| Show Chelton the western champion hls Chicago friend James B had brought east to meet the season's cracks “Well” said Barr ambiguously mopping hls face as usual “you going to win — the Seaside 7” “I usually win — everything" anPiorce swered And the laughing two men laughed together and sepover that STORIES o'WALL STREET Control of the St Fouis Southern By LOUIS JOSEPH VANCE Copyright by was a OSEPH W BARR unique product of the stutrust In boom pendous which had swept building Into Wadi street on a tidal wave of dollars a hundred-drehad who Individuals clambered aboard the somewhat ciaii ot the promoters The wave receding his fellow had been hurried back one by one into the obscurity whence they Issued but Barr made land — and financial history cidentally In the old days as a drummer for a hardware house" Joe" Barr had earned the reputation of the nerviest poker player west of Chicago But he also sold goods and when a friend of his conceived the Idea of making a nail of wire In place of Iron the two had combined their slender resources and built a plant for Its manufacture which developed until it was finally promoted Into the wire nail trust Barr found himself In possession of an even and plenty of time to tilt with fortune A brief survey of the field convinced him that only In Wall Btreet was the dlmlt sufficiently Indefinite and the stakes great enough to Justify his undivided attention He promptly formed the brokerage house of Willis Barr ft Co with John Willis as stock exhis change member and several of western friends as special partners and shuffled the pack preparatory to making the bespectacled financiers In cobwebbed banking parlors “sit up" as he tersely put It And sit up they did even to his If not their entire satisfaction They sat up nights trying to puzzle out what this “western gambler” as they unanimously declared him to be would do next In all things but one Joseph W Barr walked with the hand of fortune and it was out of this one unfulfilled desire that came one of the most amazing deals In the annals of the street Street ft Smith “When they are Issued It will take about 236000 out of the 460000 shares to carry control I've made some pretty as careful Inquiries and calculations to where and how the St Louis stock Is held and Jotted down the facts" Barr took from his desk a memorandum and read the tabulated figures slowly: SO 000 shares “In Investors’ hands "In the street 46000 shares "In London 60000 shares "In Willis Barr ft Co 10000 shares "In Bowman ft Co and 210000 shares friends 400 000 shares "Total "Of course" Barr continued handto Pierce "the ing the memorandum the figures are approximate except I’ve picked up here and there In the last few days “How to get what we want of these holdings Is of course for you to say I presume you’ve got to hammer Bt Louis down to scare out stock from the Investors and the street and London but I know you’ve got to put it up to get that 60000 shares from the road's maangement If you put It from $100 a share where it Is now to $110 It will mean ten dollars a share or $600000 In their treasury If they sell They'll sell quick They’ll do It too for fear It'll go down again They’ll sell It before It’s listed on the exchange for that takes 30 days "You know What that means They'll have sold something they haven't got until the 30 days are up In the meantime they’ll borrow without knowing It our stock the stock we’ve corralled and when we call on them for It they won’t have It to give us and we can make ’em settle for any figure we’re kind enough to name” Pierce nodded appreciation of this mine that was being laid for the unwary management Bowman “What about ft Co’s stockf” he queried “They’ve got the control” U you had looked In on the Wall He knew the answer before he askstreet offices of Willis Barr ft Co ed the question where a dozen tickers spun out their Barr got up from his chair and miles of tape each frac- walked over to the screened window tion a fortune lost or won and where He looked out on the hurrying Wall as many telegraph Instruments flashed street crowd mopping hls face with the messages to great cities afar you would handkerchief ends have thought last of all that the short “Pierce" he said facing the manipfat man with so much double chin ulator with a quick movement ‘‘the that it scarcely yielded way to the silk Co will banking house of Bowman handkerchief stuffed beneath it had sell that stock for the roadft They’ll social ambitions But he had sell short a big block of their own Two months before he had been stock at the price we’ll put It to exat the most ex- pecting to get It back lower” hopelessly blackballed clusive club In the city and Barr's These and other essentials worked soul still burned hot with anger at out Pierce sent for hls personal the banker whom he knew to be re- broker William Hathaway whose This man had “stacked standing In the street