Business; Capitalists and financiers -- United States; Speculation; Wall Street (New York, N.Y.)
There was a little side-show in connection with the maturing of the
operations in the pool just referred to, which is so characteristic of
Daniel’s methods that it is worth relating. There was a young man in the
Erie pool, but not in the wheel-within-the-wheel in that sacred circle,
who imagined that the purpose of the pool was to put Erie stock up, and
accordingly he borrowed money from Uncle Daniel, his credit being good
and having money in the pool funds, to purchase Erie. The accommodating
treasurer not only lent him the money, but his private brokers sold the
young man the Erie stock desired. He was duly fed from day to day with
the quantity which his speculative appetite craved. After the dump just
referred to, this unsophisticated youth and some other members of the
pool among his friends, went to Uncle Daniel and requested him, as
manager of the pool, according to the programme supposed to have been
agreed upon, to put Erie again on the line of advance, in order that the
young man and his friends might get in and out again, so as to cover
their recent losses.
Mr. Drew, however, coolly informed them that the pool had no Erie stock
and did not want any, and was not prepared to trade in that security any
more at that time.
“I sold all our Arie at a profit,” said Uncle Daniel, “and am now ready
to divide the money.”
So this youthful member had the felicity of discovering that while he
was speculating on his own account for a rise, Uncle Daniel was looking
after his interests in another direction, and had realized at the most
opportune moment.
Thus this amateur operator, whom Uncle Daniel had amused, without
letting him into the secret, in the way described, got nearly enough of
money back to pay the loss he had sustained experimenting outside the
pool on his own account, and upon his own independent but fallacious
judgment.
If he had not speculated outside, he would have had very handsome
profits from the pool, but he would not have obtained the useful
experience which was connected with his losses, and the independent
attitude he was ambitious to assume in speculations.
------------------------------------------------------------------------
CHAPTER XV.
DREW AND VANDERBILT.
Public-domain text, read in full here on John Shaqi.
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