acquired knowledge
and money enough to start for himself,
and he chose the then new field of st.
Louis. BY industry, application and
shrewdness he became one of the lead
ing merchants of that city. About
twenty years ago he decided to retire
from active business and return to his
native State. He had clear
cash fortune of SS00.00O. Pur
chasing beautiful estate with
in twenty miles of Boston, and
adding thereto by elegant and costly
buildings and outbuildings and con-
servatories, he settled down to enjoy
himself. But he was not satisfied. He
saw that others had more than he pos
sessed; he could not go back to the old
drudgery of business tp increase his pile,
and in an evil hour he came across one
of those plausible men who pointed out
to him the sure way through which by
single stroke he could double his for
tune. He yielded, and invested his all
in a patent that was not worth the paper
it was written on, and that man to-day
is laboring hard to gain daily bread for
himself and family.


In 1858 one of the leading commission
dry-goods merchants in Boston over
reached his competitors in trade and
made himself whole in that terrible
financial crisis, when most of our lead
ing houses went to the wall. As col
lateral security for notes given for about
$4,000 he took shares in an uncom-
pleted railroad connected with coal
mine. Discovering that this stock held
As collateral represented more than
majority of the whole stock, he employ
ed brokers in Wall Street TO bear the
stock and buy it up for 4 song. He sue
eecded, and he afterwards admitted that
he cleared 100000 by the operation.
The war came on. and he succeeded in
obtaining from the Government several
large contracts. AT the close of the war
he could chink out at least two millions
of dollars in solid cash. But he was not
satisfied. There were such men as
Oakes Ames and John Il. Alley, of the
Union Pacific; Tom Scott, Of the Penn
sylvania Central; Jay Gould, of the
Erie, and Vanderbilt, who could dis
count him four TO one. and he wanted
to be one with them Government lands
and Government appropriations and
Great Western Railroad schemes were
all the rage, and he went in, seeing in
the future his two millions swelling to
ten millions. He has lost his own
money and led his neighbors to ruin,
and is to-day an object OF pity.


Thirty years ago young and prom
ising lawyer was retained by a railroad
corporation in New England, then labor
ing under great difficulties. He soon
got at the true inwardness of the situa-
ton, and, availing himself of the knowl-
edge, invested right and left in its secu-
rifles at low figures. Those securities
afterward became appreciative values,
and he. found himself almost a million
aire. He purchased a splendid estate,