sponsible was of the highthe cards” he told his western friends est which Is to say that his connecand with this explanation went the as- tion with Pierce was absolutely unsurance that he would somehow get known To him Pierce told as little even if he “went broke” doing It as might be of the business in hand And even as Barr watched the spinand personally assumed all responsining tape It was telling him that his bility for the deal chance had come With the loose ends on 'Tve got some Information of his handkerchief he mopped his crops" Pierce explained confidenfaoe a perpetual occupation of the tially 'They’re bad In the southwest man and each click click of the and we'll sell the granger roads In strument translated said to him: that territory as they depend on crops “I’ve got him I’ve got him I’ve got for St Louis Southern earnings him” This Is Thursought to feel it most channels day you sell 60000 shares of the Through the subterranean of Information with which the street Is other three southwest roads and 30000 honeycombed Barr had learned some- of St Louis We’ll buy back our short thing a week before which led to a stock when St Louis reaches 93 seven long consultation with his partners points under its present price If you At Its end he had sent have to sell more to break the market from the west for Sanford Pierce the shrewdest madown go ahead but be careful about nipulator of stocks the street had ever raising suspicion’’ known The broker hurried away proud of The place of the stock manipulator hls supposed of the "eld possession In the economy of Wall street Is so man's” confidence and Pierce arclearly defined that while he holds be- ranged through other brokers for the tween his hands the fate of vast purchase of the bulk of the stock schemes some reputable many not Hathaway sold and all the St Louis there la no known Instance of a breach Southern that frightened holders of trust on his part— his loyalty to might throw over on the break his employers Is his stock In trade The attack bad ImmeMoreover In this Instance Pierce was diate effect The grangers including a St Louis Southern a man after Barr's own heart had broken 1 corner of s puny tradition and a hardy points at the close and on Friday soldier of fortune on many fields when the bears had Joined the moveTherefore in the privacy of his own ment they broke still further big office Barr went straight to his work orders having been reached at 97 and the other listened with something In St Louis which closed at 96 On like a fellow artist's appreciation of Saturday sales of 10000 shares of St the cunning of the thing— for It was Louis for London account and a bad the game of games— and a brother's statement by the banks whose resympathy for the genius of It all the sources had been depleted through hot wrath of a gambler thwarted cash withdrawals by Barr’s Chicago “In the first place Pierce” began banking friends offset dlspatchesTrom Barr with a smile that was far from the maligned west telling ot bumper “I am pleasant going to tell you crops The financial writers ascribed the weakness to a bear raid for quick frankly that I'm in this thing to satisfy a personal grudge That will show profits so skilfully had Pleroe conyou how much confidence I put In you cealed Its real object and to what lengths I’m ready to go Louis 93 St Southern touched to carry it through It Is neither a shortly after the bank statement was question of spending money nor mak- Issued but rallied sharply at the close The floor said the rally was ing It although I guess we'll do both to 94 before It’s over due to evening up purchases by the “What I want Is the control of the bears but It really came from wholeSL Louis Southern railroad and from sale buying by Pierce's unknown some things I've learned I think there brokers St Louis Southern had been Is s good chance to get it The capital put down seven points without arousing suspicion and the shrewd manipuof the road as you know Is $40000-00that's 400000 shares In addition lator felt that he had shaken out as to that I know that it has Just bought much weak stock as could be doe with Impunity a smaller road and to pay for It Is After the close of the market Pierce the question of Issuing ‘60000 shares of stock authorized a long time went down to Sheepshead Bay to watch one of hls horses win the SeaIn the is on held and It treasury ago these 60000 shares that I'm counting side stakes' In the paddock before the race he met Barr who was looking for success Blake arated On Sunday night Pierce met Barr at the latter’s apartby appointment The manipuptown hotel with him a memorandum of hls operations on the bear side of the deal Just closed “Pretty bad market the last three Pierce” said Barr with a days chuckle “Old you buy any stocks on the break?” “I bought considerable SL Louis Southern— I think it’s going higher" retorted the manipulator and then he plunged into the facts “I don’t know exactly how much Bt Louis we shook out on the pounding we gave it but my brokers accumulated 60000 shares We're short about 30000 shares of other stocks put out to help the market but I guess we can cover them at a loss of about I didn’t dare cover them on $100000 ment In an ulator had Saturday “With your 10000 we’ve got now shares of St Louis and can count safely on the 60000 the management will be Induced to put out That makes 130000 shares and we need only 106000 additional to give you complete control” A sudden wave of anger swept him he was again the old hardware drummer: “Damn him” he cried “damn him! I’ll take hls railroad from him like I'll make you'd take a toy from a kid him ashamed to show hls face in the street here where he was fooled out of hls road and at his club where he blackballed the man who was smart enough to do It” “Old Pierce” as New street called him with blind affection left the offices of Willis Barr ft Co by the back door with a smile like a sleeping inface t fant's on hls narrow The task was no less to hls liking because Bowman’s crack filly Altalr had beaten his own Boxwood In the last Suburban Pierce loved hls horses far more than he did men or godsA He would have undertaken the task for pure love? he thought as he sought his own office but he soon found himand self adding multiplying dividing the cold figures brought him back to the world with another smile for they were hls prospective reward a fortune In themselves Point by point the manipulator went over the details of the deal and It grew under hls hand like a battle plan under that ot a general The bulk of the money needed Barr was to get In among hls banking friends Chicago so the local banks might have no inkThe controlling ling of the matter stock Pierce figured ought to be obtained at about $110 a share which meant $25000000 all but $5000000 of which would be obtained on loans on to the stock bought Commissions brokers for buying the stock and for purchases and sales of other stocks to call for would the market manipulate about $300000 for Pierce received reductions from the brokers In spite of The enorthe strict exchange rules mous orders he distributed in hls mawould tempt any broker to nipulations break any number of rules Barr sighed contentedly and settled back to hls big chair He seemed loath to break the chain of pleasant thoughts the manipulator’s words had brought The light from the shaded to him electric table lamp fell on his face which was round and boyish but or mustache the light “Well” he said finally “what next? Up?” We'll lead the manage“Yes up ment of the road into temptation and we’ll draw out 35000 shares from London where they love a speculation and from the street which Is Joined to Init by bonds of unholy wedlock vestors won't sell on a raise and well have to get the ether 70000 shares for control—” “You get that and more from Bowman” broke in Barr "I want to see some stock with hls name on the back of It” The market opened up on Monday The financial writers told how baseless really had been the previous decline and hinted at a bear raid for Good crop news and quick profits tumbled Into the earnings splendid market and so restored confidence-with a little help from the kindly dis— Pierce that the by Thursday posed list had climbed back to Its level before the raid and St Louis was selling at 100 again Therefore for two weeks that seemed as many years to Joseph W Barr hungry for revenge Pierce patiently and persistently bulled the market By apparent purchases which were really nothing more than matchhls broked orders as all unknowing ers bought from others of hls brokers stimulus was imparted to the market and the great public which always buys when prices are going up came In and helped the game along It was only St Louis Southern that Pierce actually bought and he took all that offered On Monday two weeks after the bull movement had been put under way he saw Barr for a moment and told him 20000 shares had come In on the movement “I can't find any of the management's stock although Bt Louis Is now at “1 don't dare 105 ' Pierce concluded put It up faster It would rouse And Barr had to admit this Impatient as he wae In the banking house of Robert Bow- man ft Co the strength of St Louis Southern had not passed unnoticed its slump In the downward movement had been accepted as a part ot the general bear raid On Monday the stock touched 105 Bowman met by appointment at luncheon two of hls fellow members of the of the St Louis executive committee and they had agreed that It was a good time to put out the 60000 shares of stock In the treasury "It is difficult to tell how long this will last” said Bowman movement with who was a nervous little man family traditions social ambitions and ‘It's those westa big racing stable and It might of course ern gamblers not be a bad Idea to take advantage of their foolish bulling “If we put out 30000 shares of the stock at 106 that will mean $180000 more than we could get at par anil If It goes farther we can put the other 30000 out too” The board of directors met the samo afternoon They authorized the Issue of the stock and put its sale which was to be secret as the new shares would not be good delivery to buyers for the prescribed 30 days In Bowman's hands It meant a commission of two per cent or $120000 to Bowman ft Co On the following morning Bowman reached his office earlier than usual and sent for Walter Carruth of the stock exchange firm of Carruth ft who handled all of Bowman ft Co’s exchange The marbusiness ket had just opened and he was at the ticker when Carruth entered "Mr Carruth” Bowman said at once “I see that the market Is very strong and that 8t Louis Southern has opened at 105 The directors of the St Louis have voted to sell 60000 shares of stock now in the treasury and this seems a good time to put it out Do you think the market will take 30000 shares around 106?” This market “Easily Mr Bowman is so broad and strong that it would take the entire issue and advance on it I believe” Carruth believed this the sale of 60000 fully and besides shares meant a commission of $7500 for hls firm “That Is also my belief but we’ll As much put out 30000 shares first as you can of It today If It touches 106 I can’t believe it will go much but we’ll try It anyway higher “I think the entire market will go higher Mr Bowman” said Carruth as he rose to go Bowman laughed a little Mr Carruth “Well If it does I shall be sorely tempted to turn bear and sell some of my personal holdings I'm sure I'd get them back lower “By the way I think you had better It Is give up your name as the seller best to keep the road out of the matter as It will be some time before we You can can deliver the new stock borrow It easily enough meantime” And It was this same afternoon a hot Tuesday of July that Barr stood over the ticker In hls Wall street office and listened to the message of the which told him busy little machine “You’ve got him!” In pleasing words: — words which man the watching transposed into “I’ve got him” quite naturally For St Louis touched 106 at one o'clock and Carruth began to sell The ever watchful Pierce detected this selling as soon as It began and hurried a message almost congratulatory to Barr with the Information With the crumpled message In hls the pudgy hand Barr hovered over tioker hls eyes shining but otherwise as cool as you would have the “nervof west iest poker player Chicago” Is a trivial thing In a Longitude game of chance Through Tuesday afternoon and all Carruth sold SL Louis day Wednesday At the close of WednesSouthern day he had put out the 30000 shares stock and it was safeof management ly in the hands of Pierce’s brokers who had kept the stock so easy to crowd loan in borrow that no the thought had been raised ef the accumulation Under the manipulator's orders the on stock had declined diplomatically the heavier sales but in company with the whole market it had held well on Wednesday Pierce closing at 106 had also taken In some 9000 shares sold oy the arbitrage house for London the banker In hls withered hands golden apples of the Hesperldes And the banker grasped for them He had been pouring millions Into a vast scheme for the control of the traction systems of three big western cities family tradition had driven him Into the building of a palace at Newhls extensive racing stable hls port greater pride had been running heavily behind at the various meetings If he sold 60000 shares of his own stock at 110 it would mean $600000 In cash to him at once and he felt that he could regain It as soon as this al surd bubble of melons and dividends had been pricked No one but Carruth would know and he was bound to silence by self interesL He turned Bowman Blghed a little to the waiting broker “Carruth” he said slowly “if the market will take It you may sell shares for my personal account I’m finally a bear on my own road you see” and he tried bard to force a laugh to go with the jest Carruth hurried back to the floor and before the close by the aid of the favorable rumors regarding the road had put out 36000 shares The sales for the day were over 90000 shares and the stock closed at 110 the highest figure Friday brought forth long detailed stories In the morning papers ot great things impending in SL Louis Southern to all of which the road’s managers including Bowman had refused so ran the stories to give denials It was hinted by one paper that the recent activity in the stock had been due to buying for control by a competCentral ing road the Mississippi The stock at once became the feature of the trading It opened at of a point over Thurs110 day’s close on a sale of 1000 shares This was taken by Carruth’s brokers by a broker acting for Pierce as was the block of 6000 shares which followover 100000 noon ed it at 110 By shares had been traded In and Carruth had put out and Pierce taken In 40000 shares of Bowman's stock From noon on the St Louis post was a pin point In a seething mass of huIn blocks of 10002000 and manity 3000 shares Carruth hurled the rest of the banker’s stock at the markeL expecting to see It break any moment and anxious only to get It out at the It But it didn’t break high prices went steadily up in spite of the fact that the bears were selling also Even denials by the news bulletins of melon cuttings and purchases for control Central the story by the Mississippi unwent Pierce had set afloat heeded When an explicit denial ef any deals or anything else of a favorable nature sent to the floor by Bowman at Carruth’s request 20 minutes before the close of the market failed to check the rise Carruth became uneasy He had telephoned the banker that as hls stock had been put out it would check the excitement and start the decline If a statement were issued and instead of this the excitement was increasing and the stock still climbing And now for the first time Carruth the buying of St began to analyze Louis Hurried conferences with hls brokers resulted in a compilation of the names of the buyers and he found that day after day the stock had ultimately gone to less than a' dozen houses With resistless logic he went on quickly to a realization that he had sold into a bag which unseen hands had held open for the stock The 60 000 shares of treasury stock the shares he had sold for Bowman In all 120000 shares — and then he remembered the break of the stock to 93 two weeks before Rigged— the whole market had been A rigged snare had been laid and the control of the road— Two minutes later he was panting out hls story to Bowman who was Just stepping into hls carriage to be driven In hls office again the bankuptown er listened silently to the story of hls undoing for something told him that the cunning hand behind it all had won won Irretrievably Irretrievably? The word brought him to a soldierly erectness “Carruth” he said steadily “you have my orders to buy all the SL Louis Southern tomorrow you can geL There Is no limit as to price I shall cable my and my own reParis connections sources are at your command It may be that we are mistaken tomorrow will tell but we must be ready to fight ” — In any event There came a timid knock at the mullloned door The two men looked to the train for St Louis and bought at an almost fabulous price a block of 5000 shares which Barr’s Chicago friends had located With the messenger under wayjhey issued calls through their brokers for all stock borrowed of them In order as Barr said to get all the cards In the deck It was one of these calls which had reached Carruth In Bowman’s office The calls went to houses all through the street and the recipients read them over again and again spelling ruin out ot the brief words which demanded the return of something they had sold before they had it Like Car' ruth' they realized now that It was too late that Barr had all the stock there was afloaL Before the opening of the exchange the messengers who had been sent hither and thither looking for stock and a returned shiver of fear ran through the streeL For the great Northern Pacific corner when that stock went tov$I000 share under the bidding of crazed shorts was fresh In the memory of alL 113 From where It opened SL Louis Southern soared to 120 before the first 60 minutes were ended and men fought like beasts in a bear pit for raw meat for the pitifully few shares that came from London and elsewhere Carruth with Bowman’s wealth and the millions of gold of the banker’s connections behind him European fought like a man gone mad but he too knew It was a hopeless flghL The market was swept bare of St Louis Southern At 11:30 It touched 124 and ni' mors of failures were flying fast around the floor The strain was telling on men and one trader who was went 7000 shares short suddenly quite foolish babbling like a little child It was not a pleasant thing to see It was the beginning of the end the president however for at 11:45 In the of the exchange appeared men rostrum and when the crazed had been at last quieted announced that John Willis of Barr ft Co had assured him that there would be no corner and that SL Louis Southern could be borrowed freely of hls firm by those who were urgently In need of y the stock ' A hoarse cheer went up from the raw throats ot the wearied crowd Early that evening when darkness was sifting down on the street and old Trinity’s spire stood out against the r western sky like a gigantic of the spirit of the streeL In the offices of W P Martin & Co there met the old and the new owner of Marthe SL Louis Southern railroad tin ft Co had already arranged for the sale of Barr’s holdings to a competing western road at a price that later put in hls plunder another $10000000 Bowman chesL had come in response to an invitation from Martin ft Co who wanted hls now minority holdings for the same road Barr was sitting on the corner of a mahogany desk against the glowing side of which he was drumming an air with his boot heels when Martin introduced Bowman He shuffled down clumsily and stretched out his moist hand to the little banker whose unshaven face as Barr saw was haggard with exhaustion “Mr Barr" Bowman said quietly “you have bought a good railroad— and you might have ruined me — and did not” It was an acknowledgement and almost a question “Well” said Barr mopping his face under the stress of the thing “you made'-thAnd road didn’t you?” then with a burst of pride In hls magthe unasked nanimity he answered ' question: “Damn 1L” he said earnestly as If this must make it clear to Bowman “damn It I guess I’ve got some milk of human kindness left” Copyright Btreet ft Smith ' Side Lights on Hls Career A deputation from the Literary guild had waited on Dr Samuel Johnson and asked him to make a speech before that body on a certain date “Gentlemen” he said "I shall have to refer you to my press agent Mr Boswell Jim have I got to make a spiel anywhere next Tuesday night?” answered Bos“Why no doctor" “but you’ll well la an undertone have to pass it up You know It will be two weeks yet before you get your glad rags out of hock Gentlemen” he added turning to the callers “I regret to say that Doctor Johnson’s will be time fully occupied for the next fortnight" This incldenL on mature reflection was suppressed by Mr Boswell when he came to write that Immortal biog- account On the floor of the exchange shortly after noon Thursday a rumor gained good was coming way that something out on SL Louis Southern The stock of had touched 108 and in explanation the rise were offered stories of Increased dividends and the cutting ot a melon for the stockholders which is the street’s way of describing an Is- at each other “Come In” called the banker sue of new stock at a price under the markeL There were attractive deMlstah Bowman “Ah Begs pa’don tails as to the sweetness ot the melon It s a urgent message fr’m Mlstah Pierce was a famous Imaginative offls” and the old negro usher raphy Floor members telephoned the ru- bowed apologetically mors te their houses and the reporters Carruth tore the message from the Used te IL went to Bowman to confirm or deny wrapper with trembling fingers "It looks to me like there was go“Mr Bowman it’s a call for the rethem ing to be war between America and of 20000 tomorrow “1 have absolutely to turn morning drawled China” say” nothing Eph Walters down the banker told the newspaper men in shares of St Louis I borrowed to de- at the corner grocery store “What liver on tne first of the new Issue I do you think of It stranger r addresshls familiar family tradition manner of the truth of the sold for you It means that pressure and convinced ing a tall attenuated fellow who was stories they rusned the news to their is now to be put on us for they know evidently a newcomer to the village BL Louis Southern began to we can’t deliver the new stock for 30 The attenuated man looked at Eph papers Is from call Frank The climb and said: reproachfully days ” “When I got married I was a Bowman sent in baste for Carruth widower with three grown-u“Who does he trade for usually? I who ' was on the floor of the exboys Do you know?” Bowman Interrupted married a divorced woman with two change W Barr — Willis boys and a girl that has a wonderful “It seems Mr Carruth” he said “Why — Joseph cutof wife has of melon Co foolish decided knqw?" a rumor a Barr eloquence you “that ft My gift that she wants to be a grass widow increase In SL “Yes” Bowman answered quietly ting or dividend Louis has gained headway and the “I know— now” again and her first husband Is taking stock Is going up There Is absoluteIt will be long before the memory sides with her I don’t see any use of of the following day passes from the me botherin’ myself about war in ly no truth In either story of course China I’ve got h— I enough at home!” but while the stock Is up on these street where traditions are cherished stories I think yon had better put out as tenderly as are love letters In old Information the other 80000 shares of treasury lavender “Do Walt a moment you know anything about stock By four o’clock on Friday Pierce and please” ' Bowman stepped qulpkly to the tick- Barr knew that they had 230000 shares Caesar?” asked Maudle “Certainly" “He er which was recording the climb ef of SL Louis safely In their hands To replied Marine been have siman quescontrol secure was must a so 109 or at Ia the beyond make the It SL Louis great many people wouldn't have named lence of the banking room It was as tion they hurried a trusted messenger if Fierce were in person holding out to Jersey City where he caught a fast their dogs after him |
